Convio Posts Record Annual Revenue, Positive Cash Flow and Profitability

Non-GAAP Financial Measures

Convio has provided in this release financial information that has not been prepared in accordance with generally accepted accounting principles (“GAAP”). This information includes non-GAAP income from operations. Convio uses this non-GAAP financial measure internally in analyzing its financial results and believes it is useful to readers of this release, as a supplement to GAAP measures, in evaluating Convio’s ongoing operational performance. Convio believes that the use of this non-GAAP financial measure provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in Convio’s industry, many of which present similar non-GAAP financial measures. As noted, the non-GAAP financial results discussed above exclude stock-based compensation expense, the write off of deferred stock offering costs and costs associated with amortization of intangibles arising from the acquisition of GetActive Software, Inc.