RightNow 8-K Results of Operations and Financial Condition

Exhibit 99.2

Consolidated Balance Sheets

Unaudited

Last updated October 24, 2005

	Amounts in thousands
	At December 31,				Mar 31,		Jun 30,		Sep 30,		Dec 31,		Mar 31,		Jun 30,		Sep 30,		Dec 31,		Mar 31,		Jun 30,		Sep 30,		Dec 31,		Mar 31,		Jun 30,		Sep 30,
	2000		2001		2002		2002		2002		2002		2003		2003		2003		2003		2004		2004		2004		2004		2005		2005		2005
Assets
Current assets:
Cash and cash equivalents	17,128		6,258		4,334		6,128		6,924		8,038		8,216		8,116		8,294		8,360		8,352		8,912		21,806		18,944		33,155		30,292		39,594
Short-term investments	—		—		—		—		—		—		—		—		—		—		—		—		25,943		31,188		19,698		24,181		20,883
Accounts receivable	5,649		3,711		3,996		4,745		6,102		6,637		7,084		7,652		6,342		10,415		12,003		14,034		17,968		16,939		13,552		15,799		21,968
Term receivables	2,839		3,600		3,000		3,033		2,784		3,085		4,498		5,881		6,521		4,926		5,080		5,849		8,232		10,090		13,275		14,733		14,105
Less allowance for doubtful accounts	(941	)	(728	)	(660	)	(641	)	(593	)	(519	)	(616	)	(521	)	(768	)	(902	)	(1,221	)	(1,274	)	(2,626	)	(1,581	)	(1,627	)	(1,608	)	(1,960	)
Prepaid expenses	526		510		437		475		646		466		853		711		1,021		509		1,017		1,778		1,265		1,255		1,272		1,196		1,771
Total current assets	25,201		13,351		11,107		13,740		15,863		17,707		20,035		21,839		21,410		23,308		25,231		29,299		72,588		76,835		79,325		84,593		96,361
Property and equipment, net	3,044		3,931		3,639		3,301		3,474		3,319		3,031		2,877		2,880		2,942		3,234		3,553		4,001		4,393		4,842		5,375		5,597
Term receivables, noncurrent	—		—		325		545		752		924		1,197		1,704		1,919		2,278		2,415		3,673		3,777		5,756		8,256		10,234		10,801
Intangible and other assets, net	496		1,343		1,361		1,264		1,157		1,152		990		911		938		858		1,145		1,068		1,157		1,325		1,232		2,028		1,892
Total assets	28,741		18,625		16,432		18,850		21,246		23,102		25,253		27,331		27,147		29,386		32,025		37,593		81,523		88,309		93,655		102,230		114,651
Liabilities, Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable and accrued liabilities	2,819		2,335		1,563		1,574		1,878		2,039		2,229		2,591		3,234		3,179		4,197		4,293		5,452		5,435		6,397		6,600		7,635
Commissions and bonuses payable	1,025		531		509		685		731		1,076		925		974		1,197		1,636		1,469		2,133		2,248		2,648		1,971		2,550		3,344
Current portion of long-term debt	7		2,042		1,860		2,935		3,189		3,282		3,374		3,078		1,488		1,390		1,324		1,349		15		—		—		31		29
Deferred revenue	12,317		14,843		14,396		15,485		17,115		17,392		19,428		21,510		23,349		26,127		25,368		30,780		32,796		36,020		37,899		40,669		45,694
Total current liabilities	16,168		19,751		18,328		20,679		22,913		23,789		25,956		28,153		29,268		32,332		32,358		38,555		40,511		44,103		46,267		49,850		56,702
Deferred revenue, noncurrent	4,843		4,031		3,975		4,515		4,855		7,291		8,375		9,061		8,811		9,426		11,361		9,997		11,695		13,105		14,911		16,699		18,058
Long-term debt	—		1,185		1,131		1,006		1,127		940		720		753		626		484		1,046		1,377		—		—		—		131		125
Preferred stock	31,075		32,340		32,340		32,340		32,340		32,373		32,388		32,391		32,394		32,398		32,442		32,446		—		—		—		—		—
Stockholders’ equity (deficit):
Common stock and warrants	21		21		14		14		14		14		14		14		14		15		15		15		320		320		233		137		138
Additional paid-in capital	(1,109	)	(1,051	)	(1,042	)	(966	)	(958	)	(986	)	(984	)	(987	)	(922	)	(912	)	(807	)	(721	)	71,663		72,367		73,042		74,479		76,339
Other comprehensive income (loss)	(38	)	(91	)	(111	)	(49	)	(44	)	(9	)	(25	)	1		21		73		(40	)	(360	)	(390	)	(605	)	(618	)	(445	)	(433	)
Accumulated deficit	(22,219	)	(37,561	)	(38,203	)	(38,689	)	(39,001	)	(40,310	)	(41,191	)	(42,055	)	(43,065	)	(44,430	)	(44,350	)	(43,716	)	(42,276	)	(40,981	)	(40,180	)	(38,621	)	(36,278	)
Total stockholders’ equity (deficit)	(23,345	)	(38,682	)	(39,342	)	(39,690	)	(39,989	)	(41,291	)	(42,186	)	(43,027	)	(43,952	)	(45,254	)	(45,182	)	(44,782	)	29,317		31,101		32,477		35,550		39,766
Total liabilities, preferred stock and stockholders’ equity (deficit)	28,741		18,625		16,432		18,850		21,246		23,102		25,253		27,331		27,147		29,386		32,025		37,593		81,523		88,309		93,655		102,230		114,651

