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)  January 30, 2008

RIGHTNOW TECHNOLOGIES, INC.

(Exact Name of Registrant as Specified in Charter)

DELAWARE	000-31321	81-0503640
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
136 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:

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

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

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

o       Pre-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 January 30, 2008, RightNow Technologies, Inc. (“RightNow” or the “company”) issued a press release announcing its financial results for the fourth quarter and the year ended December 31, 2007.  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 January 30, 2008 which is furnished herewith as Exhibit 99.2.

The information contained under Item 2.02 in this report and in the exhibits 99.1 and 99.2 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)Not Applicable.

(d)Exhibits.

Exhibit No.	Description of Exhibit
99.1	Press Release, dated January 30, 2008, announcing RightNow Technologies, Inc.’s financial results for the fourth quarter and the year ended December 31, 2007 (furnished herewith but not filed pursuant to Item 2.02).
99.2	Supplemental financial data of RightNow Technologies, Inc. as of January 30, 2008 (furnished herewith but not filed pursuant to Item 2.02).

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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: January 30, 2008	/s/ Jeff Davison
	Jeff DavisonChief Financial Officer, Vice President andTreasurer

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EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press Release, dated January 30, 2008, announcing RightNow Technologies, Inc.’s financial results for the fourth quarter and the year ended December 31, 2007 (furnished herewith but not filed pursuant to Item 2.02).
99.2	Supplemental financial data of RightNow Technologies, Inc. as of January 30, 2008 (furnished herewith but not filed pursuant to Item 2.02).

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EX-99.1

Exhibit 99.1

For Further Information, Contact:
Investor Relations:	Corporate Communications:
Todd Friedman or Stacie Bosinoff	Kathleen O’Boyle
The Blueshirt Group	RightNow Technologies
415.217.7722	406.556.3428 Desk
todd@blueshirtgroup.com	415.407.8308 Cell
stacie@blueshirtgroup.com	kathleen.oboyle@rightnow.com

RightNow Technologies Reports Fourth Quarter and

Full Year 2007 Financial Results

BOZEMAN, Mont. (January 30, 2008) — RightNow^® Technologies, Inc. (NASDAQ: RNOW), today announced results for the fourth quarter and year ended December 31, 2007. Fourth quarter total revenue was a record $30.7 million, compared to $28.8 million in the fourth quarter 2006.  Fourth quarter 2007 results reflect 33% growth in recurring revenue over the fourth quarter of 2006 and the impact of the Company’s business model shift away from perpetual licenses in 2007.

The net loss in the fourth quarter of 2007 was $(3.3) million or $(0.10) per share, compared to net loss of $(2.3) million, or $(0.07) per share, in the fourth quarter of 2006. Fourth quarter 2007 non-GAAP net loss per share was $(0.07) which excludes stock-based compensation charges of $1.0 million.

Revenue for the full year 2007 was $112 million, compared to full year 2006 revenue of $110 million.  Recurring revenue for the 2007 full year increased 34% year over year to $85 million.

The net loss for the full year 2007 was $(18.6) million or $(0.56) per share, compared to net loss of $(5.0) million or $(0.16) per share for the full year 2006. Full year 2007 non-GAAP net loss per share was $(0.40) which excludes stock-based compensation of $5.5 million.

RightNow added 60 new customers in the fourth quarter and more than 250 new customers for the year. New, renewed and expanded customer relationships during the fourth quarter of 2007 included Activision, Easy Jet Airline Company, Epson America,

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Kodak Imaging Network, Logitech, Napster, Social Security Administration, and Vodafone Netherlands.

“We ended 2007 with another positive quarter that carries us into 2008 with solid momentum,” stated Greg Gianforte, founder and CEO. “During the year we saw customers embrace RightNow 8, validating the significant investment we made to deliver a true enterprise On Demand CRM solution.  Our vertical solutions are meeting the needs of industries where customer satisfaction is the key to success.  Additionally, as we head into 2008, we are seeing increased visibility and predictability due to the changes we made to our business model in early 2007, positioning us for success in the years to come.”

“We drove predictable, recurring revenue growth, ending the year with a 34% year over year increase in recurring revenue and cash from operations ahead of guidance,” said Jeff Davison, CFO. “We believe that our customers’ increasing adoption of RightNow 8 will continue to drive growth in our key business success metrics.  We are excited about the opportunities we see in 2008 and are reiterating our goal of returning to non-GAAP profitability in the second half of this year.”

In a separate press release issued today, RightNow announced the promotions of Susan Carstensen to Chief Operating Officer, and Jeff Davison to Chief Financial Officer.

Mr. Gianforte added, “I am also very pleased with the management promotions we announced today.  This change gives us the organizational structure to take RightNow to the next level, and will enable me to spend my time and energy with customers and partners, focusing on solution innovation.”

Guidance

·For the full year 2008, the Company expects revenue in the range of $135 to $140 million, with recurring revenue growth of approximately 25%.

