8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 24, 2006

RIGHTNOW TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in Charter)

DELAWARE	000-31321	81-0503640
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)
40 ENTERPRISE BOULEVARD, BOZEMAN, MT		59718
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code(406) 522-4200

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.Results of Operations and Financial Condition.

On April 24, 2006, RightNow Technologies, Inc. (the “company”) issued a press release announcing its financial results for the first quarter ended March 31, 2006. A copy of the press release is furnished herewith as Exhibit No. 99.1. The company also has posted on its website supplemental financial data, as of April 24, 2006, which is furnished herewith as Exhibit No. 99.2.

The information contained in this report and in the exhibits attached to this report is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.Financial Statements and Exhibits.

(a)Not Applicable.

(b)Not Applicable.

(c)Exhibits.

Exhibit No.	Description of Exhibit
99.1	Press Release, dated April 24, 2006, announcing RightNow Technologies, Inc.’s financial results for the first quarter ended March 31, 2006 (furnished herewith but not filed pursuant to Item 2.02).
99.2	Supplemental financial data of RightNow Technologies, Inc., as of April 24, 2006 (furnished herewith but not filed pursuant to Item 2.02).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RIGHTNOW TECHNOLOGIES, INC.
	(Registrant)
Dated: April 24, 2006	/s/ SUSAN J. CARSTENSEN
	Susan J. Carstensen Chief Financial Officer, Vice President, Treasurer and Assistant Secretary

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EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press Release, dated April 24, 2006, announcing RightNow Technologies, Inc.’s financial results for the first quarter ended March 31, 2006 (furnished herewith but not filed pursuant to Item 2.02).
99.2	Supplemental financial data of RightNow Technologies, Inc. as of April 24, 2006 (furnished herewith but not filed pursuant to Item 2.02).

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EX-99.1

Exhinit 99.1

40 Enterprise Boulevard

PO Box 9300

Bozeman, MT 59718-9300

406.522.4200 P

406.522.4227 F

FOR IMMEDIATE RELEASE

For Further Information, Contact:
Investor Relations:	Corporate Communications:
Todd Friedman or Stacie Bosinoff	Jason Treu
The Blueshirt Group	RightNow Technologies
415.217.5869	972.232.3977 Desk
todd@blueshirtgroup.com	214.893.3096 Cell
stacie@blueshirtgroup.com	jtreu@rightnow.com

RIGHTNOW TECHNOLOGIES REPORTS

FIRST QUARTER 2006 FINANCIALRESULTS

Company announces record quarterly bookings of $37.6 million and 97 new customers

BOZEMAN, MONT. (April 24, 2006)¾RightNow^®Technologies, Inc. (NASDAQ: RNOW), today announced results for the first quarter ended March 31, 2006. RightNow reported its 33^rd 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.

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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.

“We are very excited to start the year with record bookings, driven by our increasing penetration with large enterprises and the public sector,” stated Greg Gianforte, founder and CEO. “Our customers want to increase their customer loyalty and revenue without increasing costs, and RightNow meets that challenge.  We accomplish this by leveraging our unique and patented knowledge foundation at multiple points of the customer interaction to deliver a great customer experience. After all, you make or break relationships one experience at a time. RightNow is leading the industry beyond CRM to higher impact customer experience, and helping our customers create powerful and sustainable differentiation in their markets.”

Susan Carstensen, CFO, added, “Strong performance in our North American sales groups helped drive our highest ever quarterly bookings of $37.6 million. We remain comfortable with our expectation of 40 – 50% bookings growth target for 2006.”  At March 31, 2006 deferred revenue totaled $80.9 million, or 53% more than one year earlier, and cash from operations in the first quarter 2006 totaled $6.1 million.

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Guidance

•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. Excluding the effect of stock-based compensation, non-GAAP diluted net income per diluted share is expected to be in the range of $0.01 to $0.03 cents.

•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.

Quarterly Conference Call

RightNow Technologies will discuss its quarterly results via teleconference at 4:30 p.m. (ET)/2:30 p.m. (MT) today, April 24, 2006. To access the call, please dial (800) 289-0494 at least five minutes prior to the start time. An audio webcast of the call will also be available at www.shareholder.com/rnow/medialist.cfm. A replay of today’s conference call will be available on the company Web site at www.shareholder.com/rnow/, under the Investor Webcasts menu, from 5:30 p.m. (MT) on April 24, 2006 until 10:00 p.m. (MT) May 8, 2006. You may also access a replay of today’s call by dialing (719) 457-0820 or (888) 203-1112 with the replay passcode 9256426.

