RightNow Technologies Inc (RNOW) reported fourth quarter of 2009 earnings per share from continuing operations of 5 cents, exceeding the Zacks Consensus Estimate of 1 cent. This was excluding a non-recurring litigation settlement gain of $1.0 million in the quarter.

Total revenue in the quarter was $41.6 million, compared to $36.1 million in the fourth quarter of 2008. Recurring revenue in the quarter increased 22% to $32.2 million from $26.5 million in the fourth quarter of 2008. During the reported quarter, recurring revenue grew $5.7 million, or 22% over the fourth quarter of 2008, and grew 8% sequentially over the third quarter of 2009. Recurring revenue was $32.2 million, an increase of 8% from $29.8 million last quarter and a 22% increase over $26.5 million in the fourth quarter last year. Professional service revenue was $9.4 million for the quarter, an increase of approximately $400,000 from the previous quarter.

New, renewed and expanded customer relationships during the fourth quarter of 2009 included Alltel, 3M, eHarmony, Jacuzzi Brands, MySpace, Rakuten, Social Security Administration, U.S. Government Printing Office, theTrainline.com, and Virgin Atlantic Airways.

The company had 704 million interactions in the quarter and approximately 2.5 billion for the year, which was a 19% increase over last year. The number of interactions has more than doubled over the past three years.

The average first year contract value was approximately $95,000 for the quarter and approximately $102,000 for the year. The company had eight deals over $1 million, nine new deals between $100,000 and $1 million and 435 deals less than $100,000. The average contract term increased to 25 months compared to 20 months in the third quarter. For the full year, the company’s average contract length was 23 months. It signed 51 new customers in the most recent quarter.

Cash generated from operations was $4.2 million for the quarter. Total cash from operations for the year was $16.1 million compared to $14.7 million last year. Capital expenditures for the quarter were $2.3 million and $6.2 million for the year. DSOs were 72 days for the quarter compared to 69 days in the third quarter.

Guidance

For the first quarter of 2010, revenue is expected to be in the range of approximately $42 to $42.5 million. Net income per share is expected to be in the range of approximately zero to 2 cents.

For the full year 2010, the company expects revenue in the range of approximately $175 to $180 million, with recurring revenue growth expected to be approximately 20%.

For the full year 2010, the company expects income from operations in the range of approximately $6.5 to $9.5 million.

Net income per share for the full year 2010 is expected to be in the range of approximately 14 to 20 cents.

RightNow Technologies Inc. provides customer relationship management (CRM) software and services in the United States, Europe, and the Asia-Pacific. Its CRM software suite includes RightNow Service, RightNow Marketing, RightNow Sales, RightNow Feedback, RightNow Voice, and RightNow Analytics. Major competitors include SAP AG (SAP) and Oracle Corporation (ORCL).

Read the full analyst report on “RNOW”
Read the full analyst report on “SAP”
Read the full analyst report on “ORCL”
Zacks Investment Research