A LEADER in ONLINE BUSINESS OPTIMIZATION 550 East Timpanogos Circle American Stock Transfer & Trust Company Orem, UT 84097 801.722.7000 TEL Stock Listing: 801
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Corporate Information Corporate Headquarters: Transfer Agent: A LEADER IN ONLINE BUSINESS OPTIMIZATION 550 East Timpanogos Circle American Stock Transfer & Trust Company Orem, UT 84097 801.722.7000 TEL Stock Listing: 801. 722.7001 FAX Omniture’s common stock is traded on The NASDAQ Global www.omniture.com Market under the symbol “OMTR.” Annual Meeting of Stockholders: Investor Relations: The annual meeting will be held at 10:00 a.m., For additional copies of this report or other information, contact: Wednesday, May 23, 2007 Sundance Resort Omniture, Inc. RR 3 Box A-1 Investor Relations Sundance, Utah 84604 550 East Timpanogos Circle Orem, UT 84097 Independent Auditors: e-mail: [email protected] Ernst and Young LLP Other information is available on Omniture’s Investor Relations Web Legal Counsel: site at www.omtr.com Wilson Sonsini Goodrich and Rosati, Professional Corporation WEB: www.omniture.com AMERICAS: EMEA OFFICE: APAC OFFICE: EMAIL: [email protected] 550 East Timpanogos Circle Quatro House W22F Shibuya MarkCity Orem, Utah 84097 Lyon Way 1-12-1 Dogenzaka Shibuya 1.877.722.7088 TEL Frimley, GU16 7ER Tokyo, Japan 150-0043 1.801.722.7001 FAX United Kingdom +81.03.4360.5385 TEL +44.870 734 5678 TEL +44.870 734 5679 FAX ABOUT OMNITURE Omniture, Inc. is a leading provider of online business optimization software, enabling customers to manage and enhance online, offline and multi-channel business initiatives. Omniture’s software, which it hosts and delivers to its customers as an on-demand subscription service, enables customers to capture, store and analyze information generated by their Web sites and other sources and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. In addition, Omniture offers a range of professional services that complement its online services, including implementation, best practices, consulting, customer support and user training through Omniture University™. Omniture’s more than 2,000 customers include eBay, AOL, Wal-Mart, Gannett, Microsoft, Neiman Marcus, Oracle, Countrywide Financial, General Motors, Sony and HP. www.omniture.com © APRIL 2007 Omniture, Inc. Omniture and the Omniture, SiteCatalyst, SearchCenter, Discover, Genesis and TouchClarity logos are trademarks of Omniture. All other trademarks and logos are the property of their respective owners. All rights reserved. “ 2006 was a breakout year for Omniture. We Management and Board of Directors expanded our market leadership in Web analytics and more importantly, established our products as the foundation for measuring and optimizing online business.” MANAGEMENT BOARD OF DIRECTORS Joshua G. James D. Fraser Bullock JOSH JAMES, PRESIDENT AND CHIEF EXECUTIVE OFFICER President and Chief Executive Offi cer Lead Independent Director John R. Pestana Gregory S. Butterfi eld Executive Vice President, Customer Success, Director Co-Founder Dana L. Evan Michael S. Herring Director Chief Financial Offi cer and Executive Vice President Mark P. Gorenberg Brett M. Error Director Chief Technology Offi cer and Executive Vice President, Products Joshua G. James Director Christopher C. Harrington President, Worldwide Sales and Client Services Rory T. O’Driscoll Director Michael J. Dodd, Jr. Senior Vice President, Corporate Development John R. Pestana Chairman of the Board Gail M. Ennis Senior Vice President, Marketing Shawn J. Lindquist Chief Legal Offi cer, Senior Vice President and Secretary John F. Mellor Senior Vice President Business Development & Corporate Strategy Neil M. Weston General Manager, EMEA and Senior Vice President The SiteCatalyst™ Reporting Suite Omniture Highlights » The fastest organically growing public software company » #1 aftermarket return technology IPO of 2006 » Over 2,000 customers worldwide » Customers in over 35 countries » 420 billion transactions in Q4, 2006 » 1.4 trillion transactions in 2006 * Baseline Magazine, October 2006, year-over-year revenue for 2004-2005 » Five years of over 100% annual revenue growth; ** Morgan Stanley, FactSet *** 2001-2005 86% annual revenue growth in 2006 Omniture Inc. Online Business Optimization Platform “ Omniture has signifi cant domain expertise across all major industry verticals.” JUPITERRESEARCH (2007) “ More than any other vendor in the market, Omniture understands that what makes or breaks Web analytics within large enterprises are the human issues of usability, training and consulting …” FORRESTER RESEARCH (2006) “ Omniture experienced very high growth…and is now the leading on-demand Web analytics provider by revenue.” IDC (2006) “ Strong positive.” GARTNER (2006) Annual Report Annual Report To Our Shareholders: As I look back on 2006, I am Adjusted EBITDA** was positive, immensely proud of all we have totaling $8.0 million for the year accomplished as a company. 