Hosted Service Gets a Boost

RightNow Technologies, known for its customer support self-service and KM services, today filed initial papers for an IPO of its shares. The company, incorporated in Delaware and with its base of operations in Bozeman, MT, says it hopes to raise up to $60 million in the stock offering, which has not yet been scheduled. RightNow intends to list itself on the Nasdaq National Market, using the symbol RNOW. RightNow's S-1 filing with the Securities and Exchange Commission indicates that the company has enjoyed quarterly revenue growth for more than six years. On the other hand, the company has run annual net losses dating back to 1999, adding up to a nearly $45 million net deficit. The company's first-ever quarterly profit was recorded in the quarter ending March 31, 2004, when nearly $13 million in sales accounted for $80,000 in net income. CRM trend-watchers should take note of the fact that roughly one third of RightNow's revenues in any given quarter have come from international clients, and that RightNow currently has more than 1,000 active, paying customers. The services RightNow provides these clients accounted for more than 100 million customer service sessions in the first quarter of 2004. RightNow founder, Chairman, and CEO Greg Gianforte currently owns just under 60 percent of the company, with directors and executive officers accounting for another 28 percent ownership. The company does not have to disclose the holdings of lower-level employees or those individuals with less than 5 percent holdings, but the company has offered stock option plans to its staff since 1998. The full text of RightNow's S-1 filing can be found on the SEC Edgar site. A prospectus was not available at press time.
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