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UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
    Form 10-K
 (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2007ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file number:
    000-52076
  OMNITURE, INC.
  (Exact name of registrant as
    specified in its charter)
  Delaware(State or other jurisdiction
    of
    incorporation or organization)

87-0619936(I.R.S. Employer
    Identification Number)   550 East
    Timpanogos Circle
    Orem, Utah 84097 (Address
    of principal executive offices, including zip code) 801.722.7000 (Registrants
    Telephone Number, including area code)
   Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class

Name of Each Exchange on Which RegisteredCommon Stock, $0.001 par value

The Nasdaq Stock Market LLC
    (The Nasdaq Global Market)   Securities registered pursuant to Section 12(b) of the
    Act:
 None
  þ o
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
    Large accelerated
    filer þ

Accelerated
    filer o

Non-accelerated
    filer o
    (Do not check if a smaller reporting company)

Smaller reporting
    Company o   Rule 12b-2 o þ
          DOCUMENTS
    INCORPORATED BY REFERENCE
  Form 10-K




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##### 





OMNITURE,
    INC.
  ANNUAL
    REPORT ON
    FORM 10-K
    FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007
  TABLE OF
    CONTENTS
  
   
 PART IItem 1.

Business


4Item 1A.

Risk Factors


27Item 1B.

Unresolved Staff Comments


46Item 2.

Properties


46Item 3.

Legal Proceedings


46Item 4.

Submission of Matters to a Vote of Security
    Holders


47PART IIItem 5.

Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


47Item 6.

Selected Financial Data


50Item 7.

Managements Discussion and Analysis of
    Financial Condition and Results of Operations


50Item 7A.

Quantitative and Qualitative Disclosure About
    Market Risk


70Item 8.

Financial Statements and Supplementary Data


71Item 9.

Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


71Item 9A.

Controls and Procedures


71Item 9B.

Other Information


73PART IIIItem 10.

Directors, Executive Officers and Corporate
    Governance


74Item 11.

Executive Compensation


74Item 12.

Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


74Item 13.

Certain Relationships and Related Transactions,
    and Director Independence


74Item 14.

Principal Accounting Fees and Services


74PART IVItem 15.

Exhibits, Financial Statement Schedules


74Signatures


81   2




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CAUTIONARY
    NOTE REGARDING FORWARD-LOOKING STATEMENTS
  This Annual Report on
    Form 10-K,
    including the Managements Discussion and Analysis of
    Financial Condition and Results of Operation section in
    Item 7 of this report, and other materials accompanying
    this Annual Report on
    Form 10-K
    contain forward-looking statements within the meaning of
    Section 21E of the Securities Exchange Act of 1934 and
    Section 27A of the Securities Act of 1933. These statements
    relate to our, and in some cases our customers or
    partners, future plans, objectives, expectations,
    intentions and financial performance and the assumptions that
    underlie these statements. These forward-looking statements
    include, but are not limited to, statements concerning the
    following: our ability to achieve or maintain profitability; the
    impact of quarterly fluctuations of revenue and operating
    results; the acceptance of our pricing model; our business plan
    and growth management; operating expenses including research and
    development expenses, general and administrative expenses;
    business expansion; expansion of our sales and marketing
    capabilities; growth of the number of Internet users, Internet
    commerce and the market for on-demand services and online
    business optimization; changing technological developments;
    expansion of product and service offerings, including the
    development of new and improved services; scalability,
    reliability, efficiency and performance of our platforms; our
    ability to provide adequate service to customers; network and
    systems integrity; retention of key employees; the release of
    future versions of current services; levels and sources of
    revenue; our ability to effectively integrate our recent
    acquisitions; future acquisitions of or investments in
    complementary companies, products, services or technologies;
    acquisition of new customers; customer renewal rates; our
    expectations concerning relationships with third parties,
    including technology integration, channel partners, resellers
    and key customers; our ability to compete effectively in the
    market and the competitive factors that impact the market;
    levels of capital expenditures; issuance of common stock for
    acquisitions; changes in stock-based compensation; future cash
    requirements and sufficiency of our existing cash; fluctuations
    in interest rates and foreign currency exchange rates; our
    ability to attain certain economies of scale; expansion of our
    network infrastructure; our ability to utilize our network
    hardware more efficiently; legal proceedings; our future license
    payments under our patent license agreement with NetRatings;
    adequacy of our intellectual property; changes in U.S. and
    international laws regarding privacy, private information, the
    Internet and other areas; changes in accounting standards;
    maintenance of adequate internal controls; utilization of net
    operating loss and tax credit carryforwards to reduce our tax
    payments in future periods; the trends of our costs and
    expenses; staffing, direct sales force and expense levels;
    expansion of our European and other international operations;
    adequacy of our capital resources to fund operations and growth;
    customer costs of ownership; expenditures related to equipment
    operating leases; and ability to liquidate auction rate
    securities without loss.
  You can identify these and other
    forward-looking
    statements by the use of the words such as may,
    will, could, would,
    should, expects, plans,
    anticipates, estimates,
    intends, potential,
    projected, continue, or the negative of
    such terms, or other comparable terminology.
    Forward-looking
    statements also include the assumptions underlying or relating
    to any of the foregoing statements.
  These statements are based on current expectations and
    assumptions regarding future events and business performance and
    involve known and unknown risks, uncertainties and other factors
    that may cause industry trends or our actual results, level of
    activity, performance or achievements to be materially different
    from any future results, levels of activity, performance or
    achievements expressed or implied by these statements. These
    factors include those set forth in the following discussion and
    within Part I, Item 1A Risk Factors of
    this Annual Report on
    Form 10-K
    and elsewhere within this report.
  Although we believe that expectations reflected in the
    forward-looking statements are reasonable, we cannot guarantee
    future results, levels of activity, performance or achievements.
    We will not update any of the forward-looking statements after
    the date of this annual report on
    Form 10-K
    to conform these statements to actual results or changes in our
    expectations, except as required by law. You should not place
    undue reliance on these forward-looking statements, which apply
    only as of the date of this annual report on
    Form 10-K.
    You should carefully review the risk factors described in other
    documents that we file from time to time with the
    U.S. Securities and Exchange Commission, or the SEC.
  Omniture SiteCatalyst, Omniture DataWarehouse, Omniture
    Discover OnDemand, Omniture Discover OnPremise, Omniture
    Genesis, Omniture SearchCenter, Omniture Test&Target,
    Omniture TouchClarity, Omniture Offermatica, Omniture
    SiteSearch, Omniture Publish and Omniture SiteCatalyst HBX are
    among the trademarks or registered trademarks owned by or
    licensed to Omniture, Inc. All other brand and product names are
    or may be trademarks of, and are used to identify products or
    services of, their respective owners.
 3




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PART I  ITEM 1.
    Business  Overview
        Recent
    Acquisitions
  Acquisition
    of Instadia A/S
    Acquisition
    of Touch Clarity Limited
   4




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Acquisition
    of Offermatica Corporation
    Acquisition
    of Visual Sciences, Inc.
        Industry
    Background
  Broad
    Commercial Utilization of the Internet
     5




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Need
    to Measure and Automate Online Business
      Opportunity
    to Optimize Online Business
  e-mail,
 6




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Disaggregated View of Customer Information.
  Limited Scalability.
  Limited Integration with Enterprise
    Systems. e-mail
  Slow Implementation and Adoption.
    Our
    Online Business Optimization Platform
  e-mail
 7




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
    Increased Sales and Profitability.  We believe
    our services provide businesses of all sizes the ability to
    increase sales and profits through more informed decision-making
    and delivery of automated content and marketing offers. Our
    services enable customers to capture and measure user activity
    on their Web sites and automate business processes, such as
    online marketing, to increase conversion of Web site visitors to
    customers and to enhance the efficiency of multi-channel
    marketing and
    e-commerce
    initiatives. By utilizing our services, our customers are able
    to identify trends in customer behavior in real time and to
    direct business expenditures towards initiatives that they
    believe will increase sales, maximize profitability and enhance
    customer service and thereby gain a competitive advantage.
    Flexible Platform to Manage Online
    Business.  Our services are based on a technology
    platform that manages online business data from a centralized
    information store. Our multi-tenant technology platform is based
    upon a massively scalable computing architecture that allows us
    to share common computing resources simultaneously across our
    customer base while maintaining the integrity and security of
    each customers data. Our technology is built on a
    standards-based platform, which allows for interoperability with
    other third-party and proprietary systems. Additionally,
    customers can request data in flexible formats, such as
    scheduled data and report pushes, real-time data querying and
    retrieval,
    e-mailed
    reports and alerts, and custom data feeds. Our customers can
    configure the interface to our services to segment access
    privileges across their user base to deliver the most relevant
    data for each user while, at the same time, using
    permission-based policies to restrict the data available to any
    given user.
    Enterprise  Class Scalability, Performance,
    Security and Support.  Our platform is designed to
    scale to meet the needs of the largest and most sophisticated
    online operations in the world. Our customers rely on us to
    capture and manage significant volumes of data securely and
    accurately while providing immediate application availability
    and flexible real-time reporting. In 2007, we captured data from
    almost 2.2 trillion transactions, and we currently manage over
    2.25 petabytes of data for our customers. Our massively scalable
    architecture enables us to dynamically shift computing resources
    in our data centers to maintain application availability during
    periods of intense activity and spikes in traffic at any
    particular customers Web site. We provide our customers
    with comprehensive implementation, support services, best
    practices consulting and training through Omniture University,
    which offers our customers a range of traditional and online
    training. To support the operations of multi-national customers,
    Omniture SiteCatalyst, Omniture DataWarehouse, Omniture
    SearchCenter, Omniture Discover OnDemand and Omniture Genesis
    services are available in Chinese, French, German, Japanese,
    Korean and Spanish, support all global currencies and provide
    automated conversion among these currencies based on current
    exchange rates.
    Platform Integration Partnerships.  We have
    designed our platform and our Omniture SiteCatalyst service to
    integrate with leading online marketing applications. Through
    Omniture Genesis, we have over 100 application partner
    relationships across important marketing services categories
    such as ad serving/display advertising,
    e-mail
    marketing, content management, client relationship
    management/sales force automation, or CRM/SFA, multivariate
    testing, community rankings and review, user experience and site
    search/content guidance. By enabling our customers to integrate
    third-party online marketing services applications with the
    Omniture platform, we allow them to link previously disparate
    technologies and data sources.
    Independent, Unaffiliated Service
    Provider.  Our platform consolidates information
    across multiple online channels, enabling our customers to
    achieve a more unified view of user behavior and measure their
    multi-channel marketing initiatives more effectively. However,
    we are unaffiliated with any particular marketing channel or
    service provider and therefore can provide reliable and secure
    information that is independent. As such, we provide our
    customers with objective insight into the effectiveness of their
    multi-channel marketing expenditures across multiple channels,
    Internet vendors and partners. 8




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
    Reduced Capital Investment through On-Demand Hosted
    Model.  We deliver our services through an
    on-demand, hosted model. Our on-demand model enables our
    customers to align their expenditures to their required level of
    service. As a result, our customers are able to limit their
    upfront investments in technology infrastructure, third-party
    software and systems, and more effectively leverage their own IT
    personnel. Our services can be deployed rapidly, as our solution
    is designed to integrate seamlessly and securely with a
    customers internal systems. All upgrades are implemented
    by us on our servers, and therefore all of our customers can
    benefit immediately from them.  Our
    Strategy
    
    Rapidly Expand Our Customer Base.  We believe
    the market for online business optimization is in its early
    stages, and we intend to expand our customer base rapidly by
    investing in our direct sales force, increasing our product
    marketing efforts  and expanding our distribution channel
    partnerships. In particular, we believe there is an unmet need
    for our services in international markets, and we intend to
    expand our presence aggressively in Europe, as illustrated by
    our acquisitions of Instadia and Touch Clarity, and in the
    Asia-Pacific region.
    Extend Our Technology Leadership Position.  We
    believe our highly scalable, enterprise-class technology
    platform, which we built expressly for the purpose of online
    business optimization, provides us with a significant technology
    lead. Our technology is being used by many of the largest and
    most complex online operations in the world. We intend to
    continue to invest in improving the scalability, reliability and
    performance of our platform and in extending the features and
    functionality of our platform. This has been illustrated by our
    acquisitions of Touch Clarity, Offermatica and Visual Sciences
    and broad extension of the Omniture Genesis network.
    Broaden Our Online Business Optimization Platform
    Capabilities.  We believe our platform, built
    around our Omniture SiteCatalyst service, provides a foundation
    for offering additional business optimization services to our
    customers. For example, during 2006, we released our Omniture
    SearchCenter service, which enables customers to automatically
    enhance the effectiveness of their paid search keyword bids, and
    Omniture Genesis, which enables customers to integrate their
    third-party marketing applications into Omniture SiteCatalyst.
    In early 2007, we released version 2.0 of Omniture Discover, an
    advanced data segmentation tool, and acquired Omniture
    TouchClarity, now a part of Omniture Test&Target, which
    utilizes behavioral data collected from Omniture SiteCatalyst to
    automatically deliver relevant content and marketing offers. In
    December 2007, we acquired Omniture Offermatica, now a part of
    Omniture Test&Target, which utilizes behavioral data
    collected from Omniture SiteCatalyst to perform A/B and
    multivariate tests of site content, design and navigational
    elements, and to present marketing content based on customer
    segments. In January 2008 we acquired Visual Sciences, which in
    addition to extending the opportunity for our platform to their
    analytics customer base resulted in the addition of the
    following products to our offerings: Omniture Discover
    OnPremise, a sophisticated technology for performing deep
    analysis on offline, multi-channel data and to combine that data
    with online data captured in a customers data warehouse;
    Omniture SiteSearch, an intra-site search technology that
    enables our customers to assist their site visitors in
    searching, finding and accessing content, products and
    information; and Omniture Publish, a Web content management
    solution. We expect to continue to make acquisitions of, or
    investments in, complementary services, technologies or
    businesses to address the need to develop new products and
    enhance existing products.
    Develop and Expand Strategic Relationships To Extend Our
    Platform and Distribution Channels.  An important
    element of our growth strategy is to continue developing
    strategic relationships with third parties that can help us
    broaden our online business optimization platform and continue
    to develop new distribution channels for our services. We
    believe our services are attractive to our partners because they
    are able to leverage the information and capabilities of our
    platform to enhance their solutions. We intend to continue 9




