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)     October 23, 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:

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

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

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

[ ]       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 October 23, 2008, RightNow Technologies, Inc. (“RightNow” or the “company”) issued a press release announcing its financial results for the third quarter ended September 30, 2008.  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 October 23, 2008, which is furnished herewith as Exhibit 99.2.

The information contained under Item 2.02 in this report and in 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, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.               Financial Statements and Exhibits.

(a)           Financial statements of business acquired.

Not Applicable

(b)           Pro forma financial information.

Not applicable

(c)           Shell company transactions.

Not applicable

(d)           Exhibits.

Exhibit No.	Description of Exhibit
99.1	Press Release dated October 23, 2008 announcing RightNow Technologies, Inc.’s financial results for the third quarter ended September 30, 2008 (furnished herewith but not filed pursuant to Item 2.02).
99.2	Supplemental financial data of RightNow Technologies, Inc. as of October 23, 2008 (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: October 23, 2008	/s/ Jeffrey C. Davison
	Jeffrey C. Davison Chief Financial Officer, Vice President and Treasurer

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press Release dated October 23, 2008 announcing RightNow Technologies, Inc.’s financial results for the third quarter ended September 30, 2008 (furnished herewith but not filed pursuant to Item 2.02).
99.2	Supplemental financial data of RightNow Technologies, Inc. as of October 23, 2008 (furnished herewith but not filed pursuant to Item 2.02).

EX-99

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 Announces

Third Quarter 2008 Financial Results

BOZEMAN, Mont. (October 23, 2008) — RightNow® Technologies, Inc. (NASDAQ: RNOW) today announced results for the third quarter ended September 30, 2008.  Total revenue in the third quarter of 2008 was $36.2 million, compared to $29.2 million in the comparable period of 2007, reflecting 24% growth in revenue.  Net loss in the third quarter of 2008 was $(1.4) million or $(0.04) per share, compared to a net loss of $(3.6) million or $(0.11) per share, in the third quarter of 2007.  Non-GAAP net income in the third quarter of 2008, which excludes stock-based compensation charges of $1.5 million, was $85,000 or $0.00 per share, as compared to non-GAAP net loss of $(2.4) million or $(0.07) per share, in the same quarter last year.

Revenue for the nine months ended September 30, 2008 was $104.4 million, compared to $81.4 million for the comparable period in 2007, reflecting a 28% growth in revenue.  Net loss for the nine months ended September 30, 2008 was $(8.0) million or $(0.24) per share, as compared to $(15.3) million or $(0.46) per share, for the same period in 2007.  Non-GAAP net loss for the nine months ended September 30, 2008, which excludes stock-based compensation charges of $4.7 million, was $(3.3) million or $(0.10) per share, as compared to non-GAAP net loss of $(10.8) million or $(0.33) per share, for the comparable period in 2007.

New, renewed and expanded customer relationships during the third quarter of 2008 included Air Force Personnel Center, Black and Decker, British Airways, Casual Male Retail Group, Center for Medicare and Medicaid, Commvault Systems, DeVry, Energy Australia, Restoration Hardware, Sony Computer Entertainment,  USDA-Forest Service, and Virgin America.

"Our customers represent many of the largest consumer-facing companies in the world,” stated Greg Gianforte, CEO and founder.  “We believe clients will prioritize their spending, looking for solutions that will reduce costs and retain customers.  Across many industries and geographies, our solutions enable our clients to retain and enhance relationships with existing customers, provide great customer experiences, and demonstrate a quick and measurable return on investment.  We look forward to helping our customers succeed in the current environment and in the long-term.”

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"We used $1.3 million of cash in operations during the third quarter, consistent with our October 6th preannouncement.  We believe our balance sheet stands strong with over $100 million in cash and investments," said Jeff Davison, CFO. “We achieved non-GAAP profitability in the third quarter as we continue to execute on our land and expand strategy.   This was our seventh consecutive quarter of operating margin improvement, representing 21 percentage points of improvement.”

