Convio Posts Record Annual Revenue, Positive Cash Flow and Profitability

Austin, Texas (February 5, 2009) — Convio, Inc. – the leading provider of on-demand constituent relationship management software and services to nonprofit organizations – today announced record annual revenue of $57.0 million for the year ended December 31, 2008, representing a 32 percent increase over 2007. Generating $2.9 million in operating cash flow for the year, and $1.2 million for the fourth quarter, Convio has now produced positive cash flow from operations in five of the last six quarters. In addition, Convio achieved profitability on a non-GAAP basis for both the fourth quarter and for fiscal year 2008.

“Our client results show that nonprofits understand that they need to be agile, social and connected to mobilize and inspire people and to achieve their mission,"” said Gene Austin, chief executive officer of Convio. “Our focus and investment in client service, new products, open applications and innovation also ensures our clients have a platform that is optimized for the many ways constituents and nonprofits interact. The strong leadership from our management team and execution from our employees have created a strong company that the nonprofit sector can count on.”

Convio’s non-GAAP income from operations for fiscal year 2008 was $576,000. Non-GAAP income from operations excludes 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. Convio’s non-GAAP loss from operations was $5.4 million in fiscal 2007. The Company’s non-GAAP income from operations for the fourth quarter ended December 31, 2008 was $440,000. This compares with non-GAAP loss from operations of $1.1 million in the fourth quarter of 2007.

“Year-over-year performance improvements are testimony to the value proposition of our offering, a loyal client base, our ability to attract new clients and the leverage we have achieved from our 2007 acquisition of GetActive Software,” added Austin. “Our revenue growth and significant improvements in cash flow and income are outstanding given the difficult macro-economic situation.”

A reconciliation of GAAP to non-GAAP results has been provided in the summary financial statement tables included in this press release. An explanation of this measure is also included below under the heading “Non-GAAP Financial Measures.”

Client Results, Innovation, Openness and Service Leadership Drive 2008 Success

The combination of new clients, addition of significant new events and organic growth in the existing client base enabled Convio to process $777 million in online donations on behalf of clients during 2008 — a 72 percent increase over 2007. Convio clients sent more than 3.1 billion emails to constituents during that period with an industry leading deliverability rate in excess of 95 percent. Charities of all types used Convio to power more than 3,500 web domains as well as complete 44 million advocacy calls to action.

“The adoption of online fundraising, advocacy and marketing continues to be a growth engine for many nonprofit organizations,” said Austin “We are also seeing that beyond a communications channel the Internet is the most cost-effective and flexible way for nonprofits to use technology to manage their organization and turn ideas into actions that support their mission."

Joining the Convio client community during 2008 were many of the country’s leading charitable organizations and associations, including, The Zoological Society of San Diego, Wildlife Conservation Society, Operation Smile, Disabled American Veterans, Crohns & Colitis Foundation, National Law Enforcement Officers Memorial Fund, Volunteers of America, St. Joseph’s Indian School, Habitat for Humanity International and American Public Health Association. Several organizations expanded their relationship with Convio including Susan G. Komen for the Cure® and People for the Ethical Treatment of Animals (PETA).

The company’s next generation constituent database Common Ground™, with more than 470 seats licensed, has seen rapid adoption since it became generally available in late September of 2008. Common Ground is a new constituent management system for nonprofits which goes beyond the capabilities of traditional donor database systems. Common Ground is an open, Web-based constituent relationship management (CRM) system for tracking all constituent interactions across all channels, online and offline. Built on salesforce.com’s Force.com Platform, the product offers an on-demand solution that easily integrates with other open systems to provide powerful tools that help nonprofits focus on their mission, fundraising, advocacy and communications instead of managing and maintaining software and technology.

In 2008, Convio also introduced Convio Go!, an innovative new program designed to help resource-constrained nonprofits achieve online fundraising and outreach success, allowing staff to focus their efforts and expertise on programs and services.

The Convio Open Initiative continued to pick up steam in 2008. The initiative leverages open technology standards to integrate and connect technologies and applications to provide flexibility, improved integration and extended reach for today’s nonprofit organization. Organizations have used Convio APIs (applications programming interfaces) to link their technology to the world around them. In addition, extensions have allowed the sharing of data and other integration with Facebook, Flickr, Google Maps, YouTube®, Plaxo and others. These technology links extend and open nonprofits to today’s modern technology without the hassles and headaches of programming and development.

“Client success from our comprehensive suite of applications and the introduction of Common Ground, plus our focus on innovative, open technology helped drive our 2008 performance,” said Austin. “While we understand that 2009 brings a challenging economic environment, we enter 2009 in a very strong position with a comprehensive offering of software and services that are changing the way nonprofits build relationships and drive results.”

About Convio

Convio is the leading provider of on-demand constituent relationship management (CRM) software and services that give nonprofit organizations a better way to inspire and mobilize people to support their organization. The company’s online marketing suite offers integrated software for fundraising, advocacy, events, email marketing and web content management, and its CRM system, Convio Common Ground™, helps organizations efficiently track and manage all interactions with supporters. All Convio products are delivered through the Software-as-a-Service (SaaS) model and are backed by a portfolio of best-in-class consulting and support services and a network of partners who provide value-added services and applications focused on the unique needs of nonprofit organizations.

Convio clients include nonprofit organizations, Institutions of Higher Education, Associations and Faith-based organizations around the world such as American Red Cross, American Diabetes Association, American Society for the Prevention of Cruelty to Animals, Humane Society of the United States, Easter Seals, National Multiple Sclerosis Society, Susan G. Komen for the Cure®, Sierra Club, and National Public Radio. For more information, please visit www.convio.com

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.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Readers of this release are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure below.