right now corporatepresentation july 2011
DESCRIPTION
Presentación corporativa de RightNow de julio de este año.TRANSCRIPT
RightNow Investor Presentation!July 27, 2011
© RightNow Technologies, Inc.!
Statements included in this presentation, 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, managementʼs beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by the words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variation or negatives of these words and include, but are not limited to, statements regarding projected results of operations and 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, our business model; our ability to develop or acquire and gain market acceptance for new products and enhancements to existing products in a cost-effective and timely manner; general economic conditions; fluctuations in foreign currency exchange; the gain or loss of key customers; competitive pressures and other similar factors such as the availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; our ability to expand or contract operations, manage expenses and grow profitability; the rate at which our present and future customers adopt our existing and future products and services; fluctuations in our operating results including our revenue mix and our rate of growth; fluctuations in backlog; the risk that our investments in partner relationships and additional employees will not achieve expected results; 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; any unanticipated ambiguities in fair value accounting standards; the amount and timing of any stock repurchases under our stock repurchase program; fluctuations in our operating results from the impact of stock-based compensation expense; our ability to manage and expand our partner relationships; our ability to hire, retain and motivate our employees and manage our growth; the risks associated with prior and future acquisitions; and risks associated with our offering of convertible senior notes including the potential impact on earnings per share calculations; and various other factors. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, quarterly reports on 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. !
The forward-looking statements in this presentation are made as of July 27, 2011. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.!
!
Disclaimer!
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RightNow helps the world's largest organizations deliver
exceptional customer experiences across the web, social
networks, and contact centers over 8 million times a day. Our
cloud-based solutions reduce customer interaction costs and
drive revenue while improving the customer experience.
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• Total revenue: $54.8M up 26%!• Recurring revenue: $45.4M up 31%!• Non-GAAP operating margin: 11% up 200 basis points!• Non-GAAP EPS: $0.15!• Current software backlog: $152M up 43%!
RightNow Financial Highlights!
Q2 2011 vs. Q2 2010!
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Please see our most recent earnings release posted to our Investor Relations website for a reconciliation of GAAP to non-GAAP measures.
Cloud Leadership!• Fully multi-tenant cloud infrastructure!• Five global data centers!- US(2), US Government, Canada, UK!
• PCI, DIACAP, FERPA, FISMA, GLBA, HIPAA, NIST compliant and certified!
RightNow At A Glance!
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Customer Experience Experts!• Mission: Rid the World of Bad Experiences!• 13 years of deep cloud delivery and CX
expertise!• Solutions deliver superior customer
experiences across channels!• Focus on tangible business results!
Global Operations!• 18 worldwide offices!• 1,000+ employees!• 33 languages supported!
Solid Financial Performance!• 13 years of continuous revenue growth!• Subscription-based recurring revenue!• Profitable!• Strong balance sheet!
• Megatrends providing strong tailwind!• $5 billion addressable today!• $15 billion in 3-5 years!
• RightNow is the clear market leader in delivering customer experience solutions to help our clients and target prospects deal with the CX imperative!
• Investing in profitable growth!!
RightNow Opportunity !!
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Gartner predicts 20% of all IT assets will migrate to the cloud by 2012. Further, Gartner says the cloud computing market will compound at an annual rate of 28% from $47 billion in 2008 to $126 billion by 2012 and hit $150 billion in 2013.!
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CX Solutions est. $15+ Billion Market !
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Cloud computing is faster, more reliable, and less expensive than on premise.
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CX Market Size!
Megatrends!
1. Consumer Empowerment!2. Cloud Computing!3. Proliferation of Online Interactions!4. Contact Center Replacement!
Megatrends Create Tremendous Opportunity!
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Customer Mandate for CX Solutions"
1. Customer Experience Imperative!
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2. Cloud Computing Going Mainstream!
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The economic gains, the environmental benefits and the ability to provision services on demand are key factors in the government’s shift to cloud computing. - Vivek Kundra, White House CIO
Cloud Services Market (IDC)
” “
3. Proliferation of Online Interactions!
11 Source: comScore global!
Time Spent Online Social Networking vs. Email
Mobile Driving Acceleration of Internet Use
• Shift to cloud from on-premise in contact center just beginning!
• SaaS CC penetration = 18% (Source: IDC)!
• New multi-channel contact center leaders emerging!• Older, outdated technology getting replaced !
4. Contact Center Replacement Cycle!
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I get calls almost daily from Siebel customers asking me what their alternatives are.
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Gartner Magic Quadrants!
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Gartner Inc. “Magic Quadrant for CRM Customer Service Contact Centers” Michael Maoz, April 15, 2011 *3
Gartner Inc. “Magic Quadrant for CRM Web Customer Service” Johan Jacobs, September 19, 2011 *3
*The Magic Quadrant is copyrighted 2010 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse and vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research including any warranties of merchantability or fitness for a particular purpose.
RightNow CX!
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Intent Guide!Web / Mobile Self-Service!
Email Management!Chat / Co - Browse!
Web "Experience™
Social "Experience™
CX for Facebook!Support Community!
Innovation Community!Cloud Monitor!
Voice Experience Manager!Dynamic Agent Desktop!
Engage™ Customer Feedback, Service, Sales, Marketing, Analytics!
CX Cloud Platform™ App Builder, Knowledge Foundation, Natural Language Search, Mission-Critical Operations!
Contact Center Experience™
Global Customer Leadership!
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Industry!
High Tech!
Retail and Consumer Goods!
Telecom!
Travel and Hospitality!
Financial and Insurance!
Government and Education!
Tangible Business Impact!
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• Lowered the costs associated with managing its 200-person call center by over 30% !
• Reduced inbound calls to agents by 25%!• Increased the email deflection rate by 31%!
• Reduced inbound email by 25%!• 833% ROI based on inbound reductions!• Increased FCR rates by 20%!
• More than 50% reduction in emails!• Customer self-service rate at 94% !• 100% first-time resolution to customer inquiries and issues !
• 40% reduction in email!• 94% self-service rate!• 11% increase in CSAT on voice channel!
• Customer satisfaction scores up 25%!• 1,000% increase in Chat traffic (customer who chats is four times as likely to purchase)!• $100,000 in sales through social channels in first year !• $50,000/year saved in labor costs related to managing customer feedback!
RightNow Customers Set the Standard!
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2010 Gartner and 1to1 Media CRM Excellence Awards: Gold, Innovation Award!
2010 Gartner and 1to1 Media CRM Excellence Awards: Silver, Enterprise-Wide Initiative!
2009 Gartner CRM Excellence Award EMEA!
2008 Gartner and 1to1 Customer Awards: Gold, Full-Suite CRM Optimization !
2007 Finalist Gartner CRM Excellence Award EMEA!
2007 Finalist Gartner CRM Excellence Award !
2008 Gartner and 1to1 Customer Awards: Gold, Customer Service Optimization !
Colorado Department of Revenue Nucleus ROI Award 2008!
2008 Gartner and 1to1 Customer Awards: Silver, Full-Suite CRM Optimization!
2008 Gartner and 1to1 Customer Awards: Silver, Customer Service Optimization !
2011 CRM Magazine Service Elite Award!
2011 Gartner and 1to1 Media CRM Excellence Awards: Enterprise Efficiency!
2011 Gartner and 1to1 Media CRM Excellence Awards: Customer Experience!
2011 Gartner and 1to1 Media CRM Excellence Awards: Silver, Customer Experience!
2011 Gartner and 1to1 Media CRM Excellence Awards: Silver, Social Engagement!
#1 in Online Customer Respect Study!
RightNow Financial Highlights!
© RightNow Technologies, Inc.!
Revenue Growth!
19 *2011E based on guidance provided July 27, 2011
$ in millions!
Revenue and Expense Growth!
20
Diversified Business – TTM*!
21 *TTM = Trailing Twelve Months
Key Metrics !
22
Please see our most recent earnings release posted to our Investor Relations website for a reconciliation of GAAP to non-GAAP measures.
*Includes invoiced and uninvoiced deferred revenue.
**During November 2010, we raised net proceeds of $170m for a convertible note offering. During January 2011, we purchased Q-qo.
Progress Toward Target Model!
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Please see our most recent earnings release posted to our Investor Relations website for a reconciliation of GAAP to non-GAAP measures.