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About RightNow Technologies, Inc.

RightNow (NASDAQ: RNOW) is leading the industry beyond CRM to high-impact Customer Experience Management solutions. More than 1,500 companies around the world turn to RightNow to drive a superior customer experience across the frontlines of their business. As a win on service strategy becomes a business imperative, experience management solutions are increasingly recognized as a core driver of business success. Founded in 1997, RightNow is headquartered in Bozeman, Montana, with additional offices in North America, Europe and Asia. For further information, please visit www.rightnow.com.

RightNow is a registered trademark of RightNow Technologies, Inc. NASDAQ is a registered trademark of the NASDAQ Stock Market.

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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included in this press release, 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 words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these wordsand include, but are not limited to, statements regarding projected results of operations and management’s 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, including our new sales and marketing and voice automation products, in a cost-effective and timely manner; the gain or loss of key customers; competitive pressures; our ability to expand 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; and our ability to expand, retain and motivate our employees and manage our growth. 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 release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

FRNOW

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RightNow Technologies, Inc.

Consolidated Balance Sheets

(In thousands) (Unaudited)

	March 31,			Dec 31,
	2006			2005
Assets
Cash and cash equivalents	$	42,444		$	40,874
Short-term investments	27,063			23,314
Accounts receivable	31,615			25,462
Term receivables, current	17,268			15,376
Allowance for doubtful accounts	(2,090		)	(2,209		)
Net receivables	46,793			38,629
Prepaid & other current assets	2,439			1,993
Total current assets	118,739			104,810
Property and equipment, net	6,632			6,451
Term receivables, non-current	12,611			10,697
Intangible assets, net	1,340			1,487
Other	107			231
Total Assets	$	139,429		$	123,676
Liabilities and Stockholders’ Equity
Accounts payable	$	2,983		$	2,308
Commissions and bonuses payable	3,706			2,910
Other accrued liabilities	6,248			5,733
Current portion of long-term debt	30			30
Current portion of deferred revenue	54,191			48,673
Total current liabilities	67,158			59,654
Long-term debt, less current portion	109			117
Deferred revenue, net of current portion	26,715			19,250
Stockholders’ equity:
Common stock	32			32
Additional paid-in capital	79,536			78,312
Accumulated other comprehensive (loss)	(393		)	(401		)
Accumulated deficit	(33,728		)	(33,288		)
Total stockholders’ equity	45,447			44,655
Total Liabilities Stockholders’ Equity	$	139,429		$	123,676

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RightNow Technologies, Inc.

Consolidated Operating Statements

(In thousands, except per share amounts) (Unaudited)

	Three Months Ended March 31,
	2006			2005
Revenue:
Software, hosting and support	$	19,310		$	13,874
Professional services	5,321			4,468
Total revenue	24,631			18,342
Cost of revenue:
Software, hosting and support	2,771			2,064
Professional services	4,104			2,696
Total cost of revenue	6,875			4,760
Gross profit	17,756			13,582
Operating expenses:
Sales and marketing	13,726			9,457
Research and development	3,130			2,161
General and administrative	2,056			1,410
Total operating expenses	18,912			13,028
Income (loss) from operations	(1,156		)	554
Interest and other income (expense), net	672			292
Income (loss) before income taxes	(484		)	846
(Provision) benefit for income taxes	44			(45		)
Net income (loss)	$	(440	)	$	801
Net income per share:
Basic	$	(0.01	)	$	0.03
Diluted	$	(0.01	)	$	0.02
Shares used in the computation:
Basic	31,943			29,816
Diluted	31,943			33,564
Supplemental information of stock-based compensation expense included in:
Cost of software, hosting and support	$	38		$	—
Cost of professional services	97			—
Sales and marketing	366			—
Product development	159			—
General and administrative	123
Total stock-based compensation	$	783		$	—

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RightNow Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands) (Unaudited)