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establishing relationships with third parties in order to
    provide broader and more integrated functionality to our
    customers. In addition, we intend to build new relationships and
    leverage existing relationships with channel, consulting and
    reseller partners in order to complement our direct selling
    efforts and extend our market reach.  
    Remain Intensely Focused on Our Customers
    Success.  We believe that our customers
    success is critical to our success. We intend to remain
    intensely customer-centric as we develop our new services and
    improve our existing services. Our close relationships with our
    customers and our rapid responsiveness to their requests have
    been key elements in our development efforts to date and will
    remain central to our strategy in the future. For example,
    certain key features of all of our products, and of Omniture
    SearchCenter, Omniture Discover OnDemand, Omniture Discover
    OnPremise and Omniture Genesis in particular, were in direct
    response to feedback from our customers and the need for the
    advanced optimization technology acquired from Touch Clarity and
    Offermatica was the driving factor in our decision to pursue
    those acquisitions. In addition, through programs such as
    Omniture University and Omniture Consulting, as well as our
    certified consulting partners, we are committed to continuing to
    deliver superior education, training and consulting services to
    our customers to enable them to enhance the value of our
    services.  Omniture
    Online Business Optimization Services
    Omniture
    SiteCatalyst
    Optimum
    Path Engine
    
    Enables our customers to understand the traffic flows through
    their site. Using the data provided by this engine, our
    customers can choose from several different visual reports,
    including visual ClickMaps and reports showing most common
    actions (such as viewing a particular page online) occurring
    before or after a particular action, as well as actions that
    initiate and terminate a session. The Optimum Path Engine
    further identifies where customers abandon multi-step processes. 10




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Advanced
    Segment Insight
    
    Allows our customers to visually construct segments using
    behavior-based and demographic segment criteria and then create
    reports reflecting just the activity of users meeting all the
    segment criteria. Using this technology, our customers can
    identify where their most valuable Web site visitors originate,
    enabling them to allocate more advertising dollars to that
    source. Our customers are also able to identify visitors who
    abandon the conversion process and to launch remarketing efforts
    to bring them back to the Web site.VISTA
    
    Allows insertion of custom data-processing rules into our
    application. These rules can be used to segment data in real
    time based on customer-specified criteria.Excel
    Integration
    
    Allows customers to designate areas of Microsoft Excel
    worksheets that are linked to data from within the Omniture
    SiteCatalyst service. This data can be used as native Excel from
    within the application, such as formatting and formulas, and can
    be updated from information within the Omniture SiteCatalyst
    service.Dashboards
    
    Allows customers to view the information most important to them
    in a single-page customizable view. Dashboards can be downloaded
    or scheduled for automated delivery in a variety of formats.Alerts
    
    Allows customers to define key performance metrics and
    thresholds for monitoring. An
    e-mail alert
    is sent whenever one of these key performance indicators has
    been triggered.Online
    Business Administration
              Console
    
    A self-service configuration and management tool that allows our
    customers to create, configure and manage report suites
    pertaining to a specific source of traffic that has been
    identified by the customer; manage user access and permissions
    for individuals, groups and functions by roles and entitlements;
    deploy and manage multiple currencies and languages; generate
    data collection code by application type, including Web pages,
    wireless devices, and rich Internet applications; and provides
    open access to external provision systems through a Web services
    application protocol interface and software developer kit.Web
    2.0 Business Optimizations
    
    Tools that allow companies to correlate advertising,
    subscriptions, memberships and revenue with user generated
    content, such as blogs, videos, reviews, rating and forums, or
    social networking.Visitor
    Interaction Profiling
              (VIP)
    
    Helps companies enrich customer profiles in accordance with
    their privacy policies to identify and analyze important
    customer segments, enabling them to deliver more targeted
    messages, products and services.    Omniture
    DataWarehouse
   11




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Omniture
    Discover OnDemand
      1-Click
    Segmentation
    
    Allows our customers in real time to define marketing
    segmentation criteria easily and create segments of customers
    while viewing how those segments influence the analysis as
    criteria are added to the segments.N-Dimensional
    Analysis
    
    Allows our customers to refine their analyses by enabling them
    to correlate the relationships between any and all data
    elements, which we sometimes refer to as data dimensions, with
    any other data elements.Virtual
    Focus Group
    
    Allows our customers to understand the Web site experience of
    individual customers and gives them the ability to create focus
    group segments based on desired attributes.Advanced
    Fall-out Analysis
    
    Allows our customers to dynamically build and analyze online
    processes to improve conversion.Dynamic
    Path Flow
    
    Allows our customers to explore paths customers follow through
    the Web site to optimize campaign conversion, content placement
    and site navigation.  Omniture
    Discover OnPremise
    Call
    Optimization
    
    Enables companies to analyze the usage and performance of large
    and complex interactive voice response systems and services to
    build a comprehensive view of voice channel activity and better
    understand what is driving call volumes.Point-of-Sale
    Optimization
    
    Analyzes retail channel performance, enabling companies to
    better understand their customer segments, examine purchase
    patterns and determine what motivates customer buying behavior.  Omniture
    SearchCenter
   12




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Integrated
    Analytics
    
    Provides an integrated view of keyword purchasing data with site
    activity, including the success resulting from individual
    keywords and ads, and key performance metrics, such as product
    sales.Keyword
    Classifier
    
    Allows keywords to be categorized into groups by
    characteristics. Customers can then view reports across the
    dimensions created by these classifications as well as interact
    with entire groups of keywords as if they were a unit (such as
    by applying a common business rule across all words that share a
    common classification).Rule Builder
    Bid Strategies
    
    Allows automated modification of keyword spending based on
    keywords or groups of keywords. Customers can specify a set of
    rules, which can include a combination of performance analytics
    as well as keyword publishing information (for example, if
    conversion drops below a certain threshold, decrease spending
    accordingly), to apply against their active keywords. Whenever a
    rule criterion is met, the actions described by the rule are
    automatically executed. Omniture SearchCenter contains a library
    of automated best-practice strategies and also allows customers
    to create customized rules for their specific bidding strategies.Excel
    List Management
    
    Allows customers to manage keywords entirely within Excel. This
    feature can automatically populate a worksheet showing keywords,
    spending and other information. Customers can modify this
    information in Excel and, by clicking on a button, transfer the
    changes into Omniture SearchCenter.AdMatch
    
    Associates keywords with the precise text ad that was served.
    This allows our customers to gain greater insight into which
    keywords and text ads are performing.  Omniture
    Test&Target
      Real-time
    Learning & Targeting
    
    Omniture Test&Target learns and updates targeting models in
    real-time with each click or interaction, to present content
    appropriate for driving increased engagement. Each anonymous
    visitor is scored individually, so targeted content is served
    based on a visitors unique interests and preferences.
    Visitor interests are learned organically through machine
    learning and predictive algorithms.Cross-session
    Targeting
    
    Omniture Test&Target learns from the first visit through
    subsequent visits and interactions to improve the summary of
    site usage and the customers ability to target content and
    marketing offers to its visitors. Conversion events that occur
    in future sessions are measured and attributed back to the
    original session for reporting and transparency. 13




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Multi-channel
    Profile Sharing
    
    Omniture Test&Target offers an open targeting system
    designed to allow anonymous visitor attributes to be added to
    the visitor summary including offline data, such as product
    holdings, time on file and other non-personally identifiable
    information. This allows for better targeting and improved
    relevance.Automation
    
    With no business rules or segments to define and manage,
    Omniture Test&Targets self-learning, automated
    targeting technology is designed to streamline the optimization
    process.Session
    Optimization
    
    Omniture Test&Target enables customers to develop the best
    landing page for their visitors, as well as optimize the entire
    user experience from click-to-close. Customers can test display
    ad creative, search and display ad landing pages, and other
    on-site
    elements together to understand and deliver an engaging and
    relevant experience for their users.On-Site
    Behavioral Targeting
    
    Allows customers to provide visitors with a more relevant
    experience. Omniture Test&Targets behavioral
    targeting enables customers to create custom visitor groups
    based on behavior and then deliver targeted content to those
    groups and to easily segment its visitors based on their actions
    like selecting a product category, viewing an article or
    clicking through an
    e-mail
    offer. Customers can then test different content to see what is
    most effective at driving relevance for its visitor groups.Real-Time
    Reporting and 
              Analytics
    
    Omniture Test&Target provides actionable information about
    customer campaigns in easy to use, real-time reports that the
    customers entire marketing team can understand. Omniture
    Test&Target also integrates with Omniture SiteCatalyst and
    other analytics platforms so that the results of customers
    tests and targeted campaigns can be viewed alongside their other
    site performance.Supports
    Search Optimization
    
    Omniture Test&Target was also designed to not damage a
    customers natural search rankings. Omniture
    Test&Targets architecture is friendly to
    customers existing search engine optimization, or SEO,
    efforts and allows customers to test offers without affecting
    their natural search rankings.Easy
    Integration
    
    Omniture Test&Targets Web-based application sits
    outside of a customers IT infrastructure. It is designed
    to make it easy to get up and running on any existing Web
    site  with little to no IT resources. Customers
    access Omniture Test&Target over the Internet to setup
    content options and rules for test campaigns. Omniture
    Test&Target delivers that content to pre-defined regions on
    the customers site, referred to as mboxes, which are
    created by the insertion of a small amount of Javascript on a
    customers HTML page.When a visitor requests an Omniture Test&Target-enabled
    page, their browser communicates with the Omniture
    Test&Target server to find out what content to display. If
    the visitor is determined to be a member of a targeted test
    group, they will get the content designated for that group for
    the duration of the test period.Omniture Test&Target works seamlessly with: Dynamic and static Web sites; 14




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 Content management systems; Flash and other rich media; and Content delivery networks (such as Akamai).Scalability
    
    Omniture Test&Target has been designed to handle large
    traffic volumes without impacting the performance or integrity
    of the visitors experience.  Omniture
    Genesis
  e-mail
  Category

PartnerAd Network

Advertising.com, Blue Lithium and DotomiAd Serving

Atlas, DMT, DoubleClick Inc. and SapientBehavioral Targeting

MemetricsContent Management

Interwoven, Mediasurface and VignetteCRM/SFA

salesforce.com, Inc.E-mail Marketing

Acxiom Digital, Alterian, BlueHornet, Bronto, CheetahMail Inc.,
    ContactLab, eCircle, Emailingsolutions, EmailReaction,
    EmailVision, Epsilon Interactive, ExactTarget, Got,
    Harte-Hanks,
    Inboxmarketer, iPost, Knotice, Komunik, Loyalty Lab,
    Marketbright, Merkle/Quris, Neolane, Optivo, Redeye, Responsys
    Inc., Rocketseed, Sapient, Silverpop Systems, Inc., SmartFocus,
    Strongmail, SubscriberMail, ThinData, Tripolis, WhatCounts,
    YesMail and ZustekInformation Access/Internal Search

Celebros, Endeca Technologies Inc., FAST Search and Transfer
    ASA, Fred Hopper, Mercado Software Inc. and SLI SystemsLanding Page Optimization

Kefta, Optimost and WidemilePerformance Management

Coradiant, Radware and TeaLeafRich Media

Allurent and BrightcoveSearch Marketing Optimization

Ask.com, Efficient Frontier, Enhance Interactive Inc., Google,
    Inc., LookSmart Ltd., Mirago, MIVA Inc., MSN, SearchFeed, Yahoo!
    and YourAmigoUser Experience/Surveys

Bizrate, Foresee Results, Inc., iPerceptions, Leotrace,
    OpinionLab, Inc. and Usability SciencesCommunity Rankings and Reviews

Bazaarvoice Inc. and Power ReviewsOther

ABC Interactive, Aprimo, Claritas/Prism, ClearSpring, Digital
    Envoy, Expresso, Kwiry, Linkshare, InstantService, InsideSales,
    Maxamine Inc., Oracle, Orange Soda, SimpleFeed and vTrenz    15




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Omniture
    SiteSearch
      Guided
    Search
    
    Guides visitors to products, services or content by narrowing
    searches based on relevant criteria.Related
    Content Display
    
    Present related products or services in the context of the
    search results, providing the visitor with additional
    opportunities to engage and convert.Auto
    Complete
    
    Guide visitors to a successful search by anticipating and
    suggesting keywords as they type. Avoiding common spelling
    mistakes while demonstrating the breadth of content on the site
    ensures that the visitor will find what they are looking for.Keyword
    Reporting
    
    Weekly reports provide actionable intelligence on what visitors
    are looking for, including top keywords and failed searches.  Omniture
    Publish
      Content
    Editing and
              Deployment
    
    Allows customers to edit or preview content within a What
    you see is what you get environment with just one click.
    One more click to publish to production or in-house staging
    servers.Workflow
    Rules
    
    Permit customers to set task-based workflow for tight control of
    content creation, approval, staging and deployment or set ad-hoc
    workflow for dynamic collaboration.Template
    Management
    
    Enables customers to manage their templates with this powerful
    system including integrated PHP-based templating, Adobe
    Dreamweaver and GoLive, as well as browser-based interfaces.Reporting
    and Analytics
    
    Customers can tag content for immediate tracking in Omniture
    SiteCatalyst and receive comprehensive publishing status and
    user activity reports.Library
    Services
    
    Content can be managed with check in/out and asset locking
    features. Omniture Publish also makes available unlimited
    versioning and the ability to compare, revert and revive
    previous versions.Server
    and Browser Support
    
    Support is provided for all Web servers and operating systems,
    all application servers and Web scripting technologies and more
    than 70 file types. 16




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##### Table of Contents



Professional
    Services, Customer Service and Support
    Implementation
    Services
    Omniture
    Consulting
      Omniture
    University
    Customer
    Service and Support
  e-mail e-mail
  International
    Support
   17




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Technology
    and Research and Development
  Technology
               18




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Research
    and Development
        Operations
      Customers
   19




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##### Table of Contents



Strategic
    Relationships
    Search
    Engine Providers
    Online
    Marketing Service Providers
  e-mail
  Sales and
    Marketing
    Direct
    Sales
    Channel
    Sales
  e-commerce,
  International
    Sales
   20




