RightNow Reiterates Q2 Guidance

Investors are reacting modestly to RightNow Technologies’ (RNOW - Analyst Report) reaffirmation of its Q2 guidance issued just prior to its Analyst Day meeting yesterday. Earlier in the week, the stock had advanced over 18% leading up to the Analyst Day meeting. Post-meet, the stock appears to have retreated a bit with the Q2 reiteration apparently built into the price.

RightNow Technologies is a leading provider of on-demand customer relationship management (CRM) software solutions, designed to optimize customer service operations for businesses of all sizes. Highlights of the Analyst Day meeting included a statement from management that the company has closed a large deal recently, evidently larger than the seven-figure deal closed in Q1. Management also highlighted significant achievements towards realizing its operating margin goal of 18%-22% and hopes to exit 2011 at the target operating margin goal.

Management reiterated its earlier guidance for Q2: Revenues of $36 million and non-GAAP EPS of $0.03 - $0.05. GAAP EPS is expected at $(0.04) - $(0.02). This compares to our estimates of $36.8 million in revenues and non-GAAP EPS of $0.04.