	Three Months Ended March 31,
	2006			2005
Operating activities:
Net income (loss)	$	(440	)	$	801
Non-cash adjustments:
Depreciation and amortization	1,105			742
Provisions (recoveries) for uncollectible accounts receivable	(248		)	52
Stock-based compensation	783			—
Changes in operating accounts:
Receivables	(9,798		)	(2,402		)
Prepaid and other current assets	(167		)	(44		)
Accounts payable	688			776
Commissions and bonuses payable	787			(663		)
Other accrued liabilities	503			208
Deferred revenue	12,976			3,819
Other	(137		)	(50		)
Cash provided by operating activities	6,052			3,239
Investing activities:
Net change in short-term investments	(3,749		)	11,488
Acquisition of property and equipment	(1,140		)	(1,078		)
Acquisition of intangible assets	(10		)	—
Cash provided by (used for) investing activities	(4,899		)	10,410
Financing activities:
Proceeds from issuance of common stock under employee benefit plans	433			588
Payments on long-term debt	(8		)	—
Cash provided by financing activities	425			588
Effect of foreign exchange rates on cash and cash equivalents	(8		)	(26		)
Increase in cash and cash equivalents	1,570			14,211
Cash and cash equivalents at beginning of period	40,874			18,944
Cash and cash equivalents at end of period	$	42,444		$	33,155

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RightNow Technologies, Inc.

Reconciliation of Non-GAAP Measurements

(Amounts in thousands, except per share amounts) (Unaudited)

Diluted Earnings Per Share Reconciliation

For the three months ended March 31, 2006

Net income (loss) as reported	$	(440	)
Add stock-based compensation	783
Net income before stock-based compensation (“SBC”)	$	343
Diluted net (loss) per share, as reported	$	(0.01	)
Diluted net income per share, before SBC	0.01
Diluted shares outstanding, as reported	31,943
Diluted shares outstanding, excluding the effect of SBC	34,306

Forward-Looking Guidance Reconciliation

	GAAP Guidance									Non-GAAP Guidance
	From			To			Adjustment			From		To
Second quarter ending June 30, 2006
Net income (loss)	$	(700	)	$	(1,400	)	$	1,600	[a]	$	200	$	900
Diluted EPS	$	(0.02	)	$	(0.04	)	$	0.05	[b]	$	0.01	$	0.03
Diluted shares	32,200			32,200			2,000		[c]	34,200		34,200
Year ending December 31, 2006
Net income (loss)	$	600		$	3,100		$	5,000	[a]	$	5,600	$	8,100
Diluted EPS	$	0.02		$	0.09		$	0.14	[b]	$	0.16	$	0.23
Diluted shares	34,500			34,500			—			34,500		34,500

[a] Estimated stock-based compensation expense to be recorded for the periods indicated in accordance with Statement of Financial Accounting Standards No. 123R, Share-Based Payments, (“SFAS 123R”) which is effective for periods beginning January 1, 2006. Periods prior to 2006 do not include stock-based compensation expense.

[b] Estimated per diluted share effect of stock-based compensation noted in [a].

[c] Estimated adjustment for the dilutive effect of outstanding common stock equivalents.

About Non-GAAP Financial Measures

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.

RightNow’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding RightNow’s operating results because they facilitate the comparison of results for future periods with results from past periods. RightNow adopted SFAS 123R on January 1, 2006 using the modified prospective method. Results of prior periods have not been restated to conform with the 2006 presentation. We believe the calculation of diluted net income per share, calculated without stock-based compensation expense, provides a meaningful comparison to our diluted net income per share figures reported for 2005 and prior years.