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##### Table of Contents



Marketing
      
    customer referral programs;
    direct
    e-mail and
    online Web advertising campaigns;
    participation in, and sponsorship of, user conferences, trade
    shows and industry events;
    cooperative marketing efforts with partners, including joint
    press announcements, joint trade show activities, channel
    marketing campaigns and joint seminars; and
    using our Web site to provide product and company information.  Omniture
    Summit
  two-day
  Competition
      
    companies, such as Coremetrics, Inc., Google Inc., Microsoft
    Corporation, Nedstat Ltd. and WebTrends Inc. that offer
    on-demand services;
    software vendors, such as Epiphany, Inc. (acquired by SSA
    Global), NetRatings, Inc., Sane Solutions, LLC (acquired by
    Unica Corporation) and SAS Institute, Inc.;
    online marketing service providers, such as aQuantive, Inc.
    (acquired by Microsoft), DoubleClick Inc. and 24/7 Real Media,
    Inc. (acquired by WPP Group plc); and
    multivariate testing providers, such as Optimost LLC (acquired
    by Interwoven), Memetrics (acquired by Accenture), Kefta Inc.
    (acquired by Acxiom Digital) and [x + 1].   21




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
    the proven performance, security, scalability, flexibility and
    reliability of services;
    strategic relationships and integration with third-party
    applications;
    the intuitiveness and visual appeal of services user
    interfaces;
    low total cost of ownership and demonstrable cost-effective
    benefits to customers;
    the ability of services to provide N-dimensional segmentation of
    information;
    pricing;
    the flexibility and adaptability of services to match changing
    business demands;
    enterprise-level customer service and training;
    perceived market leadership;
    the usability of services, including services being easy to
    learn and remember, efficient and visually compelling;
    the real-time availability of data and reporting;
    perceived independence from portals and search engines;
    the ability to deploy the services globally and to provide
    multi-currency,
    multi-language
    and multi-character support and to have a local presence in
    international markets; and
    success in educating customers in how to utilize services
    effectively.    Intellectual
    Property
       22




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Patent
    License Agreement  NetRatings, Inc. and Omniture,
    Inc.
       23




---



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and/or
    Patent
    License Agreement  NetRatings, Inc. and Visual
    Sciences, Inc.
    Patent
    License Agreement  NetRatings, Inc. and Visual
    Sciences, LLC
    United
    States and Foreign Government Regulation
     24




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##### Table of Contents



e-mail
    Employees
    Executive
    Officers and Directors
    Name

Age

PositionExecutive Officers and Directors:Joshua G. James


34


President, Chief Executive Officer and DirectorMichael S. Herring


39


Chief Financial Officer and Executive Vice PresidentBrett M. Error


36


Chief Technology Officer and Executive Vice President,
    ProductsChristopher C. Harrington


38


President, Worldwide Sales and Client ServicesJohn F. Mellor


41


Executive Vice President, Business Development and Corporate
    StrategyD. Fraser Bullock


52


Director, Chairman of the BoardGregory S. Butterfield


48


DirectorDana L. Evan


48


DirectorMark P. Gorenberg


53


DirectorRory T. ODriscoll


43


DirectorJohn R. Pestana


34


Director  25




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##### Table of Contents



Joshua G. James
  Michael S. Herring
  Brett M. Error
  Christopher C. Harrington
  John F. Mellor
  D. Fraser Bullock
  Gregory S. Butterfield
 26




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##### Table of Contents



Dana L. Evan
  Mark P. Gorenberg
  Rory T. ODriscoll
  John R. Pestana
  Available
    Information
  www.omtr.com Form 10-K, Form 10-Q, Form 8-K, e-mail: ir@omniture.com Form 10-K. 1-800-SEC-0330. http://www.sec.gov
  ITEM 1A.
    Risk
    Factors  Factors
    That Could Affect Future Results
  Form 10-K,
 27




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Form 10-Q
  Risks
    Related to Our Business
  We
    have a history of significant net losses, may incur significant
    net losses in the future and may not achieve or maintain
    profitability.
    Our
    quarterly results of operations may fluctuate in the future. As
    a result, we may fail to meet or exceed the expectations of
    securities analysts or investors, which could cause our stock
    price to decline.
    
    our ability to increase sales to existing customers and attract
    new customers;
    the addition or loss of large customers;
    the timing of implementation of new or additional services by
    our customers;
    the amount and timing of operating costs and capital
    expenditures related to the maintenance and expansion of our
    business, operations and infrastructure;
    the timing and success of new product and service introductions
    by us or our competitors or any other change in the competitive
    dynamics of our industry, including consolidation among our
    competitors or our strategic partners;
    our ability to integrate acquired products and services into our
    online business optimization platform or migrate existing
    customers of companies we have acquired to our products and
    services;
    seasonal variations in the demand for our services and the
    implementation cycles for our new customers;
    levels of revenues from our larger customers, which have lower
    per transaction pricing due to higher transaction commitments;
    changes in our pricing policies or those of our competitors; 28




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
    service outages or security breaches;
    the extent to which any of our significant customers or the
    significant customers of the companies that we have acquired
    terminate their service agreements with us or reduce the number
    of transactions from which we capture data pursuant to their
    service agreements;
    the purchasing and budgeting cycles of our customers;
    limitations of the capacity of our network and systems;
    the timing of expenses associated with the addition of new
    employees to support the growth in our business;
    the timing of expenses related to the development or acquisition
    of technologies, services or businesses;
    potential goodwill and intangible asset impairment charges
    associated with acquired businesses;
    potential foreign currency exchange losses associated with
    transactions denominated in foreign currencies;
    expenses associated with the management or growth of our
    increasingly international operations;
    general economic, industry and market conditions and those
    conditions specific to Internet usage and online
    businesses; and
    geopolitical events such as war, threat of war or terrorist
    actions.    We
    have derived substantially all of our subscription revenues from
    sales of our Omniture SiteCatalyst service. If our Omniture
    SiteCatalyst service is not widely accepted by new customers,
    our operating results will be harmed.
    If we
    are unable to develop or acquire new services, or if the new
    services that we develop or acquire do not achieve market
    acceptance, our revenue growth will be harmed.
   29




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Our
    business depends substantially on customers renewing their
    subscriptions for our online business optimization services. Any
    decline in our customer renewals would harm our future operating
    results.
    If we
    do not successfully integrate our recent acquisitions, or if we
    do not otherwise achieve the expected benefits of the
    acquisitions, our growth rate may decline and our operating
    results may be materially harmed.
    
    failure to successfully manage relationships with customers and
    other important relationships;
    failure of customers to accept new services or to continue using
    the products and services of the combined company;
    difficulties in successfully integrating the management teams
    and employees of the acquired companies, particularly those of
    Visual Sciences and Offermatica;
    challenges encountered in managing larger, more geographically
    dispersed operations;
    loss of key employees;
    diversion of the attention of management from other ongoing
    business concerns;
    potential incompatibility of technologies and systems;
    potential impairment charges incurred to write down the carrying
    amount of intangible assets generated as a result of the
    proposed mergers; and
    potential incompatibility of business cultures. 30




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If we
    are unable to attract new customers or to sell additional
    services to our existing customers, our revenue growth will be
    adversely affected.
    The
    significant network equipment requirements of our business model
    make it more difficult to achieve positive cash flow and
    profitability if we continue to grow rapidly.
    Our
    growth depends upon our ability to add new and retain existing
    large customers; however, to the extent we are successful in
    doing so, our gross margins and ability to achieve profitability
    and positive cash flow may be impaired.
   31




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Because
    we recognize subscription revenue over the term of the
    applicable agreement, the lack of subscription renewals or new
    service agreements may not immediately be reflected in our
    operating results.
    We
    have limited experience with respect to our pricing model and if
    the prices we charge for our services are unacceptable to our
    customers, our revenues and operating results may experience
    volatility or be harmed.
    The
    market for on-demand services, in general, and for online
    business optimization services, in particular, is at an early
    stage of development, and if it does not develop or develops
    more slowly than we expect, our business will be
    harmed.
    
    the security capabilities, reliability and availability of
    on-demand services;
    customer concerns with entrusting a third party to store and
    manage their data;
    public concern regarding privacy;
    the enactment of laws or regulations that restrict our ability
    to provide existing or new services to customers in the
    U.S. or internationally;
    the level of customization or configuration we offer;
    our ability to maintain high levels of customer satisfaction;
    our ability to provide reports in real time during periods of
    intense activity on customer Web sites;
    the price, performance and availability of competing products
    and services; 32




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
    the rate of continued growth in online commerce and online
    advertising; and
    the current and possible future imposition by federal, state and
    local agencies of taxes on goods and services that are provided
    over the Internet.    We
    operate in a highly competitive market, which could make it
    difficult for us to acquire and retain customers.
      
    companies, such as Coremetrics, Inc., Google Inc., Microsoft
    Corporation, Nedstat Ltd. and WebTrends Inc. that offer
    on-demand services;
    software vendors, such as Epiphany, Inc. (acquired by SSA
    Global), NetRatings, Inc., Sane Solutions, LLC (acquired by
    Unica Corporation) and SAS Institute, Inc.;
    online marketing service providers, such as aQuantive, Inc.
    (acquired by Microsoft), DoubleClick Inc. and 24/7 Real Media,
    Inc. (acquired by WPP Group plc); and
    multivariate testing providers, such as Optimost LLC (acquired
    by Interwoven), Memetrics (acquired by Accenture), Kefta Inc.
    (acquired by Acxiom Digital) and [x + 1].      
    absorb costs associated with providing their products at a lower
    price;
    devote more resources to new customer acquisitions;
    respond to evolving market needs more quickly than we
    can; and
    finance more research and development activities to develop
    better services.       33




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We
    rely on a small number of third-party service providers to host
    and deliver our services, and any interruptions or delays in
    services from these third parties could impair the delivery of
    our services and harm our business.
      back-up
    If we
    fail to respond to rapidly changing technological developments
    or evolving industry standards, our services may become obsolete
    or less competitive.
    We
    have experienced rapid growth in recent periods organically and
    through acquisitions. If we fail to manage our growth
    effectively, we may be unable to execute our business plan,
    maintain high levels of service or address competitive
    challenges adequately.
   34




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We
    intend to continue making acquisitions of, or investments in,
    other companies and technologies, which could divert our
    managements attention, result in additional dilution to
    our stockholders and otherwise disrupt our operations and harm
    our operating results.
        
    issue additional equity securities that would dilute our
    stockholders;
    use a substantial portion of our cash resources that we may need
    in the future to operate our business;
    incur debt on terms unfavorable to us or that we are unable to
    repay; 35




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##### Table of Contents




    assume or incur large charges or substantial liabilities,
    including payments to NetRatings under our agreements with it;
    encounter difficulties retaining key employees of the acquired
    company or integrating diverse business cultures;
    become subject to adverse accounting or tax consequences,
    substantial depreciation, amortization, impairment or deferred
    compensation charges;
    make severance payments and provide additional compensation to
    executives and other personnel;
    incur charges related to the elimination of duplicative
    facilities or resources;
    incur legal, accounting and financial advisory fees, regardless
    of whether the transaction is completed; and
    become subject to intellectual property or other litigation.  Failure
    to effectively expand our sales and marketing capabilities could
    harm our ability to increase our customer base and achieve
    broader market acceptance of our services.
    Our
    growth depends in part on the success of our strategic
    relationships with third parties, including technology
    integration, channel partners and resellers of our
    services.
    Because
    our long-term success depends, in part, on our ability to expand
    the sales of our services to customers located outside of the
    United States, our business will be susceptible to risks
    associated with international operations.
   36




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##### Table of Contents




    fluctuations in currency exchange rates;
    unexpected changes in foreign regulatory requirements;
    longer accounts receivable payment cycles and difficulties in
    collecting accounts receivable;
    difficulties in managing and staffing international operations;
    potentially adverse tax consequences, including the complexities
    of foreign value added tax systems and restrictions on the
    repatriation of earnings;
    localization of our services, including translation into foreign
    languages and associated expenses;
    dependence on certain third parties to increase customer
    subscriptions;
    the burdens of complying with a wide variety of foreign laws and
    different legal standards, including laws and regulations
    related to privacy;
    increased financial accounting and reporting burdens and
    complexities;
    political, social and economic instability abroad, terrorist
    attacks and security concerns in general; and
    reduced or varied protection for intellectual property rights in
    some countries.          We may
    be liable to our customers and may lose customers if we provide
    poor service, if our services do not comply with our agreements
    or if we are unable to collect customer data or otherwise lose
    customer data.
   37




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A
    rapid expansion of our network and systems could cause us to
    lose customer data or cause our network or systems to
    fail.
    If a
    third party asserts that we are infringing its intellectual
    property, whether successful or not, it could subject us to
    costly and time-consuming litigation or expensive licenses, and
    our business may be harmed.
     38




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The
    success of our business depends in large part on our ability to
    protect and enforce our intellectual property
    rights.
        We
    rely on our management team and need additional personnel to
    grow our business, and the loss of one or more key employees or
    the inability to attract and retain qualified personnel could
    harm our business.
   39




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Material
    defects or errors in our software we use to deliver our services
    could harm our reputation, result in significant costs to us and
    impair our ability to sell our services.
    
    lost or delayed market acceptance and sales of our services;
    sales credits or refunds to our customers;
    loss of customers;
    diversion of development resources;
    injury to our reputation; and
    increased warranty and insurance costs.    Changes
    in financial accounting standards or practices may cause
    adverse, unexpected financial reporting fluctuations and affect
    our reported results of operations.
  Share-Based
    Payment
  We
    might require additional capital to support business growth, and
    this capital might not be available on acceptable terms, or at
    all.
   40




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##### Table of Contents



If we
    fail to maintain proper and effective internal controls, our
    ability to produce accurate financial statements could be
    impaired, which could adversely affect our operating results,
    our ability to operate our business and investors views of
    us.
      Our
    net operating loss carryforwards may expire unutilized, which
    could prevent us from offsetting future taxable
    income.
      If we
    cannot maintain our corporate culture as we grow, we could lose
    the innovation, teamwork and focus that we believe our culture
    fosters, and our business may be harmed.
    Our
    investments in auction rate securities are subject to risks
    which may adversely affect our liquidity and cause
    losses.
   41




