SOURCE: Omniture

May 01, 2007 16:10 ET

Omniture Reports First Quarter 2007 Financial Results

Company Delivers Year-Over-Year GAAP Revenue Growth of 77%

Non-GAAP Revenue Growth of 79%

Raises Outlook for 2007

OREM, UT -- (MARKET WIRE) -- May 1, 2007 -- Omniture, Inc. (NASDAQ: OMTR), a leading provider of online business optimization software, today announced results for its first quarter ended March 31, 2007. Omniture reported another record revenue quarter, with first quarter GAAP revenue of $29.2 million, an increase of 77 percent over the first quarter of 2006 and 24 percent over the fourth quarter of 2006. Non-GAAP revenue for the quarter was $29.5 million. The difference between GAAP and non-GAAP revenue reflects the revenue excluded from our GAAP results due to purchase accounting adjustments, which reduce deferred revenue to its fair value.

GAAP net loss in the first quarter of 2007 was $2.4 million or $0.05 per diluted share, compared to a net loss of $3.4 million, or $0.24 per diluted share, in the first quarter of 2006. Non-GAAP net income was $0.9 million or $0.02 per diluted share for the first quarter. Non-GAAP net income and net loss excludes the effect of acquisition-related accounting adjustments to deferred revenue, stock-based compensation, amortization of certain intangible assets, imputed interest related to a patent license agreement and non-recurring acquisition related expenses.

First quarter adjusted EBITDA was $4.0 million. Adjusted EBITDA is defined as net cash provided by operations less the acquisition-related adjustment to deferred revenues, non-operating gains and losses, the net change in operating assets and liabilities, other income (expense), net and the provision for income taxes.

Operating cash flow for the first quarter was $2.9 million. Free cash flow, defined by the company as operating cash flow reduced by capital expenditures of $2.3 million, was $0.6 million for the quarter.

"In the first quarter, we hit another milestone delivering the fastest sequential revenue growth quarter for Omniture in the last three years," said Josh James, CEO and co-founder of Omniture. "Our industry is experiencing explosive growth and our leadership position is enabling us to capture the majority of this opportunity."

During the first quarter of 2007, Omniture added over 250 new customers organically and approximately 200 through acquisitions, bringing the total to over 2,200. The company captured data from nearly 500 billion transactions. New customer relationships include: American Family Insurance, Amp'd Mobile, H&R Block, Kor Hotel Group, Monster Worldwide, Inc., Move, Inc., PGATOUR.com, Rent.com, Spiegel Brands and TheStreet.com; and internationally, allesklar.com AG, Arcadia Group Limited, European Directories, Nissan Europe, OPEN Business Club AG and Scout 24.

Guidance

Q2 FY 2007: GAAP revenue for the company's second quarter is expected to be in the range of $31 million to $32 million. GAAP net loss is expected to be in the range of $0.11 to $0.10 per diluted share. Non-GAAP revenue for the company's second quarter is expected to be in the range of $32 million to $33 million. Non-GAAP net income is expected to be between $0.00 to $0.01 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $3.0 million to $3.5 million.

Full Year FY 2007: GAAP revenue for the company's full year 2007 is expected to be in the range of $136 million to $138 million. GAAP net loss is expected to be in the range of $0.36 to $0.32 per diluted share. Non-GAAP revenue for the company's full year 2007 is expected to be in the range of $138 million and $140 million. Non-GAAP net income for the year is expected to be in the range of $0.06 to $0.08 per diluted share. Omniture expects to record positive adjusted EBITDA in the range of $17 million to $19 million.

Information for Conference Call to Discuss Q1 FY 2007 Financial Results

Omniture, Inc. will host a conference call and simultaneous audio-only webcast at 5:00 p.m. (Eastern Time). To access the conference call, dial 866-356-3093, or 617-597-5381 for international callers. The access code is 76910275. 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 7:00 p.m. (Eastern Time) by dialing 888-286-8010 (or 617-801-6888), reservation number, 39174364. The conference call will also be archived on the company's corporate Web site. Both the replay and archived web cast will be available until March 15, 2007.

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.