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.

Consolidated Statements of Operations

Unaudited

Last updated October 24, 2005

	Amounts in thousands, except per share data
	Fiscal Year						2002															2003
	2000			2001			Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			Q4			FY
Revenue:
Software, hosting and support	10,549			18,998			5,452			5,743			6,237			5,906			23,338			6,276			6,940			7,457			8,627			29,300
Professional services	758			2,009			615			712			901			1,375			3,603			1,531			1,304			1,763			1,981			6,579
Total revenue	11,307			21,007			6,067			6,455			7,138			7,281			26,941			7,807			8,244			9,220			10,608			35,879
Cost of revenue:
Software, hosting and support	3,306			4,636			990			1,039			1,090			1,160			4,279			1,225			1,337			1,342			1,359			5,263
Professional services	485			1,335			432			473			664			587			2,156			736			765			967			1,272			3,740
Total cost of revenue	3,791			5,971			1,422			1,512			1,754			1,747			6,435			1,961			2,102			2,309			2,631			9,003
Gross profit	7,516			15,036			4,645			4,943			5,384			5,534			20,506			5,846			6,142			6,911			7,977			26,876
Operating expenses:
Sales and marketing	20,756			22,050			3,497			3,758			3,900			4,784			15,939			4,402			4,696			5,389			6,322			20,809
Research and development	3,639			4,584			938			949			1,030			1,200			4,117			1,439			1,480			1,489			1,507			5,915
General and administrative	3,375			3,973			773			609			686			774			2,842			766			795			978			979			3,518
Total operating expenses	27,770			30,607			5,208			5,316			5,616			6,758			22,898			6,607			6,971			7,856			8,808			30,242
Operating income (loss)	(20,254		)	(15,571		)	(563		)	(373		)	(232		)	(1,224		)	(2,392		)	(761		)	(829		)	(945		)	(831		)	(3,366		)
Interest and other income (expense), net	607			229			(81		)	(112		)	(79		)	(85		)	(357		)	(117		)	(35		)	(65		)	2			(215		)
Income (loss) before income taxes	(19,647		)	(15,342		)	(644		)	(485		)	(311		)	(1,309		)	(2,749		)	(878		)	(864		)	(1,010		)	(829		)	(3,581		)
Provision for income taxes	—			—			—			—			—			—			—			(3		)	—			—			(536		)	(539		)
Net income (loss)	(19,647		)	(15,342		)	(644		)	(485		)	(311		)	(1,309		)	(2,749		)	(881		)	(864		)	(1,010		)	(1,365		)	(4,120		)
Net income (loss) per share:
Basic	$	(1.42	)	$	(1.10	)	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	(0.09	)	$	(0.19	)	$	(0.06	)	$	(0.06	)	$	(0.07	)	$	(0.09	)	$	(0.28	)
Diluted	$	(1.42	)	$	(1.10	)	$	(0.05	)	$	(0.03	)	$	(0.02	)	$	(0.09	)	$	(0.19	)	$	(0.06	)	$	(0.06	)	$	(0.07	)	$	(0.09	)	$	(0.28	)
Shares used in the computation:
Basic	13,810			14,006			14,047			14,155			14,367			14,370			14,284			14,394			14,399			14,448			14,704			14,560
Diluted	13,810			14,006			14,047			14,155			14,367			14,370			14,284			14,394			14,399			14,448			14,704			14,560