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Risks
    Related to Our Industry
  Widespread
    blocking or erasing of cookies or other limitations on our
    ability to use cookies or other technologies that we employ may
    impede our ability to collect information and reduce the value
    of our services.
  non-U.S. regulators.
    We
    interact with consumers through our customers, so we may be held
    accountable for our customers handling of the
    consumers personal information.
     42




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Domestic
    or foreign laws or regulations may limit our ability to collect
    and use Internet user information, resulting in a decrease in
    the value of our services and having an adverse impact on the
    sales of our services.
  class-action
    e-mail
   43




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##### Table of Contents



We may
    face liability for the unauthorized disclosure or theft of
    private information, which could expose us to liabilities and
    harm our stock price.
    We may
    face public relations problems as a result of violations of
    privacy laws and perceived mistreatment of personal information,
    and these public relations problems may harm our reputation and
    thereby lead to a reduction in customers and lower
    revenues.
    Internet-related
    and other laws could adversely affect our
    business.
    Risks
    Related to the Securities Markets and Ownership of Our Common
    Stock
  The
    trading price of our common stock may be subject to significant
    fluctuations and volatility, and our stockholders may be unable
    to resell their shares at a profit.
  intra-day intra-day
  
    price and volume fluctuations in the overall stock market from
    time to time;
    significant volatility in the market price and trading volume of
    technology companies in general, and companies in our industry;
    actual or anticipated changes in our results of operations or
    fluctuations in our operating results; 44




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##### Table of Contents




    actual or anticipated changes in the expectations of investors
    or securities analysts, including changes in financial estimates
    or investment recommendations by securities analysts who follow
    our business;
    speculation in the press or investment community;
    technological advances or introduction of new products by us or
    our competitors;
    actual or anticipated developments in our competitors
    businesses or the competitive landscape generally;
    litigation involving us, our industry or both;
    regulatory developments in the United States, foreign countries
    or both;
    major catastrophic events;
    our sale of common stock or other securities in the future;
    the trading volume of our common stock, as well as sales of
    large blocks of our stock; or
    departures of key personnel.    If
    securities analysts stop publishing research or reports about
    our business, or if they downgrade our stock, the price of our
    stock could decline.
    The
    concentration of our capital stock ownership with insiders will
    likely limit your ability to influence the outcome of key
    transactions, including a change of control.
    Provisions
    in our certificate of incorporation and bylaws under Delaware
    law might discourage, delay or prevent a change of control of
    our company or changes in our management and, therefore, depress
    the trading price of our common stock.
    
    establish a classified Board of Directors so that not all
    members of our Board of Directors are elected at one time; 45




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##### Table of Contents




    authorize the issuance of blank check preferred
    stock that our Board of Directors could issue to increase the
    number of outstanding shares to discourage a takeover attempt;
    prohibit stockholder action by written consent, which requires
    all stockholder actions to be taken at a meeting of our
    stockholders;
    prohibit stockholders from calling a special meeting of our
    stockholders;
    provide that our Board of Directors is expressly authorized to
    make, alter or repeal our bylaws; and
    establish advance notice requirements for nominations for
    elections to our Board of Directors or for proposing matters
    that can be acted upon by stockholders at stockholder meetings.    ITEM 1B
    Unresolved
    Staff Comments    ITEM 2.
    Properties    ITEM 3.
    Legal
    Proceedings  Accounting Contingencies If a third party asserts that we are infringing
    its intellectual property, whether successful or not, it could
    subject us to costly and time-consuming litigation or expensive
    licenses, and our business may be harmed The success of our business depends in large part on
    our ability to protect and enforce our intellectual property
    rights Form 10-K.
 46




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##### Table of Contents



ITEM 4.
    Submission
    of Matters to a Vote of Security Holders       Votes For


Votes Against


Abstain48,240,628



52,438



5,191      Votes For


Votes Against


Abstain45,974,097



1,423,806



900,354  PART II  ITEM 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities  Market
    Information for Common Stock
      High


LowFiscal year ended December 31, 2007:First quarter

$
18.75


$
13.25Second quarter


24.26



15.50Third quarter


31.43



20.20Fourth quarter


38.57



25.54Fiscal year ended December 31, 2006:Second quarter (beginning June 28, 2006)


7.60



5.60Third quarter


8.59



6.23Fourth quarter


14.97



7.35   Dividends
    Stockholders
   47




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##### Table of Contents



Stock
    Performance Graph and Cumulative Total Return
  Notwithstanding any statement to the contrary in any of our
    previous or future filings with the SEC, the following
    information relating to the price performance of our common
    stock shall not be deemed to be filed with the SEC
    or to be soliciting material under the Securities
    Exchange Act of 1934, as amended, or the Exchange Act, and it
    shall not be deemed to be incorporated by reference into any of
    our filings under the Securities Act or the Exchange Act, except
    to the extent we specifically incorporate it by reference into
    such filing.
    COMPARISON
    OF 18 MONTH CUMULATIVE TOTAL RETURN*
    Among Omniture, Inc, The Nasdaq Composite Index
    and The Nasdaq Computer Index
  
  *
    $100 invested on 6/28/06 in stock or 5/31/06 in index-including
    reinvestment of dividends. Fiscal year ending December 31.  The stock price performance included in this graph is not
    necessarily indicative of future stock price performance.
  Recent
    Sales of Unregistered Securities
   48




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##### Table of Contents



non-U.S. persons
    Use of
    Proceeds from the Initial Public Offering
  Form S-1 No. 333-132987),
  Trading
    Plans
  Rule 10b5-1
  Stock
    Repurchases
   49




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ITEM 6.
    Selected
    Financial Data  Form 10-K. Form 10-K. Form 10-K.
  Year Ended December 31,2003


2004


2005


2006


2007(In thousands, except per share data)Total revenues

$
8,654


$
20,566


$
42,804


$
79,749


$
143,127Net income (loss)


143



(1,318
)


(17,441
)


(7,725
)(1)


(9,429
)(1)Net income (loss) per share, diluted

$
0.01


$
(0.10
)

$
(1.27
)

$
(0.25
)(1)

$
(0.18
)(1)Weighted-average number of shares


22,677



13,094



13,694



30,332



53,710Cash, cash equivalents and short-term investments

$
2,187


$
8,927


$
22,196


$
68,287
(2)

$
134,689
(3)Working (deficit) capital


(2,638
)


(1,422
)


1,191



52,028
(2)


120,033
(3)Total assets


6,926



32,768



73,051



135,210
(2)


370,723
(3)(4)Total long-term obligations, including current
    portion(5)


2,054



9,028



5,992



10,191



7,774Convertible preferred stock


10,108



22,770



61,882




(6)


Total stockholders (deficit) equity

$
(12,205
)

$
(13,413
)

$
(30,266
)

$
86,425
(2)(6)

$
291,075
(3)     (1)
    
    As a result of adopting SFAS No. 123R on
    January 1, 2006, our net loss and diluted net loss per
    share for 2006 were $1.8 million and $0.06, respectively,
    greater than if we had continued to account for stock-based
    compensation under the previous accounting rules. Also, our net
    loss and diluted net loss per share for 2007 were
    $11.1 million and $0.21, respectively, greater than if we
    had continued to account for stock-based compensation under the
    previous accounting rules. Because we adopted SFAS No. 123R
    using the prospective transition method, we applied its
    provisions only to stock awards granted, modified, repurchased
    or cancelled on or after the effective date.(2)
    
    Cash and cash equivalents, working capital, total assets and
    total stockholders (deficit) equity increased in 2006
    primarily due to the net cash proceeds of $59.2 million,
    after deducting underwriting discounts, commissions and offering
    expenses, from our initial public offering in July 2006.(3)
    
    Cash, cash equivalents and short-term investments, working
    capital, total assets and stockholders equity increased in
    2007 primarily due to the net cash proceeds of
    $142.2 million, after deducting underwriting discounts,
    commissions and offering expenses, from our common stock
    offering in June 2007.(4)
    
    Total assets increased in 2007 as a result of the acquisitions
    of Instadia, Touch Clarity and Offermatica.(5)
    
    Total long-term obligations, including current portion consist
    of notes payable and capital lease obligations.(6)
    
    In 2006, the entire balance of convertible preferred stock was
    reclassified to stockholders (deficit) equity due to the
    automatic conversion of the outstanding shares of convertible
    preferred stock to common stock upon the closing of our initial
    public offering in July 2006.  ITEM 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  The following Managements Discussion and Analysis of
    Financial Condition and Results of Operations should be read in
    conjunction with our Consolidated Financial Statements and
    related Notes included in Part II. Item 8 of this
    Annual Report on
    Form 10-K.
    This discussion contains forward-looking statements based on
    current expectations that involve risks and uncertainties, such
    as our plans, objectives, expectations and intentions, as set
 50




---



##### Table of Contents



forth under Cautionary Note Regarding Forward-Looking
    Statements. Our actual results and the timing of events
    could differ materially from those anticipated in these
    forward-looking statements as a result of various factors,
    including those set forth in the following discussion and in
    Part I. Item 1A Risk Factors and elsewhere
    in this Annual Report on
    Form 10-K.
    Unless otherwise indicated, all references to a year reflect our
    fiscal year that ends on December 31, 2007.
  Overview
           51




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##### Table of Contents



Acquisitions
  Acquisition
    of Instadia A/S
    Acquisition
    of Touch Clarity Limited
    Acquisition
    of Offermatica Corporation
     52




---



##### Table of Contents



Acquisition
    of Visual Sciences, Inc.
          How We
    Generate Revenues
    Subscription
    Revenues
       53




---



##### Table of Contents



97-2, Software Revenue Recognition, SOP 98-9, Modification of
    SOP 97-2,
    Software Revenue Recognition
  Professional
    Services and Other Revenues
    time-and-materials
  Indirect
    Sales
    Cost of
    Revenues and Operating Expenses
  Cost
    of Revenues
   54




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##### Table of Contents



Operating
    Expenses
          non-network
  Trends in
    Our Business and Results of Operations
     55




---



##### Table of Contents



56




---



##### Table of Contents



57




---



##### Table of Contents



Results
    of Operations
    Year Ended December 31,2005


2006


2007Revenues:Subscription


96
%


94
%


92
%Professional services and other


4



6



8Total revenues


100



100



100Cost of revenues:Subscription


43



36



32Professional services and other


5



4



5Total cost of revenues


48



40



37Gross profit


52



60



63Operating expenses:Sales and marketing


57



44



43Research and development


15



11



12General and administrative


15



15



17Litigation settlement


6







Total operating expenses


93



70



72Loss from operations


(41
)


(10
)


(9
)Interest income


1



2



4Interest expense


(1
)


(2
)


(1
)Other expense, net










Loss before provision for income taxes


(41
)


(10
)


(6
)Provision for income taxes










Net loss


(41
)%


(10
)%


(7
)%   Years
    Ended December 31, 2005, 2006 and 2007
  Revenues
  Year Ended December 31,


% Change2005


2006


2007


2005 vs. 2006


2006 vs. 2007(In thousands)Subscription

$
41,066


$
74,580


$
132,010



82
%


77
%Professional services and other


1,738



5,169



11,117



197



115Total revenues

$
42,804


$
79,749


$
143,127



86



79    58




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##### Table of Contents



Year Ended December 31,2005


2006


2007Revenues from customers within the United States

$
38,108


$
66,468


$
106,258Revenues from customers outside the United States.


4,696



13,281



36,869Total revenues

$
42,804


$
79,749


$
143,127Revenues from customers outside the United States as a
    percentage of total revenues


11
%


17
%


26
%       Cost
    of Revenues
  Year Ended December 31,


% Change2005


2006


2007


2005 vs. 2006


2006 vs. 2007(In thousands)Subscription

$
18,496


$
28,827


$
46,411



56
%


61
%Professional services and other


1,963



2,999



6,953



53



132Total cost of revenues

$
20,459


$
31,826


$
53,364



56



68     Year Ended December 31,2005


2006


2007Subscription


45
%


39
%


35
%Professional services and other


113



58



63    59




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##### Table of Contents



Operating
    Expenses
  Year Ended December 31,


% Change2005


2006


2007


2005 vs. 2006


2006 vs. 2007(In thousands)Sales and marketing

$
24,259


$
35,227


$
61,610



45
%


75
%Research and development


6,647



8,732



17,257



31



98General and administrative


6,220



12,107



24,218



95



100Litigation settlement


2,604











(100
)


Total operating expenses

$
39,730


$
56,066


$
103,085



41



84   Sales and
    Marketing
        Research
    and Development
     60




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##### Table of Contents



General
    and Administrative
        Litigation
    Settlement
    Stock-Based
    Compensation
    Year Ended December 31,2005


2006


2007(In thousands)Cost of subscription revenues

$
41


$
203


$
1,502Cost of professional services and other revenues


6



54



430Sales and marketing


156



993



4,982Research and development


243



563



2,615General and administrative


64



1,345



3,935Total stock-based compensation

$
510


$
3,158


$
13,464       Interest
    Income, Interest Expense and Other Expense, Net
  Year Ended December 31,2005


2006


2007(In thousands)Interest income

$
599


$
2,117


$
5,816Interest expense


(574
)


(1,285
)


(835
)Other expense, net


(66
)


(219
)


(554
)  61




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##### Table of Contents



Provision
    for Income Taxes
  Year Ended December 31,2005


2006


2007(In thousands)Provision for income taxes

$
15


$
195


$
534       Liquidity
    and Capital Resources
        Operating
    Activities
   62




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##### Table of Contents



Investing
    Activities
            Financing
    Activities
    Other
    Factors Affecting Liquidity and Capital Resources
    36-month
 63




---



##### Table of Contents



48-month
         64




---



##### Table of Contents



Acquisition
    of Instadia A/S
  No. 95-3, Recognition of Liabilities in Connection with a Purchase
    Business Combination
  Acquisition
    of Touch Clarity Limited
    Acquisition
    of Offermatica Corporation
    Acquisition
    of Visual Sciences, Inc.
     65




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##### Table of Contents



No. 95-3.
      Off-balance
    Sheet Arrangements
      Accounting for Leases
  Contractual
    Obligations and Commitments
    Payments Due by PeriodTotal