We believe that, while these non-GAAP measures are not a substitute for GAAP results, 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 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 non-recurring acquisition related expenses, provides a meaningful comparison to our net loss figures. We also believe that adjusted EBITDA, which we calculate as net cash provided by operations less the acquisition-related adjustment to deferred revenue, non-operating gains and losses, the net change in operating assets and liabilities, other income (expense), net and the provision for income taxes , is an indicator of the Company's financial results and cash flows and is useful to investors in evaluating operating performance. These non-GAAP measures have been reconciled to the nearest GAAP measure as required under SEC rules.

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, 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 University™. Omniture's more than 2,200 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, Countrywide Financial, 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 our leadership in the market for on-demand, online business optimization services, including web analytics, and our current expectations regarding GAAP and non-GAAP revenue, GAAP and non-GAAP net income and 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 changes in the demand for our services, the potential that Omniture or its customers may not realize the benefits Omniture currently expects from the recent acquisitions, risks inherent in the integration and combination of complex products and technologies, our ability to continue to attract new customers and sell additional services to our existing customers, the continued adoption by customers of our SiteCatalyst service and other product and service offerings, 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 develop or acquire new services, risks associated with our acquisition strategy and disruptions in our business and operations as a result of acquisitions, 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, 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 effectively expand our sales and marketing capabilities, our ability to develop and maintain strategic relationships with third parties with respect to either technology integration or channel development, our ability to expand the sales of our services to customers located outside the United States, 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, 2006 and from time to time in other reports filed by Omniture with the U.S. Securities 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.

(Financial Tables to Follow)

                               Omniture, Inc.
              Condensed Consolidated Statements of Operations
                  (in thousands, except per share data)
                                (unaudited)




                                                                     %
                          Three Months Ended  Three Months Ended  Increase
                              March 31,           March 31,      (Decrease)
                          ==================  ==================  ========
                                      % of                % of
                            2006    Revenues   2007    Revenues
                          ========  =======   ========  =======
Revenues:
  Subscription            $ 15,540       95%  $ 27,320       94%       76%
  Professional services
   and other                   896        5      1,833        6       105
                          --------  -------   --------  -------
    Total revenues          16,436      100     29,153      100        77

Cost of revenues (1):
  Subscription               6,107       37      9,460       33        55
  Professional services
   and other                   671        4      1,278        4        90
                          --------  -------   --------  -------
    Total cost of
     revenues                6,778       41     10,738       37        58
                          --------  -------   --------  -------
Gross profit                 9,658       59     18,415       63        91
Operating expenses (1):
  Sales and marketing        8,181       50     13,324       45        63
  Research and
   development               1,972       12      3,143       11        59
  General and
   administrative            2,850       17      4,386       15        54
                          --------  -------   --------  -------
    Total operating
     expenses               13,003       79     20,853       71        60
                          --------  -------   --------  -------
Loss from operations        (3,345)     (20)    (2,438)      (8)      (27)
Interest income                198        1        636        2       221
Interest expense              (202)      (2)      (257)      (1)       27
Other expense                  (30)       -       (353)      (1)    1,077
                          --------  -------   --------  -------
Loss before provision for
 income taxes               (3,379)     (21)    (2,412)      (8)      (29)
Provision for income
 taxes                          27        -         34        -        26
                          --------  -------   --------  -------
Net loss                  $ (3,406)     (21)% $ (2,446)      (8)%     (28)%
                          ========  =======   ========  =======

Net loss per share:
  Net loss per share,
   basic and diluted      $  (0.24)           $  (0.05)               (79)%
  Weighted-average
   number of shares,
   basic and diluted        13,968              47,753                242%

Adjusted EBITDA (2)       $    (56)      (0)% $  3,972       14%    (7193)%

(1) Amounts include
 stock-based compensation
 expenses, as follows:
  Cost of subscription
   revenues               $     17        0%  $    293        1%
  Cost of professional
   services and other
   revenues                      4        0        104        0
  Sales and marketing           94        0        675        2
  Research and
   development                  97        1        383        1
  General and
   administrative              316        2        430        2
                          --------  -------   --------  -------
    Total stock-based
     compensation
     expenses             $    528        3%  $  1,885        6%
                          ========  =======   ========  =======