	Amounts in thousands, except per share data
	2004															2005
	Q1			Q2			Q3			Q4			FY			Q1			Q2			Q3			YTD
Revenue:
Software, hosting and support	10,720			11,709			12,976			14,359			49,764			13,874			16,864			18,005			48,743
Professional services	2,137			3,053			3,450			3,360			12,000			4,468			4,214			5,149			13,831
Total revenue	12,857			14,762			16,426			17,719			61,764			18,342			21,078			23,154			62,574
Cost of revenue:
Software, hosting and support	1,579			1,636			1,729			1,797			6,741			2,064			2,276			2,253			6,593
Professional services	1,310			1,573			1,979			2,344			7,206			2,696			2,879			3,026			8,601
Total cost of revenue	2,889			3,209			3,708			4,141			13,947			4,760			5,155			5,279			15,194
Gross profit	9,968			11,553			12,718			13,578			47,817			13,582			15,923			17,875			47,380
Operating expenses:
Sales and marketing	6,848			8,037			8,055			9,046			31,986			9,457			10,557			11,248			31,262
Research and development	1,805			1,807			2,028			2,167			7,807			2,161			2,426			2,937			7,524
General and administrative	1,153			1,016			1,164			1,288			4,621			1,410			1,586			1,627			4,623
Total operating expenses	9,806			10,860			11,247			12,501			44,414			13,028			14,569			15,812			43,409
Operating income (loss)	162			693			1,471			1,077			3,403			554			1,354			2,063			3,971
Interest and other income (expense), net	(64		)	(46		)	30			226			146			292			331			440			1,063
Income (loss) before income taxes	98			647			1,501			1,303			3,549			846			1,685			2,503			5,034
Provision for income taxes	(18		)	(13		)	(61		)	(8		)	(100		)	(45		)	(126		)	(160		)	(331		)
Net income (loss)	80			634			1,440			1,295			3,449			801			1,559			2,343			4,703
Net income (loss) per share:
Basic	$	0.01		$	0.04		$	0.06		$	0.04		$	0.17		$	0.03		$	0.05		$	0.08		$	0.16
Diluted	$	0.00		$	0.02		$	0.05		$	0.04		$	0.12		$	0.02		$	0.05		$	0.07		$	0.14
Shares used in the computation:
Basic	14,792			15,185			23,734			29,005			20,738			29,816			30,232			30,802			30,287
Diluted	25,143			26,187			30,671			33,665			29,177			33,559			33,367			33,667			33,541

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.