Less Than 1 Year


1-3 Years


3-5 Years


ThereafterOperating lease obligations

$
17,796


$
6,627


$
10,726


$
443


$
Capital lease obligations


460



279



181







Notes payable


7,355



4,407



2,290



658



Interest on notes payable


674



430



218



26



Total contractual obligations

$
26,285


$
11,743


$
13,415


$
1,127


$
      66




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##### Table of Contents



Critical
    Accounting Policies
      Revenue
    Recognition
  Revenue Recognition No. 00-21, Revenue Arrangements with Multiple Deliverables.
  
    there is persuasive evidence of an arrangement;
    the service has been provided to the customer;
    the collection of the fees is reasonably assured; and
    the amount of fees to be paid by the customer is fixed or
    determinable.  set-up
      Allowances
    for Accounts Receivable
   67




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##### Table of Contents



account-by-account
  Business
    Combinations and Impairment of Long-lived and Intangible Assets,
    Including Goodwill
    Accounting for the Impairment and
    Disposal of Long-Lived Assets.
  Goodwill and Other Intangible Assets
    Stock-based
    Compensation
  Accounting for Stock Issued to Employees Accounting for Certain Transactions Involving
    Stock Compensation, an Interpretation of APB Opinion
    No. 25 Accounting for Stock-Based Compensation, Accounting for Stock-Based
    Compensation  Transition and Disclosure
 68




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##### Table of Contents




    Estimated volatility is a measure of the amount by which our
    stock price is expected to fluctuate each year during the
    expected life of the award. Our estimated volatility is an
    average of the historical volatility of peer entities whose
    stock prices were publicly available. Our calculation of
    estimated volatility is based on historical stock prices of
    these peer entities over a period equal to the expected life of
    the awards. We use the historical volatility of peer entities
    due to the lack of sufficient historical data of our stock price
    since our initial public offering in 2006. Our estimated
    volatility may increase or decrease depending on the changes in
    our peer entities historical stock prices, changes in the
    composition of the peer entity group and changes to the expected
    term of our stock option awards. An increase in the estimated
    volatility would result in an increase to our stock-based
    compensation expense.
    The expected term represents the period of time that awards
    granted are expected to be outstanding and is currently
    calculated as the average of the contractual term and the
    vesting period. With the passage of time, actual behavioral
    patterns surrounding the expected term will replace the current
    methodology. An increase in the expected term would result in an
    increase to our stock-based compensation expense.
    The risk-free interest rate is based on the yield curve of a
    zero-coupon U.S. Treasury bond on the date the stock option
    award is granted with a maturity equal to the expected term of
    the stock option award. An increase in the risk-free interest
    rate would result in an increase to our stock-based compensation
    expense.      Income
    Taxes
  Accounting for Uncertainty in Income Taxes  An
    Interpretation of FASB Statement No. 109 Accounting for Income Taxes,
 69




---



##### Table of Contents



Recent
    Accounting Pronouncements
  Fair Value Measurements.
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  Business Combinations
  Noncontrolling Interests in Consolidated Financial
    Statements
  ITEM 7A.
    Quantitative
    and Qualitative Disclosure About Market Risk  Foreign
    Currency Exchange Risk
    Accounting for Derivative Instruments and Hedging Activities.
 70




---



##### Table of Contents



Interest
    Rate Sensitivity
    ITEM 8.
    Financial
    Statement and Supplementary Data  Form 10-K page F-1.
  ITEM 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    ITEM 9A.
    Controls
    and Procedures  (a)
    Evaluation
    of disclosure controls and procedures  Rules 13a-15(e) 15d-15(e) Form 10-K,
  (b)
    Managements
    Report on Internal Control over Financial
    Reporting  Rules 13a-15(f) 15d-15(f). Internal Control  Integrated Framework
   71




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm
  The Board of Directors and Stockholders
 Omniture, Inc.
  Internal Control 
    Integrated Framework
           72




---



##### Table of Contents



/s/  Ernst &
    Young LLP
     (c)
    Changes
    in internal control over financial reporting    (d)
    Inherent
    Limitations on Effectiveness of Controls    ITEM 9B.
    Other
    Information     73




---



##### Table of Contents



PART III  ITEM 10.
    Directors,
    Executive Officers and Corporate Governance  Form 10-K Form 10-K
  ITEM 11.
    Executive
    Compensation  Form 10-K
  ITEM 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters  Form 10-K
  ITEM 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence  Form 10-K
  ITEM 14.
    Principal
    Accounting Fees and Services  Form 10-K
 PART IV  ITEM 15.
    Exhibits,
    Financial Statement Schedules  (a) The following documents are filed as part of this
    Annual Report on
    Form 10-K:
  All Financial Statements
  Form 10-K page F-1:
  Report of Independent Registered Public Accounting Firm;Consolidated Balance Sheets as of December 31, 2006 and
    2007;Consolidated Statements of Operations for the years ended
    December 31, 2005, 2006 and 2007;Consolidated Statements of Convertible Preferred Stock and
    Stockholders (Deficit) Equity for the years ended
    December 31, 2005, 2006 and 2007;Consolidated Statements of Cash Flows for the years ended
    December 31, 2005, 2006 and 2007;Notes to Consolidated Financial Statements   Financial Statement Schedules
   74




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##### Table of Contents



Exhibits
  Regulation S-K
  (b) Exhibits:
    Incorporated by ReferenceExhibit







Exhibit



Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Filing Date

Herewith

Herewith2
.1

Share Purchase Agreement, by and among Registrant, the
    Shareholders of Touch Clarity Limited, Paul Phillips, Helen
    Protopapas and Tim Brown, as the Warrantors, and Alta Berkeley
    LLP and Yehoshua Ennis collectively as the Shareholder
    Representative, dated February 14, 2007

8-K

000-52076


2
.1

February 20, 20072
.2

Agreement and Plan of Reorganization by and among Registrant,
    San Francisco Acquisition Corp., Offermatica Corporation,
    Henry Baker, as the Stockholder Representative and U.S. Bank
    National Association, as Escrow Agent, dated September 7,
    2007

8-K

000-52076


2
.1

September 12, 20072
.3

Agreement and Plan of Reorganization by and among Registrant,
    Voyager Acquisition Corp and Visual Sciences, Inc., dated
    October 25, 2007

10-Q

000-52076


2
.3

November 9, 20072
.4

Agreement and Plan of Merger dated as of February 1, 2006
    by and among WebSideStory, Inc., VS Acquisition, LLC, Visual
    Sciences, LLC and Ned Scherer, as the Member Representative












X3
.1

Amended and Restated Certificate of Incorporation of Registrant
    currently in effect

10-Q

000-52076


3
.1

August 11, 20063
.2

Amended and Restated Bylaws of Registrant currently in effect

8-K

000-52076


3
.1

November 13, 20074
.1

Specimen Common Stock Certificate of Registrant

S-1

333-132987


4
.1

June 22, 20064
.2

Amended and Restated Registration Rights Agreement between
    Registrant and certain Holders of Registrants Common Stock
    Named therein, dated April 26, 2006

S-1

333-132987


4
.2

June 9, 20064
.3A

Silicon Valley Bank Second Amended and Restated Loan and
    Security Agreement, dated January 10, 2006

S-1

333-132987


4
.3

May 24, 20064
.3B

Silicon Valley Bank Second Amendment to Second Amended and
    Restated Loan and Security Agreement, dated May 14, 2007

10-Q

000-52076


10
.1

May 15, 2007 75




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit



Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Filing Date

Herewith

Herewith4
.3C

Silicon Valley Bank Third Amended and Restated Loan and Security
    Agreement, dated August 17, 2007

8-K

000-52076


10
.1

August 21, 20074
.4

Registration Rights Agreement by and among Registrant and
    certain Shareholders of Touch Clarity Ltd., dated
    February 14, 2007

8-K

000-52076


4
.1

February 20, 200710
.1*

Form of Indemnification Agreement entered into by and between
    Registrant and its Directors and Officers

S-1

333-132987


10
.1

May 24, 200610
.2A*

1999 Equity Incentive Plan of Registrant, as amended

S-1

333-132987


10
.2A

April 4, 200610
.2B*

Forms of Stock Option Agreement under the 1999 Equity Incentive
    Plan

S-1

333-132987


10
.2B

April 4, 200610
.2C*

Form of Stock Option Agreement under the 1999 Equity Incentive
    Plan used for Named Executive Officers and Non-Employee Directors

S-1

333-132987


10
.2C

June 9, 200610
.3A*

2006 Equity Incentive Plan of Registrant

10-K

000-52076


10
.3A

March 23, 200710
.3B*

Forms of Stock Option Award Agreement used under the 2006 Equity
    Incentive Plan

10-K

000-52076


10
.3B

March 23, 200710
.3C*

Form of Stock Appreciation Right Agreement and related forms
    under the 2006 Equity Incentive Plan for Non-Employee Directors

10-Q

000-52076


10
.3

May 15, 200710
.3D*

Form of Restricted Stock Unit Award Agreement used under the
    2006 Equity Incentive Plan

10-Q

000-52076


10
.3D

November 9, 200710
.3E*

Form of Restricted Stock Unit Award Agreement 
    Non-U.S.
    Participants used under the 2006 Equity Incentive Plan












X10
.4A*

Employee Stock Purchase Plan of the Registrant

S-1

333-132987


10
.4A

April 4, 200610
.4B*

Form of Subscription Agreement under Employee Stock Purchase Plan

S-1

333-132987


10
.4B

April 4, 200610
.5

WebSideStory, Inc. Amended and Restated 2000 Equity Incentive
    Plan












X10
.6

WebSideStory, Inc. 2004 Equity Incentive Award Plan and Form of
    Option Grant Agreement












X10
.6A

Form of Restricted Stock Award Grant Notice and Restricted Stock
    Award Agreement under WebSideStory, Inc. 2004 Equity Incentive
    Award Plan












X10
.7

Avivo Corporation 1999 Equity Incentive Plan and Form of Option
    Grant Agreement












X 76




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit



Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Filing Date

Herewith

Herewith10
.8

WebSideStory, Inc. 2006 Employment Commencement Equity Incentive
    Award Plan and Form of Option Grant Agreement












X10
.9A

2007 Equity Incentive Plan of Registrant

S-8

333-149022


99
.9

February 1, 200810
.9B

Form of Stock Option Award Agreement under 2007 Equity Incentive
    Plan of Registrant

S-8

333-149022


99
.10

February 1, 200810
.9C

Form of Restricted Stock Unit Award Agreement under 2007 Equity
    Incentive Plan of Registrant

S-8

333-149022


99
.11

February 1, 200810
.10A

2008 Equity Incentive Plan of Registrant

S-8

333-149022


99
.12

February 1, 200810
.10B

Form of Stock Option Award Agreement under 2008 Equity Incentive
    Plan of Registrant

S-8

333-149022


99
.13

February 1, 200810
.10C

Form of Restricted Stock Unit Award Agreement under the 2008
    Equity Incentive Plan of Registrant

S-8

333-149022


99
.14

February 1, 200810
.11

The Touch Clarity Limited Enterprise Management Incentives Share
    Option Plan 2002

S-8

333-141352


99
.5

March 16, 200710
.12

Forms of Agreements under The Touch Clarity Limited Enterprise
    Management Incentives Share Option Plan 2002

S-8

333-141352


99
.6

March 16, 200710
.13

Touch Clarity Limited 2006 U.S. Stock Plan

S-8

333-141352


99
.7

March 16, 200710
.14

Form of Stock Option Agreement under Touch Clarity Limited 2006
    U.S. Stock Plan

S-8

333-141352


99
.8

March 16, 200710
.15*

Amended and Restated Employment Agreement between Registrant and
    Joshua G. James

S-1

333-132987


10
.5

June 22, 200610
.16*

Separation Agreement entered into between Registrant and
    John R. Pestana

10-Q

000-52076


10
.3

May 15, 200710
.17*

Offer Letter with Michael S. Herring, dated October 20, 2004

S-1

333-132987


10
.7

April 4, 200610
.18A

Basic Lease Information and Canyon Park Technology Center Office
    Building Lease Agreement between the Registrant and TCU
    Properties I, LLC

S-1

333-132987


10
.8A

April 4, 200610
.18B

First Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated May 6, 2004

S-1

333-132987


10
.8B

April 4, 2006 77




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit



Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Filing Date

Herewith

Herewith10
.18C

Second Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated
    December 8, 2004

S-1

333-132987


10
.8C

April 4, 200610
.18D

Third Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated April 30,
    2005

S-1

333-132987


10
.8D

April 4, 200610
.18E

Fourth Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated May 31,
    2005

S-1

333-132987


10
.8D

April 4, 200610
.18F

Fifth Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated
    January 25, 2006

S-1

333-132987


10
.8F

April 4, 200610
.18G

Sixth Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU-Canyon Park, LLC, successor in interest to
    TCU Properties I, LLC, dated January 11, 2008












X10
.18H

Seventh Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU-Canyon Park, LLC, successor in interest to
    TCU Properties I, LLC, dated January 11, 2008












X10
.19

Office Lease between Brannan Propco, LLC and Registrant, dated
    January 8, 2008












X10
.20**

Settlement and Patent License Agreement by and between
    NetRatings, Inc. and Registrant, dated February 28, 2006

S-1

333-132987


10
.9

April 4, 200610
.21

NetObjects, Inc. Warrant to Purchase Stock, dated March 26,
    2002

S-1

333-132987


10
.10

May 8, 200610
.22*

Change of Control Agreement between Registrant and Joshua G.
    James

S-1

333-132987


10
.12

June 22, 2006 78




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit



Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Filing Date

Herewith

Herewith10
.23*

Form of Change of Control Agreement entered into between
    Registrant and each of Brett M. Error and Christopher C.
    Harrington and John Mellor

S-1

333-132987


10
.14

June 22, 200610
.24*

Change of Control Agreement between Registrant and Michael S.
    Herring

S-1

333-132987


10
.15

June 22, 200610
.25

Master Finance Lease and Lease Covenant Agreement by and between
    the Registrant and Zions Credit Corporation, dated March 2,
    2007

8-K

000-52076


10
.1

March 7, 200710
.26**

Settlement and Patent Cross-License Agreement dated as of
    August 17, 2007 by and between Visual Sciences, Inc.
    (formerly known as WebSideStory, Inc.) and NetRatings, Inc.












X10
.27**

Patent Cross-License Agreement dated December 12, 2003 by
    and between WebSideStory, Inc. and NetIQ Corporation












X10
.28A

Office Lease dated as of August 23, 1999 by and between
    WebSideStory, Inc. and LNR Seaview, Inc.












