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CRM Vendor RightNow Announces Results
TMCnet Contributing Editor
On-demand CRM vendor RightNow Technologies, Inc. has announced results for the first quarter ended March 31, 2006, reporting its 33rd consecutive quarter of revenue growth, with first quarter consolidated revenue of $24.6 million, an increase of 34 percent from the first quarter of 2005.
GAAP net loss in the first quarter of 2006 was $(440,000) or $(0.01) per diluted share, compared to net income of $801,000, or $0.02 per diluted share, in the first quarter of 2005. First quarter 2006 non-GAAP net income per diluted share was $0.01, which excludes the effect of the new accounting standard for stock-based compensation.
RightNow added 97 new customers and handled 281 million customer interactions during the first quarter. New, renewed and expanded customer relationships during the first quarter of 2006 included Crutchfield Corporation, Deltek, Electronic Arts, HanseNet Telekommunikations GmbH, London Underground Ltd., Overstock.com, Ricoh, Scholastic Inc., Sharper Image, Ticketmaster, and Virgin America Inc.
For the second quarter of 2006, revenue is anticipated to be in the range of $25.5 to $26.5 million. GAAP diluted net loss per diluted share is expected to be in the range of $(0.02) to $(0.04) cents.
RightNow founder Greg Gianforte strongly encourages the next generation of software entrepreneurs to start and grow market-driven businesses without depending on excessive outside venture capital investments, advocating “bootstrapping” businesses.
“It’s important for people who want to start a business to hear that their energy, ideas and drive are more important than their ability to borrow large sums of money,” Gianforte said. “If you have something customers want and you can deliver it at the right price-point, revenue and profits will come. If you don’t, all the capital in the world won’t make your business successful.”
“If you get to a point where you could really use additional capital to build your business, that's fine. The problem is that a lot of business owners are short of money because they haven't really figured out their business yet -- and that's why they're not making any money,” Gianforte told this reporter in a recent interview.
“When that's the case, borrowing money just further delays confrontation with your core problem. From my experience,” he said, “too much outside funding too early in the game just allows people to run a sloppy business and avoid the hard work of actually delivering value to customers. On the other hand, when we bootstrapped RightNow, we doubled our revenue and employees every 90 days for two years. That's because we were actually giving customers something they wanted at a price they were willing to pay.”
For the full year 2006, revenue is anticipated to be in the range of $115 to $120 million, and GAAP diluted net income per share is expected to be in the range of $0.02 to $0.09 cents. Excluding the effect of stock-based compensation, non-GAAP diluted net income per share for the year is expected to be in the range of $0.16 to $0.23 cents.
David Sims is contributing editor for TMCnet. For more articles please visit David Sims' columnist page.
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