EX-99.2

Exhibit 99.2

Consolidated Balance Sheets

Unaudited

Last updated April 24, 2006

	Amounts in thousands
	At December 31,						Mar 31,		Jun 30,		Sep 30,		Dec 31,		Mar 31,		Jun 30,		Sep 30,		Dec 31,		Mar 31,		Jun 30,		Sep 30,		Dec 31,		Mar 31,
	2000		2001		2002		2003		2003		2003		2003		2004		2004		2004		2004		2005		2005		2005		2005		2006
Assets
Current assets:
Cash and cash equivalents	17,128		6,258		8,038		8,216		8,116		8,294		8,360		8,352		8,912		21,806		18,944		33,155		30,292		39,594		40,874		42,444
Short-term investments	—		—		—		—		—		—		—		—		—		25,943		31,188		19,698		24,181		20,883		23,314		27,063
Accounts receivable	5,649		3,711		6,637		7,084		7,652		6,342		10,415		12,003		14,034		17,968		16,939		13,552		15,799		21,968		25,462		31,615
Term receivables	2,839		3,600		3,085		4,498		5,881		6,521		4,926		5,080		5,849		8,232		10,090		13,275		14,733		14,105		15,376		17,268
Less allowance for doubtful accounts	(941	)	(728	)	(519	)	(616	)	(521	)	(768	)	(902	)	(1,221	)	(1,274	)	(2,626	)	(1,581	)	(1,627	)	(1,608	)	(1,960	)	(2,209	)	(2,090	)
Prepaid & other current assets	526		510		466		853		711		1,021		509		1,017		1,778		1,265		1,255		1,272		1,196		1,771		1,993		2,439
Total current assets	25,201		13,351		17,707		20,035		21,839		21,410		23,308		25,231		29,299		72,588		76,835		79,325		84,593		96,361		104,810		118,739
Property and equipment, net	3,044		3,931		3,319		3,031		2,877		2,880		2,942		3,234		3,553		4,001		4,393		4,842		5,375		5,597		6,451		6,632
Term receivables, noncurrent	—		—		924		1,197		1,704		1,919		2,278		2,415		3,673		3,777		5,756		8,256		10,234		10,801		10,697		12,611
Intangible and other assets, net	496		1,343		1,152		990		911		938		858		1,145		1,068		1,157		1,325		1,232		2,028		1,892		1,718		1,447
Total assets	28,741		18,625		23,102		25,253		27,331		27,147		29,386		32,025		37,593		81,523		88,309		93,655		102,230		114,651		123,676		139,429
Liabilities, Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued liabilities	2,819		2,335		2,039		2,229		2,591		3,234		3,179		4,197		4,293		5,452		5,435		6,397		6,600		7,635		8,041		9,231
Commissions and bonuses payable	1,025		531		1,076		925		974		1,197		1,636		1,469		2,133		2,248		2,648		1,971		2,550		3,344		2,910		3,706
Current portion of long-term debt	7		2,042		3,282		3,374		3,078		1,488		1,390		1,324		1,349		15		—		—		31		29		30		30
Deferred revenue	12,317		14,843		17,392		19,428		21,510		23,349		26,127		25,368		30,780		32,796		36,020		37,899		40,669		45,694		48,673		54,191
Total current liabilities	16,168		19,751		23,789		25,956		28,153		29,268		32,332		32,358		38,555		40,511		44,103		46,267		49,850		56,702		59,654		67,158
Deferred revenue, noncurrent	4,843		4,031		7,291		8,375		9,061		8,811		9,426		11,361		9,997		11,695		13,105		14,911		16,699		18,058		19,250		26,715
Long-term debt	—		1,185		940		720		753		626		484		1,046		1,377		—		—		—		131		125		117		109
Preferred stock	31,075		32,340		32,373		32,388		32,391		32,394		32,398		32,442		32,446		—		—		—		—		—		—		—
Stockholders’ equity (deficit):
Common stock and warrants	21		21		14		14		14		14		15		15		15		320		320		233		137		138		32		32
Additional paid-in capital	(1,109	)	(1,051	)	(986	)	(984	)	(987	)	(922	)	(912	)	(807	)	(721	)	71,663		72,367		73,042		74,479		76,339		78,312		79,536
Other comprehensive income (loss)	(38	)	(91	)	(9	)	(25	)	1		21		73		(40	)	(360	)	(390	)	(605	)	(618	)	(445	)	(433	)	(401	)	(393	)
Accumulated deficit	(22,219	)	(37,561	)	(40,310	)	(41,191	)	(42,055	)	(43,065	)	(44,430	)	(44,350	)	(43,716	)	(42,276	)	(40,981	)	(40,180	)	(38,621	)	(36,278	)	(33,288	)	(33,728	)
Total stockholders’ equity (deficit)	(23,345	)	(38,682	)	(41,291	)	(42,186	)	(43,027	)	(43,952	)	(45,254	)	(45,182	)	(44,782	)	29,317		31,101		32,477		35,550		39,766		44,655		45,447
Total liabilities, preferred stock and stockholders’ equity (deficit)	28,741		18,625		23,102		25,253		27,331		27,147		29,386		32,025		37,593		81,523		88,309		93,655		102,230		114,651		123,676		139,429

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.