RightNow Case Studies!
© RightNow Technologies, Inc.!
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Goals • Provide superior call center support to Jackson Hewittʼs 40,000 tax preparers and
franchise owners and millions of clients!• Break down the silos of information to improve call center agent productivity!• Increase focus on Tier 2-level support by improving self-help options in “Ask Jackson”
for simpler questions!• Leverage information learned throughout the entire organization for corporate
decision making, training, and troubleshooting purposes!• Modernize IT infrastructure to make it more scalable and flexible!• Find a solution that could be configured for the tax preparation industry!
Results • Lowered the costs associated with managing its 200-person call center by over 30%!• Reduced inbound calls to agents by 25%!• Broke down the silos of information that prevented the company from providing best-
in-class customer support !• Increased the email deflection rate by 31% !
Case Study: Jackson Hewitt !
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Goals • Grow revenue from installed base !• Maximize adoption of their new technology by providing a great customer experience!• Optimize use of online communication channels!• Control costs!
Results • Outstanding multi-channel service supports annual business growth!• 97% web self-service rate!• 30% reduction in phone calls, with headcount reduced accordingly !• Integration of service, order entry, and other processes saves time and reduces errors!• Using Cloud Monitor to track and respond to product commentary!
Awards • 2009 1to1 Media Customer Champion Award!• 2009 Gartner and 1to1 Media CRM Excellence Award!• 2008 CRM Magazine Service Elite Award!
Case Study: iRobot!
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Goals • Provide consistent answers via web, email, phone!• Reduce redundant questions to the call center (email as well)!• Reduce agent errors!• Improve first call resolution and reduce escalations!• Improve customer satisfaction!
Solutions • RightNow Service, RightNow Analytics!
Results • Are responsive to worldwide events and natural disasters in real time!• Reduced inbound emails by 25%!• 833% ROI based on inbound reductions!• Cut agent errors by 90%!• Increased FCR rates by 20%!• Improved overall customer satisfaction ratings!
Case Study: Orbitz!
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Goals • Improve web service and generate significantly more sales leads by optimizing the
customer-facing website!
Solution • RightNow Intent Guide provides website visitors fast, highly relevant answers to their
questions and matches product offerings to their needs!
Results • A better customer experience is ensured as customer questions and needs are now
much more clear!• Online sales leads increased by 50%!• Customer-focused solutions yield cost-effective advantages
!This customer story was approved for public release in 2010, at which time ABN AMRO was a client under contract with Q-go. On January 18, 2010 RightNow acquired Q-go, and this case study has been updated to reflect the acquisition. The Q-go product offering is now RightNow Intent Guide.!
Case Study: ABN AMRO!
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Goals!• Extend ROI and reduce operational costs via deeper product utilization !• Improve consistency of customer service to Executive Club members across all
contact channels !• Continue enhancing the customer experience !
Solution • RightNow Service!
Results • 60% reduction in inbound emails!• Increased customer satisfaction!• 4+ years of top industry recognition!• Volume reduction has enabled the agents to focus on critical, more complex issues
and reduce the response time for these requests!
Case Study: British Airways!
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Goals • Answer a large number of questions quickly and accurately via the KLM website in
order to significantly reduce the call center workload, save costs, and increase online revenues!
Solution • Intent Guide allows customers to submit questions in natural language for the fastest,
most relevant answers in just two clicks!
Results • Fast and relevant answers to customer questions!• 18% reduction in call center volumes in the first three months!• Clear and consistent insight into what customers are searching for!
Case Study: KLM!
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Goals • Improve access to complex information on Air New Zealand's website !• Reduce high demand on Air Points and Reservations call centers by encouraging
customers to service themselves online!
Solution • RightNow Service!
Results • Email inquiries across call centers have reduced on average by 55% since
RightNow's implementation !• Calls relating to frequent-flyer program reduced by 56% since the RightNow
deployment !• Improved performance management of customer service staff!
Case Study: Air New Zealand!
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Goals • Provide customers with consistent answers to questions through the channel of their choice!• Leverage social channel to improve customer interactions and increase sales!• Report customer feedback to company executives and use the information to improve
company performance!
