Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Right On, RightNow!

While Bozeman, Montana, may seem like a quaint place, it hosts a variety of high-tech upstarts. Its stars include RightNow (Nasdaq: RNOW  ) , which recently reported its first-quarter results.

Revenues were up 34%, to $24.6 million. RightNow snagged 97 new corporate customers in the quarter, including VerizonWireless (NYSE: VZ  ) and Whirlpool (NYSE: WHR  ) .

RightNow posted a net loss of $440,000, or $0.01 per share, down from a net profit of $801,000, or $0.02 per share, in the year-ago period. However, the company generated $6.1 million in operating cash flow, a strong improvement year over year.

RightNow provides customer relationship management software. Its customers access that software on demand, via the Internet, for which they pay RightNow a subscription fee. The model has been a boon for companies such as (NYSE: CRM  ) , and RightNow is also enjoying success.

RightNow's software captures customers' attempts to contact a company via phone calls, email, and websites. The software then routes those customers to the right people within the company, or to certain predefined FAQs.

Bookings are critical to RightNow, and they were particularly strong in the first quarter, climbing 71% to $37.6 million. RightNow expects the bookings to grow between 40% and 50% for the rest of 2006.

Since RightNow's revenue is based on monthly subscription fees, it can take a year or more to see a material impact on the bottom line. ( had similar struggles.) Fortunately, RightNow's ramped-up bookings should eventually lead to stronger revenue and profit growth. As seen with, such improvements can also create a healthy valuation for shareholders.

Looking for more high-tech stocks with solid fundamentals and explosive growth potential? Let David Gardner guide you through the thrilling world ofMotley Fool Rule Breakers. Try the newsletter service for free with a 30-day guest pass.

Fool contributor Tom Taulli does not own shares mentioned in this article.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 513066, ~/Articles/ArticleHandler.aspx, 10/24/2016 8:48:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 0.00%
S&P 500 2,141.16 -0.18 0.00%
NASD 5,257.40 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:01 PM
CRM $74.00 Down +0.00 +0.00% CAPS Rating: ***
VZ $48.20 Down +0.00 +0.00%
Verizon Communicat… CAPS Rating: ****
WHR $167.18 Down +0.00 +0.00%
Whirlpool CAPS Rating: ****