·The net loss per share for the full year 2008 is expected to be in the range of $(0.36) to $(0.27). Non-GAAP net loss per share, which excludes stock-based compensation, is expected to be in the range of $(0.16) to $(0.07).

·Cash from operations for the full year 2008 is expected to be in the range of $25 to $30 million.

·For the first quarter of 2008, revenue is anticipated to be in the range of $31 to $32 million. The first quarter net loss per share is expected to be in the range of $(0.17) to $(0.14). Non-GAAP net loss per share, which excludes stock-based compensation, is expected to be in the range of $(0.13) to $(0.10).

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Quarterly Conference Call

RightNow Technologies will discuss its quarterly results via teleconference at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time.)  To access the call, please dial (888) 244-2460, or outside the U.S. (913) 312-1239, at least five minutes prior to the 2:30 p.m. MT start time. A live webcast of the call will also be available at http://www.shareholder.com/rnow/MediaRegister.cfm?MediaID=28990 under the Investor Webcasts menu. An audio replay will be available between 5:30 p.m. MT January 30, 2008 and 9:59 p.m. MT February 13, 2008 by calling (888) 203-1112 or (719) 457-0820, with passcode 6852140. The replay will also be available on our website at http://www.shareholder.com/rnow/MediaRegister.cfm?MediaID=28990.

About RightNow Technologies

RightNow (NASDAQ: RNOW) delivers the high-impact technology solutions and services organizations need to cost-efficiently deliver a consistently superior customer experience across their frontline service, sales and marketing touch-points. Approximately 1,800 corporations and government agencies worldwide depend on RightNow to achieve their strategic objectives and better meet the needs of those they serve. RightNow is headquartered in Bozeman, Montana. For more 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.

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 in a cost-effective and timely manner; the market success of our RightNow 8 product; 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; our ability to manage and expand our partner relationships; 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.

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FRNOW

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RightNow Technologies, Inc.

Consolidated Balance Sheets

(In thousands) (Unaudited)

	Dec 31,			Dec 31,
	2007			2006
Assets
Cash and cash equivalents	$	44,682		$	39,208
Short-term investments	51,643			39,127
Accounts receivable	29,480			32,021
Term receivables, current	13,069			23,806
Allowance for doubtful accounts	(1,918		)	(2,621		)
Net receivables	40,631			53,206
Deferred commissions	3,336			137
Prepaid and other current assets	2,643			2,361
Total current assets	142,935			134,039
Property and equipment, net	10,856			10,073
Term receivables, non-current	9,859			24,805
Intangible assets, net	7,996			8,836
Deferred commissions, non-current	1,680			76
Other	460			413
Total Assets	$	173,786		$	178,242
Liabilities and Stockholders’ Equity
Accounts payable	$	4,386		$	4,417
Commissions and bonuses payable	5,044			4,069
Other accrued liabilities	11,404			7,588
Current portion of long-term debt	43			31
Current portion of deferred revenue	76,995			67,560
Total current liabilities	97,872			83,665
Long-term debt, less current portion	68			85
Deferred revenue, net of current portion	37,665			47,018
Stockholders’ equity:
Common stock	33			33
Additional paid-in capital	95,376			86,069
Accumulated other comprehensive loss	(291		)	(332		)
Accumulated deficit	(56,937		)	(38,296		)
Total stockholders’ equity	38,181			47,474
Total Liabilities Stockholders’ Equity	$	173,786		$	178,242

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RightNow Technologies, Inc.

Consolidated Operating Statements

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Revenue:
Software, hosting and support
Recurring*	$	23,541		$	17,678		$	84,920		$	63,448
Perpetual	564			4,879			2,063			22,809
Professional services	6,559			6,204			25,094			24,131
Total revenue	30,664			28,761			112,077			110,388
Cost of revenue:
Software, hosting and support	4,848			3,663			18,411			13,260
Professional services	6,138			5,096			22,012			19,110
Total cost of revenue	10,986			8,759			40,423			32,370
Gross profit	19,678			20,002			71,654			78,018
Operating expenses:
Sales and marketing	17,087			16,391			65,118			61,504
Research and development	4,137			4,132			17,084			14,478
General and administrative	2,782			2,480			11,500			9,578
Total operating expenses	24,006			23,003			93,702			85,560
Loss from operations	(4,328		)	(3,001		)	(22,048		)	(7,542		)
Interest and other income, net	966			884			3,683			3,064
Loss before income taxes	(3,362		)	(2,117		)	(18,365		)	(4,478		)
Benefit (Provision) for income taxes	48			(177		)	(276		)	(530		)
Net loss	$	(3,314	)	$	(2,294	)	$	(18,641	)	$	(5,008	)
Net loss per share:
Basic	$	(0.10	)	$	(0.07	)	$	(0.56	)	$	(0.16	)
Diluted	$	(0.10	)	$	(0.07	)	$	(0.56	)	$	(0.16	)
Shares used in the computation:
Basic	33,371			32,529			33,078			32,241
Diluted	33,371			32,529			33,078			32,241
Supplemental information of stock-based compensation expense included in:
Cost of software, hosting and support	$	67		$	48		$	288		$	193
Cost of professional services	156			113			647			471
Sales and marketing	333			499			2,264			1,929
Product development	206			212			887			834
General and administrative	208			181			1,385			1,201
Total stock-based compensation	$	970		$	1,053		$	5,471		$	4,628

* Recurring revenue includes software, hosting and support revenue from term license and subscription agreements, and post contract support services.