2006 and 10% of revenue, compared to was a breakout year for Omniture a loss of $6 million for 2005. In as we successfully took the company addition, we signifi cantly improved public, established ourselves as the gross margins of the company market leader in Web analytics and through the benefi ts of scale and positioned our platform at the cen- with an intense focus on hardware ter of online business optimization. effi ciencies by our engineering team. We believe gross margins Financial Performance will continue to ramp up to our Our leadership in online business target of greater than 70% over optimization contributed signifi - the next few years. cantly to our strong fi nancial results in 2006. Full year 2006 revenue Customer usage continued to was $79.7 million, an increase of grow as we managed 1.4 trillion 86% from 2005. We returned the customer transactions during the company to non-GAAP* profi t- year. This record customer growth ability in the second half of the and transaction volume validate year, while at the same time we that our integrated online business organically increased the size of optimization platform, delivered our customer base to nearly 1,800. via on-demand, is what customers We have also added over 35 points want and need today. of margin to the bottom line over the last six quarters, demonstrat- ing how signifi cant leverage in our core business model can be used to drive profi tability. * All non-GAAP numbers have been adjusted to exclude certain items. A reconciliation of specifi c adjustments to GAAP for this time period is included in the GAAP to non-GAAP table included at the end of this report. ** Adjusted EBITDA is defi ned as earnings before interest, taxes, depreciation, amortization and stock-based compensation. Omniture Inc. Product Innovation From the beginning, our company Omniture Discover 2 (D2) is the Previously, online business has focused on developing great most technically advanced product optimization was possible for products. We believe our solution we have ever launched. One of the customers leveraging our Web achieved the leadership position key benefi ts of Omniture Discover analytics data, but it was executed in online business optimization in is that it operates from the same primarily by human interaction—a 2006. For us, this means we have platform as Omniture SiteCatalyst. limiting factor. With this behavioral a service offering that grows and This delivers an uninterrupted targeting technology, we have online scales at industry-leading activity workfl ow and a continuous blend of business optimization that delivers levels as our customers mature. analysis from executive dashboards automated revenue and profi t uplift By launching key products such as while also allowing granular analysis for our customers. In addition, this Omniture SearchCenter, Omniture of individual visitor behavior. D2 strategic product and technology Genesis, and Omniture Discover 2, does this by blending the speed acquisition expands our market by we have established our platform as characteristics of OLAP systems providing new entry-point as well as the foundation for measuring and with the best of data warehouse cross-sell opportunities. optimizing online business. fl exibility. Additionally, insights into this reporting are communicated In December 2006, we launched through unique and intuitive 3D Omniture Genesis with 30 accredited visualizations that provide multiple partners. This new plug-and-play dimensions of information within a solution reduces the complexity single user interface. of measuring online marketing campaigns and improves results Our recent acquisition of behavioral by automating the integration of targeting company Touch Clarity adds marketing applications into the an additional element of optimization Omniture platform. Customers can and automation to our platform. now integrate data across multiple We looked at all of the alternatives solutions and marketing initiatives in the optimization market, and we in just minutes versus the months believe that Touch Clarity’s technology it took before the availability of is years ahead of the competition. Omniture Genesis. When you combine it with Omniture’s platform, it is game changing. Annual Report Omniture Inc. Industry Leading Customer Growth & Retention Demand for our products continues Equally important, we were able to to be very strong as we saw record expand and upsell our relationship bookings in 2006. We added over with a number of existing customers 850 customers during the year, including Microsoft, AOL/Time and with the addition of recent Warner and Sony. acquisitions, we now have over 2,000 customers worldwide— We believe retention is an doubling