Guidance

·   For the fourth quarter of 2008, revenue is expected to be in the range of $36.5 to $37.5 million. Fourth quarter net loss per share is expected to be in the range of $(0.04) to $(0.03).  Non-GAAP net income per share, which excludes stock-based compensation, is expected to be in the range of $0.00 to $0.01 for the fourth quarter of 2008.  This would equate to full year revenue of approximately $141 million, net loss per share of approximately $(0.28) and non-GAAP net loss per share of approximately $(0.10).

·   Cash from operations for the full year 2008 is expected to be in the range of $12 to $15 million.

Quarterly Conference Call

RightNow Technologies will discuss its quarterly results today via teleconference at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time.)To access the call, please dial (877) 675-4753, or outside the U.S. (719) 325-4875, 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://investor.rightnow.com/index.cfm under the Events & Presentations menu. An audio replay will be available between 5:30 p.m. MT October 23, 2008 and 10:00 p.m. MT November 6, 2008 by calling (888) 203-1112 or (719) 457-0820, with passcode 4119951. The replay will also be available on the Company’s website at http://investor.rightnow.com.

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 1,900 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 LLC.

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.

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The risks and uncertainties referred to above include, but are not limited to, risks associated with general economic conditions; our business model; our ability to develop or acquire, and gain market acceptance for, new products in a cost-effective 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 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)

	Sep 30,			Dec 31,
	2008			2007
Assets
Cash and cash equivalents	$	51,145		$	43,681
Short-term investments		46,444			52,644
Accounts receivable		27,820			29,480
Term receivables, current		6,875			13,069
Allowance for doubtful accounts		(2,148	)		(1,918	)
Net receivables		32,547			40,631
Deferred commissions		4,493			3,336
Prepaid and other current assets		3,004			2,643
Total current assets		137,633			142,935
Long-term investments		4,612			--
Property and equipment, net		10,377			10,856
Term receivables, non-current		4,420			9,859
Intangible assets, net		6,803			7,996
Deferred commissions, non-current		2,557			1,680
Other		908			460
Total Assets	$	167,310		$	173,786
Liabilities and Stockholders’ Equity
Accounts payable	$	5,329		$	4,386
Commissions and bonuses payable		4,351			5,044
Other accrued liabilities		12,076			11,404
Current portion of long-term debt		45			43
Current portion of deferred revenue		72,008			76,995
Total current liabilities		93,809			97,872
Long-term debt, less current portion		34			68
Deferred revenue, net of current portion		37,201			37,665
Stockholders’ equity:
Common stock		34			33
Additional paid-in capital		101,337			95,377
Accumulated other comprehensive loss		(193	)		(292	)
Accumulated deficit		(64,912	)		(56,937	)
Total stockholders’ equity		36,266			38,181
Total Liabilities and Stockholders’ Equity	$	167,310		$	173,786

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RightNow Technologies, Inc.

Consolidated Operating Statements

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

	Three Months Ended September 30,						Nine Months Ended  September 30,
	2008			2007			2008			2007
Revenue:
Software, hosting and support
Recurring*	$	25,917		$	21,813		$	75,788		$	61,379
Perpetual		39			553			297			1,499
Professional services		10,281			6,880			28,271			18,535
Total revenue		36,237			29,246			104,356			81,413
Cost of revenue:
Software, hosting and support		5,305			4,604			15,383			13,563
Professional services		8,133			5,667			23,228			15,874
Total cost of revenue		13,438			10,271			38,611			29,437
Gross profit		22,799			18,975			65,745			51,976
Operating expenses:
Sales and marketing		16,889			16,516			51,334			48,031
Research and development		4,671			4,308			13,664			12,947
General and administrative		3,215			2,680			10,621			8,718
Total operating expenses		24,775			23,504			75,619			69,696
Loss from operations		(1,976	)		(4,529	)		(9,874	)		(17,720	)
Interest and other income, net		552			1,004			2,009			2,717
Loss before income taxes		(1,424	)		(3,525	)		(7,865	)		(15.003	)
Provision for income taxes		(23	)		(59	)		(110	)		(324	)
Net loss	$	(1,447	)	$	(3,584	)	$	(7,975	)	$	(15,327	)
Net loss per share:
Basic	$	(0.04	)	$	(0.11	)	$	(0.24	)	$	(0.46	)
Diluted	$	(0.04	)	$	(0.11	)	$	(0.24	)	$	(0.46	)
Shares used in the computation:
Basic		33,640			33,094			33,585			32,979
Diluted		33,640			33,094			33,585			32,979