X10
.28B

First Amendment to Office Lease dated as of July 3, 2001 by
    and between WebSideStory, Inc. and LNR Seaview, Inc.












X10
.28C

Second Amendment to Office Lease dated as of December 7,
    2005 by and between WebSideStory, Inc. and Seaview PFG, LLC (as
    assignee of LNR Seaview, Inc.)












X10
.29A

Sublease dated as of July 3, 2001 by and between
    WebSideStory, Inc. and RF Magic, Inc.












X10
.29B

Amendment of Sublease dated as of September 10, 2003 by and
    between WebSideStory, Inc. and RF Magic, Inc.












X10
.29C

Second Amendment of Sublease dated as of June 14, 2006 by
    and between WebSideStory, Inc. and RF Magic, Inc.












X10
.29D

Third Amendment and Assignment of Sublease dated as of
    October 8, 2007 by and among Visual Sciences, Inc.,
    (formerly known as WebSideStory, Inc.), RF Magic, Inc. and
    Entropic Communications, Inc.












X21
.1

List of Subsidiaries of the Registrant












X23
.1

Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm












X 79




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit



Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Filing Date

Herewith

Herewith24
.1

Power of Attorney (set forth on the signature page to this
    Annual Report on
    Form 10-K)












X31
.1

Rule 13a-14(a)/15d-14(a)
    Certification of Chief Executive Officer












X31
.2

Rule 13a-14(a)/15d-14(a)
    Certification of Chief Financial Officer












X32
.1

Section 1350 Certifications of Chief Executive Officer and
    Chief Financial Officer
















X     *
    
    Indicates a management contract or compensatory plan, contract
    or arrangement in which any director or named executive officer
    of the Registrant participates.  **
    
    The Securities and Exchange Commission has granted confidential
    treatment with respect to portions of this exhibit. A complete
    copy of this exhibit has been filed separately with the
    Commission. 80




---



##### Table of Contents



SIGNATURES       By:
    /s/  Joshua
    G. James       KNOW ALL PERSONS BY THESE PRESENTS his/her Form 10-K, he/she
    Name and Signature

Title

Date/s/  Joshua
    G. JamesJoshua
    G. James

President and Chief Executive Officer and Director (Principal
    Executive Officer)

February 28, 2008/s/  Michael
    S. HerringMichael
    S. Herring

Chief Financial Officer and Executive Vice President (Principal
    Financial and Accounting Officer)

February 28, 2008/s/  D.
    Fraser BullockD.
    Fraser Bullock

Director

February 28, 2008/s/  Gregory
    S. ButterfieldGregory
    S. Butterfield

Director

February 28, 2008/s/  Dana
    L. EvanDana
    L. Evan

Director

February 28, 2008/s/  Mark
    P. GorenbergMark
    P. Gorenberg

Director

February 28, 2008/s/  Rory
    T. ODriscollRory
    T. ODriscoll

Director

February 28, 2008/s/  John
    R. PestanaJohn
    R. Pestana

Director

February 28, 2008  81




---



##### 



INDEX TO
    CONSOLIDATED FINANCIAL STATEMENTS
   
 Report of Independent Registered Public
    Accounting Firm


F-2Consolidated Balance Sheets


F-3Consolidated Statements of
    Operations


F-4Consolidated Statements of
    Convertible Preferred Stock and Stockholders (Deficit)
    Equity


F-5Consolidated Statements of Cash
    Flows


F-6Notes to Consolidated Financial
    Statements


F-7   F-1




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM           Share-Based
    Payment.
  Internal Control-Integrated
    Framework
  /s/  Ernst &
    Young LLP
    F-2




---



##### Table of Contents



OMNITURE,
    INC.
  Consolidated Balance Sheets
 (In thousands, except share and per share
    data)
  December 31,2006


2007Assets:Current assets:Cash and cash equivalents

$
68,287


$
77,765Short-term investments






56,924Accounts receivable, net of allowances of $2,039 and $4,730 at
    December 31, 2006 and 2007, respectively


24,126



51,971Prepaid expenses and other current assets


1,571



3,663Total current assets


93,984



190,323Property and equipment, net


31,128



31,214Intangible assets, net


9,796



50,769Goodwill






94,960Other assets


302



3,457Total assets

$
135,210


$
370,723Liabilities and Stockholders Equity:Current liabilities:Accounts payable

$
2,586


$
6,470Accrued liabilities


11,435



17,126Current portion of deferred revenues


21,885



42,041Current portion of notes payable


5,997



4,407Current portion of capital lease obligations


53



246Total current liabilities


41,956



70,290Deferred revenues, less current portion


2,170



1,815Notes payable, less current portion


4,117



2,948Capital lease obligations, less current portion


24



173Other liabilities


518



4,422Commitments and contingenciesStockholders equity:Preferred stock, $0.001 par value; 10,000,000 shares
    authorized; no shares issued and outstanding






Common stock, $0.001 par value; 250,000,000 shares
    authorized at December 31, 2006 and 2007; 47,385,901 and
    60,636,685 shares issued and outstanding at
    December 31, 2006 and 2007, respectively


47



61Additional paid-in capital


127,380



340,424Deferred stock-based compensation


(2,172
)


(1,182
)Accumulated other comprehensive income


9



40Accumulated deficit


(38,839
)


(48,268
)Total stockholders equity


86,425



291,075Total liabilities and stockholders equity

$
135,210


$
370,723   See accompanying notes to the consolidated financial
    statements.
 F-3




---



##### Table of Contents



OMNITURE,
    INC.
  Consolidated Statements of Operations
 (In thousands, except per share data)
  Year Ended December 31,2005


2006


2007Revenues:Subscription

$
41,066


$
74,580


$
132,010Professional services and other


1,738



5,169



11,117Total revenues


42,804



79,749



143,127Cost of revenues:Subscription


18,496



28,827



46,411Professional services and other


1,963



2,999



6,953Total cost of revenues


20,459



31,826



53,364Gross profit


22,345



47,923



89,763Operating expenses:Sales and marketing


24,259



35,227



61,610Research and development


6,647



8,732



17,257General and administrative


6,220



12,107



24,218Litigation settlement


2,604







Total operating expenses


39,730



56,066



103,085Loss from operations


(17,385
)


(8,143
)


(13,322
)Interest income


599



2,117



5,816Interest expense


(574
)


(1,285
)


(835
)Other expense, net


(66
)


(219
)


(554
)Loss before provision for income taxes


(17,426
)


(7,530
)


(8,895
)Provision for income taxes


15



195



534Net loss

$
(17,441
)

$
(7,725
)

$
(9,429
)Net loss per share, basic and diluted

$
(1.27
)

$
(0.25
)

$
(0.18
)Weighted-average number of shares, basic and diluted


13,694



30,332



53,710   See accompanying notes to the consolidated financial
    statements.
 F-4




---



##### Table of Contents





OMNITURE, INC.
  Consolidated Statements of Convertible
    Preferred Stock and Stockholders
 (Deficit) Equity
 (In thousands, except share data)
  Stockholders (Deficit) EquityAccumulatedConvertible









Additional


Deferred


Other





Total


TotalPreferred Stock



Common Stock


Paid-In


Stock-Based


Comprehensive


Accumulated


Comprehensive


StockholdersShares


Amount



Shares


Amount


Capital


Compensation


Income


Deficit


Loss


(Deficit) EquityBalance at January 1, 2005


13,932,762


$
22,770




13,312,021


$
13


$
247


$



$



$
(13,673
)

$
(13,673
)

$
(13,413
)Deferred compensation related to issuance of stock options, net
    of forfeitures



















3,780



(3,780
)














Amortization of deferred stock-based compensation























510















510Exercise of stock options











419,364



1



55



















56Vesting of common shares subject to repurchase











187,500







22



















22Issuance of
    Series C-1
    convertible preferred stock, net of issuance costs of $248


7,740,834



39,752
































Revaluation and cancellation of convertible preferred stock
    warrants (166,708 shares)






(640
)































Net loss































(17,441
)


(17,441
)


(17,441
)Balance at December 31, 2005


21,673,596



61,882




13,918,885



14



4,104



(3,270
)






(31,114
)


(31,114
)


(30,266
)Amortization of deferred stock-based compensation, net of
    forfeitures



















(114
)


1,098















984Exercise of stock options











982,006



1



132



















133Vesting of common shares subject to repurchase











363,373







44



















44Stock-based compensation



















1,948



















1,948Accelerated vesting of employee stock options



















224



















224Issuance of common stock in exchange for services











250







2



















2Revaluation and cancellation of convertible preferred stock
    warrants (134,939 shares)






(44
)































Exercise of
    Series B-2
    convertible preferred stock warrants


142,791




































Issuance of common stock, net of issuance costs











10,305,000



10



59,224



















59,234Conversion of convertible preferred stock into common


(21,816,387
)


(61,838
)



21,816,387



22



61,816



















61,838Foreign currency translation adjustment



























9







9



9Comprehensive loss:Net loss































(7,725
)


(7,725
)


(7,725
)Comprehensive loss



































(7,716
)


Balance at December 31, 2006











47,385,901



47



127,380



(2,172
)


9



(38,839
)


(38,830
)


86,425Amortization of deferred stock-based compensation, net of
    forfeitures



















(38
)


990















952Exercise of stock options











2,261,130



2



3,596



















3,598Vesting of common shares subject to repurchase











703,029



1



85



















86Stock-based compensation



















12,512



















12,512Purchases under employee stock purchase plan











11,014







194



















194Exercise of common stock warrants











41,671



























Issuance of common stock, net of issuance costs











8,376,250



9



142,224



















142,233Issuance of common stock to former Touch Clarity shareholders,
    net of issuance costs











836,609



1



22,085



















22,086Issuance of common stock to former Offermatica shareholders











1,021,081



1



24,770



















24,771Estimated fair value of stock options substituted in connection
    with the acquisition of Touch Clarity



















7,322



















7,322Income tax benefit of stock option exercises



















294



















294Foreign currency translation adjustment



























40







40



40Unrealized loss on available for sale securities



























(9
)






(9
)


(9
)Comprehensive loss:Net loss































(9,429
)


(9,429
)


(9,429
)Comprehensive loss



































(9,398
)


Balance at December 31, 2007





$





60,636,685


$
61


$
340,424


$
(1,182
)

$
40


$
(48,268
)

$
(48,228
)

$
291,075   See accompanying notes to the consolidated financial
    statements.
 F-5




---



##### Table of Contents





OMNITURE,
    INC.
  Consolidated Statements of Cash Flows
 (In thousands, except share data)
  Year Ended December 31,2005


2006


2007Cash flows from operating activities:Net loss

$
(17,441
)

$
(7,725
)

$
(9,429
)Adjustments to reconcile net loss to net cash (used in) provided
    by operating activities:Depreciation and amortization


6,377



13,032



20,386Stock-based compensation


510



3,158



13,464Loss on foreign currency forward contract










243Loss on disposal of property and equipment


5







16Amortization of premiums and discounts on short-term investments










(962
)Patent license and litigation settlement costs


4,514







Net changes in operating assets and liabilities:Accounts receivable, net


(6,444
)


(11,801
)


(23,121
)Prepaid expenses and other assets


60



(1,010
)


(1,599
)Accounts payable


(101
)


(1,495
)


2,145Accrued and other liabilities


2,047



(1,228
)


617Deferred revenues


5,684



10,804



16,245Net cash (used in) provided by operating activities


(4,789
)


3,735



18,005Cash flows from investing activities:Purchases of short-term investments










(144,019
)Proceeds from sales of short-term investments










48,150Proceeds from maturities of short-term investments










40,000Purchases of property and equipment


(18,852
)


(14,934
)


(11,975
)Purchases of intangible assets






(6,380
)


(4,545
)Payment related to loss on foreign currency forward contract










(337
)Business acquisitions, net of cash acquired










(78,882
)Net cash used in investing activities


(18,852
)


(21,314
)


(151,608
)Cash flows from financing activities:Proceeds from exercise of stock options


194



237



3,606Proceeds from issuance of convertible preferred stock, net of
    issuance costs


39,752







Proceeds from employee stock purchase plan










194Proceeds from issuance of common stock, net of issuance costs






59,234



142,233Income tax benefit of stock option exercises










294Proceeds from issuance of notes payable


500



9,608



2,761Principal payments on notes payable and capital lease obligations


(3,536
)


(5,409
)


(6,129
)Net cash provided by financing activities


36,910



63,670



142,959Effect of exchange rate changes on cash and cash equivalents










122Net increase in cash and cash equivalents


13,269



46,091



9,478Cash and cash equivalents at beginning of period


8,927



22,196



68,287Cash and cash equivalents at end of period

$
22,196


$
68,287


$
77,765Supplemental disclosure of noncash investing and financing
    activities:Issuance of common stock and stock options for business
    acquisitions

$



$



$
54,337Conversion of convertible preferred stock into common






61,838



Assets acquired under capital leases










152Revaluation and cancellation of convertible preferred stock
    warrants (166,708 and 134,939 shares in the years ended
    December 31, 2005 and 2006, respectively)


640



44



Vesting of common shares subject to repurchase


22



44



86Acquisition of patent licenses


8,800







Unpaid acquisition related expenses for Offermatica and Visual
    Sciences










1,798Unrealized gain on short-term investments










(11
)   See accompanying notes to the consolidated financial
    statements.
 F-6




---



##### Table of Contents



Omniture,
    Inc.
  Notes
    to Consolidated Financial Statements
  1.
    Description
    of Business and Basis of Presentation  Description
    of Business
    Principles
    of Consolidation
    Acquisitions
    Segments
    Use of
    Estimates
    Common
    Stock Offerings
     F-7




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Revenue
    Recognition
  Revenue Recognition No. 00-21, Revenue Arrangements with Multiple Deliverables.
  
    there is persuasive evidence of an arrangement;
    the service has been provided to the customer;
    the collection of the fees is reasonably assured; and
    the amount of fees to be paid by the customer is fixed or
    determinable.  set-up
      Deferred
    Revenues
    Cash
    and Cash Equivalents and Short-term Investments
  available-for-sale
  Concentrations
    of Credit Risk and Significant Customers
   F-8




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
          Year Ended December 31,2005