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RightNow Technologies, Inc.

Consolidated Statements of Cash Flow

(In thousands) (Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Operating activities:
Net loss	$	(3,314	)	$	(2,294	)	$	(18,641	)	$	(5,008	)
Non-cash adjustments:
Depreciation and amortization	1,842			1,683			7,266			5,681
Stock-based compensation	970			1,053			5,471			4,628
Provision for losses on accounts receivable	39			255			384			306
Changes in operating accounts:
Receivables	(3,032		)	(10,958		)	27,552			(27,487		)
Prepaid expenses	743			406			(226		)	22
Deferred commissions	(1,886		)	(213		)	(4,803		)	(213		)
Accounts payable	147			1,980			(45		)	1,916
Commissions and bonuses payable	2,176			58			957			1,025
Other accrued liabilities	894			1,297			3,733			1,541
Deferred revenue	8,407			11,273			(606		)	44,782
Other	132			(249		)	(8		)	(150		)
Cash provided by operating activities	7,118			4,291			21,034			27,043
Investing activities:
Net change in short-term investments	5,180			(2,285		)	(12,516		)	(15,812		)
Acquisition of property and equipment	(2,436		)	(2,828		)	(7,297		)	(7,758		)
Business acquisitions	—			—			—			(8,731		)
Other	17			(3		)	55			(13		)
Cash provided by (used in) investing activities	2,761			(5,116		)	(19,758		)	(32,314		)
Financing activities:
Proceeds from issuance of common stock	1,966			1,359			3,653			2,721
Excess tax benefit of stock options exercised	(45		)	400			183			400
Payments on long-term debt	(10		)	(32		)	(35		)	(55		)
Cash provided by financing activities	1,911			1,727			3,801			3,066
Effect of foreign exchange rates on cash and cash equivalents	(217		)	192			397			539
Increase (decrease) in cash and cash equivalents	11,573			1,094			5,474			(1,666		)
Cash and cash equivalents at beginning of period	33,109			38,114			39,208			40,874
Cash and cash equivalents at end of period	$	44,682		$	39,208		$	44,682		$	39,208

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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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
Net loss as reported	$	(3,314	)	$	(2,294	)	$	(18,641	)	$	(5,008	)
Add stock-based compensation (“SBC”)	970			1,053			5,471			4,628
Net loss before SBC	$	(2,344	)	$	(1,241	)	$	(13,170	)	$	(380	)
Net loss per share, as reported	$	(0.10	)	$	(0.07	)	$	(0.56	)	$	(0.16	)
Net loss per share, before SBC	$	(0.07	)	$	(0.04	)	$	(0.40	)	$	(0.01	)
Shares outstanding, as reported	33,371			32,529			33,078			32,241
Shares outstanding, excluding the effect of SBC	33,371			32,529			33,078			32,241

Forward-Looking Guidance Reconciliation

	GAAP Guidance									Non-GAAP Guidance
	From			To			Adjustment			From			To
First quarter ending Mar 31, 2008
Net loss	$	(4,800	)	$	(5,800	)	$	1,500	[a]	$	(3,300	)	$	(4,300	)
EPS	$	(0.14	)	$	(0.17	)				$	(0.10	)	$	(0.13	)
Shares	33,600			33,600						33,600			33,600
Year ending December 31, 2008
Net loss	$	(9,600	)	$	(12,800	)	$	7,100	[a]	$	(2,500	)	$	(5,700	)
EPS	$	(0.27	)	$	(0.36	)				$	(0.07	)	$	(0.16	)
Shares	35,700			35,700						35,700			35,700

[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.

About Non-GAAP Financial Measures

Non-GAAP net loss and diluted net loss per share are supplemental measures of our performance that are not required by, or presented in accordance with GAAP.  These non-GAAP financial measures are not intended to be used in isolation and should not be considered a substitute for net loss and net loss per share or any other performance measure determined in accordance with GAAP.  We present non-GAAP net loss and net loss per share because we consider each to be an important supplemental measure of our performance.

