New Byte: Responsys Posts 25% Gain in Second Quarter
Responsys revenues soar, but net declines.
Responsys saw revenue increase by 25% in the second quarter to $49.5 million, a $10 million improvement over 2Q 2012. Based on the quarterly earnings report released yesterday, the company adjusted its revenue outlook for the full year to a range of $195 to $198 million, up from an earlier forecast of $190 to $193 million.
The marketing cloud software company's two businesses each tallied identical 25% increases, with subscription revenues rising to $34.3 million and professional services to $15.2 million. Responsys revenue for the first six months of 2012 was $98 million, a 26% increase over the year-earlier period.
At the same time, however, Responsys registered a $1.6 million net income loss in the quarter, compared to a small gain last year, due to increased outlays for administration, R&D, and marketing and sales. Marketing and sales costs of around $1.2 million were nearly three times higher than they were in the 2Q 2012.
"Responsys's strong second quarter performance is further recognition that the company is a leader in orchestrating individualized experiences across digital channels, and at massive scale," said CEO Dan Springer. "Our continued investment in product innovation has allowed us to stay at the cutting edge of the industry.”