RightNow Investor Presentation. October 23, 2008

Transcription

1 RightNow Investor Presentation October 23, 2008

2 Disclaimer Statements included in this presentation, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates, and projections about our industry, management s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by the words such as anticipates, expects, intends, plans, predicts, believes, seeks, estimates, may, will, should, would, could, potential, continue, ongoing, similar expressions, and variation or negatives of these words and include, but are not limited to, statements regarding projected results of operations and future strategic plans. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties, and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties referred to above include, but are not limited to, risks associated with our business model; our ability to develop or acquire, and gain market acceptance for, new products in a costeffective and timely manner; the gain or loss of key customers; competitive pressures; our ability to expand or contract operations; fluctuations in our earnings as a result of the impact of stock-based compensation expense; interruptions or delays in our hosting operations; breaches of our security measures; our ability to protect our intellectual property from infringement, and to avoid infringing on the intellectual property rights of third parties; our ability to manage and expand our partner relationships; any unanticipated ambiguities in fair value accounting standards; fluctuations in foreign currency exchange; the amount and timing of any stock repurchases under our stock repurchase program; and our ability to expand, retain, and motivate our employees. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, quarterly reports of Form 10-Q, and in other filings with the Securities and Exchange Commission. The forward-looking statements in this presentation are made as of October 23, We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

3 Investment Highlights Large rapidly growing market CRM On demand/saas Leader in mission critical on demand CRM in large enterprise Proprietary knowledge foundation Large, diversified customer base 26% TTM recurring revenue growth Significant cash flow

4 RightNow Technologies

5 Leveraging Two Disruptive Market Forces On Premise Company Control On Demand Customer Control

6 Land and Expand Strategy

7 Case Study: Overstock.com Goals Significantly improve the quality of customer experiences Improve contact center efficiency Gain greater visibility into customer needs, market trends, and opportunities Results NetPromoter score increased 7x volume down 72% Satisfaction scores increased 10% First-call resolution rates up 10% Call handle times down 25% Estimated $1,000,000 in savings per month RMA and Teradata database integrations bolster contact center efficiency Consumer Platform On Demand Agent Platform On Demand Phone Web Self-Service Voice Self-Service Knowledge Mgmt Phone Incident Mgmt Response Mgmt Service Chat & Co-Browse Mgmt Chat Feedback Mgmt Marketing Co-Browse Opportunity Mgmt Sales Feedback Task Management Community Forums Marketing Campaign Mgmt Reporting & Analytics Knowledge Foundation Answers Self-Learning Customer Data External Data Multi-Language Hosting Platform Virtual CIO Performance Security

8 ~1,900 Clients

9 RightNow Customers Set the Standard

10 RightNow Financial Highlights

11 Focus on Customer Experience = Foundation for Financial Success Business model aligned with customer success Term Contracts Capacity-based and Seat-based pricing Land and Expand Strategy drives strong growth in recurring revenue Measurable ROI drives shorter sales cycles, customer retention, high repeat business Significant Cash Flow SaaS model provides operating leverage for scale Business model transition is complete

12 Recurring Revenue Momentum - TTM 33% CAGR

13 Diversified Business - TTM TTM = Trailing Twelve Months

14 Wide Distribution of Deal Sizes Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 >$1M $100K - $1M <$100K

15 Additional Key Metrics Q1 08 Q2 08 Q3 08 Net Deferred Revenue $41.9m $66.0m $91.7m $94.0m $101.4m $97.9m ASP $32k $56k $76k $90k $107k $98k New Customers Interactions 745m 1.1b 1.5b 463m 477m 596m

16 Operating Margin Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Long- Term Target Revenue 100% 100% 100% 100% 100% 100% 100% 100% Gross Margin 64% 65% 66% 65% 63% 64% 64% 70-75% S&M 59% 57% 55% 55% 49% 48% 45% 35-40% R&D 16% 15% 14% 13% 13% 12% 12% 8-10% G&A 10% 9% 8% 8% 10% 9% 8% 6-7% Operating Income (21%) (17%) (11%) (11%) (9%) (5%) (1%) 18-22% Excludes Stock-Based Compensation

17 Cash Flow

18 RightNow Investor Presentation