Supplemental information of stock-based compensation expense included in:
Cost of software, hosting and support	$	87	$	84	$	243	$	221
Cost of professional services		158		217		476		491
Sales and marketing		738		542		1,871		1,931
Research and development		252		166		729		681
General and administrative		297		199		1,376		1,177
Total stock-based compensation	$	1,532	$	1,208	$	4,695	$	4,501

* 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 September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
Operating activities:
Net loss	$	(1,447	)	$	(3,584	)	$	(7,975	)	$	(15,327	)
Non-cash adjustments:
Depreciation and amortization		1,956			1,869			5,866			5,424
Stock-based compensation		1,532			1,208			4,695			4,501
Provision  for  losses on accounts receivable		64			401			179			345
Changes in operating accounts:
Receivables		1,143			6,933			12,652			30,584
Prepaid expenses		(211	)		891			(654	)		(999	)
Deferred commissions		(957	)		(1,694	)		(2,170	)		(2,887	)
Accounts payable		(523	)		1,001			1,061			(192	)
Commissions and bonuses payable		166			(47	)		(615	)		(1,219	)
Other accrued liabilities		565			(912	)		1,016			2,839
Deferred revenue		(3,566	)		(2,143	)		(2,999	)		(9,013	)
Other		(52	)		(130	)		(142	)		(140	)
Cash provided (used) by operating activities		(1,330	)		3,793			10,914			13,916
Investing activities:
Net change in short-term investments		2,218			(3,912	)		996			(17,696	)
Acquisition of property and equipment		(1,311	)		(1,426	)		(4,344	)		(4,764	)
Other		2			1			(25	)		(60	)
Cash provided (used) by investing activities		909			(5,337	)		(3,373	)		(22,520	)
Financing activities:
Proceeds from issuance of common stock		618			509			1,266			1,688
Excess tax benefit of stock options exercised		-			19			-			228
Payments on long-term debt		(11	)		(10	)		(33	)		(25	)
Cash provided by financing activities		607			518			1,233			1,891
Effect of foreign exchange rates on cash and
cash equivalents		(1,822	)		293			(1,310	)		614
Increase (decrease) in cash and cash equivalents		(1,636	)		(733	)		7,464			(6,099	)
Cash and cash equivalents at beginning of period		52,781			33,842			43,681			39,208
Cash and cash equivalents at end of period	$	51,145		$	33,109		$	51,145		$	33,109

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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 September 30,						Nine Months Ended September 30,
		2008			2007			2008			2007
Net loss as reported	$	(1,447	)	$	(3,584	)	$	(7,975	)	$	(15,327	)
Add stock-based compensation (“SBC”)		1,532			1,208			4,695			4,501
Net income (loss) before SBC	$	85		$	(2,376	)	$	(3,280	)	$	(10,826	)
Net loss per share, as reported	$	(0.04	)	$	(0.11	)	$	(0.24	)	$	(0.46	)
Net income (loss) per share, before SBC (basic and diluted)	$	0.00		$	(0.07	)	$	(0.10	)	$	(0.33	)
Shares outstanding (basic), as reported		33,640			33,094			33,585			32,979
Shares outstanding (diluted), excluding the effect of SBC		34,432			33,094			33,585			32,979

