It was a divergent day for on-demand software operators. For example, Concur Technologies, Inc. (NASDAQ: CNQR) posted stellar results and the stock surged (the company develops travel management systems).
Unfortunately, things were not so nice for RightNow Technologies (Nasdaq: RNOW), which provides solutions for customer relationship management. For its fiscal Q1, the company posted revenues of $30.7 million, up from $28.8 million in the same period a year ago. There was a net loss of $3.3 million or $0.10 per share.
Keep in mind that -- over the past year -- the company has been transitioning its business model, going from perpetual licenses to subscriptions. "This is the way customers want to buy software,"said Greg Gianforte, who is the founder and CEO of RightNow, in an interview with me yesterday.
So, what about the weakening economy? Well, in January, he met with 18 of his largest customers. "There are lots of discussions about the economy," said Gianforte, "but I have not seen any pull back."
Then again, RightNow's product essentially helps companies save money. "During 2001 to 2002, we grew through that slow period," said Gianforte.
As for guidance, RightNow expects full-year 2008 revenues of $135 to $140 million, with a net loss of $0.36 to $0.27 per share.
But it wasn't what the Street wanted to hear. As a result, in today's trading, the stock fell 20% to $ 10.23.
Tom Taulli is the author of various books, including The Complete M&A Handbook. He also operates DealProfiles.com.
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