Omniture Reports First Quarter Fiscal Year 2009 Financial Results

Posted Apr 23, 2009

Q1 GAAP Revenues Increase 38%, Non-GAAP Revenues Increase 26%;
GAAP Net Loss Decreases 37%, Non-GAAP Net Income Increases 7%;
Over One Trillion Transactions Captured in Q1;
More than 200 New Customers Added in Q1

OREM, Utah – April 23, 2009 — Omniture, Inc. (NASDAQ: OMTR), a leading provider of online business optimization software, today announced results for its first quarter ended March 31, 2009. In the first quarter, Omniture achieved record revenues of $87.2 million, compared to $63.2 million reported for the first quarter of 2008 and $83.0 million reported for the fourth quarter of 2008. This represents 38 percent year-over-year revenue growth. Non-GAAP revenue for the quarter was $87.8 million. The difference between GAAP and non-GAAP revenue reflects the revenue excluded from the GAAP results due to purchase accounting adjustments, which reduce deferred revenue to its fair value.

“In the first quarter, our business continued to deliver solid growth hitting the high end of our revenue guidance and showing continued strong demand for our suite of products,” stated Josh James, CEO and co-founder. “We continue to see uncertainty in the market and are taking appropriate steps to manage through this macro-economic turbulence.”

Omniture's GAAP net loss was $8.2 million or $0.11 per diluted share in the first quarter of 2009 as compared to a net loss of $12.9 million or $0.19 per diluted share in the first quarter of 2008. Non-GAAP net income was $7.8 million or $0.10 per diluted share for the first quarter, compared to net income of $7.3 million or $0.10 per diluted share in the first quarter of 2008. Non-GAAP net income excludes the effect of acquisition-related adjustments to deferred revenue, stock-based compensation, amortization of certain intangible assets, imputed interest related to patent license agreements and certain acquisition-related expenses and non-cash tax adjustments.

First quarter adjusted EBITDA was $16.4 million. Adjusted EBITDA is defined as loss from operations on a GAAP basis less depreciation and amortization, stock-based compensation and the acquisition-related adjustment to deferred revenue.

During the first quarter of 2009, Omniture added over 200 new customers bringing its total to nearly 5,200 and captured data from nearly 1.05 trillion transactions. New customer relationships secured in the first quarter include: AGL Australia, Alibaba, All Star Directories Inc., Arby's Restaurant Group (AFA Service Corp.), B2W Viagens, Boligportal.dk, Damart Thermawear Ltd., Dobbies Garden Centres plc, Feed The Children, Inquirer Interactive, IPF Holdings Ltd., Kalaydo GmbH & Co. KG, lovemoney.com, Pasona Career Inc., ShareBuilder, Spotzer Media Group, The Oxbridge Research Group Ltd., Tokyo Broadcasting System Television Inc., TT Club, and Xerox.

Click here to view the Q1 2009 financial results.

Guidance

    • Q2 FY 2009: GAAP revenue for the second quarter is expected to be in the range of $87.6 million to $88.6 million. GAAP net loss is expected to be in the range of $0.10 to $0.09 per share based upon an estimated weighted average share count of 76.4 million in the second quarter of 2009. Non-GAAP revenue for the second quarter is expected to be in the range of $88.0 million to $89.0 million. Non-GAAP net income for the second quarter is expected to be between $0.11 to $0.12 per diluted share based upon an estimated weighted average fully diluted share count of 79.5 million in the second quarter of 2009. Omniture expects to record positive adjusted EBITDA in the range of $17.0 million to $18.0 million.

Information for Conference Call to Discuss Q1 2009 Financial Results
Omniture, Inc. will host a conference call and simultaneous audio-only webcast at 8:00 a.m. (Eastern Time) this morning. To access the conference call, dial 866-730-5769, or 857-350-1593 for international callers. The access code is 67190577. Please call 10 minutes prior to the scheduled conference call time. The webcast will be available on the "Investor Relations" section of the company's corporate Web site at www.omtr.com. A replay of the conference call will be accessible by telephone after 10:00 a.m. (Eastern Time) by dialing 888-286-8010, or 617-801-6888 for international callers. The access code is 59296420. The conference call will also be archived on the company's corporate Web site. Both the replay and archived webcast will be available until May 7, 2009.

About Non-GAAP Financial Measures
In this release and during our conference call as described above we use or plan to discuss certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. A reconciliation between non-GAAP and GAAP measures can be found in the accompanying tables and on the "Investor Relations" section of our corporate web site at www.omtr.com. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies.