Consolidated Statements of Operations

Unaudited

Last updated April 24, 2006

	Amounts in thousands, except per share data
	Fiscal Year						2003										2004										2005										2006
	2000		2001		2002		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		YTD		Q1
Revenue:
Software, hosting and support	10,549		18,998		23,338		6,276		6,940		7,457		8,627		29,300		10,720		11,709		12,976		14,359		49,764		13,874		16,864		18,005		19,201		67,944		19,310
Professional services	758		2,009		3,603		1,531		1,304		1,763		1,981		6,579		2,137		3,053		3,450		3,360		12,000		4,468		4,214		5,149		5,373		19,204		5,321
Total revenue	11,307		21,007		26,941		7,807		8,244		9,220		10,608		35,879		12,857		14,762		16,426		17,719		61,764		18,342		21,078		23,154		24,574		87,148		24,631
Cost of revenue:
Software, hosting and support	3,306		4,636		4,279		1,225		1,337		1,342		1,359		5,263		1,579		1,636		1,729		1,797		6,741		2,064		2,276		2,253		2,518		9,111		2,771
Professional services	485		1,335		2,156		736		765		967		1,272		3,740		1,310		1,573		1,979		2,344		7,206		2,696		2,879		3,026		3,355		11,956		4,104
Total cost of revenue	3,791		5,971		6,435		1,961		2,102		2,309		2,631		9,003		2,889		3,209		3,708		4,141		13,947		4,760		5,155		5,279		5,873		21,067		6,875
Gross profit	7,516		15,036		20,506		5,846		6,142		6,911		7,977		26,876		9,968		11,553		12,718		13,578		47,817		13,582		15,923		17,875		18,701		66,081		17,756
Operating expenses:
Sales and marketing	20,756		22,050		15,939		4,402		4,696		5,389		6,322		20,809		6,848		8,037		8,055		9,046		31,986		9,457		10,557		11,248		11,421		42,683		13,726
Research and development	3,639		4,584		4,117		1,439		1,480		1,489		1,507		5,915		1,805		1,807		2,028		2,167		7,807		2,161		2,426		2,937		2,904		10,428		3,130
General and administrative	3,375		3,973		2,842		766		795		978		979		3,518		1,153		1,016		1,164		1,288		4,621		1,410		1,586		1,627		1,822		6,445		2,056
Total operating expenses	27,770		30,607		22,898		6,607		6,971		7,856		8,808		30,242		9,806		10,860		11,247		12,501		44,414		13,028		14,569		15,812		16,147		59,556		18,912
Operating income (loss)	(20,254	)	(15,571	)	(2,392	)	(761	)	(829	)	(945	)	(831	)	(3,366	)	162		693		1,471		1,077		3,403		554		1,354		2,063		2,554		6,525		(1,156	)
Interest and other income (expense), net	607		229		(357	)	(117	)	(35	)	(65	)	2		(215	)	(64	)	(46	)	30		226		146		292		331		440		583		1,646		672
Income (loss) before income taxes	(19,647	)	(15,342	)	(2,749	)	(878	)	(864	)	(1,010	)	(829	)	(3,581	)	98		647		1,501		1,303		3,549		846		1,685		2,503		3,137		8,171		(484	)
(Provision) benefit for income taxes	—		—		—		(3	)	—		—		(536	)	(539	)	(18	)	(13	)	(61	)	(8	)	(100	)	(45	)	(126	)	(160	)	(147	)	(478	)	44
Net income (loss)	(19,647	)	(15,342	)	(2,749)		(881	)	(864	)	(1,010	)	(1,365	)	(4,120	)	80		634		1,440		1,295		3,449		801		1,559		2,343		2,990		7,693		(440	)
Net income (loss) per share:

Basic	$	(1.42	)	$	(1.10	)	$	(.19	)	$	(0.06	)	$	(0.06	)	$	(0.07	)	$	(0.09	)	$	(0.28	)	$	0.01	$	0.04	$	0.06	$	0.04	$	0.17	$	0.03	$	0.05	$	0.08	$	0.09	$	0.25	$	(0.01	)
Diluted	$	(1.42	)	$	(1.10	)	$	(.19	)	$	(0.06	)	$	(0.06	)	$	(0.07	)	$	(0.09	)	$	(0.28	)	$	0.00	$	0.02	$	0.05	$	0.04	$	0.12	$	0.02	$	0.05	$	0.07	$	0.09	$	0.23	$	(0.01	)
Shares used in the computation:
Basic	13,810			14,006			14,284			14,394			14,399			14,448			14,704			14,560			14,792		15,185		23,734		29,005		20,738		29,816		30,232		30,802		31,652		30,631		31,943
Diluted	13,810			14,006			14,284			14,394			14,399			14,448			14,704			14,560			25,143		26,187		30,671		33,665		29,177		33,559		33,367		33,667		34,199		33,695		31,943

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.