2006


2007Revenues from customers within the United States

$
38,108


$
66,468


$
106,258Revenues from customers outside the United States


4,696



13,281



36,869Total revenues

$
42,804


$
79,749


$
143,127Revenues from customers outside the United States as a
    percentage of total revenues


11
%


17
%


26
%   Service
    Provider Concentration
    Allowances
    for Accounts Receivable
    account-by-account
 F-9




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Year Ended December 31,2005


2006


2007Sales allowance:Balance at beginning of period

$
261


$
835


$
1,305Provision


2,412



3,671



5,881Write-offs


(1,838
)


(3,201
)


(4,015
)Balance at end of period

$
835


$
1,305


$
3,171   Year Ended December 31,2005


2006


2007Bad debt allowance:Balance at beginning of period

$
66


$
127


$
734Provision


77



650



1,102Write-offs


(16
)


(43
)


(277
)Balance at end of period

$
127


$
734


$
1,559   Property
    and Equipment
    Computers, equipment and software

2 to 4 yearsFurniture and fixtures

5 to 7 yearsLeasehold improvements

Shorter of the estimated useful life or the lease term   Long-lived
    Assets, Including Goodwill
  Accounting for the Impairment and Disposal of
    Long-Lived Assets
  Goodwill
    and Other Intangible Assets,
 F-10




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Foreign
    Currency
      Accounting for Derivative Instruments
    and Hedging Activities
  Fair
    Value of Financial Instruments
    Software
    Development Costs
  No. 00-2, Accounting for Web Site Development Costs, No. 00-3, Application of AICPA Statement of Position
    97-2 to
    Arrangements That Include the Right to Use Software Stored on
    Another Entitys Hardware. No. 00-2 No. 00-3 No. 98-1, Accounting for the Cost of Computer Software Developed or
    Obtained for Internal Use, SOP No. 98-1
  Commissions
    Leases
  Accounting for Leases.
 F-11




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Advertising
    Stock-based
    Compensation
  Accounting for Stock
    Issued to Employees Accounting for Stock-Based Compensation
  Share-Based Payment
  No. 96-18, Accounting for Equity Instruments That Are Issued to Other
    Than Employees for Acquiring, or in Conjunction with Selling,
    Goods or Services
  Income
    Taxes
  Accounting
    for Income Taxes.
  Accounting for Uncertainty in Income Taxes  An
    Interpretation of FASB Statement No. 109
 F-12




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
      Net
    Loss Per Share
    Year Ended December 31,2005


2006


2007Numerator:Net loss

$
(17,441
)

$
(7,725
)

$
(9,429
)Denominator:Weighted-average common shares outstanding


14,362



31,134



54,375Weighted-average common shares outstanding subject to repurchase


(668
)


(802
)


(665
)Denominator for net loss per share, basic and diluted


13,694



30,332



53,710     Year Ended December 31,2005


2006


2007Common shares outstanding subject to repurchase


668



784



657Employee stock awards


5,178



5,110



5,589Warrants


418



374



241Convertible preferred stock


18,152



11,016



   Recent
    Accounting Pronouncements
  Fair Value Measurements.
 F-13




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  Business Combinations.
  Noncontrolling Interests in Consolidated Financial
    Statements.
  2.
    Acquisitions  Instadia
    A/S
    No. 95-3, Recognition of Liabilities in Connection with a Purchase
    Business Combination,
 F-14




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Current assets

$
2,033Property and equipment


193Other assets


73Acquired intangibles:Existing technology (four-year estimated useful life)


600Customer contracts and related relationships (seven-year
    estimated useful life)


4,400Non-compete agreements (two-year estimated useful life)


600Patent license (five-year estimated useful life)


148Goodwill


10,814Total assets acquired


18,861Current liabilities


3,378Long-term liabilities


1,134Total liabilities assumed


4,512Net assets acquired

$
14,349         Touch
    Clarity Limited
     F-15




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
        Current assets

$
2,356Property and equipment


1,374Other assets


127Acquired intangibles:Existing technology (seven-year estimated useful life)


14,300Customer contracts and related relationships (eight-year
    estimated useful life)


3,700Core technology (six-year estimated useful life)


3,300Patent license (five-year estimated useful life)


166Goodwill


42,424Total assets acquired


67,747Current liabilities


3,869Long-term liabilities


2,622Total liabilities assumed


6,491Net assets acquired

$
61,256      F-16




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Offermatica
    Corporation
        Current assets

$
3,200Property and equipment


1,082Other assets


55Acquired intangibles:Existing technology (four-year estimated useful life)


10,700Customer contracts and related relationships (six-year estimated
    useful life)


5,200Core technology (four-year estimated useful life)


2,200Patent license (five-year estimated useful life)


486Trade name / trademarks
    (eight-month
    estimated useful life)


100Goodwill


41,722Total assets acquired


64,745Current liabilities


4,344Total liabilities assumed


4,344Net assets acquired

$
60,401      F-17




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Unaudited
    pro forma financial information
    Year EndedDecember 31,2006


2007Revenues

$
88,950


$
155,461Loss from operations


(24,262
)


(21,118
)Net loss


(25,433
)


(18,641
)Net loss per share, basic and diluted

$
(0.60
)

$
(0.28
)   3.
    Property
    and Equipment    December 31,2006


2007Computers, equipment and software

$
49,672


$
63,791Furniture and fixtures


816



1,117Leasehold improvements


1,359



1,72351,847



66,631Less: accumulated depreciation and amortization


(20,719
)


(35,417
)$
31,128


$
31,214    F-18




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  4.
    Balance
    Sheet Accounts  Cash,
    Cash Equivalents and Short-term Investments
    December 31, 2007Amortized


Unrealized


Unrealized


EstimatedCost


Gains


Losses


Fair ValueCash and cash equivalents:Cash

$
5,483


$



$



$
5,483Money market funds


17,434











17,434Government-sponsored enterprise securities


29,972



5







29,977Corporate debt securities


24,896







(25
)


24,871Total cash and cash equivalents

$
77,785


$
5


$
(25
)

$
77,765Short-term investments:Auction rate preferred municipal bonds

$
42,000


$



$



$
42,000Government-sponsored enterprise securities


5,018



18







5,036Corporate debt securities


9,895







(7
)


9,888Total short-term investments

$
56,913


$
18


$
(7
)

$
56,924       Due in less than one year

$
69,772Due in 1 to 5 years


Due in 5 to 10 years


Due in greater than 10 years


42,000$
111,772    F-19




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
      In a Loss Position for


In a Loss Position forLess Than 12 Months


12 Months or More


TotalGross





Gross





GrossUnrealized





Unrealized





UnrealizedFair Value


Losses


Fair Value


Losses


Fair Value


LossesCorporate debt securities

$
34,759


$
(32
)

$



$



$
34,759


$
(32
)     Goodwill
    and Intangible Assets
    Balance as of December 31, 2006

$
Goodwill acquired


94,960Balance as of December 31, 2007

$
94,960     December 31, 2006Gross Carrying


Accumulated


Net CarryingAmount


Amortization


AmountPurchased technology

$



$



$
Customer contracts and related relationships










Patent licenses


10,199



1,356



8,843Other


1,777



824



953Non-compete agreements










$
11,976


$
2,180


$
9,796   December 31, 2007Gross Carrying


Accumulated


Net CarryingAmount


Amortization


AmountPurchased technology

$
31,100


$
2,433


$
28,667Customer contracts and related relationships


13,300



998



12,302Patent licenses


11,824



2,969



8,855Other


1,777



1,157



620Non-compete agreements


600



275



325$
58,601


$
7,832


$
50,769    F-20




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Series B-2 Series B-2 Series B-2
    Year Ending December 31,2008

$
10,3742009


9,9782010


9,6542011


9,3622012


6,195Thereafter


5,206$
50,769   Accrued
    and Other Liabilities
    December 31,2006


2007Accrued bonuses and commissions

$
3,311


$
5,244Patent license and settlement costs


3,831



Other accrued liabilities


4,293



11,882$
11,435


$
17,126  F-21




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
    December 31,2006


2007Deferred tax liabilities

$



$
4,047Other liabilities


518



375$
518


$
4,422   5.
    Notes
    Payable    Interest

Final Maturity


December 31,Rate

Date


2006


2007Draw on equipment line of credit

5.00%


Aug. 2007


$
940


$
Draw on equipment line of credit

5.06


Oct. 2007



752



Draw on equipment line of credit

4.81


Oct. 2007



603



Draw on revolving line of credit

variable rate


Aug. 2008



500



500Draw on second equipment facility

7.55


Jan. 2009



1,389



722Draw on second equipment facility

7.77


Feb. 2009



794



428Draw on second equipment facility

8.03


Mar. 2009



1,500



833Draw on second equipment facility

8.38


Apr. 2009



1,684



962Draw on second equipment facility

8.79


Jun. 2009



1,952



1,172Draw on second equipment facility

variable rate


Dec. 2011







2,364Bank note payable

9.07


Apr. 2010







310Other notes payable

variable rate


May 2009







6410,114



7,355Less: current portion








(5,997
)


(4,407
)Notes payable, excluding current portion







$
4,117


$
2,948     36-month
  36-month
 F-22




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  48-month
      Year Ending December 31,2008

$
4,4072009


1,6412010


6492011


658$
7,355   6.
    Income
    Taxes    Year Ended December 31,2005


2006


2007Domestic

$
(17,505
)

$
(7,740
)

$
(5,114
)Foreign


79



210



(3,781
)$
(17,426
)

$
(7,530
)

$
(8,895
)  F-23




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
    Year Ended December 31,2005


2006


2007Current taxes:Federal

$



$



$
254State






118



60Foreign


15



77



220$
15


$
195


$
534     Year Ended December 31,2005


2006


2007Tax benefit at U.S. statutory rates

$
(5,925
)

$
(2,559
)

$
(3,024
)State benefit, net of federal tax effect


(583
)


(248
)


(109
)Alternative minimum taxes










254Foreign taxes










684Stock-based compensation






1,134



1,980Meals and entertainment


61



134



173Tax credits


(413
)


(533
)


(378
)Change in valuation allowance


6,875



2,267



954Provision for income taxes

$
15


$
195


$
534     December 31,2006


2007Deferred tax assets:Accruals and allowances

$
1,653


$
3,323Stock-based compensation


350



1,800Deferred revenues


810



677Tax credits


1,684



2,080Net operating losses


11,716



34,779Total deferred tax assets


16,213



42,659Valuation allowance


(14,753
)


(32,119
)Net deferred tax assets


1,460



10,540Deferred tax liabilities:Acquired intangible assets






(13,790
)Depreciation and amortization


(1,460
)


(234
)Deferred tax liabilities, net

$



$
(3,484
)  F-24




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
              7.
    Preferred
    Stock   F-25




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
    8.
    Convertible
    Preferred Stock and Stockholders (Deficit)
    Equity  Convertible
    Preferred Stock
    Series C-1
  Equity
    Incentive Plans
         F-26




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
        
    5% of the outstanding shares of the Companys common stock
    on the last day of the preceding year; and
    30,000,000 shares.      Employee
    Stock Purchase Plan
      
    1% of the outstanding shares of the Companys common stock
    on the first day of the year;
    12,000,000 shares; and
    such other amount as may be determined by the Companys
    Board of Directors or a committee thereof.  Stock
    Options
  Share-Based Payment
 F-27




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
        Year EndedDecember 31,2006

2007Expected volatility


62%-64%



43%-60%Expected term (in years)


5.8-7.0



4.0-6.1Risk-free interest rate


4.5%-5.1%



3.5%-4.9%Expected dividends






     Weighted-AverageNumber of Shares


Weighted-Average


RemainingSubject to


Exercise Price per


Contractual Term


Aggregate IntrinsicOutstanding Options


Share


(in Years)


Value(3)(In thousands)Outstanding at January 1, 2007


8,628,795


$
4.82Granted(1)


3,578,599



21.31Substituted in connection with the acquisition of Touch Clarity


746,234



0.79Exercised


(2,311,380
)


1.56Canceled


(511,445
)


16.48Outstanding at December 31, 2007


10,130,803



10.51



8.0


$
230,816Vested and expected to vest at December 31,
    2007(2)


6,207,397



13.90



8.9



120,341Exercisable at December 31, 2007


2,309,294



3.86



5.8



65,759     (1)
    
    Includes 50,000 shares subject to stock appreciation rights.(2)
    
    Includes only options granted on or after January 1, 2006,
    which are subject to the provisions of SFAS No. 123R.(3)
    
    The aggregate intrinsic value is calculated as the difference
    between the exercise price of the underlying stock option awards
    and the closing market price of the Companys common stock
    at December 31, 2007. F-28




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
     YearEnded December 31,2006


2007Weighted-average, grant-date fair value of stock options granted

$
6.51


$
12.08
(1)Weighted-average exercise price of stock options granted


10.09



17.77
(1)Aggregate intrinsic value of stock options exercised (in
    thousands)(2)


10,428



48,887Weighted-average, grant-date fair value of stock options
    forfeited(3)

$
5.49


$
11.57Number of stock options
    forfeited(3)


63,701



458,998     (1)
    
    Includes the stock options substituted in connection with the
    acquisition of Touch Clarity that had a weighted-average fair
    value of $12.02 and a weighted-average exercise price of $0.79.(2)
    
    The aggregate intrinsic value of stock options exercised is
    measured as the difference between the exercise price and the
    closing market price of the Companys common stock at the
    date of exercise.(3)
    
    Includes only stock options granted on or after January 1,
    2006, which are subject to the provisions of
    SFAS No. 123R.        Restricted
    Stock Units
    Weighted-AverageGrant-Date FairNumber of Shares


ValueUnvested restricted stock units at December 31, 2006





$
Granted


245,000



32.89Vested






Forfeited


20,000



28.41Unvested restricted stock units at December 31, 2007


225,000


$
33.29    F-29




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  Deferred
    Stock-based Compensation
        Year Ended December 31,2005


2006


2007Cost of subscription revenues

$
41


$
203


$
1,502Cost of professional services and other revenues


6



54



430Sales and marketing


156



993



4,982Research and development


243



563



2,615General and administrative


64



1,345



3,935$
510


$
3,158


$
13,464   Warrants
    Black-Scholes-Merton
  9.
    Commitments
    and Contingencies  Litigation
    Settlement
   F-30




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
        Leases
        December 31,


