KANA Software Announces Record Growth and Profitability

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SUNNYVALE, CA -- (Marketwire) -- 03/26/13 -- KANA Software, Inc., a global leader in customer service solutions delivered on-premise or in the cloud and used by more than 900 commercial brands and public sector organizations worldwide, today announced it achieved another record year of growth and profitability in CY2012. The company has achieved a significant compound annual growth rate (CAGR) for the last 3 years, impressive profitability, and substantial growth within its customer and employee communities.

Key highlights include: -- CAGR for total revenue for the three years ended December 31, 2012 was 40%. -- 50% CAGR for software license revenue over the same period. -- Subscription revenues increased dramatically by a CAGR of 100% for the same period. -- EBITDA margins remain in double digits with a 2012 growth rate slightly ahead of total revenue. -- Employee headcount increased by more than 300 during 2012 with plans to continue hiring in 2013 in line with projected demand. -- 50 customer wins during 2012, adding to a total global community of more than 900. Additionally, the company indicated that it expects to see strong year over year revenue growth in 2013 driven by software license revenue growth and a sustained increase in subscription revenue, based on continued market demand for its products and services across deployment scenarios, and in line with and at the same pace as current performance.

KANA's growth can be attributed in part to an increased global demand for technology in support of customer experience management initiatives, but also due to the organizations' continued investment in people and technology, and growing customer base. As a progressively important C-level agenda concern, and key driver of both customer satisfaction and brand performance, customer service has risen in the ranks of front office mission critical strategies. Leading organizations are leveraging KANA solutions to orchestrate consistent customer experiences that are at once engaging and effective across channels and touch-points, while balancing a myriad key metrics including costs, revenue goals, company policies, and customer satisfaction.

Further to enlarging its customer community, KANA continues to garner industry acclaim and validation for its solutions. Over the past year, KANA has won a number of key industry awards and favorable placement in industry analyst evaluations. -- KANA Enterprise Agent Desktop was named a KMWorld Trend-Setting Product of 2012. -- KANA Express customer service in the cloud was named a CUSTOMER Magazine 2012 Product of the Year and was listed as a Market Pillar in Info-Tech Research Group's Customer Service Market Landscape Report. -- KANA was positioned in the Leader Quadrant of the Gartner Magic Quadrant for CRM Web Customer Service Applications 2012 Report. -- KANA was named a CRM Watchlist Winner for the second consecutive year by industry stalwart and ZDNet regular Paul Greenberg. "2012 was a tremendous year for KANA, from the perspective of customer acquisition, employee growth, and financial results. And we're just getting started," said KANA President and CEO Mark Duffell. "At KANA we are 100% focused on customer service and we're proud to provide the technology and expertise that's helping the world's leading brands and most prescient public sector entities continue to meet the new customer experience imperative."

About KANA Software KANA makes every customer experience a good experience. A global leader in customer service solutions delivered on-premise or in the cloud, KANA lets organizations take complete control over customer service interactions, so they can take care of customers, while managing costs and reinforcing brand. By unifying and maintaining context for customer journeys across agent, web, social and mobile experiences, KANA solutions have reduced handling time, increased resolution rates and improved net promoter score (NPS) at more than 900 enterprises, including half of the Global 100 and more than 250 government agencies. KANA is based in Silicon Valley, California and has offices worldwide.

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KANA is a registered trademark of KANA Software, Inc. All other company and product names may be trademarks of their respective owners.

Contact: Erin Lutz Lutz PR for KANA Software, Inc. +1 949 293 1055 erin@lutzpr.com Gemma Maughan LEWIS PR for KANA Software, Inc. +61 2 9409 3100 gemma.maughan@lewispr.com