Management uses these non-GAAP financial measures to make operational decisions, evaluate the Company’s performance, prepare forecasts and determine compensation.  Further, management believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance when planning, forecasting and analyzing future periods.  Our stock-based compensation expenses are expected to vary depending on the number of new grants issued, changes in our stock price, stock market volatility, expected option lives and risk-free rates of return, all of which are difficult to estimate.  In calculating non-GAAP net loss and net loss per share, management excludes stock-based compensation expenses to facilitate its review of the comparability of the Company’s operating performance on a period-to-period basis because such expenses are not, in management’s view, related to the Company’s ongoing operating performance.  Management uses this view of its operating performance for purposes of comparison with its business plan and individual operating budgets and resource allocation.

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Management further believes that these non-GAAP financial measures are useful to investors in providing greater transparency to the information used by management in its operational decision making.  We believe that the use of non-GAAP net loss and net loss per share also facilitate a comparison of RightNow’s underlying operating performance with that of other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.

Calculating non-GAAP net loss and net loss per share have limitations as an analytical tool, and readers should not consider these measures in isolation or as substitutes for GAAP net loss and GAAP net loss per share.  In the future, we expect to incur additional stock-based compensation expenses and the exclusion of these expenses in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.  Investors and potential investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool, which include:

·Other companies inside and outside of our industry may calculate non-GAAP net loss and net loss per share differently than we do, limiting their usefulness as a comparative tool; and

·The Company’s income tax expense or benefit will be ultimately based on its GAAP taxable income and actual tax rates in effect, which may differ significantly from the effective tax rate used in our non-GAAP financial measures.

In addition, the adjustments to our GAAP financial measures reflect the exclusion of stock-based compensation expenses that are recurring and will be reflected in the Company’s financial results for the foreseeable future.  The Company compensates for these limitations by providing specific information regarding the GAAP amount excluded from the non-GAAP financial measures.  The Company further compensates for the limitations of our use of non-GAAP financial measures by presenting comparable GAAP measures more prominently.  The Company evaluates the non-GAAP financial measures together with the most directly comparable GAAP financial measures.

Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with our GAAP net loss and net loss per share.  For more information, see the consolidated operating statements and reconciliation of non-GAAP measurements contained in this press release.

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EX-99.2

Exhibit 99.2

Consolidated Balance Sheets

Unaudited	Amounts in thousands
Last updated January 30, 2008	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,
	2000		2001		2002		2003		2004		2005		2005		2005		2005		2006		2006		2006		2006		2007		2007		2007		2007
Assets
Current assets:
Cash and cash equivalents	17,128		6,258		8,038		8,360		18,944		33,155		30,292		39,594		40,874		42,444		30,546		38,114		39,208		44,899		33,842		33,109		44,682
Short-term investments	—		—		—		—		31,188		19,698		24,181		20,883		23,314		27,063		35,203		36,906		39,127		37,578		52,911		56,823		51,643
Accounts receivable	5,649		3,711		6,637		10,415		16,939		13,552		15,799		21,968		25,462		31,615		26,250		25,347		32,021		25,050		27,797		24,690		29,480
Term receivables	2,839		3,600		3,085		4,926		10,090		13,275		14,733		14,105		15,376		17,268		19,255		22,587		23,806		20,555		15,756		13,773		13,069
Less allowance for doubtful accounts	(941	)	(728	)	(519	)	(902	)	(1,581	)	(1,627	)	(1,608	)	(1,960	)	(2,209	)	(2,090	)	(2,331	)	(3,225	)	(2,621	)	(2,273	)	(2,046	)	(2,009	)	(1,918	)
Prepaid & other current assets	526		510		466		509		1,255		1,272		1,196		1,771		1,993		2,439		2,514		2,874		2,498		3,676		4,980		5,786		5,979
Total current assets	25,201		13,351		17,707		23,308		76,835		79,325		84,593		96,361		104,810		118,739		111,437		122,603		134,039		129,485		133,240		132,172		142,935
Property and equipment, net	3,044		3,931		3,319		2,942		4,393		4,842		5,375		5,597		6,451		6,632		8,620		8,470		10,073		10,715		10,494		10,451		10,856
Term receivables, noncurrent	—		—		924		2,278		5,756		8,256		10,234		10,801		10,697		12,611		15,765		22,193		24,805		19,349		13,239		11,170		9,859
Intangible and other assets, net	496		1,343		1,152		858		1,325		1,232		2,028		1,892		1,718		1,447		9,699		9,302		9,325		9,380		9,352		9,221		10,136
Total assets	28,741		18,625		23,102		29,386		88,309		93,655		102,230		114,651		123,676		139,429		145,521		162,568		178,242		168,929		166,325		163,014		173,786
Liabilities, Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued liabilities	2,819		2,335		2,039		3,179		5,435		6,397		6,600		7,635		8,041		9,231		8,970		8,591		12,005		13,818		14,688		14,855		15,790
Commissions and bonuses payable	1,025		531		1,076		1,636		2,648		1,971		2,550		3,344		2,910		3,706		3,066		4,001		4,069		2,902		2,918		2,889		5,044
Current portion of long-term debt	7		2,042		3,282		1,390		—		—		31		29		30		30		35		35		31		32		32		42		43
Deferred revenue	12,317		14,843		17,392		26,127		36,020		37,899		40,669		45,694		48,673		54,191		56,222		59,218		67,560		67,444		66,660		69,665		76,995
Total current liabilities	16,168		19,751		23,789		32,332		44,103		46,267		49,850		56,702		59,654		67,158		68,293		71,845		83,665		84,196		84,298		87,451		97,872
Deferred revenue, noncurrent	4,843		4,031		7,291		9,426		13,105		14,911		16,699		18,058		19,250		26,715		31,012		43,402		47,018		41,241		41,718		37,139		37,665
Long-term debt	—		1,185		940		484		—		—		131		125		117		109		123		113		85		77		69		79		68
Preferred stock	31,075		32,340		32,373		32,398		—		—		—		—		—		—		—		—		—		—		—		—		—
Stockholders’ equity (deficit):
Common stock and warrants	21		21		14		15		320		233		137		138		32		32		32		32		33		33		33		33		33
Additional paid-in capital	(1,109	)	(1,051	)	(986	)	(912	)	72,367		73,042		74,479		76,339		78,312		79,536		81,856		83,428		86,069		88,064		90,750		92,486		95,376
Other comprehensive income (loss)	(38	)	(91	)	(9	)	73		(605	)	(618	)	(445	)	(433	)	(401	)	(393	)	(312	)	(250	)	(332	)	(384	)	(504	)	(551	)	(291	)
Accumulated deficit	(22,219	)	(37,561	)	(40,310	)	(44,430	)	(40,981	)	(40,180	)	(38,621	)	(36,278	)	(33,288	)	(33,728	)	(35,483	)	(36,002	)	(38,296	)	(44,298	)	(50,039	)	(53,623	)	(56,937	)
Total stockholders’ equity (deficit)	(23,345	)	(38,682	)	(41,291	)	(45,254	)	31,101		32,477		35,550		39,766		44,655		45,447		46,093		47,208		47,474		43,415		40,240		38,345		38,181
Total liabilities, preferred stock and stockholders’ equity (deficit)	28,741		18,625		23,102		29,386		88,309		93,655		102,230		114,651		123,676		139,429		145,521		162,568		178,242		168,929		166,325		163,014		173,786

