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Original Source: FD (FAIR DISCLOSURE) WIRE
SANDEEP AGGARWAL, ANALYST, COLLINS STEWART: Good afternoon, everyone. I'm Sandeep Aggarwal. It is a pleasure to introduce Steve Valenzuela, who is the Chief Financial Officer of Rainmaker Systems Inc. Steve will take around 20 minutes to walk through the presentation and will have around five minutes for Q&A. With that, let me turn it over to Steve.
STEVE VALENZUELA, CFO, RAINMAKER SYSTEMS INC.: Thank you very much. Also wanted to let you know the presentation is available; I believe it is on one of the tables. Feel free to grab one. Also the presentation is available on our website if you don't want to carry it with you. The presentation is subject to our Safe Harbor statement.
Rainmaker provides sales and marketing services to help clients officially grow their revenue. If you think about this economic environment, companies need that expertise, that unique capability of really driving qualified leads for the sales team.
Typically marketing departments are charged with providing qualified leads. The sales team is charged with following up on those leads. The challenge that companies have is being able to manage that process efficiently and that is where Rainmaker comes into play.
We provide the data analytics, the qualified analysis capability, e-mail, direct mail; and it is a combination of all of that outreach to prospects for our clients. That combination and program management that really drives more revenue for our clients, higher ROI than they would do on their own.
For the first quarter results we achieved 49% year-over-year revenue growth of $15.6 million and we had $1 million non-GAAP net income. We provided guidance for the year of revenue of $68 million to $72 million.
We work with some of the top clients in the world. You see a listing here in hardware, software, telecom, where we have companies like HP, Microsoft, Sun, Symantec, CA, Lenovo, Intuit, Red Hat and a number of other clients. Financial Services is a new segment for us. The smallest segment that we serve here, we are mainly providing training software for our clients and also working with American Express to help them sign up small businesses to their open credit card program.
So, again, Financial Services is a very small segment.
So Rainmaker has had a lot of success over the last year of taking advantage of our relationships with our clients in our three different areas, which I will talk about in a minute, in cross selling them. Rainmaker started in the service contract renewal business, really helping clients to drive more renewables of their service contracts. About three years ago, we entered into lead development where we are at the beginning process of the sell cycle, if you will, really qualifying prospects; being able to nurture those prospects and, ultimately, get that qualified lead back to the sales team.
Then about two years ago, we entered into the training sales area where we provide hosted on-demand software for our clients, like Intuit to be able to use our software to drive their training revenue programs; and this is differentiated from HR training. It is all about companies that use training as a revenue stream. So they use our hosted on-demand software to be able to drive more training revenue for their business. The combination of these three services, very complementary to each other, allowed us to cross sell our clients in these different areas.
A recent example is Microsoft. Microsoft started with us about three years ago through the acquisition of the lead development company we acquired in Austin, Texas. They were a small client of ours on lead development. In the last year we have cross sold them on contract sales. We are now providing the renewals for their live meeting program.
So we are contacting small businesses, medium-sized businesses, on behalf of Microsoft to renew their live meeting conferencing software. So this is, we believe, a big opportunity and the first cross sell we have done for Microsoft.
We have also cross sold Symantec. Where Symantec started as a lead development client of ours, about two years ago, we cross sold them on contract sales where we are now helping them with their reseller partners to renew their service contracts. We believe a very big opportunity and you see the other clients here as well. Recent new clients include …