Forward-Looking Guidance Reconciliation

	GAAP Guidance									Non-GAAP Guidance
Fourth quarter ending December 31, 2008	From			To			Adjustment			From			To
Net income (loss)	$	(1,400	)	$	(1,100	)	$	1,400 [a	]	$	0		$	300
Net income (loss) per share	$	(0.04	)	$	(0.03	)				$	0.00		$	0.01
Shares		33,900			33,900						33,900			34,500
Year ending December 31, 2008
Net loss	$	(9,300	)	$	(9,000	)	$	6,100 [a	]	$	(3,200	)	$	(2,900	)
Net loss per share	$	(0.28	)	$	(0.27	)				$	(0.10	)	$	(0.09	)
Shares		33,600			33,600						33,600			33,600

[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.

About Non-GAAP Financial Measures

Non-GAAP net income (loss) and diluted net income (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 income (loss) and net income (loss) per share or any other performance measure determined in accordance with GAAP.  We present non-GAAP net income (loss) and net income (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 income (loss) and net income (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 income (loss) and net income (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 income (loss) and net income (loss) per share have limitations as an analytical tool, and readers should not consider these measures in isolation or as substitutes for GAAP net income (loss) and GAAP net income (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 income (loss) and net income (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 income (loss) and net income (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

Exhibit 99.2

Consolidated Balance Sheets						Amounts in thousands
	Unaudited
	Last updated October 23, 2008	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,	Jun 30,	Sep 30,
		2005	2005	2005	2005	2006	2006	2006	2006	2007	2007	2007	2007	2008	2008	2008
Assets
Current assets:
	Cash and cash equivalents	33,155	30,292	39,594	40,874	42,444	30,546	38,114	39,208	44,899	33,842	33,109	43,681	44,591	52,781	51,145
	Short-term investments	19,698	24,181	20,883	23,314	27,063	35,203	36,906	39,127	37,578	52,911	56,823	52,644	36,585	41,540	46,444
	Accounts receivable	13,552	15,799	21,968	25,462	31,615	26,250	25,347	32,021	25,050	27,797	24,690	29,480	27,503	26,722	27,820
	Term receivables	13,275	14,733	14,105	15,376	17,268	19,255	22,587	23,806	20,555	15,756	13,773	13,069	9,616	8,814	6,875
	Less allowance for doubtful accounts	(1,627)	(1,608)	(1,960)	(2,209)	(2,090)	(2,331)	(3,225)	(2,621)	(2,273)	(2,046)	(2,009)	(1,918)	(2,056)	(2,177)	(2,148)
	Prepaid & other current assets	1,272	1,196	1,771	1,993	2,439	2,514	2,874	2,498	3,676	4,980	5,786	5,979	6,773	7,082	7,497
	Total current assets	79,325	84,593	96,361	104,810	118,739	111,437	122,603	134,039	129,485	133,240	132,172	142,935	123,012	134,762	137,633
Long-term investments		-	-	-	-	-	-	-	-	-	-	-	-	17,810	11,925	4,612
Property and equipment, net		4,842	5,375	5,597	6,451	6,632	8,620	8,470	10,073	10,715	10,494	10,451	10,856	10,807	10,798	10,377
Term receivables, noncurrent		8,256	10,234	10,801	10,697	12,611	15,765	22,193	24,805	19,349	13,239	11,170	9,859	8,059	5,728	4,420
Intangible and other assets, net		1,232	2,028	1,892	1,718	1,447	9,699	9,302	9,325	9,380	9,352	9,221	10,136	10,016	10,025	10,268
Total assets		93,655	102,230	114,651	123,676	139,429	145,521	162,568	178,242	168,929	166,325	163,014	173,786	169,704	173,238	167,310
Liabilities, Preferred Stock and Stockholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities	6,397	6,600	7,635	8,041	9,231	8,970	8,591	12,005	13,818	14,688	14,855	15,790	18,146	17,919	17,405
	Commissions and bonuses payable	1,971	2,550	3,344	2,910	3,706	3,066	4,001	4,069	2,902	2,918	2,889	5,044	3,531	4,279	4,351
	Current portion of long-term debt	-	31	29	30	30	35	35	31	32	32	42	43	44	44	45
	Deferred revenue	37,899	40,669	45,694	48,673	54,191	56,222	59,218	67,560	67,444	66,660	69,665	76,995	73,575	76,693	72,008
	Total current liabilities	46,267	49,850	56,702	59,654	67,158	68,293	71,845	83,665	84,196	84,298	87,451	97,872	95,296	98,935	93,809
Deferred revenue, noncurrent		14,911	16,699	18,058	19,250	26,715	31,012	43,402	47,018	41,241	41,718	37,139	37,665	38,079	39,289	37,201
Long-term debt		-	131	125	117	109	123	113	85	77	69	79	68	57	45	34
Preferred stock		-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Stockholders' equity (deficit):
	Common stock and warrants	233	137	138	32	32	32	32	33	33	33	33	33	34	34	34
	Additional paid-in capital	73,042	74,479	76,339	78,312	79,536	81,856	83,428	86,069	88,064	90,750	92,486	95,377	97,107	99,187	101,337
	Other comprehensive income (loss)	(618)	(445)	(433)	(401)	(393)	(312)	(250)	(332)	(384)	(504)	(551)	(292)	(536)	(787)	(193)
	Accumulated deficit	(40,180)	(38,621)	(36,278)	(33,288)	(33,728)	(35,483)	(36,002)	(38,296)	(44,298)	(50,039)	(53,623)	(56,937)	(60,333)	(63,465)	(64,912)
	Total stockholders' equity	32,477	35,550	39,766	44,655	45,447	46,093	47,208	47,474	43,415	40,240	38,345	38,181	36,272	34,969	36,266
Total liabilities, preferred stock and
	stockholders' equity	93,655	102,230	114,651	123,676	139,429	145,521	162,568	178,242	168,929	166,325	163,014	173,786	169,704	173,238	167,310