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	Amounts in thousands
Last updated January 30, 2008	Fiscal Year										2005										2006										2007
	2000		2001		2002		2003		2004		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY
Revenue:
Software, hosting and support	10,549		18,998		23,338		29,300		49,764		13,874		16,864		18,005		19,201		67,944		19,310		20,636		23,754		22,557		86,257		19,819		20,693		22,366		24,105		86,983
Professional services	758		2,009		3,603		6,579		12,000		4,468		4,214		5,149		5,373		19,204		5,321		6,272		6,334		6,204		24,131		5,883		5,772		6,880		6,559		25,094
Total revenue	11,307		21,007		26,941		35,879		61,764		18,342		21,078		23,154		24,574		87,148		24,631		26,908		30,088		28,761		110,388		25,702		26,465		29,246		30,664		112,077
Cost of revenue:
Software, hosting and support	3,306		4,636		4,279		5,263		6,741		2,064		2,276		2,253		2,518		9,111		2,771		3,159		3,667		3,663		13,260		4,394		4,565		4,604		4,848		18,411
Professional services	485		1,335		2,156		3,740		7,206		2,696		2,879		3,026		3,355		11,956		4,104		4,941		4,969		5,096		19,110		5,171		5,036		5,667		6,138		22,012
Total cost of revenue	3,791		5,971		6,435		9,003		13,947		4,760		5,155		5,279		5,873		21,067		6,875		8,100		8,636		8,759		32,370		9,565		9,601		10,271		10,986		40,423
Gross profit	7,516		15,036		20,506		26,876		47,817		13,582		15,923		17,875		18,701		66,081		17,756		18,808		21,452		20,002		78,018		16,137		16,864		18,975		19,678		71,654
Operating expenses:
Sales and marketing	20,756		22,050		15,939		20,809		31,986		9,457		10,557		11,248		11,421		42,683		13,726		14,852		16,535		16,391		61,504		15,727		15,788		16,516		17,087		65,118
Research and development	3,639		4,584		4,117		5,915		7,807		2,161		2,426		2,937		2,904		10,428		3,130		3,476		3,740		4,132		14,478		4,296		4,343		4,308		4,137		17,084
General and administrative	3,375		3,973		2,842		3,518		4,621		1,410		1,586		1,627		1,822		6,445		2,056		2,709		2,333		2,480		9,578		2,860		3,178		2,680		2,782		11,500
Total operating expenses	27,770		30,607		22,898		30,242		44,414		13,028		14,569		15,812		16,147		59,556		18,912		21,037		22,608		23,003		85,560		22,883		23,309		23,504		24,006		93,702
Operating income (loss)	(20,254	)	(15,571	)	(2,392	)	(3,366	)	3,403		554		1,354		2,063		2,554		6,525		(1,156	)	(2,229	)	(1,156	)	(3,001	)	(7,542	)	(6,746	)	(6,445	)	(4,529	)	(4,328	)	(22,048	)
Interest and other income (expense), net	607		229		(357	)	(215	)	146		292		331		440		583		1,646		672		768		740		884		3,064		828		885		1,004		966		3,683
Income (loss) before income taxes	(19,647	)	(15,342	)	(2,749	)	(3,581	)	3,549		846		1,685		2,503		3,137		8,171		(484	)	(1,461	)	(416	)	(2,117	)	(4,478	)	(5,918	)	(5,560	)	(3,525	)	(3,362	)	(18,365	)
(Provision) benefit for income taxes	—		—		—		(539	)	(100	)	(45	)	(126	)	(160	)	(147	)	(478	)	44		(294	)	(103	)	(177	)	(530	)	(84	)	(181	)	(59	)	48		(276	)
Net income (loss)	(19,647	)	(15,342	)	(2,749	)	(4,120	)	3,449		801		1,559		2,343		2,990		7,693		(440	)	(1,755	)	(519	)	(2,294	)	(5,008	)	(6,002	)	(5,741	)	(3,584	)	(3,314	)	(18,641	)
Net income (loss) per share:
Basic	$(1.42	)	$(1.10	)	$(0.19	)	$(0.28	)	$0.17		$0.03		$0.05		$0.08		$0.09		$0.25		$(0.01	)	$(0.05	)	$(0.02	)	$(0.07	)	$(0.16	)	$(0.18	)	$(0.17	)	$(0.11	)	$(0.10	)	$(0.56	)
Diluted	$(1.42	)	$(1.10	)	$(0.19	)	$(0.28	)	$0.12		$0.02		$0.05		$0.07		$0.09		$0.23		$(0.01	)	$(0.05	)	$(0.02	)	$(0.07	)	$(0.16	)	$(0.18	)	$(0.17	)	$(0.11	)	$(0.10	)	$(0.56	)
Shares used in the computation:
Basic	13,810		14,006		14,284		14,560		20,738		29,816		30,232		30,802		31,652		30,631		31,943		32,172		32,316		32,529		32,241		32,858		32,983		33,094		33,371		33,078
Diluted	13,810		14,006		14,284		14,560		29,177		33,559		33,367		33,667		34,199		33,695		31,943		32,172		32,316		32,529		32,241		32,858		32,983		33,094		33,371		33,078
Supplemental information of stock-based compensation expense included in:
Cost of software, hosting and support	—		—		—				—		—		—		—		—		—		38		55		52		48		193		58		79		84		67		288
Cost of professional services	—		—		—				—		—		—		—		—		—		97		137		124		113		471		125		149		217		156		647
Sales and marketing	—		—		—				—		—		—		—		—		—		366		535		529		499		1,929		658		731		542		333		2,264
Research and development	—		—		—				—		—		—		—		—		—		159		233		230		212		834		226		289		166		206		887
General and administrative	—		—		—				—		—		—		—		—		—		123		718		179		181		1,201		235		743		199		208		1,385
Total stock-based compensation	—		—		—				—		—		—		—		—		—		783		1,678		1,114		1,053		4,628		1,302		1,991		1,208		970		5,471

