August 18, 2004

WebTrends 7 Achieves Record Customer Adoption

On Demand Business Fuels Annual Growth


Press Release

San Jose, Calif.

WebTrends, the web analytics market leader and a business unit of NetIQ Corporation (NASDAQ: NTIQ), today announced that after less than two months on the market more than 3000 customers—800 of them new to WebTrends—have already adopted WebTrends® 7, showing strong customer support for the new product family. Some of these customers include BMW Group, Bank of Montreal, National Park Service and Merrill Lynch Investment Managers. In addition, WebTrends has achieved tremendous growth in the number of enterprise organizations selecting its solutions, with more than 90% of WebTrends 7 revenue generated by sales of its Enterprise and Professional editions. WebTrends On Demand, its hosted solution, achieved a revenue growth rate of 58% from fiscal Q3 to Q4, with more enterprise-class customers using it than any other hosted web analytics service.

“WebTrends is in its eighth consecutive year of maintaining substantial market share leadership over the competition. We are growing faster than the web analytics market overall and have thousands of loyal enterprise customers, which is proof positive of the strength of our solutions and our staying power as the leader in this industry,” said Greg Drew, senior vice president and general manager of the WebTrends business unit of NetIQ. “Our commitment to our customers’ success, our investment in technology innovation, and our flexible solutions that continue to meet the needs of organizations in a variety of vertical markets, are just a few ways that we continue to lead the market.”

Other business milestones reached in the past quarter include:

  • New Product Innovations. WebTrends 7 includes many new market innovations. For example, in addition to offering real-time analysis with its On Demand solutions, WebTrends 7 is the first solution to provide real-time analysis with software solutions. WebTrends 7 also provides an innovative Express Viewer, delivering critical metrics to users’ desktops throughout the day without the need to open the WebTrends application. As a third example, WebTrends is the first to deliver session-based scenario analysis, allowing users to identify the exact paths visitors take after they exit a scenario step and whether those visitors come back to convert later in the session.
  • Continued Revenue Leadership. WebTrends continues to be recognized as the web analytics market share leader in revenues, with 19.4% market share and more than 2.5 times the revenue of its second largest competitor (IDC, October 2003). WebTrends is also recognized as one of the largest providers of CRM Analytics worldwide with 6.0% market share—its nearest web analytics competitors trail with a 1% to 2% market share. WebTrends is also growing faster than the CRM Analytics category at-large, with a 29.4% growth rate as compared to 12.7% market growth (IDC, July 2004).
  • Enterprise-Level Scalability. With over 570 billion page views analyzed last month, WebTrends offers solutions that scale from small businesses to the largest sites on the Internet.
  • Broadened Product Offerings. Announced April 5th, 2004, NetIQ acquired the WebPosition® business from FirstPlace Software, which offers organizations the ability to optimize their web site’s relevancy, visibility and overall performance with search engines. Earlier this month, WebTrends released the first major upgrade to WebPosition in two years (For up-to-date information, visit http://www.netiq.com/news/releases/release.asp?cid=20040801224317JDGB).

In addition, WebTrends achieved the following web analytics education and collaboration milestones last quarter:

  • Worldwide Education. The WebTrends business unit has firmly established itself as a leading worldwide resource for web analytics education through programs such as the WebTrends Seminar Series, which to date has been held in 70 cities across 22 countries, including Australia, Austria, Belgium, Brazil, Canada, China, France, Germany, Holland, India, Italy, Japan, Malaysia, Mexico, Singapore, South Korea, Sweden, Switzerland, Taiwan, Thailand, the United Kingdom, and the United States. Approximately 10,000 people to date have attended a WebTrends half-day Seminar Series event.
  • Expanding User Forums. There are now 31 WebTrends User Forums across North America. As stated by Emily Sunderman, web analytics manager, CMP Media LLC, in the Network Computing article, “Web Analytics Services” published August 5, 2004: “I attended a regional user group session where users get together and talk about their experiences. These sessions are fun and useful, and not opportunities for the consultants who host these sessions to do sales pitches.”

About WebTrends

As the worldwide leader and trusted standard for web analytics, WebTrends delivers award-winning solutions that help marketing executives improve their return on investment. From campaign performance and search engine marketing to web site conversion and customer retention, WebTrends provides marketers a complete solution to accelerate their web results. Thousands of organizations worldwide, including more than half of the Fortune and Global 500 companies, rely on WebTrends every day to measure and optimize their results. Offering both an On Demand service and software solutions, WebTrends uniquely provides customers with complete choice and control to ensure the solution can adapt with their dynamic business needs. WebTrends is a business unit of NetIQ Corporation. For more information, visit www.webtrends.com.

About NetIQ

NetIQ Corp. (Nasdaq: NTIQ) is a leading provider of Systems & Security Management and Web Analytics solutions. Historically focused on managing Windows-based applications, NetIQ now delivers cross-platform solutions that enhance business performance resulting in higher returns on infrastructure and web investments. NetIQ products are sold across all continents directly and through a network of authorized NetIQ partners and resellers. The company is headquartered in San Jose, Calif., with development and operational personnel in Houston, Texas; Portland, Ore; Raleigh, N.C.; Bellevue, Wash. and Galway, Ireland. For more information, please visit the company’s web site at www.netiq.com or call (888) 323-6768.

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