Results • 1,000% increase in chat traffic (customers who chat are four times as likely to purchase)!• Customer satisfaction scores up 25%!• $100,000 in sales through social channels in first year !• $50,000/year saved in labor costs related to managing customer support!• 98% of customers say they would recommend J&P to a friend/family member!
Awards • 2011 Gartner Award, Silver, in Social Engagement category for their use of RightNow CX!• 2011 Gartner, 1to1 Media CRM Excellence Award Winner Runner Up!• Silver Award in Social Engagement for Customer-Centric Approach of Social Media!• 2010 RightNow Social Super Star Award winner!!
Case Study: J&P Cycles!
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Goals • Increase agent efficiency !• Customize incident tracking for each vertical business !• Consolidate vendors!
Solutions • RightNow Service, RightNow Feedback, RightNow Chat!
Results • 40% of RealNetworksʼ customers resolve their issues online
without escalating to an agent!• Reduced agent call handle times !• Customer satisfaction has increased 10 absolute points !• Email response times dropped to <12 hours !• Agents facilitate more than 250,000 chat sessions per year !• Less than 1% of online chat sessions are escalated !
!
Case Study: RealNetworks!
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Goals • Provide effective support to customers wanting to purchase or make inquiries via the
Comet website !• Reduce the volume of emails received by Cometʼs Customer Care team !• Track every customer inquiry to enable Comet to address them in a timely and
detailed fashion !• Support Cometʼs goal to be “Britainʼs most trusted electrical specialist” !
Solution • RightNow Service!
Results • More than 50% reduction in emails to Cometʼs Customer Care team !• Customer self-service rate at 94% !• 100% first-time resolution to customer inquiries and issues !• Seasonal spikes in customer interactions successfully managed without additional
staff recruitment!
Case Study: Comet!
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Goals • Deliver worldwide superior customer experience across marketing, sales, and
customer service touchpoints !• Continuously capture high-value market insight !• Keep costs under control !
Solutions • RightNow CRM Suite, RightNow Service, RightNow Feedback, RightNow Marketing,
RightNow Sales!
Results • Responsive interactions drive customer satisfaction scores above 95% !• 50% reduction in call response times and 70% reduction in email response times !• Improved visibility into customer concerns enhances marketing and product
development !• RightNow embraced globally with twelve languages and multi-continent deployments !• Earned Baseline and Nucleus Research awards for 3,200+% ROI over three-year
period!
Case Study: Nikon!
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Goals • Deliver great service and support across all communication channels to ensure
customer loyalty !• Optimize efficiency to keep costs from growing as fast as the business !• Gain better visibility into customer issues to ensure responsiveness to their needs !
Solutions • RightNow Service, RightNow Marketing, RightNow Feedback!
Results • 24-hour web self-service handles more than two million answers viewed each month !• Reduced phone and email workloads result in lower costs but improved customer
experience !• All interactions across all channels tracked in one place for maximum market insight!
Case Study: TomTom!
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Goals • Deliver exceptional customer experiences to millions of members and help them find
success while dating!• Implement a customer experience solution that can scale over time as the company
grows!• Improve call center efficiency and productivity!• Reduce email and call management costs !
Solutions • RightNow Web Experience, RightNow Dynamic Agent Desktop, RightNow WSS,
RightNow Email, RightNow Phone Incidents, RightNow Chat, RightNow Co-Browse!
Results • 40% reduction in email!• 52% self-help through the “contact us” form on website!• 94% self-service rate!• 11% increase in customer satisfaction (CSAT) on voice channel!• Huge improvement in FAQ creation!
Case Study: Match.com!
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Goals • Improve customer satisfaction through the provision of web self-service !• Create a knowledge base/intranet to support internal staff!• Ensure consistency of information across all customer service channels !
Results • Replacement of multiple legacy systems with a single source of information for all customer-facing and internal customer service queries!• Accessible 24/7 web self-service!• 21% reduction in inbound customer service emails despite a significant increase in the overall customer base !• Engaging online help that incorporates multimedia !• Use of RightNowʼs Knowledge Base has reduced reliance on staff knowledge and reduced training time !
Case Study: Virgin Mobile Australia!