Question-and-Answer Session
Operator
Thank you very much sir. Operator instructions Our first question comes from the line of Safa Rashtchy of Piper Jaffray. Please proceed.
Q - Safa Rashtchy
Good afternoon, Jeff and everyone, couple of questions since as you little bit, this is kind of a complex transaction here, but before we get into that, I believe your revenue for Q4 was slightly below the low end of your guidance and I might have missed if you addressed that but can you give us some color as to how the quarter went and was it kind of slightly slower than you expected or just kind of, variation is to be expected?
A - Jeffrey Lunsford
Yeah, so they were really, there was about a – I guess a $400,000 revenue shortfall over consensus which is 12.1, we have guided 12 to 12.3, and there were four contributing factors and none of them really reflect negatively on our enterprise business. The first was we had, as I mentioned record bookings and it was just a backend loaded quarter, so bookings grew 47% Q4 to Q4 and we did more in December and it wasn’t quite as mapped out as we get modeled in that, led to about $150,000 less in revenue, that we had been expecting in the quarter when we guided 12.0 to 12.3. The second is ad revenue as you guys know we monetize free site search by getting that subsidized with ad revenue and that ad revenue came in about $150,000 lower than we had forecast. And this was only our second Q4 they’ve launched that product right at the beginning of Q4 2004. And so, we don’t have and then ad revenues you guys know is somewhat seasonal. We didn’t have the historical sort of basis, so when we were guiding the 12.0 to 12.3 we were assuming about 150,000 more to that ad revenue. We view that ad revenue as non-strategic, it is a funding source, a nicely profitable funding source but it isn’t our core business. The third thing was a swing in the Euro that contributed to about $100,000 of difference in what had been forecasting. And then the fourth thing was HitBox Professional, as you guys know HitBox Professional is about $1 million worth of our business. Since the day we took this company public I have told people that it is not a strategic revenue line for us that we did not like the consumer sector here, we don’t think you can make a lot of money at $20 a month. And that business has been slowly eroding overtime and so that came in about $50,000 less than we have been modeling when we guided 12.0 to 12.3. So, it’s up to you guys to decide whether any of those four things reflects at all on WebSideStory’s core business. We certainly want to do better, a better job forecasting and are going to do that but those of the contributing factors, Safa, does that help?
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