Consolidated Statements of Cash Flow

Unaudited

Last updated April 24, 2006

	Amounts in thousands
	Fiscal Years						2003										2004										2005										2006
	2000		2001		2002		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		YTD		Q1
Operating activities
Net income (loss)	(19,647	)	(15,342	)	(2,749	)	(881	)	(864	)	(1,010	)	(1,365	)	(4,120	)	80		634		1,440		1,295		3,449		801		1,559		2,343		2,990		7,693		(440	)
Noncash adjustments:
Depreciation and amortization	532		1,486		2,051		619		626		631		598		2,474		624		711		746		709		2,790		742		828		892		944		3,406		1,105
Provision for losses on accounts receivable	1,715		2,032		259		178		153		180		(34	)	477		85		117		349		(62	)	489		52		(8	)	216		161		421		(248	)
Stock-based compensation expense																																					783
Tax benefit of stock options exercised	—		—		—		—		—		—		—		—		—		—		—		—		—		—		124		94		148		366		—
Changes in operating accounts:
Receivables	(6,846	)	(1,295	)	(3,636	)	(2,216	)	(2,583	)	526		(2,405	)	(6,678	)	(1,550	)	(4,178	)	(5,366	)	(3,563	)	(14,657	)	(2,402	)	(5,866	)	(6,072	)	(4,796	)	(19,136	)	(9,798	)
Prepaid and other current assets	(459	)	(338	)	(95	)	(244	)	169		(105	)	24		(156	)	(261	)	(536	)	(344	)	(23	)	(1,164	)	(44	)	67		(609	)	(208	)	(794	)	(167	)
Accounts payable and accrued liabilities	2,071		(435	)	(378	)	192		333		629		(114	)	1,040		580		438		532		425		1,975		984		373		1,071		502		2,930		1,191
Commissions and bonusses payable	789		(510	)	525		(152	)	34		224		414		520		(175	)	671		102		390		988		(663	)	588		807		(423	)	309		787
Deferred revenue	12,991		2,367		5,723		3,121		2,701		1,568		3,265		10,655		1,117		4,406		3,694		4,103		13,320		3,819		4,941		6,523		4,484		19,767		12,976
Other	114		(117	)	243		(39	)	(74	)	(205	)	425		107		(167	)	(241	)	(90	)	46		(452	)	(50	)	(42	)	(17	)	42		(67	)	(137	)
Cash provided (used) by operating activities	(8,740	)	(12,152	)	1,943		578		495		2,438		808		4,319		333		2,022		1,063		3,320		6,738		3,239		2,564		5,248		3,844		14,895		6,052
Investing activities
Acquistion of property and equipment	(3,031	)	(2,265	)	(1,184	)	(277	)	(330	)	(486	)	(491	)	(1,584	)	(761	)	(858	)	(1,004	)	(957	)	(3,580	)	(1,078	)	(1,070	)	(1,124	)	(1,697	)	(4,969	)	(1,140	)
Acquistion of intangilbe assets	(236	)	(739	)	—		—		—		(150	)	—		(150	)	—		(406	)	(95	)	(190	)	(691	)	—		(1,012	)	(23	)	(10	)	(1,045	)	(10	)
Change in short-term investments, net	—		—		—		—		—		—		—		—		—		—		(25,943	)	(5,245	)	(31,188	)	11,488		(4,483	)	3,298		(2,431	)	7,872		(3,749	)
Other	—		—		2		16		—		2		—		18		—		1		—		2		3		—		—		8		—		8		—
Cash used for investing activities	(3,267	)	(3,004	)	(1,182	)	(261	)	(330	)	(634	)	(491	)	(1,716	)	(761	)	(1,263	)	(27,042	)	(6,390	)	(35,456	)	10,410		(6,565	)	2,159		(4,138	)	1,866		(4,899	)
Financing activities
Net proceeds from (payments on) long-term debt	(8	)	3,219		896		(150	)	(285	)	(1,739	)	(259	)	(2,433	)	474		341		(2,713	)	(15	)	(1,913	)	—		—		154		(7	)	147		(8	)
Proceeds from issuance of stock:																																					—
Preferred stock	14,955		1,026		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Common stock issued under employee benefit plans	93		46		90		5		—		70		13		88		111		90		105		870		1,176		588		1,217		1,767		1,706		5,278		433
Initial public offering, net of offering costs	—		—		—		—		—		—		—		—		(172	)	(603	)	41,462		(715	)	39,972		—		—		—		—		—		—
Other	(94	)	—		—		—		—		—		—		—		(2	)	—		—		—		(2	)	—		—		—		—		—		—
Cash provided (used) by financing activities	14,946		4,291		986		(145	)	(285	)	(1,669	)	(246	)	(2,345	)	411		(172	)	38,854		140		39,233		588		1,217		1,921		1,699		5,425		425
Effect of foreign exchange rates	6		(5	)	33		5		20		44		(5	)	64		9		(27	)	19		68		69		(26	)	(79	)	(26	)	(125	)	(256	)	(8	)
Net change in cash and cash equivalents	2,945		(10,870	)	1,780		177		(100	)	179		66		322		(8	)	560		12,894		(2,862	)	10,584		14,211		(2,863	)	9,302		1,280		21,930		1,570
Cash and cash equivalents at beginning of period	14,183		17,128		6,258		8,038		8,215		8,115		8,294		8,038		8,360		8,352		8,912		21,806		8,360		18,944		33,155		30,292		39,594		18,944		40,874
Cash and cash equivalents at end of period	17,128		6,258		8,038		8,215		8,115		8,294		8,360		8,360		8,352		8,912		21,806		18,944		18,944		33,155		30,292		39,594		40,874		40,874		42,444

