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RightNow Reports 27 Percent Growth in Recurring Revenue in Q1 2011

By Rajani Baburajan
TMCnet Contributor

RightNow, a provider of customer experience management solutions, recorded 24 percent growth in revenue for the first quarter ended March 31, 2011 over the corresponding period in 2010.

Total revenue was $52.3 million in the first quarter of 2011, compared to $42.1 million in the first quarter of 2010.

During the period, RightNow’s recurring revenue was $41.9 million, an increase of 27 percent over $33.0 million in Q1 2010.

The growth is primarily attributed to new, renewed and expanded customer relationships during the first quarter of 2011. Major customer wins during the quarter included Activision (News - Alert), Arbor Networks, Cabela’s, CARFAX, The Container Store, CyberDefender, DeVry, Electronic Arts, Ellie Mae Inc., Equifax, HauteLook, KLM/AirFrance, and Logitech (News - Alert).

GAAP diluted earnings per share was $0.04 and Non-GAAP diluted earnings per share was $0.10. Non-GAAP operating margin increased 400 basis points over Q1 2010 to reach 10 percent.

Current software backlog was $142 million, an increase of 38 percent over Q1 2010

The company recorded net income of $1.4 million or $0.04 per diluted share in the first quarter of 2011, compared to net income of $585,000 or $0.02 per diluted share, in the first quarter of 2010.

Non-GAAP net income in the first quarter of 2011 was $3.7 million, or $0.10 per diluted share, while the non-GAAP net income in Q1 2010 was $2.3 million or $0.07 per diluted share.

 “We carried strong momentum from 2010 into the first quarter, executing against our strategy by expanding our presence with global organizations and growing our product footprint with the acquisition of Q-go,” said Greg Gianforte (News - Alert), CEO and founder, in a statement.

 ”We are well-positioned to continue our success, as customers recognize our unique ability to help them manage their customer experiences and demonstrate measurable returns on their investments,” Gianforte added.

For the full year 2011, RightNow anticipates total revenue to be approximately $226 million, with recurring revenue growth expected to be approximately 24 percent. Net income per diluted share for the full year 2011 is expected to be approximately $0.06.

Recently RightNow announced that Men's Wearhouse, a national provider of men's clothing and formalwear rentals, selected RightNow CX to extend its in-store customer experience to the Web and call center.

 RightNow CX enables Men's Wearhouse to deliver personalized, consistent support across channels, as well as quickly provide information to customers when and where they need it.