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 October 23, 2008
		2005					2006					2007					2008
		Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	YTD
Revenue:
	Software, hosting and support	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	24,556	25,573	25,956	76,085
	Professional services	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	8,342	9,648	10,281	28,271
	Total revenue	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	32,898	35,221	36,237	104,356
Cost of revenue:
	Software, hosting and support	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	5,035	5,043	5,305	15,383
	Professional services	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	7,285	7,810	8,133	23,228
	Total cost of revenue	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	12,320	12,853	13,438	38,611
Gross profit		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	20,578	22,368	22,799	65,745
Operating expenses:
	Sales and marketing	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	16,818	17,627	16,889	51,334
	Research and development	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	4,486	4,507	4,671	13,664
	General and administrative	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	3,516	3,890	3,215	10,621
	Total operating expenses	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	24,820	26,024	24,775	75,619
Operating income (loss)		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)	(4,242)	(3,656)	(1,976)	(9,874)
Interest and other income (expense), net		292	331	440	583	1,646	672	768	740	884	3,064	828	885	1,004	966	3,683	938	519	552	2,009
Income (loss) before income taxes		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)	(3,304)	(3,137)	(1,424)	(7,865)
(Provision) benefit for income taxes		(45)	(126)	(160)	(147)	(478)	44	(294)	(103)	(177)	(530)	(84)	(181)	(59)	48	(276)	(92)	5	(23)	(110)
Net income (loss)		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)	(3,396)	(3,132)	(1,447)	(7,975)
Net income (loss) per share:
	Basic	$    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)	$  (0.10)	$  (0.09)	$  (0.04)	$   (0.24)
	Diluted	$    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)	$  (0.10)	$  (0.09)	$  (0.04)	$   (0.24)
Shares used in the computation:
	Basic	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	33,532	33,582	33,640	33,585
	Diluted	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	33,532	33,582	33,640	33,585
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	77	79	87	243
	Cost of professional services	-	-	-	-	-	97	137	124	113	471	125	149	217	156	647	153	165	158	476
	Sales and marketing	-	-	-	-	-	366	535	529	499	1,929	658	731	542	333	2,264	538	595	738	1,871
	Research and development	-	-	-	-	-	159	233	230	212	834	226	289	166	206	887	235	242	252	729
	General and administrative	-	-	-	-	-	123	718	179	181	1,201	235	743	199	208	1,385	263	816	297	1,376
	Total stock-based compensation	-	-	-	-	-	783	1,678	1,114	1,053	4,628	1,302	1,991	1,208	970	5,471	1,266	1,897	1,532	4,695