(2) Adjusted EBITDA is equal to net cash provided by operations less the
     acquisition-related adjustment to deferred revenue, non-operating
     gains and losses, the net change in operating assets and liabilities,
     other income (expense), net and the provision for income taxes



  Omniture, Inc.
                    Reconciliation of Non-GAAP Measures
                  (in thousands, except per share data)
                                (unaudited)


                                                     Three Months Ended
                                                          March 31,
                                                  ========================
                                                      2006         2007
                                                  ===========  ===========

Reconciliation of Total Revenues on a GAAP Basis
 to Total Revenues on a Non-GAAP Basis:

Total revenues on a GAAP basis                    $    16,436  $    29,153
  Acquisition-related adjustment to Instadia
   deferred revenue (1)                                     -          165
  Acquisition-related adjustment to Touch
   Clarity deferred revenue (1)                             -          180
                                                  -----------  -----------
Total revenues on a non-GAAP basis                $    16,436  $    29,498
                                                  ===========  ===========


Reconciliation of Net Loss on a GAAP Basis to Net
 (Loss) Income on a Non-GAAP Basis:

Net loss on a GAAP basis                          $    (3,406) $    (2,446)
  Acquisition-related adjustment to Instadia
   and Touch Clarity deferred revenue (1)                   -          345
  Amortization of patent licenses (2)                     315          322
  Stock-based compensation                                528        1,885
  Amortization of intangible assets acquired from
   business acquisitions (3)                                -          438
  Amortization of intangible asset related to
   co-marketing and reseller agreement (4)                 71           81
  Imputed interest on patent license
   obligation (5)                                          74           69
  Loss on foreign currency forward contract
   related to Instadia acquisition (6)                      -          243
                                                  -----------  -----------
Net (loss) income on a non-GAAP basis             $    (2,418) $       937
                                                  ===========  ===========


Reconciliation of Diluted Net Loss per Share on a
 GAAP Basis to Diluted Net (Loss) Income per
 Share on a Non-GAAP Basis:

Diluted net loss per share on a GAAP basis        $      (0.24)  $   (0.05)
  Acquisition-related adjustment to Instadia and
   Touch Clarity deferred revenue (1)                        -        0.01
  Amortization of patent licenses (2)                     0.02        0.01
  Stock-based compensation                                0.04        0.04
  Amortization of intangible assets acquired from
   business acquisitions (3)                                -         0.01
  Amortization of intangible asset related to
   co-marketing and reseller agreement (4)                  -            -
  Imputed interest on patent license
   obligation (5)                                        0.01            -
  Loss on foreign currency forward contract
   related to Instadia acquisition (6)                      -            -
                                                  -----------  -----------
Diluted net (loss) income per share on a non-GAAP
 basis                                            $     (0.17) $      0.02
                                                  ===========  ===========


Reconciliation of Net Cash (Used In) Provided By
 Operating Activities to Adjusted EBITDA:

Net cash (used in) provided by operating
 activities                                       $    (2,573) $     2,925
  Acquisition-related adjustment to Instadia
   and Touch Clarity deferred revenue                       -          345
  Loss on foreign currency forward contract                 -         (243)
  Net changes in operating assets and
   liabilities                                          2,456          937
  Other (income) expense, net                              34          (26)
  Provision for income taxes                               27           34
                                                  -----------  -----------
Adjusted EBITDA                                   $       (56) $     3,972
                                                  ===========  ===========


(1) This item is recorded in subscription revenue in the Condensed
     Consolidated Statements of Operations

(2) This item is recorded in cost of subscription revenues in the Condensed
     Consolidated Statements of Operations

(3) Of this amount, $241 is recorded in cost of subscription revenues, $146
     is recorded in sales and marketing expense and $51 is recorded in
     general and administrative expense in the Condensed Consolidated
     Statements of Operations

(4) This item is recorded in sales and marketing expense in the Condensed
     Consolidated Statements of Operations

(5) This item is recorded in interest expense in the Condensed Consolidated
     Statements of Operations

(6) This item is recorded in other expense in the Condensed Consolidated
     Statements of Operations




