Hosted CRM Vendor RightNow Files For IPO - InformationWeek
Software // Enterprise Applications
08:21 PM
[Dark Reading Crash Course] Finding & Fixing Application Security Vulnerabilitie
Sep 14, 2017
Hear from a top applications security expert as he discusses key practices for scanning and securi ...Read More>>

Hosted CRM Vendor RightNow Files For IPO

The company says it has had 25 consecutive quarters of revenue growth and posted its first profit in the quarter ended March 31. Inc. just got some company on the list of hosted customer-relationship-management vendors preparing to go public. RightNow Technologies Inc., whose online CRM offering is focused on enabling consistent interactions with customers, on Monday filed its S-1 with the Securities and Exchange Commission for an initial public offering. The number of shares and offering price haven't been determined.

According to the S-1, RightNow has had 25 consecutive quarters of revenue growth, reaching $12.9 million for the quarter ended March 31, up from $7.8 million a year earlier. The quarter also was marked by a modest profit of $80,000, the company's first quarter in the black. Even so, in the customary S-1 disclosure of risk factors, RightNow states that it might not be able to remain profitable because of the need to incur significant expenses on sales and marketing, R&D, and administration as it continues to expand. Annual losses were $4.1 million in 2003, $2.7 million in 2002, and $15.3 million in 2001. The company says it has more than 1,000 customers who handled more than 102 million customer interactions during the first quarter, and it employs 322 people.

Sean Forbes, RightNow's chief strategist and VP of business development and marketing, says Saleforce's hotly awaited IPO--which is expected to raise more than $70 million--isn't seen as any kind of obstacle in RightNow's path. "We're big fans of," Forbes says. "They really carried the banner and invested a tremendous amount of money in helping to publicize the emergence and expansion of the on-demand model."

Morgan Stanley will be the sole book runner for the RightNow offering, with Thomas Weisel Partners acting as co-lead underwriter. Adams, Harkness & Hill and D.A. Davidson & Co. will be co-managers.

Research firm IDC estimates the market for on-demand applications will grow by 41% annually, reaching $3.6 billion in 2008, up from $665 million last year.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
[Interop ITX 2017] State Of DevOps Report
[Interop ITX 2017] State Of DevOps Report
The DevOps movement brings application development and infrastructure operations together to increase efficiency and deploy applications more quickly. But embracing DevOps means making significant cultural, organizational, and technological changes. This research report will examine how and why IT organizations are adopting DevOps methodologies, the effects on their staff and processes, and the tools they are utilizing for the best results.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll