Leading On-Demand Software Provider for Nonprofits is Cash Flow Positive and Achieves Profitability on Non-GAAP Basis; Delivers Innovative New Products and Services to Sector
Austin, TX — August 4, 2008 — Convio, the leading provider of on-demand constituent relationship management software and services to nonprofit organizations — today announced record revenues of $14.7 million for the second quarter of 2008, a 35 percent increase over the same period last year. Generating $1.3 million in operating cash flow, the company produced positive cash flow from operations for the third time in the last four quarters and also achieved profitability on a non-GAAP basis in the second quarter.
“We are pleased with our growth, record revenues, cash flow and profitability during a challenging economic period,” said Gene Austin, chief executive officer of Convio. “Nonprofits are buying solutions that will help them control costs, generate revenue and develop stronger relationships with their donors, volunteers and other supporters. Our results are testament to the mainstream acceptance of the on-demand model, our investment in strategic new products and services and our diverse set of proven applications as a cost-effective approach for nonprofits to drive results.”
During Q2 2008, Convio's subscription and services revenue grew by 30 percent over the same period last year driven by increased demand from new clients, renewals of clients and selling additional modules and services to existing clients. Usage revenue for the period grew by 62 percent over the same period last year driven by significant new fundraising events and overall growth in existing events.
With the combination of new clients, addition of significant new events and organic growth in the existing client base Convio processed $377 million in online donations on behalf of clients during the first half of 2008 — a 100 percent increase over the same period a year ago.
Convio's non-GAAP income from operations for the quarter ended June 30, 2008, which excludes stock-based compensation expense and amortization of intangibles arising from the acquisition of GetActive Software, Inc., was $114,000. This compares with non-GAAP loss from operations of $1.4 million in the same period last year.
A reconciliation of GAAP to non-GAAP results has been provided in the summary financial statement tables included in this press release. An explanation of this measure is also included below under the heading “Non-GAAP Financial Measures.”
Product and Service Innovation, Client Adoption and Leadership
In Q2 2008 Convio introduced a charter program for Convio Common Ground™ (previously code-named Aikido) a new, open, Web-based constituent relationship management (CRM) system for tracking all constituent interactions across all channels, online and offline. Built on salesforce.com's Force.com Platform, the product offers an on-demand solution that easily integrates with other open systems to provide powerful tools that help nonprofits focus on their mission, fundraising, advocacy and communications instead of managing and maintaining software and technology. Currently deployed by selected nonprofit organizations in the charter program, Common Ground is expected to be generally available in the second half of 2008.
Convio also introduced Convio Go!, an innovative new program designed to help resource-constrained nonprofits achieve online fundraising and outreach success, allowing staff to focus their efforts and expertise on programs and services.
During the quarter Convio signed a variety of new clients including Boys and Girls Club of America and Susan G. Komen for the Cure®. Susan G. Komen for the Cure's global headquarters and all 125 of the organization's Affiliates are standardizing on Convio's integrated suite of online software products for fundraising, advocacy, event fundraising, ecommerce, Web content management and email communication. In addition, Komen will replace all existing Affiliate donor databases with Common Ground.
“The Internet continues to be a growth engine for nonprofits,” added Austin. “With the addition of Common Ground to our leading online applications, our clients and Convio are well positioned to benefit from the evolution going on in the nonprofit sector.”
Convio is the leading provider of on-demand software and services that enable nonprofit organizations to more effectively raise funds, influence public policy and support their missions by leveraging the Internet to build strong relationships with constituents. The Company's online constituent relationship management solution includes a suite of on demand software modules for fundraising, advocacy, email marketing and web content management complemented by a portfolio of best-in-class consulting services.
Convio's clients include American Red Cross, American Diabetes Association, American Society for the Prevention of Cruelty to Animals, National Multiple Sclerosis Society, Sierra Club, Susan G. Komen Foundation, and National Public Radio. For more information, please visit www.convio.com
Director, Corporate Communications