December 31,2006


2007Gross

$
293


$
925Less: accumulated amortization


(219
)


(389
)Net carrying amount

$
74


$
536     Capital


OperatingYear Ending December 31,

Leases


Leases2008

$
279


$
6,6272009


153



6,2852010


28



4,4412011






443Thereafter






Total minimum lease payments


460


$
17,796Less: imputed interest


(41
)Present value of minimum lease payments


419Less: current portion


(246
)Capital lease obligations, less current portion

$
173  F-31




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
        Indemnification
    Warranties
        Other
    Legal Matters
   F-32




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  10.
    Retirement
    Plan    11.
    Subsequent
    Events  Acquisition
    of Visual Sciences, Inc.
    Patent Cross-License
  Form S-8 Form S-8.
   F-33




---



##### Table of Contents



Omniture,
    Inc.
  Notes to
    Consolidated Financial
    Statements  (Continued)
  12.
    Quarterly
    Results of Operations (Unaudited)    Quarter EndedMar. 31,


June 30,


Sept. 30,


Dec. 31,


Mar. 31,


June 30,


Sept. 30,


Dec. 31,2006


2006


2006


2006


2007(1)


2007(1)


2007(1)


2007(1)(2)(In thousands, except per share data)Total revenues

$
16,436


$
18,824


$
21,028


$
23,461


$
29,153


$
33,479


$
37,382


$
43,113Gross profit


9,658



11,263



12,529



14,473



18,415



20,730



23,549



27,069Net loss


(3,406
)


(2,283
)


(1,273
)


(763
)


(2,446
)


(4,056
)


(1,100
)


(1,827
)Net loss per share, basic and diluted

$
(0.24
)

$
(0.16
)

$
(0.03
)

$
(0.02
)

$
(0.05
)

$
(0.08
)

$
(0.02
)

$
(0.03
)Weighted-average number of shares, basic and diluted


13,968



14,168



45,850
(4)


47,340



47,753



49,791



57,874
(3)


59,421     (1)
    
    The quarterly financial information for these periods includes
    the results of operations of Instadia and Touch Clarity from the
    date of each acquisition.(2)
    
    The quarterly financial information for this period includes the
    results of operations of Offermatica from the date of
    acquisition.(3)
    
    The weighted-average number of shares increased in the third
    quarter of 2007, primarily due to the Companys completion
    of the June 2007 Offering in which the Company sold and issued
    8,376,250 shares of its common stock at an issuance price
    of $18.15 per share.(4)
    
    The weighted-average number of shares increased in the third
    quarter of 2006, primarily due to the Companys IPO in July
    2006 in which the Company issued 10,305,000 shares of
    common stock. In addition, upon the initial closing of the IPO,
    all shares of convertible preferred stock outstanding
    automatically converted into 21,816,387 shares of common
    stock. F-34




---



##### Table of Contents



INDEX TO
    EXHIBITS
  Incorporated by ReferenceExhibit







Exhibit

Filing

Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Date

Herewith

Herewith2
.1

Share Purchase Agreement, by and among Registrant, the
    Shareholders of Touch Clarity Limited, Paul Phillips, Helen
    Protopapas and Tim Brown, as the Warrantors, and Alta Berkeley
    LLP and Yehoshua Ennis collectively as the Shareholder
    Representative, dated February 14, 2007

8-K

000-52076


2
.1

February 20, 20072
.2

Agreement and Plan of Reorganization by and among Registrant,
    San Francisco Acquisition Corp., Offermatica Corporation,
    Henry Baker, as the Stockholder Representative and U.S. Bank
    National Association, as Escrow Agent, dated September 7,
    2007

8-K

000-52076


2
.1

September 12, 20072
.3

Agreement and Plan of Reorganization by and among Registrant,
    Voyager Acquisition Corp and Visual Sciences, Inc., dated
    October 25, 2007

10-Q

000-52076


2
.3

November 9, 20072
.4

Agreement and Plan of Merger dated as of February 1, 2006
    by and among WebSideStory, Inc., VS Acquisition, LLC, Visual
    Sciences, LLC and Ned Scherer, as the Member Representative












X3
.1

Amended and Restated Certificate of Incorporation of Registrant
    currently in effect

10-Q

000-52076


3
.1

August 11, 20063
.2

Amended and Restated Bylaws of Registrant currently in effect

8-K

000-52076


3
.1

November 13, 20074
.1

Specimen Common Stock Certificate of Registrant

S-1

333-132987


4
.1

June 22, 20064
.2

Amended and Restated Registration Rights Agreement between
    Registrant and certain Holders of Registrants Common Stock
    Named therein, dated April 26, 2006

S-1

333-132987


4
.2

June 9, 20064
.3A

Silicon Valley Bank Second Amended and Restated Loan and
    Security Agreement, dated January 10, 2006

S-1

333-132987


4
.3

May 24, 20064
.3B

Silicon Valley Bank Second Amendment to Second Amended and
    Restated Loan and Security Agreement, dated May 14, 2007

10-Q

000-52076


10
.1

May 15, 20074
.3C

Silicon Valley Bank Third Amended and Restated Loan and Security
    Agreement, dated August 17, 2007

8-K

000-52076


10
.1

August 21, 20074
.4

Registration Rights Agreement by and among Registrant and
    certain Shareholders of Touch Clarity Ltd., dated
    February 14, 2007

8-K

000-52076


4
.1

February 20, 2007




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit

Filing

Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Date

Herewith

Herewith10
.1*

Form of Indemnification Agreement entered into by and between
    Registrant and its Directors and Officers

S-1

333-132987


10
.1

May 24, 200610
.2A*

1999 Equity Incentive Plan of Registrant, as amended

S-1

333-132987


10
.2A

April 4, 200610
.2B*

Forms of Stock Option Agreement under the 1999 Equity Incentive
    Plan

S-1

333-132987


10
.2B

April 4, 200610
.2C*

Form of Stock Option Agreement under the 1999 Equity Incentive
    Plan used for Named Executive Officers and Non-Employee Directors

S-1

333-132987


10
.2C

June 9, 200610
.3A*

2006 Equity Incentive Plan of Registrant

10-K

000-52076


10
.3A

March 23, 200710
.3B*

Forms of Stock Option Award Agreement used under the 2006 Equity
    Incentive Plan

10-K

000-52076


10
.3B

March 23, 200710
.3C*

Form of Stock Appreciation Right Agreement and related forms
    under the 2006 Equity Incentive Plan for Non-Employee Directors

10-Q

000-52076


10
.3

May 15, 200710
.3D*

Form of Restricted Stock Unit Award Agreement used under the
    2006 Equity Incentive Plan

10-Q

000-52076


10
.3D

November 9, 200710
.3E*

Form of Restricted Stock Unit Award Agreement 
    Non-U.S.
    Participants used under the 2006 Equity Incentive Plan












X10
.4A*

Employee Stock Purchase Plan of the Registrant

S-1

333-132987


10
.4A

April 4, 200610
.4B*

Form of Subscription Agreement under Employee Stock Purchase Plan

S-1

333-132987


10
.4B

April 4, 200610
.5

WebSideStory, Inc. Amended and Restated 2000 Equity Incentive
    Plan












X10
.6

WebSideStory, Inc. 2004 Equity Incentive Award Plan and Form of
    Option Grant Agreement












X10
.6A

Form of Restricted Stock Award Grant Notice and Restricted Stock
    Award Agreement under WebSideStory, Inc. 2004 Equity Incentive
    Award Plan












X10
.7

Avivo Corporation 1999 Equity Incentive Plan and Form of Option
    Grant Agreement












X10
.8

WebSideStory, Inc. 2006 Employment Commencement Equity Incentive
    Award Plan and Form of Option Grant Agreement












X10
.9A

2007 Equity Incentive Plan of Registrant

S-8

333-149022


99
.9

February 1, 200810
.9B

Form of Stock Option Award Agreement under 2007 Equity Incentive
    Plan of Registrant

S-8

333-149022


99
.10

February 1, 2008




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit

Filing

Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Date

Herewith

Herewith10
.9C

Form of Restricted Stock Unit Award Agreement under 2007 Equity
    Incentive Plan of Registrant

S-8

333-149022


99
.11

February 1, 200810
.10A

2008 Equity Incentive Plan of Registrant

S-8

333-149022


99
.12

February 1, 200810
.10B

Form of Stock Option Award Agreement under 2008 Equity Incentive
    Plan of Registrant

S-8

333-149022


99
.13

February 1, 200810
.10C

Form of Restricted Stock Unit Award Agreement under the 2008
    Equity Incentive Plan of Registrant

S-8

333-149022


99
.14

February 1, 200810
.11

The Touch Clarity Limited Enterprise Management Incentives Share
    Option Plan 2002

S-8

333-141352


99
.5

March 16, 200710
.12

Forms of Agreements under The Touch Clarity Limited Enterprise
    Management Incentives Share Option Plan 2002

S-8

333-141352


99
.6

March 16, 200710
.13

Touch Clarity Limited 2006 U.S. Stock Plan

S-8

333-141352


99
.7

March 16, 200710
.14

Form of Stock Option Agreement under Touch Clarity Limited 2006
    U.S. Stock Plan

S-8

333-141352


99
.8

March 16, 200710
.15*

Amended and Restated Employment Agreement between Registrant and
    Joshua G. James

S-1

333-132987


10
.5

June 22, 200610
.16*

Separation Agreement entered into between Registrant and
    John R. Pestana

10-Q

000-52076


10
.3

May 15, 200710
.17*

Offer Letter with Michael S. Herring, dated October 20, 2004

S-1

333-132987


10
.7

April 4, 200610
.18A

Basic Lease Information and Canyon Park Technology Center Office
    Building Lease Agreement between the Registrant and TCU
    Properties I, LLC

S-1

333-132987


10
.8A

April 4, 200610
.18B

First Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated May 6, 2004

S-1

333-132987


10
.8B

April 4, 200610
.18C

Second Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated
    December 8, 2004

S-1

333-132987


10
.8C

April 4, 200610
.18D

Third Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated April 30,
    2005

S-1

333-132987


10
.8D

April 4, 2006




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit

Filing

Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Date

Herewith

Herewith10
.18E

Fourth Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated May 31,
    2005

S-1

333-132987


10
.8D

April 4, 200610
.18F

Fifth Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU Properties I, LLC, dated
    January 25, 2006

S-1

333-132987


10
.8F

April 4, 200610
.18G

Sixth Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU-Canyon Park, LLC, successor in interest to
    TCU Properties I, LLC, dated January 11, 2008












X10
.18H

Seventh Amendment to Basic Lease Information and Canyon Park
    Technology Center Office Building Lease Agreement between
    Registrant and TCU-Canyon Park, LLC, successor in interest to
    TCU Properties I, LLC, dated January 11, 2008












X10
.19

Office Lease between Brannan Propco, LLC and Registrant, dated
    January 8, 2008












X10
.20**

Settlement and Patent License Agreement by and between
    NetRatings, Inc. and Registrant, dated
    February 28, 2006

S-1

333-132987


10
.9

April 4, 200610
.21

NetObjects, Inc. Warrant to Purchase Stock, dated March 26,
    2002

S-1

333-132987


10
.10

May 8, 200610
.22*

Change of Control Agreement between Registrant and Joshua G.
    James

S-1

333-132987


10
.12

June 22, 200610
.23*

Form of Change of Control Agreement entered into between
    Registrant and each of Brett M. Error and Christopher C.
    Harrington and John Mellor

S-1

333-132987


10
.14

June 22, 200610
.24*

Change of Control Agreement between Registrant and Michael S.
    Herring

S-1

333-132987


10
.15

June 22, 200610
.25

Master Finance Lease and Lease Covenant Agreement by and between
    the Registrant and Zions Credit Corporation, dated March 2,
    2007

8-K

000-52076


10
.1

March 7, 200710
.26**

Settlement and Patent Cross-License Agreement dated as of
    August 17, 2007 by and between Visual Sciences, Inc.
    (formerly known as WebSideStory, Inc.) and NetRatings, Inc.












X




---



##### Table of Contents



Incorporated by ReferenceExhibit







Exhibit

Filing

Filed

FurnishedNo.

Exhibit Description

Form

File No.

No.

Date

Herewith

Herewith10
.27**

Patent Cross-License Agreement dated December 12, 2003 by
    and between WebSideStory, Inc. and NetIQ Corporation












X10
.28A

Office Lease dated as of August 23, 1999 by and between
    WebSideStory, Inc. and LNR Seaview, Inc.












X10
.28B

First Amendment to Office Lease dated as of July 3, 2001 by
    and between WebSideStory, Inc. and LNR Seaview, Inc.












X10
.28C

Second Amendment to Office Lease dated as of December 7,
    2005 by and between WebSideStory, Inc. and Seaview PFG, LLC (as
    assignee of LNR Seaview, Inc.)












X10
.29A

Sublease dated as of July 3, 2001 by and between
    WebSideStory, Inc. and RF Magic, Inc.












X10
.29B

Amendment of Sublease dated as of September 10, 2003 by and
    between WebSideStory, Inc. and RF Magic, Inc.












X10
.29C

Second Amendment of Sublease dated as of June 14, 2006 by
    and between WebSide Story, Inc. and RF Magic, Inc.












X10
.29D

Third Amendment and Assignment of Sublease dated as of
    October 8, 2007 by and among Visual Sciences, Inc.,
    (formerly known as WebSideStory, Inc.), RF Magic, Inc. and
    Entropic Communications, Inc.












X21
.1

List of Subsidiaries of the Registrant












X23
.1

Consent of Ernst & Young LLP, Independent Registered
    Public Accounting Firm












X24
.1

Power of Attorney (set forth on the signature page to this
    Annual Report on
    Form 10-K)












X31
.1

Rule 13a-14(a)/15d-14(a)
    Certification of Chief Executive Officer












X31
.2

Rule 13a-14(a)/15d-14(a)
    Certification of Chief Financial Officer












X32
.1

Section 1350 Certifications of Chief Executive Officer and
    Chief Financial Officer
















X     *
    
    Indicates a management contract or compensatory plan, contract
    or arrangement in which any director or named executive officer
    of the Registrant participates.**
    
    The Securities and Exchange Commission has granted confidential
    treatment with respect to portions of this exhibit. A complete
    copy of this exhibit has been filed separately with the
    Commission.