Supplemental Data Sheet

Unaudited

Last updated October 24, 2005

		Fiscal Year				2002										2003
		2000		2001		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY
Revenue	Term	6,504		15,757		5,051		4,904		4,868		4,987		19,810		5,336		5,730		6,192		6,730		23,988
Mix	Perpetual	4,045		3,241		401		839		1,369		919		3,528		940		1,210		1,265		1,897		5,312
(in thousands)	Professional services	758		2,009		615		712		901		1,375		3,603		1,531		1,304		1,763		1,981		6,579
	Total	11,307		21,007		6,067		6,455		7,138		7,281		26,941		7,807		8,244		9,220		10,608		35,879
Revenue	Term	57	%	75	%	83	%	76	%	68	%	68	%	74	%	68	%	69	%	67	%	63	%	67	%
Mix	Perpetual	36	%	15	%	7	%	13	%	19	%	13	%	13	%	12	%	15	%	14	%	18	%	15	%
(% of total)	Professional services	7	%	10	%	10	%	11	%	13	%	19	%	13	%	20	%	16	%	19	%	19	%	18	%
Revenue by	Americas	11,026		16,522		4,916		5,486		6,213		5,355		21,970		6,050		5,731		5,622		7,198		24,601
Geography	Europe	281		2,311		1,031		775		785		1,456		4,047		1,587		1,651		2,692		2,413		8,343
(in thousands)	Asia Pacific	—		2,174		120		194		140		470		924		170		862		906		997		2,935
Revenue by	Americas	98	%	79	%	81	%	85	%	87	%	74	%	82	%	78	%	70	%	61	%	68	%	69	%
Geography	Europe	2	%	11	%	17	%	12	%	11	%	20	%	15	%	20	%	20	%	29	%	23	%	23	%
(% of total)	Asia Pacific	0	%	10	%	2	%	3	%	2	%	6	%	3	%	2	%	10	%	10	%	9	%	8	%
Deferred	Current	12,317		14,843		14,396		15,485		17,115		17,392				19,428		21,510		23,349		26,127
Revenue	Non-current	4,843		4,031		3,975		4,515		4,855		7,291				8,375		9,061		8,811		9,426
(in thousands)	Total	17,160		18,874		18,371		20,000		21,970		24,683				27,803		30,571		32,160		35,553
Customers	New	593		361		65		46		51		65		227		38		56		57		60		211
	Total active (>)	1,000		1,100		1,000		1,000		1,000		900				900		900		900		1,000
	Percent hosted	62	%	78	%	76	%	80	%	82	%	82	%			83	%	83	%	85	%	85	%
	Interactions (in millions)	n/a		n/a		26		35		42		43		146		53		56		63		77		249
Employees	Worldwide	346		222		214		208		219		234				255		258		278		306

		2004										2005
		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		YTD
Revenue	Term	8,491		8,384		9,553		9,793		36,221		10,624		10,791		11,695		33,110
Mix	Perpetual	2,229		3,325		3,423		4,566		13,543		3,250		6,073		6,310		15,633
(in thousands)	Professional services	2,137		3,053		3,450		3,360		12,000		4,468		4,214		5,149		13,831
	Total	12,857		14,762		16,426		17,719		61,764		18,342		21,078		23,154		62,574
Revenue	Term	66	%	56	%	58	%	55	%	59	%	58	%	51	%	51	%	53	%
Mix	Perpetual	17	%	23	%	21	%	26	%	22	%	18	%	29	%	27	%	25	%
(% of total)	Professional services	17	%	21	%	21	%	19	%	19	%	24	%	20	%	22	%	22	%
Revenue by	Americas	9,188		10,955		12,421		12,635		45,199		13,757		16,652		17,291		47,700
Geography	Europe	2,443		3,553		3,188		3,608		12,792		2,751		3,372		3,752		9,875
(in thousands)	Asia Pacific	1,226		254		817		1,476		3,773		1,834		1,054		2,111		4,999
Revenue by	Americas	71	%	74	%	76	%	72	%	73	%	75	%	79	%	75	%	76	%
Geography	Europe	19	%	24	%	19	%	20	%	21	%	15	%	16	%	16	%	16	%
(% of total)	Asia Pacific	10	%	2	%	5	%	8	%	6	%	10	%	5	%	9	%	8	%
Deferred	Current	25,368		30,780		32,796		36,020				37,899		40,669		45,694
Revenue	Non-current	11,361		9,997		11,695		13,105				14,911		16,699		18,058
(in thousands)	Total	36,729		40,777		44,491		49,125				52,810		57,368		63,752
Customers	New	69		74		88		80		311		60		80		92		232
	Total active (>)	1,000		1,100		1,100		1,200				1,200		1,300		1,400
	Percent hosted	85	%	85	%	86	%	87	%			86	%	86	%	87	%
	Interactions (in millions)	102		110		140		150		502		166		176		188		530
Employees	Worldwide	322		354		387		403				438		490		494

