Convio (Nasdaq: CNVO $10.30) reported Q2 results that were above our estimates. Revenue for the quarter totaled $20.7m, up 13% from the year before ($18.2m). Revenue for the full year is expected to range between $79.4m and $80.3m, ahead of our previous projection of $78m.
Due to the company’s accounting, actual sales are higher than what was reported. The company only reports revenues from contracts so far as they are guaranteed – customers can opt to cancel a contract after a certain amount of time has passed. Ninety percent of existing customers are retained, so most of that revenue will be collected in the future.
Convio clients raised $380m from online donations, a 21% increase from $314m the year before. The company’s collaboration with Constant Contact will make it easier for NPOs to contact donors, and should result in more donations, which Convio takes a cut of in most cases. The launch of Luminate, the company’s new cloud-based constituent engagement solution offers NPOs more integration while keeping track of data for an entire organization to easily access.
The company also named Patricia Hume the new vice president of worldwide sales. Hume has 29 years of experience in software and technology sales with companies including IBM, SAP and Avaya. She was formerly senior vice president of sales with SAP and GFI, and became vice president of business partner sales and marketing for a period at IBM.
“We are extremely excited to have Patricia join our team,” said Gene Austin, chief executive officer for Convio. “Patricia’s high energy, collaborative approach and track record of success are a great match for Convio as we execute on our growth strategy.”
Non-GAAP earnings per share were $0.09, a 12% increase from $0.08 a year ago. Share earnings for the full year are projected between $0.37 and $0.40. Our estimate of $.30 a share assumes a higher (35%) tax rate. Convio still holds about $50 million of tax loss carryforwards so cash payments are minimal.
Convio’s future outlook could be hampered by the continually slowing economy. Short term results shouldn’t be affected too much, but the company could be troubled if the economy continues to slip. Charitable organizations would find it increasingly difficult to find donors in a tight economy.
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