When will Omniture get acquired?


Omniture just reported earnings for Q3 2008. Revenue was up 108%. They are still turning in losses quarter after quarter, but that will turn around with time. They are still a new company. What really matters is where they sit in the market. I think they’ll be acquired in the next 12 months, or their stock is going to go through the roof.

Their stock right now is trading around $11/share. They traded as high as $38.50 over the last 52 weeks. Their stock has suffered due to losses and a flight to quality in the market (and a healthy dose of irrational exuberance that got them to $38/share in the first place), but their market dominance is getting stronger by the day.

Omniture is a web analytics company. They get a small amount of revenue every time someone visits a page on one of their customer sites. Yes, its a tiny fraction of a cent for every page view but, last quarter, they served 939 billion transactions. People sold their stock, not sure if they could weather a tightening of the purse strings by the tech companies but, the truth is, no company can afford to get rid of omniture. Without it, you have no way to know how your customers use your site, where they come from, why they purchase or don’t purchase, etc. Omniture is the window into your web server’s soul.

Last quarter alone, they signed on 250 new customers. Doesn’t sound like much right, just 250 customers? Yes, yes it is, those customers were (among others): Hershey, Coach, Equifax, IKEA, and Saab. These guys are huge and they’re going to be paying Omniture for a very long time.

Google has their Google Analytics software. Its free, it works fine for small customers. Their service goes up and down without warning, offers no sophisticated reporting tools and has no significant integration points into other pieces of software. Omniture is the enterprise solution and they bring in a lot of money because of it.

Omniture is a fairly new company, but it seems they are ripe for a takeover. With a nearly 75% haircut in their stock price, they are a screaming bargain right now and when Google, Microsoft and the other big tech players are sitting on hoardes of cash, Omniture seems like a great takeover candidate in the next 12 months or so.

Google Ending Free Dinners for Staff

Update: Turns out this news was bogus.  Jim Goldman over at Tech Check (CNBC) contacted Google and Google completely denied the rumor.  Here is the link to Jim Goldman’s CNBC article.

Rumors are swirling that Google will be ending its free dinner service for employees and that the announcement will be made today to staff.

The stories of Google perks are a great part of tech lore. Post the dot-com era where crazy perks were the norm, Google has reinvented ‘posh’ by offering employees free meals three times a day.  Fancy chefs, custom dishes cooked to your liking and lots and lots of free candy served to attract and retain existing staff and create a sense of jealousy among those working for other tech companies.

Word is that the free dinners just got out of control.  Employees were bringing their whole families in for the free meals, expansion of the employee base led to Google outsourcing the kitchen duties to a third party, and things were just getting crazy at the google plex.

Poor guys at Google, what are they going to do now?

ValleyWag: http://valleywag.com/5040986/googles-food-perks-on-the-chopping-block

Minyanville: http://www.minyanville.com/articles/GOOG-YHOO-MSFT-perks-Meals-dinners/index/a/18656

Google Adsense is down…again

Google Adsense’s reporting interface has been down for the better part of the day today.  This isn’t the first time either.  I usually check Adsense every few hours to see if I’ve received any clicks and its often down for several hours at a time with no custom message indicating when it may be back or what the problem is.

A lot of people make their living through adsense, this type of downtime leaves me puzzled.  Most websites pride themselves on their uptime.  A common goal is ‘three nines’ of uptime, representing 99.9% uptime.

Adsense must be missing this by a mile.  Not very impressive for a world-class company that makes a huge percentage of their revenue from publishers such as myself that rely on Adsense’s reporting interface to spot monetization trends, traffic fluctuations and find out what ad treatments work and which don’t.