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.

Consolidated Statements of Cash Flow

Unaudited

Last updated October 24, 2005

	Amounts in thousands
	Fiscal Years				2002										2003
	2000		2001		Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		Q4		FY
Operating activities
Net income (loss)	(19,647	)	(15,342	)	(644	)	(485	)	(311	)	(1,309	)	(2,749	)	(881	)	(864	)	(1,010	)	(1,365	)	(4,120	)
Noncash adjustments:
Depreciation and amortization	532		1,486		482		486		507		576		2,051		619		626		631		598		2,474
Provision for losses on accounts receivable	1,715		2,032		100		158		—		1		259		178		153		180		(34	)	477
Deferred taxes	—		—		—		—		—		—		—		—		—		—		—		—
Changes in operating accounts:
Receivables	(6,846	)	(1,295	)	(187	)	(1,117	)	(1,343	)	(989	)	(3,636	)	(2,216	)	(2,583	)	526		(2,405	)	(6,678	)
Prepaid expenses	(459	)	(338	)	—		(4	)	(187	)	96		(95	)	(244	)	169		(105	)	24		(156	)
Accounts payable and accrued liabilities	2,071		(435	)	(772	)	2		288		104		(378	)	192		333		629		(114	)	1,040
Commissions and bonusses payable	789		(510	)	(22	)	168		43		336		525		(152	)	34		224		414		520
Deferred revenue	12,991		2,367		(497	)	1,580		1,962		2,678		5,723		3,121		2,701		1,568		3,265		10,655
Other	114		(117	)	25		55		106		57		243		(39	)	(74	)	(205	)	425		107
Cash provided (used) by operating activities	(8,740	)	(12,152	)	(1,515	)	843		1,065		1,550		1,943		578		495		2,438		808		4,319
Investing activities
Acquistion of property and equipment	(3,031	)	(2,265	)	(140	)	(85	)	(620	)	(339	)	(1,184	)	(277	)	(330	)	(486	)	(491	)	(1,584	)
Acquistion of intangilbe assets	(236	)	(739	)	—		—		—		—		—		—		—		(150	)	—		(150	)
Change in short-term investments, net	—		—		—		—		—		—		—		—		—		—		—		—
Other	—		—		—		2		—		—		2		16		—		2		—		18
Cash used for investing activities	(3,267	)	(3,004	)	(140	)	(83	)	(620	)	(339	)	(1,182	)	(261	)	(330	)	(634	)	(491	)	(1,716	)
Financing activities
Net proceeds from (payments on) long-term debt	(8	)	3,219		(270	)	930		353		(117	)	896		(150	)	(285	)	(1,739	)	(259	)	(2,433	)
Proceeds from issuance of stock:
Preferred stock	14,955		1,026		—		—		—		—		—		—		—		—		—		—
Common stock issued under employee benefit plans	93		46		1		74		9		6		90		5		—		70		13		88
Initial public offering, net of offering costs	—		—		—		—		—		—		—		—		—		—		—		—
Other	(94	)	—		—		—		—		—		—		—		—		—		—		—
Cash provided (used) by financing activities	14,946		4,291		(269	)	1,004		362		(111	)	986		(145	)	(285	)	(1,669	)	(246	)	(2,345	)
Effect of foreign exchange rates	6		(5	)	—		30		(11	)	14		33		5		20		44		(5	)	64
Net change in cash and cash equivalents	2,945		(10,870	)	(1,924	)	1,794		796		1,114		1,780		177		(100	)	179		66		322
Cash and cash equivalents at beginning of period	14,183		17,128		6,258		4,334		6,128		6,924		6,258		8,038		8,215		8,115		8,294		8,038
Cash and cash equivalents at end of period	17,128		6,258		4,334		6,128		6,924		8,038		8,038		8,215		8,115		8,294		8,360		8,360