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.

Supplemental Data Sheet

Unaudited

Last updated April 24, 2006

		Fiscal Year						2003										2004										2005										2006
		2000		2001		2002		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY		Q1
Revenue	Term	6,504		15,757		19,810		5,336		5,730		6,192		6,730		23,988		8,491		8,384		9,553		9,793		36,221		10,624		10,791		11,695		12,946		46,056		13,977
Mix	Perpetual	4,045		3,241		3,528		940		1,210		1,265		1,897		5,312		2,229		3,325		3,423		4,566		13,543		3,250		6,073		6,310		6,255		21,888		5,333
(in thousands)	Professional services	758		2,009		3,603		1,531		1,304		1,763		1,981		6,579		2,137		3,053		3,450		3,360		12,000		4,468		4,214		5,149		5,373		19,204		5,321
	Total	11,307		21,007		26,941		7,807		8,244		9,220		10,608		35,879		12,857		14,762		16,426		17,719		61,764		18,342		21,078		23,154		24,574		87,148		24,631
Revenue	Term	57	%	75	%	74	%	68	%	69	%	67	%	63	%	67	%	66	%	56	%	58	%	55	%	59	%	58	%	51	%	51	%	53	%	53	%	56	%
Mix	Perpetual	36	%	15	%	13	%	12	%	15	%	14	%	18	%	15	%	17	%	23	%	21	%	26	%	22	%	18	%	29	%	27	%	25	%	25	%	22	%
(% of total)	Professional services	7	%	10	%	13	%	20	%	16	%	19	%	19	%	18	%	17	%	21	%	21	%	19	%	19	%	24	%	20	%	22	%	22	%	22	%	22	%
Revenue by	Americas	11,026		16,522		21,940		6,421		6,376		6,148		8,216		27,161		9,188		10,955		12,421		12,635		45,199		13,757		16,652		17,291		16,710		64,410		17,368
Geography	Europe	281		2,311		4,041		1,249		1,237		2,305		1,667		6,458		2,443		3,553		3,188		3,608		12,792		2,751		3,372		3,752		5,652		15,527		5,014
(in thousands)	Asia Pacific	—		2,174		960		137		631		767		725		2,260		1,226		254		817		1,476		3,773		1,834		1,054		2,111		2,212		7,211		2,249
Revenue by	Americas	98	%	79	%	81	%	82	%	77	%	67	%	77	%	76	%	71	%	74	%	76	%	72	%	73	%	75	%	79	%	75	%	68	%	74	%	71	%
Geography	Europe	2	%	11	%	15	%	16	%	15	%	25	%	16	%	18	%	19	%	24	%	19	%	20	%	21	%	15	%	16	%	16	%	23	%	18	%	20	%
(% of total)	Asia Pacific	0	%	10	%	4	%	2	%	8	%	8	%	7	%	6	%	10	%	2	%	5	%	8	%	6	%	10	%	5	%	9	%	9	%	8	%	9	%
Deferred	Current	12,317		14,843		17,392		19,428		21,510		23,349		26,127				25,368		30,780		32,796		36,020				37,899		40,669		45,694		48,673				54,191
Revenue	Non-current	4,843		4,031		7,291		8,375		9,061		8,811		9,426				11,361		9,997		11,695		13,105				14,911		16,699		18,058		19,250				26,715
(in thousands)	Total	17,160		18,874		24,683		27,803		30,571		32,160		35,553				36,729		40,777		44,491		49,125				52,810		57,368		63,752		67,923				80,906
Customers	New	593		361		227		38		56		57		60		211		69		74		88		80		311		60		80		92		80		312		97
	Total (>)	1,000		1,100		900		900		900		900		1,000				1,000		1,100		1,100		1,200				1,200		1,300		1,400		1,400				1,500
	Percent hosted	62	%	78	%	82	%	83	%	83	%	85	%	85	%			85	%	85	%	86	%	87	%			86	%	86	%	87	%	87	%			87	%
	Interactions (in millions))	n/a		n/a		146		53		56		63		77		249		102		110		140		150		502		166		176		188		214		744		281
Employees	Worldwide	346		222		234		255		258		278		306				322		354		387		403				438		490		494		530				578

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.

