Lanham, MD (PRWEB) October 28, 2008
Vocus, Inc. (NASDAQ: VOCS), a leading provider of on-demand software for public relations management, announced today financial results for the third quarter ended September 30, 2008.
“I’m very pleased to report another successful quarter with strong growth across our key financial metrics including revenue, profit and cash flow,” said Rick Rudman, President and CEO of Vocus, Inc. “Our continued success speaks to the strength of our value proposition for organizations of all sizes and our ability to scale our business model.”
Revenues for the quarter were $ 19.95 million, a 32% increase over the same period last year and a 5% increase over the prior quarter. The third quarter of 2008 represents the 37th consecutive quarter of revenue growth for the Company;
GAAP loss from operations was $ (220,000) for the third quarter of 2008, compared to income from operations of $ 221,000 for the same period last year. GAAP net income was $ 218,000, or $ 0.01 per diluted share, for the third quarter of 2008 compared to $ 475,000, or $ 0.03 per diluted share, for the same period last year;
Non-GAAP income from operations for the third quarter of 2008 was $ 3.69 million compared to $ 2.43 million for the same period last year. Non-GAAP net income for the third quarter of 2008 was $ 4.13 million, or $ 0.20 per diluted share, compared to $ 2.68 million, or $ 0.14 per diluted share, for the same period last year. See Other Supplemental Information for further discussion of non-GAAP measures;
Total deferred revenue as of September 30, 2008 was $ 37.88 million, compared to $ 29.33 million at September 30, 2007;
Cash flow from operations for the third quarter of 2008 was $ 4.86 million, a 52% increase over the same period last year;
Free cash flow for the third quarter of 2008 was $ 4.63 million, a 49% increase over the same period last year. See Other Supplemental Information for further discussion of non-GAAP measures.
Added 233 net new subscription customers during the quarter compared to 210 net new subscription customers added during the same period last year and ended the third quarter of 2008 with 3,144 total active subscription customers;
Signed subscription agreements with new and existing customers including Bill and Melinda Gates Foundation, CIGNA, Eli Lilly, European Society of Cardiology, HometownQuotes.com, National Semiconductor, Safeway, Sutter Home Winery, SAP Singapore, Yankee Magazine, University of Calgary, U.S. Foodservice and Viking River Cruises;
Launched a new media database in the United Kingdom featuring close to 50,000 journalists and media outlets;
Named one of Maryland’s 50 fastest growing technology companies by Deloitte for 12th consecutive year.
Vocus is providing, for the first time, guidance for the fourth quarter and updating guidance for the full year 2008 based on information as of October 28, 2008:
For the fourth quarter of 2008, revenue is expected to be in the range of approximately $ 20.5 million to $ 20.7 million. Non-GAAP EPS is expected to be in the range of $ 0.20 to $ 0.21 assuming an estimated non-GAAP weighted average 20.3 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 2%. Amortization of intangible assets and stock-based compensation, reflecting SFAS No. 123R, is expected to be $ 0.17 per share. GAAP EPS is expected to be in the range of $ 0.03 to $ 0.04 assuming an estimated weighted average 19.5 million diluted shares outstanding;
For the full year of 2008, revenue is expected to be in the range of $ 77.4 million to $ 77.6 million. Non-GAAP EPS is expected to be in the range of $ 0.75 to $ 0.76 assuming an estimated non-GAAP weighted average 20.1 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 1%. Amortization of intangible assets and stock-based compensation, reflecting SFAS No. 123R, is expected to be $ 0.69 per share. The revised non-GAAP EPS guidance for the full year of 2008 also excludes $ 0.26 of tax benefit that was recognized in the second quarter of 2008 related to the reversal of a portion of the valuation allowance against deferred tax assets. GAAP EPS is expected to be in the range of $ 0.32 to $ 0.33 assuming an estimated weighted average 19.1 million diluted shares outstanding. Free cash flow is expected to range from $ 19.7 million to $ 20.7 million. Our non-GAAP cash tax rate for 2008 is expected to remain unchanged at 5%.
Conference Call Information
Vocus will discuss the financial results and business highlights of the third quarter 2008 in a conference call at 4:30 p.m. ET, or 1:30 p.m. PT, today. Investors are invited to listen to a live audio web cast of the conference call through the Investor Relations section of the Company’s website at http://onlinepressroom.net/vocus/ir/webcast/. A replay of the webcast will be available approximately one hour after the conclusion of the call and will remain available for 30 calendar days following the conference call. An audio replay of the conference call will also be available approximately two hours after the conclusion of the call. The audio replay will be available until November 4, 2008 at 11:59 p.m. ET and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and entering conference number 31344758.
About Vocus, Inc.
Vocus, Inc. (NASDAQ: VOCS) is a leading provider of on-demand software for public relations management. Our web-based software suite helps organizations of all sizes to fundamentally change the way they communicate with both the media and the public, optimizing their public relations and increasing their ability to measure its impact. Our on-demand software addresses the critical functions of public relations including media relations, news distribution and news monitoring. We deliver our solutions over the Internet using a secure, scalable application and system architecture, which allows our customers to eliminate expensive up-front hardware and software costs and to quickly deploy and adopt our on-demand software. Vocus is used by over 3,100 organizations worldwide and is available in five languages. Vocus is based in Lanham, MD with offices in North America, Europe and Asia. For more information, please visit http://www.vocus.com or call (800) 345-5572.
This release contains “forward-looking” statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These are statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “expects,” “projects,” “anticipates,” “estimates,” “believes,” “intends,” “plans,” “should,” “seeks,” and similar expressions. This press release contains forward-looking statements relating to, among other things, Vocus’ expectations and assumptions concerning future financial performance. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in Vocus’ filings with the Securities and Exchange Commission.
The risks and uncertainties referred to above include, but are not limited to, risks associated with possible fluctuations in our operating results and rate of growth, our history of operating losses, interruptions or delays in our service or our Web hosting, our business model, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, successful customer deployment and utilization of our services, fluctuations in the number of shares outstanding, foreign currency exchange rates and interest rates.