                              Omniture, Inc.
       Reconciliation of Forward Looking GAAP Total Revenues to 
                         Non-GAAP Total Revenues
                              (in millions)
                               (unaudited)


                                  Three Months Ended       Year Ended
                                     June 30, 2007      December 31, 2007
                                  ===================  ===================
Total revenues on a GAAP basis    $        31 to $ 32  $      136 to $ 138
  Acquisition-related adjustment
   to Instadia and Touch Clarity
   deferred revenue (1)                             1                    2
                                  -------------------  -------------------
Total revenues on a non-GAAP
 basis                            $        32 to $ 33  $      138 to $ 140
                                  ===================  ===================


                          Omniture, Inc.
        Reconciliation of Forward Looking GAAP Diluted Net Loss
          Per Share to Non-GAAP Diluted Net Income Per Share
                          (unaudited)


                                  Three Months Ended       Year Ended
                                     June 30, 2007      December 31, 2007
                                  ===================  ===================

Diluted net loss per share on a
 GAAP basis                       $ (0.11) to $ (0.10) $ (0.36) to $ (0.32)
   Acquisition-related adjustment
    to Instadia and Touch Clarity
    deferred revenue (1)                         0.01                 0.03
   Amortization of patent
    licenses (2)                                 0.01                 0.03
   Stock-based compensation                      0.07         0.25 to 0.27
   Amortization of intangible
    assets acquired from business
    acquisitions                                 0.02                 0.07
   Amortization of intangible
    asset related to co-marketing
    and reseller agreement (3)                      -                 0.01
   Imputed interest on patent
    license obligation (4)                          -                    -
   Loss on foreign currency
    forward contract related to
    Instadia acquisition (5)                        -                    -
   Impact of difference in number
    of GAAP and non-GAAP diluted
    shares                                          -                 0.01
                                  -------------------  -------------------
Diluted net income per share on
 a non-GAAP basis                 $    0.00 to $ 0.01  $    0.06 to $ 0.08
                                  ===================  ===================


                           Omniture, Inc.
           Reconciliation of Forward Looking GAAP Net Cash Provided
               By Operating Activities to Adjusted EBITDA
                           (in millions)
                           (unaudited)

                                  Three Months Ended       Year Ended
                                     June 30, 2007      December 31, 2007
                                  ===================  ===================

Net cash provided by operating
 activities on a GAAP basis       $      5.3 to $ 5.8  $    16.0 to $ 18.0
   Acquisition-related adjustment
    to Instadia and Touch Clarity
    deferred revenue                              0.8                  1.6
   Loss on foreign currency
    forward contract                                -                 (0.2)
   Net changes in operating
    assets and liabilities                       (2.9)                 0.5
   Other income, net                             (0.3)                (1.2)
   Provision for income taxes                     0.1                  0.3
                                  -------------------  -------------------
Adjusted EBITDA                   $      3.0 to $ 3.5  $    17.0 to $ 19.0
                                  ===================  ===================


(1) This item is recorded in subscription revenue in the Condensed
     Consolidated Statements of Operations

(2) This item is recorded in cost of subscription revenues in the Condensed
     Consolidated Statements of Operations

(3) This item is recorded in sales and marketing expense in the Condensed
     Consolidated Statements of Operations

(4) This item is recorded in interest expense in the Condensed Consolidated
     Statements of Operations

(5) This item is recorded in other expense in the Condensed Consolidated
     Statements of Operations


                              Omniture, Inc.
                            Additional Metrics
                                (unaudited)



                                              September December
                          March 31, June 30,     30,       31,    March 31,
                            2006      2006      2006      2006      2007
                          ========= ========= ========= ========= =========
Full-time employee
 headcount                      312       324       323       353       465
Number of transactions
 captured (in billions)       288.5     315.0     362.7     420.7     496.0



                                                  Three Months Ended March
                                                            31,
                                                  ========================
                                                      2006         2007
                                                  ===========  ===========
Revenues by geography (in thousands):
Customers within the United States                $    14,086  $    22,548
Customers outside the United States                     2,350        6,605
                                                  -----------  -----------
  Total revenues                                  $    16,436  $    29,153
                                                  ===========  ===========