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								Amounts in thousands
	Unaudited
	Last updated October 23, 2008	2005					2006					2007					2008
		Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	YTD
Operating activities
Net income (loss)		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)	(3,396)	(3,132)	(1,447)	(7,975)
Noncash adjustments:
	Depreciation and amortization	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	1,954	1,956	1,956	5,866
	Provision for losses on accounts receivable	52	(8)	216	161	421	(248)	7	292	255	306	(69)	13	401	39	384	89	26	64	179
	Stock-based compensation expense			-	-	-	783	1,678	1,114	1,053	4,628	1,302	1,991	1,208	970	5,471	1,266	1,897	1,532	4,695
Changes in operating accounts:
	Receivables	(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	7,447	4,062	1,143	12,652
	Prepaid and other current assets	(44)	67	(609)	(208)	(794)	(167)	8	(225)	193	(191)	(1,471)	(1,612)	(803)	(1,143)	(5,029)	(852)	(804)	(1,168)	(2,824)
	Accounts payable and accrued liabilities	984	373	1,071	502	2,930	1,191	(638)	(373)	3,277	3,457	1,748	810	89	1,041	3,688	2,292	(257)	42	2,077
	Commissions and bonusses payable	(663)	588	807	(423)	309	787	(752)	932	58	1,025	(1,171)	(1)	(47)	2,176	957	(1,523)	742	166	(615)
	Deferred revenue	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)	(3,434)	4,001	(3,566)	(2,999)
	Other	(50)	82	77	190	299	(137)	244	(8)	(249)	(150)	(23)	13	(130)	132	(8)	(173)	83	(52)	(142)
	Cash provided (used) by operating activities	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	3,670	8,574	(1,330)	10,914
Investing activities
Acquistion of property and equipment		(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)	(1,509)	(1,524)	(1,311)	(4,344)
Business acquisitions		-	(1,012)	(23)	(10)	(1,045)	-	(8,731)	-	-	(8,731)	-	-	-	-	-	-	-	-	-
Change in short-term investments, net		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)	4,179	(13,517)	(1,970)	748	2,218	996
Other		-	-	8	-	8	(10)	-		(3)	(13)	(29)	(32)	1	17	(42)	(15)	(12)	2	(25)
Cash provided (used) for investing activities		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)	1,760	(20,759)	(3,494)	(788)	909	(3,373)
Financing activities
Net proceeds from (payments on) long-term debt		-	-	154	(7)	147	(7)	(7)	(9)	(32)	(55)	(7)	(8)	(10)	(10)	(35)	(11)	(11)	(11)	(33)
Proceeds from issuance of stock:
	Preferred stock	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
	Common stock issued under employee benefit plans	588	1,217	1,767	1,706	5,278	432	567	363	1,359	2,721	643	536	509	1,966	3,653	414	234	618	1,266
	Initial public offering, net of offering costs	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other		-	-	-	-	-	-	-	-	400	400	49	160	19	(45)	183	53	(53)	-	-
Cash provided (used) by financing activities		588	1,217	1,921	1,699	5,425	425	560	354	1,727	3,066	685	688	518	1,911	3,801	456	170	607	1,233
Effect of foreign exchange rates		(26)	(79)	(26)	(125)	(256)	(8)	319	36	192	539	113	208	293	(217)	397	278	234	(1,822)	(1,310)
Net change in cash and cash equivalents		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)	10,572	4,473	910	8,190	(1,636)	7,464
Cash and cash equivalents at beginning of period		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	43,681	44,591	52,781	43,681
Cash and cash equivalents at end of period		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	43,681	43,681	44,591	52,781	51,145	51,145

