Kana Software Inc’s fourth-quarter and year-end 2006 results show that it is continuing to make good progress on its revival plan, with license revenue soaring in excess of 100% for both the quarter and the full year, albeit from a low starting point.
For the fourth quarter, revenue grew strongly to $14.9m, a 30% year-on-year increase, but was eclipsed by license revenue that exploded by 131% but only took the actual figure to $6m. Although the actual dollar figures are low, the growth rates indicate that the customer services provider is regaining the confidence of the market. The license revenue figure represented a three-year high.
The net loss increased year on year from $1m to $1.4m as the company upped its investment in sales and marketing and R&D.
For the full year, the net loss was vastly reduced from $18m to $1.8m, on revenue up 25% at $54m, and license revenue of $19.1m that represented a massive 135% improvement.
CEO Michael Fields said 2006 was dedicated to getting the business fundamentals right and building the team, while the focus for 2007 will be innovation, execution, and growth. It is in good shape for the year ahead, having completed its back-shoring initiative and launched Kana 9.5 in January 2007 which offers a choice of on-demand or on-premise deployment. It also aims to expand its vertical sector focus adding the telco sector to the list that comprises financial services and federal government.
Buyers are investing in Kana’s Agent IQ software that provides agent-assisted call-center capabilities based on the Kana knowledge base and Response Management for managing email responses.
For 2007, it said it expects revenue to grow at 15% to 25% year on year to between $62m and $68m.