Stock-Based Compensation

Unaudited

Last updated April 24, 2006

Fiscal Year

2004

2005

2006

2002

2003

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

Q1

Minimum or fair value assumptions:

Underlying stock price (average)	$	1.50		$	1.50		$	4.50		$	10.00		$	9.00		$	16.86		$	8.72		$	13.41		$	10.32		$	12.26		$	16.28		$	13.05		$	16.94
Volatility (weighted average)	0		%	0		%	0		%	82		%	99		%	88		%	78		%	74		%	75		%	70		%	55		%	67		%	57		%
Expected term - stock options	5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			5 yrs			4.8 yrs
Expected term - employee stock purchase plan	n/a			n/a			n/a			n/a			0.5 yrs			0.5 yrs			0.5 yrs			0.5 yrs			0.5 yrs			0.5 yrs			0.5 yrs			0.5 yrs			0.5 yrs
Risk free rate (weighted average)	3.6		%	3.2		%	3.1		%	3.7		%	3.6		%	3.8		%	3.5		%	3.9		%	3.8		%	4.2		%	4.5		%	4.1		%	4.4		%
Dividend yield	0		%	0		%	0		%	0		%	0		%	0		%	0		%	0		%	0		%	0		%	0		%	0		%	0		%
Minimum or fair value of stock options granted (weighted average)	$	0.24		$	0.22		$	0.53		$	4.67		$	6.59		$	10.05		$	6.05		$	8.01		$	6.17		$	6.92		$	7.59		$	7.23		$	8.01
Stock-based compensation expense:
Cost of software, hosting & support	33			30			7			4			9			27			47			33			34			26			38			131			38
Cost of professional services	9			15			7			5			22			100			134			80			72			69			92			313			97
Sales and marketing	247			196			45			32			91			294			462			293			312			193			349			1,147			366
Research and development	78			79			18			13			33			100			164			86			132			156			178			552			159
General and administrative	139			49			9			279			50			144			482			99			843			100			107			1,149			123
Total stock-based compensation	506			369			86			333			205			665			1,289			591			1,393			544			764			3,292			783
GAAP net income (loss)	(2,749		)	(4,120		)	80			634			1,440			1,295			3,449			801			1,559			2,343			2,990			7,693			(440		)
Stock-based compensation, net of income taxes	(506		)	(369		)	(86		)	(333		)	(205		)	(665		)	(1,289		)	(591		)	(1,393		)	(544		)	(764		)	(3,292		)	783
Pro forma net income (loss)	(3,255		)	(4,489		)	(6		)	301			1,235			630			2,160			210			166			1,799			2,226			4,401			343
GAAP net income (loss) per share:
Basic	$	(0.19	)	$	(0.28	)	$	0.01		$	0.04		$	0.06		$	0.04		$	0.17		$	0.03		$	0.05		$	0.08		$	0.09		$	0.25		$	(0.01	)
Diluted	$	(0.19	)	$	(0.28	)	$	—		$	0.02		$	0.05		$	0.04		$	0.12		$	0.02		$	0.05		$	0.07		$	0.09		$	0.23		$	(0.01	)
Pro forma net income (loss) per share:
Basic	$	(0.23	)	$	(0.31	)	$	(0.00	)	$	0.02		$	0.05		$	0.02		$	0.10		$	0.01		$	0.01		$	0.06		$	0.07		$	0.14		$	0.01
Diluted	$	(0.23	)	$	(0.31	)	$	(0.00	)	$	0.01		$	0.04		$	0.02		$	0.07		$	0.01		$	0.00		$	0.05		$	0.07		$	0.13		$	0.01
Pro forma shares:
Basic	14,284			14,560			14,792			15,185			23,734			29,005			20,738			29,816			30,232			30,802			31,652			30,631			31,943
Diluted	14,284			14,560			25,012			26,112			30,569			33,500			29,096			33,415			33,231			33,471			33,859			33,502			33,956

RightNow Technologies adopted the provisions of Statement of Financial Accounting Standards No. 123 (revised) on January 1, 2006, using the modified prospective method.

The statement of operations includes the cost of stock awards beginning in 2006, whereas prior periods do not include the cost of stock awards.

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.