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	Amounts in thousands
Last updated January 30, 2008	Fiscal Years										2005										2006										2007
	2000		2001		2002		2003		2004		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY
Operating activities
Net income (loss)	(19,647	)	(15,342	)	(2,749	)	(4,120	)	3,449		801		1,559		2,343		2,990		7,693		(440	)	(1,755	)	(519	)	(2,294	)	(5,008	)	(6,002	)	(5,741	)	(3,584	)	(3,314	)	(18,641	)
Noncash adjustments:
Depreciation and amortization	532		1,486		2,051		2,474		2,790		742		828		892		944		3,406		1,105		1,337		1,556		1,683		5,681		1,675		1,880		1,869		1,842		7,266
Provision for losses on accounts receivable	1,715		2,032		259		477		489		52		(8	)	216		161		421		(248	)	7		292		255		306		(69	)	13		401		39		384
Stock-based compensation expense							—		—		—		—		—		—		—		783		1,678		1,114		1,053		4,628		1,302		1,991		1,208		970		5,471
Changes in operating accounts:
Receivables	(6,846	)	(1,295	)	(3,636	)	(6,678	)	(14,657	)	(2,402	)	(5,866	)	(6,072	)	(4,796	)	(19,136	)	(9,798	)	1,386		(8,117	)	(10,958	)	(27,487	)	15,427		8,224		6,933		(3,032	)	27,552
Prepaid and other current assets	(459	)	(338	)	(95	)	(156	)	(1,164	)	(44	)	67		(609	)	(208	)	(794	)	(167	)	8		(225	)	193		(191	)	(1,471	)	(1,612	)	(803	)	(1,143	)	(5,029	)
Accounts payable and accrued liabilities	2,071		(435	)	(378	)	1,040		1,975		984		373		1,071		502		2,930		1,191		(638	)	(373	)	3,277		3,457		1,748		810		89		1,041		3,688
Commissions and bonusses payable	789		(510	)	525		520		988		(663	)	588		807		(423	)	309		787		(752	)	932		58		1,025		(1,171	)	(1	)	(47	)	2,176		957
Deferred revenue	12,991		2,367		5,723		10,655		13,320		3,819		4,941		6,523		4,484		19,767		12,976		5,349		15,184		11,273		44,782		(6,056	)	(814	)	(2,143	)	8,407		(606	)
Other	114		(117	)	243		107		(452	)	(50	)	82		77		190		299		(137	)	244		(8	)	(249	)	(150	)	(23	)	13		(130	)	132		(8	)
Cash provided (used) by operating activities	(8,740	)	(12,152	)	1,943		4,319		6,738		3,239		2,564		5,248		3,844		14,895		6,052		6,864		9,836		4,291		27,043		5,360		4,763		3,793		7,118		21,034
Investing activities
Acquistion of property and equipment	(3,031	)	(2,265	)	(1,184	)	(1,584	)	(3,580	)	(1,078	)	(1,070	)	(1,124	)	(1,697	)	(4,969	)	(1,140	)	(2,770	)	(1,020	)	(2,828	)	(7,758	)	(1,987	)	(1,351	)	(1,426	)	(2,436	)	(7,200	)
Business acquisitions	(236	)	(739	)	—		(150	)	(691	)	—		(1,012	)	(23	)	(10	)	(1,045	)	—		(8,731	)	—		—		(8,731	)	—		—		—		—		—
Change in short-term investments, net	—		—		—		—		(31,188	)	11,488		(4,483	)	3,298		(2,431	)	7,872		(3,749	)	(8,140	)	(1,638	)	(2,285	)	(15,812	)	1,549		(15,333	)	(3,912	)	5,180		(12,516	)
Other	—		—		2		18		3		—		—		8		—		8		(10	)	—				(3	)	(13	)	(29	)	(32	)	1		17		(42	)
Cash provided (used) for investing activities	(3,267	)	(3,004	)	(1,182	)	(1,716	)	(35,456	)	10,410		(6,565	)	2,159		(4,138	)	1,866		(4,899	)	(19,641	)	(2,658	)	(5,116	)	(32,314	)	(467	)	(16,716	)	(5,337	)	2,761		(19,758	)
Financing activities
Net proceeds from (payments on) long-term debt	(8	)	3,219		896		(2,433	)	(1,913	)	—		—		154		(7	)	147		(7	)	(7	)	(9	)	(32	)	(55	)	(7	)	(8	)	(10	)	(10	)	(35	)
Proceeds from issuance of stock:
Preferred stock	14,955		1,026		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Common stock issued under employee benefit plans	93		46		90		88		1,176		588		1,217		1,767		1,706		5,278		432		567		363		1,359		2,721		643		536		509		1,966		3,653
Initial public offering, net of offering costs	—		—		—		—		39,972		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Other	(94	)	—		—		—		(2	)	—		—		—		—		—		—		—		—		400		400		49		160		19		(45	)	183
Cash provided (used) by financing activities	14,946		4,291		986		(2,345	)	39,233		588		1,217		1,921		1,699		5,425		425		560		354		1,727		3,066		685		688		518		1,911		3,801
Effect of foreign exchange rates	6		(5	)	33		64		69		(26	)	(79	)	(26	)	(125	)	(256	)	(8	)	319		36		192		539		113		208		293		(217	)	397
Net change in cash and cash equivalents	2,945		(10,870	)	1,780		322		10,584		14,211		(2,863	)	9,302		1,280		21,930		1,570		(11,898	)	7,568		1,094		(1,666	)	5,691		(11,057	)	(733	)	11,573		5,474
Cash and cash equivalents at beginning of period	14,183		17,128		6,258		8,038		8,360		18,944		33,155		30,292		39,594		18,944		40,874		42,444		30,546		38,114		40,874		39,208		44,899		33,842		33,109		39,208
Cash and cash equivalents at end of period	17,128		6,258		8,038		8,360		18,944		33,155		30,292		39,594		40,874		40,874		42,444		30,546		38,114		39,208		39,208		44,899		33,842		33,109		44,682		44,682