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		2005					2006					2007					2008
Last updated October 23, 2008		Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3	Q4	YTD	Q1	Q2	Q3	YTD
Revenue	Recurring	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	24,412	25,459	25,917	75,788
Mix	Perpetual	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	144	114	39	297
(in thousands)	Professional services	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	8,342	9,648	10,281	28,271
	Total	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	32,898	35,221	36,237	104,356
Revenue	Recurring	58%	51%	51%	53%	53%	56%	56%	56%	61%	57%	75%	77%	74%	77%	76%	75%	73%	72%	73%
Mix	Perpetual	18%	29%	27%	25%	25%	22%	21%	23%	17%	21%	2%	1%	2%	2%	2%	0%	0%	0%	0%
(% of total)	Professional services	24%	20%	22%	22%	22%	22%	23%	21%	22%	22%	23%	22%	24%	21%	22%	25%	27%	28%	27%
Revenue by	Americas	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	22,357	23,384	25,187	70,928
Geography	Europe	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	8,066	8,876	8,082	25,024
(in thousands)	Asia Pacific	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	2,475	2,961	2,968	8,404
Revenue by	Americas	75%	79%	75%	68%	74%	71%	74%	79%	74%	74%	72%	72%	71%	70%	71%	67%	67%	70%	68%
Geography	Europe	15%	16%	16%	23%	18%	20%	20%	16%	19%	19%	21%	20%	20%	23%	21%	25%	25%	22%	24%
(% of total)	Asia Pacific	10%	5%	9%	9%	8%	9%	6%	5%	7%	7%	7%	8%	9%	7%	8%	8%	8%	8%	8%
Deferred	Current	37,899	40,669	45,694	48,673		54,191	56,222	59,218	67,560		67,444	66,660	69,665	76,995		73,575	76,693	72,008
Revenue	Non-current	14,911	16,699	18,058	19,250		26,715	31,012	43,402	47,018		41,241	41,718	37,139	37,665		38,079	39,289	37,201
(in thousands)	Total	52,810	57,368	63,752	67,923		80,906	87,234	102,620	114,578		108,685	108,378	106,804	114,660		111,654	115,982	109,209
Term Receivables	Current	13,275	14,733	14,105	15,376		17,268	19,255	22,587	23,806		20,555	15,756	13,773	13,069		9,616	8,814	6,875
(in thousands)	Non-current	8,256	10,234	10,801	10,697		12,611	15,765	22,193	24,805		19,349	13,239	11,170	9,859		8,059	5,728	4,420
	Total	21,531	24,967	24,906	26,073		29,879	35,020	44,780	48,611		39,904	28,995	24,943	22,928		17,675	14,542	11,295
Net Deferred	Current	24,624	25,936	31,589	33,297		36,923	36,967	36,631	43,754		46,889	50,904	55,892	63,926		63,959	67,879	65,133
Revenue	Non-current	6,655	6,465	7,257	8,553		14,104	15,247	21,209	22,213		21,892	28,479	25,969	27,806		30,020	33,561	32,781
(in thousands)	Total	31,279	32,401	38,846	41,850		51,027	52,214	57,840	65,967		68,781	79,383	81,861	91,732		93,979	101,440	97,914
Customers	New	60	80	92	80	312	97	261	83	79	520	62	74	60	60	256	64	73	68	205
	Total (~)	1,300	1,300	1,400	1,500		1,500	1,700	1,800	1,800		1,800	1,800	1,800	1,800		1,800	1,900	1,900
	Interactions (in millions)	166	176	188	214	744	281	223	261	285	1,050	352	332	347	436	1,467	463	477	596	1,536
Employees	Worldwide	438	490	494	530		578	649	654	658		679	698	691	686		718	765	777

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.