As a percentage of total revenues:
Revenues by geography:
Customers within the United States                         86%          77%
Customers outside the United States                        14           23
                                                  -----------  -----------
  Total                                                   100%         100%
                                                  ===========  ===========

                              Omniture, Inc.
              Condensed Consolidated Statements of Cash Flows
                              (in thousands)
                                (unaudited)


                                                     Three Months Ended
                                                          March 31,
                                                  ========================
                                                      2006         2007
                                                  ===========  ===========
Cash flows from operating activities:
Net loss                                          $    (3,406) $    (2,446)
Adjustments to reconcile net loss to net cash
 (used in) provided by operating activities:
   Depreciation and amortization                        2,761        4,180
   Stock-based compensation                               528        1,885
   Loss on foreign currency forward contract                -          243
   Net changes in operating assets and
    liabilities:
     Accounts receivable, net                          (3,654)      (7,326)
     Prepaid expenses and other assets                 (1,459)          13
     Accounts payable                                   1,293        3,487
     Accrued and other liabilities                       (355)      (1,497)
     Deferred revenues                                  1,719        4,386
                                                  -----------  -----------
Net cash (used in) provided by operating
 activities                                            (2,573)       2,925

Cash flows from investing activities:
Purchases of short-term investments                         -      (12,000)
Purchases of property and equipment                    (5,263)      (2,302)
Purchases of intangible assets                              -       (1,628)
Payment related to foreign currency forward
 contract                                                   -         (337)
Business acquisitions, net of cash acquired                 -      (26,264)
                                                  -----------  -----------
Net cash used in investing activities                  (5,263)     (42,531)

Cash flows from financing activities:
Proceeds from exercise of stock options                     9          659
Proceeds from employee stock purchase plan                  -           99
Proceeds from issuance of notes payable                 5,100            -
Principal payments on notes payable and capital
 lease obligations                                       (919)      (1,623)
                                                  -----------  -----------
Net cash provided by (used in) financing
 activities                                             4,190         (865)
                                                  -----------  -----------
Net decrease in cash and cash equivalents              (3,646)     (40,471)
Cash and cash equivalents at beginning of period       22,196       68,287
                                                  -----------  -----------
Cash and cash equivalents at end of period        $    18,550  $    27,816
                                                  ===========  ===========

                              Omniture, Inc.
                  Condensed Consolidated Balance Sheets
                              (in thousands)


                                              December 31,     March 31,
                                              =============  =============
                                                  2006           2007
                                              =============  =============
Assets:                                                       (unaudited)
Current assets:
   Cash and cash equivalents                  $      68,287  $      27,816
   Short-term investments                                 -         12,000
   Accounts receivable, net                          24,126         33,081
   Prepaid expenses and other current assets          1,571          2,181
                                              -------------  -------------
     Total current assets                            93,984         75,078

Property and equipment, net                          31,128         31,875
Intangible assets, net                                9,796         36,804
Goodwill                                                  -         48,039
Other assets                                            302            593
                                              -------------  -------------
     Total assets                             $     135,210  $     192,389
                                              =============  =============

Liabilities and Stockholders' Equity:
Current liabilities:
   Accounts payable                           $       2,586  $       6,468
   Accrued liabilities                               11,435         16,293
   Current portion of deferred revenues              21,885         29,023
   Current portion of notes payable                   5,997          5,313
   Current portion of capital lease
    obligations                                          53            472
   Deferred consideration related to business
    acquisition                                           -         33,579
                                              -------------  -------------
     Total current liabilities                       41,956         91,148

Deferred revenues, less current portion               2,170          2,516
Notes payable, less current portion                   4,117          3,362
Capital lease obligations, less current
 portion                                                 24            351
Other liabilities                                       518          1,204

Stockholders' equity:
   Common stock                                          47             48
   Additional paid-in capital                       127,380        137,067
   Deferred stock-based compensation                 (2,172)        (1,910)
   Accumulated other comprehensive income                 9           (112)
   Accumulated deficit                              (38,839)       (41,285)
                                              -------------  -------------
     Total stockholders' equity                      86,425         93,808
                                              -------------  -------------
       Total liabilities and stockholders'
        equity                                $     135,210  $     192,389
                                              =============  =============

Contact Information