iPerceptions - Customer Satisfaction Measurement

Leading Voice of Customer Analytics Provider Announces record revenue of $4.4M in 2008, an increase of 45% year-over-year

Montreal, QC - (April 7, 2009) - iPerceptions Inc. (TSX-V: IPE), a leading provider of web-focused Voice of Customer analytics, today reported its financial results for its fourth quarter and fiscal year ended December 31, 2008.

Highlights for the fourth quarter and year ended December 31, 2008 include:

•    The addition of multiple high-profile corporations to its customer portfolio, as well as a number of renewals, pilot continuations and custom studies.
•    An increase of the gross margin to 58% in the fourth quarter of 2008 and to 53% for the year.
•    The securing of $3,650,000 in funding.
•    The continued growth of 4Q, iPerceptions’ simple and free survey tool.

“Our strong performance in the fourth quarter of 2008 coincided with the toughest economic situation in more than a generation,” stated Jerry Tarasofsky, President and CEO of iPerceptions. “Given these economic headwinds, we remain well-diversified and well-positioned to help brands navigate these troubling economic times.”

Business development

Business development highlights included a 45% increase in revenue; the acquisition of new business including prestigious clients such as: Century21, Monster Worldwide, Rodale Publishing, IDG, H&R Block, and Hearst–Argyle Television; plus the growth of business with many of our existing clients including Autodesk, InterContinental Hotels, Desjardins, TiVo and Videotron, amongst others. As a result of these initiatives, over 3.5 million website visitors completed iPerceptions’ customer satisfaction surveys in 2008.

Gross margin

We improved our gross margin as a percentage of revenue to 53% in 2008 compared to 48% in 2007. Gross margin as a percentage of revenue was 58% for the fourth quarter of 2008 compared to 44% for the same period in 2007. Operating and cost efficiencies, incurred within our cost of revenue, were the main factors that positively affected gross margin in 2008.

Securing of $3,650,000 in funding

On November 26, 2008, the Corporation concluded a private placement financing by issuing convertible debentures having a face value of $3,650,000.
 
4Q development

In 2008, iPerceptions launched 4Q, a free survey solution co-developed with noted web analytics expert and author, Avinash Kaushik. 4Q allows website owners and operators of all sizes to easily understand who is onsite and whether or not visitors are able to complete their tasks. In 2008, 4Q surveys were completed by over 1.5 million real website visitors. Through press, strategic marketing initiatives, show attendance, partnerships, viral marketing and word of mouth, 4Q has created a rich and considerable pool of leads for iPerceptions’ paid tools.
By rolling out in 16 languages, 4Q has achieved global penetration, with notable uptake in emerging markets such as China, India, and Brazil. 4Q has become a gateway to powerful and actionable Voice of Customer data for organizations of all sizes and, their collective appetite whetted by the free insights, a number of 4Q users, such as Joost, Hearst Argyle and Dolby, have already migrated to iPerceptions’ more robust webValidator Continuous Listening Solutions.

London Office Opens

iPerceptions' London office expanded its horizons - the new London office has allowed iPerceptions to enhance its service to clients based in the U.K. and has provided a gateway for iPerceptions into the rest of Europe.

Fourth quarter financial highlights

iPerceptions delivered the following results for the fourth quarter ended December 31, 2008:

Revenue and gross margin: For the fourth quarter of 2008, revenue totaled $1,224,313 compared to $833,625 for the corresponding period in 2007, an increase of 47%. Gross margin as a percentage of revenue was 58% for the fourth quarter of 2008 compared to 44% for the same period in 2007.
Net loss and Earnings per Share: Net loss and comprehensive loss for the fourth quarter of 2008 was $614,314 compared to a net loss and comprehensive loss of $577,464 for the same period last year. The basic and diluted loss per share for the fourth quarter of 2008 and 2007 were $0,02 for both years.

Cash position: Total cash, cash equivalents, restricted cash and short-term investments totaled $4,110,023 as at December 31, 2008. During the fourth quarter of 2008, the cash generated by operating activities amounted to $128,031.

"In 2008, iPerceptions cemented itself as the leader in measuring websites visit success and transforming user-led direction into actionable insight,” concluded Tarasofsky. “With collapsing demand in the brick-and-mortar environment, the web remains the healthiest channel in which to do business. But deriving ROI from a website in 2009 will mean putting visitors first and optimizing to meet their distinct sets of needs. Companies that fail to do this will simply not survive this economic maelstrom. This reality makes iPerceptions’ offerings indispensable.”
 
For additional information, consult our Annual Financial Statements of 2008 and Management Discussion and Analysis filed today on SEDAR at www.sedar.com.

About the iPSI and the webValidator solution:

The iPerceptions Satisfaction Index (iPSI) is derived from satisfaction and experience data obtained from over four million actual visitors, on over 700 projects for Fortune 2000 websites, across ten verticals and contains over 60 million data points. It is the only index of its kind and is quickly becoming the standard for measuring online customer satisfaction. The webValidator Continuous Listening solution captures the voice of actual online customers in the context of an actual website visit helping companies learn more about their customers with satisfaction metrics that quickly turn learning into customer led decision-support. Using a perceptual framework to evaluate key elements of the visitor experience as well as predictive algorithms and modeling to identify those attributes that drive satisfaction, the resulting iPerceptions Satisfaction Index (iPSI) helps companies obtain a clear understanding of the key issues impacting satisfaction; purchase intent, transaction abandonment, customer loyalty and the likelihood customers will refer friends and associates to the site.

About iPerceptions:

iPerceptions is one of North America's leading web-focused Voice of Customer analytics providers. Its webValidator Continuous Listening solution, free website survey solution 4Q, and proprietary iPerceptions Satisfaction Index (iPSI) turn thousands of data points into easy-to-understand strategic and tactical decision support for website marketers. iPerceptions has offices in New York, Atlanta, Toronto, Montreal and London.