While these non-GAAP measures are not a substitute for GAAP results, we believe they provide a basis for evaluating the company's operating results because they are helpful in understanding our past financial performance and our future results and facilitate comparisons of results between periods. We believe the calculation of non-GAAP revenue, which reflects the revenue excluded from the GAAP results due to purchase accounting adjustments to reduce deferred revenue to its fair value, provides a meaningful comparison to our historic GAAP revenue. We also believe the calculation of net income and loss, calculated without acquisition-related accounting adjustments to deferred revenue, stock-based compensation expense, the amortization of certain intangible assets, imputed interest expense and certain acquisition-related expenses and non-cash tax adjustments, provides a meaningful comparison to our net loss figures. We also believe that adjusted EBITDA, which we calculate as loss from operations on a GAAP basis less depreciation and amortization, stock-based compensation and acquisition-related adjustments to deferred revenue, is an indicator of the company's financial results and cash flows and is useful to investors in evaluating operating performance. Our management regularly uses these non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under the rules and regulations promulgated by the U.S. Securities and Exchange Commission.

About Omniture
Omniture, Inc. is a leading provider of online business optimization software, enabling customers to manage and enhance online, offline and multi-channel business initiatives. Omniture's software, which it hosts and delivers to its customers as an on-demand subscription service and on-premise solution, enables customers to capture, store and analyze information generated by their Web sites and other sources and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. In addition, Omniture offers a range of professional services that complement its online services, including implementation, best practices, consulting, customer support and user training through Omniture Education. Omniture's nearly 5,200 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, General Motors, Sony and HP. www.omniture.com

Note on Forward-looking Statements
Management believes that certain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, including, but not limited to, statements regarding demand for our suite of products, our ability to manage our business in the midst of uncertainty in the market and our current expectations regarding GAAP and non-GAAP revenue, GAAP and non-GAAP net income and net loss, and adjusted EBITDA. These statements are based on current expectations and assumptions regarding future events and business performance and involve certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, risks associated with current uncertainty in and deterioration of global economic conditions, which could negatively impact the demand for our products and services and other related matters and could result in reductions in spending by our customers for our products and services and changes in customers' subscription and renewal patterns, the potential that we or our customers or partners may not realize the benefits we currently expect from our recent acquisitions and strategic partner relationships, risks that the expected financial effect of our recent acquisitions and strategic partner relationships may not be realized, risks inherent in the integration and combination of complex products and technologies from our acquisitions and strategic partner relationships, our ability to continue to attract new customers and sell additional services to our existing customers, including our SiteCatalyst service and the other components of our Online Marketing Suite, the significant capital requirements of our business model that make it more difficult to achieve positive cash flow and profitability if we continue to grow rapidly, our ability to effectively streamline our corporate structure to adapt to a suite rather than a standalone product structure, our ability to develop or acquire new products and services, our ability to raise capital in the future, particularly in light of the ongoing financial crisis affecting the banking system and financial and capital markets and the going concern threats to investment banks and other financial institutions that have resulted in a tightening in the credit markets, reduced liquidity in many financial markets and increased volatility in the equity and debt markets, risks associated with our acquisition and strategic partner strategy and disruptions in our business, operations and financial results as a result of acquisitions and strategic partner relationships, our ability to cost effectively expand our sales and marketing capabilities, the ability of our sales organization to become more productive and our ability to effectively consolidate our sales channels to eliminate redundancies, possible fluctuations in our operating results and rate of growth, the continued growth of the market for on-demand, online business optimization services, changes in the competitive dynamics of our markets, including the potential for increased pressure on the pricing of our products and services in light of the ongoing economic crisis, the inaccurate assessment of changes in our markets, errors, interruptions or delays in our services or other performance problems with our services, our ability to hire, retain and motivate our employees and manage our growth, our ability to develop and maintain strategic partner relationships with third parties with respect to either technology integration or channel development and respond to potential changes in the financial stability and solvency of our strategic partners that may result from the economic crisis, our ability to expand our international operations and to profitably sell our services to customers located outside the United States and to manage the associated fluctuations in currency exchange rates, our ability to implement and maintain proper and effective internal controls, the adoption of laws or regulations, or interpretations of existing law, that could limit our ability to collect and use Internet user information, and the blocking or erasing of "cookies"; and such other risks as identified in Omniture's annual report on Form 10-K for the period ended December 31, 2008, and from time to time in other reports filed by Omniture with the U.S. Securities and Exchange Commission. These reports are available on our Web site at www.omtr.com. Omniture undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Copyright (c) 2009 Omniture, Inc. All rights reserved. Omniture and SiteCatalyst are registered trademarks of Omniture, Inc. in the United States, Japan, Canada and the European Community. Omniture, Inc. owns other registered and unregistered trademarks throughout the world. Other names used herein may be trademarks of their respective owners.


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