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

		Amounts in thousands
Unaudited		Fiscal Year										2005										2006										2007
Last updated January 30, 2008		2000		2001		2002		2003		2004		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		YTD
Revenue	Recurring	6,504		15,757		19,810		23,988		36,221		10,624		10,791		11,695		12,946		46,056		13,977		15,083		16,710		17,678		63,448		19,225		20,341		21,813		23,541		84,920
Mix	Perpetual	4,045		3,241		3,528		5,312		13,543		3,250		6,073		6,310		6,255		21,888		5,333		5,553		7,044		4,879		22,809		594		352		553		564		2,063
(in thousands)	Professional services	758		2,009		3,603		6,579		12,000		4,468		4,214		5,149		5,373		19,204		5,321		6,272		6,334		6,204		24,131		5,883		5,772		6,880		6,559		25,094
	Total	11,307		21,007		26,941		35,879		61,764		18,342		21,078		23,154		24,574		87,148		24,631		26,908		30,088		28,761		110,388		25,702		26,465		29,246		30,664		112,077
Revenue	Recurring	57	%	75	%	74	%	67	%	59	%	58	%	51	%	51	%	53	%	53	%	56	%	56	%	56	%	61	%	57	%	75	%	77	%	74	%	77	%	76	%
Mix	Perpetual	36	%	15	%	13	%	15	%	22	%	18	%	29	%	27	%	25	%	25	%	22	%	21	%	23	%	17	%	21	%	2	%	1	%	2	%	2	%	2	%
(% of total)	Professional services	7	%	10	%	13	%	18	%	19	%	24	%	20	%	22	%	22	%	22	%	22	%	23	%	21	%	22	%	22	%	23	%	22	%	24	%	21	%	22	%
Revenue by	Americas	11,026		16,522		21,940		27,161		45,199		13,757		16,652		17,291		16,710		64,410		17,368		20,072		23,847		21,235		82,522		18,472		18,908		20,687		21,473		79,540
Geography	Europe	281		2,311		4,041		6,458		12,792		2,751		3,372		3,752		5,652		15,527		5,014		5,335		4,732		5,520		20,601		5,359		5,321		5,958		6,923		23,561
(in thousands)	Asia Pacific	—		2,174		960		2,260		3,773		1,834		1,054		2,111		2,212		7,211		2,249		1,501		1,509		2,006		7,265		1,871		2,236		2,601		2,268		8,976
Revenue by	Americas	98	%	79	%	81	%	76	%	73	%	75	%	79	%	75	%	68	%	74	%	71	%	74	%	79	%	74	%	74	%	72	%	72	%	71	%	70	%	71	%
Geography	Europe	2	%	11	%	15	%	18	%	21	%	15	%	16	%	16	%	23	%	18	%	20	%	20	%	16	%	19	%	19	%	21	%	20	%	20	%	23	%	21	%
(% of total)	Asia Pacific	0	%	10	%	4	%	6	%	6	%	10	%	5	%	9	%	9	%	8	%	9	%	6	%	5	%	7	%	7	%	7	%	8	%	9	%	7	%	8	%
Deferred	Current	12,317		14,843		17,392		26,127		36,020		37,899		40,669		45,694		48,673				54,191		56,222		59,218		67,560				67,444		66,660		69,665		76,995
Revenue	Non-current	4,843		4,031		7,291		9,426		13,105		14,911		16,699		18,058		19,250				26,715		31,012		43,402		47,018				41,241		41,718		37,139		37,665
(in thousands)	Total	17,160		18,874		24,683		35,553		49,125		52,810		57,368		63,752		67,923				80,906		87,234		102,620		114,578				108,685		108,378		106,804		114,660
Term Receivables	Current	2,839		3,600		3,085		4,926		10,090		13,275		14,733		14,105		15,376				17,268		19,255		22,587		23,806				20,555		15,756		13,773		13,069
(in thousands)	Non-current	—		—		924		2,278		5,756		8,256		10,234		10,801		10,697				12,611		15,765		22,193		24,805				19,349		13,239		11,170		9,859
	Total	2,839		3,600		4,009		7,204		15,846		21,531		24,967		24,906		26,073				29,879		35,020		44,780		48,611				39,904		28,995		24,943		22,928
Net Deferred	Current	9,478		11,243		14,307		21,201		25,930		24,624		25,936		31,589		33,297				36,923		36,967		36,631		43,754				46,889		50,904		55,892		63,926
Revenue	Non-current	4,843		4,031		6,367		7,148		7,349		6,655		6,465		7,257		8,553				14,104		15,247		21,209		22,213				21,892		28,479		25,969		27,806
(in thousands)	Total	14,321		15,274		20,674		28,349		33,279		31,279		32,401		38,846		41,850				51,027		52,214		57,840		65,967				68,781		79,383		81,861		91,732
Customers	New	593		361		227		211		311		60		80		92		80		312		97		261		83		79		520		62		74		60		60		256
	Total (~)	1,000		1,100		900		1,000		1,200		1,300		1,300		1,400		1,500				1,500		1,700		1,800		1,800				1,800		1,800		1,800		1,800
	Interactions (in millions)	n/a		n/a		146		249		502		166		176		188		214		744		281		223		261		285		1,050		352		332		347		436		1,467
Employees	Worldwide	346		222		234		306		403		438		490		494		530				578		649		654		658				679		698		691		686

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.