	Amounts in thousands
	2004										2005
	Q1		Q2		Q3		Q4		FY		Q1		Q2		Q3		YTD
Operating activities
Net income (loss)	80		634		1,440		1,295		3,449		801		1,559		2,343		4,703
Noncash adjustments:
Depreciation and amortization	624		711		746		709		2,790		742		828		892		2,462
Provision for losses on accounts receivable	85		117		349		(62	)	489		52		(8	)	216		260
Deferred taxes	—		—		—		—		—		—		124		94		218
Changes in operating accounts:
Receivables	(1,550	)	(4,178	)	(5,366	)	(3,563	)	(14,657	)	(2,402	)	(5,866	)	(6,072	)	(14,340	)
Prepaid expenses	(261	)	(536	)	(344	)	(23	)	(1,164	)	(44	)	67		(609	)	(586	)
Accounts payable and accrued liabilities	580		438		532		425		1,975		984		373		1,071		2,428
Commissions and bonusses payable	(175	)	671		102		390		988		(663	)	588		807		732
Deferred revenue	1,117		4,406		3,694		4,103		13,320		3,819		4,941		6,523		15,283
Other	(167	)	(241	)	(90	)	46		(452	)	(50	)	(42	)	(17	)	(109	)
Cash provided (used) by operating activities	333		2,022		1,063		3,320		6,738		3,239		2,564		5,248		11,051
Investing activities
Acquistion of property and equipment	(761	)	(858	)	(1,004	)	(957	)	(3,580	)	(1,078	)	(1,070	)	(1,124	)	(3,272	)
Acquistion of intangilbe assets	—		(406	)	(95	)	(190	)	(691	)	—		(1,012	)	(23	)	(1,035	)
Change in short-term investments, net	—		—		(25,943	)	(5,245	)	(31,188	)	11,488		(4,483	)	3,298		10,303
Other	—		1		—		2		3		—		—		8		8
Cash used for investing activities	(761	)	(1,263	)	(27,042	)	(6,390	)	(35,456	)	10,410		(6,565	)	2,159		6,004
Financing activities
Net proceeds from (payments on) long-term debt	474		341		(2,713	)	(15	)	(1,913	)	—		—		154		154
Proceeds from issuance of stock:																	—
Preferred stock	—		—		—		—		—		—		—		—		—
Common stock issued under employee benefit plans	111		90		105		870		1,176		588		1,217		1,767		3,572
Initial public offering, net of offering costs	(172	)	(603	)	41,462		(715	)	39,972		—		—		—		—
Other	(2	)	—		—		—		(2	)	—		—		—		—
Cash provided (used) by financing activities	411		(172	)	38,854		140		39,233		588		1,217		1,921		3,726
Effect of foreign exchange rates	9		(27	)	19		68		69		(26	)	(79	)	(26	)	(131	)
Net change in cash and cash equivalents	(8	)	560		12,894		(2,862	)	10,584		14,211		(2,863	)	9,302		20,650
Cash and cash equivalents at beginning of period	8,360		8,352		8,912		21,806		8,360		18,944		33,155		30,292		18,944
Cash and cash equivalents at end of period	8,352		8,912		21,806		18,944		18,944		33,155		30,292		39,594		39,594

RightNow provides this information as of the “last updated” date above and makes no commitment to subsequently update the information.

You are encouraged to read RightNow’s most recent reports on Form 10-K and Form 10-Q for a full explanation of our financial data and results.