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All Press Releases for February 3, 2009

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Vocus Announces Record Results for Fourth Quarter and Full Year 2008

Company Achieves 33% Revenue Growth and 38% Free Cash Flow Growth for 2008

In addition to exceeding our financial objectives for 2008 we created a foundation for continued growth and success through the expansion of our direct sales organization and a greater commitment to delivering highly effective PR solutions to the small business market.

Lanham, MD (Vocus/PRWEB ) February 3, 2009 -- Vocus, Inc. (NASDAQ: VOCS), a leading provider of on-demand software for public relations management, announced today financial results for the fourth quarter and full year ended December 31, 2008.

Vocus logo

"I'm very pleased to report another successful quarter as we achieved record revenue and operating income for both the fourth quarter and full year 2008," said Rick Rudman, President and CEO of Vocus, Inc. "In addition to exceeding our financial objectives for 2008 we created a foundation for continued growth and success through the expansion of our direct sales organization and a greater commitment to delivering highly effective PR solutions to the small business market."

Financial Highlights

Fourth Quarter

Revenues were $20.62 million, a 26% increase over the same period last year and a 3% increase over the prior quarter. The fourth quarter of 2008 represents the 38th consecutive quarter of revenue growth for the Company;
GAAP income from operations was $663,000, compared to $34,000 for the same period last year. GAAP net income was $1.45 million, or $0.08 per diluted share, compared to $525,000, or $0.03 per diluted share, for the same period last year;
Non-GAAP income from operations was $3.98 million, compared to $2.27 million for the same period last year. Non-GAAP net income was $4.51 million, or $0.23 per diluted share, compared to $2.76 million, or $0.14 per diluted share, for the same period last year. See Other Supplemental Information for further discussion of non-GAAP measures.

Full Year 2008

Revenues were $77.52 million, a 33% increase over the prior year;
GAAP loss from operations was $300,000 compared to a loss of $821,000 for the same period last year. GAAP net income was $6.93 million, or $0.37 per diluted share, compared to $999,000, or $0.05 per diluted share, for the same period last year;
Non-GAAP income from operations was $13.51 million, compared to $7.70 million for the same period last year. Non-GAAP net income was $15.57 million, or $0.78 per diluted share, compared to $9.52 million, or $0.50 per diluted share, for the same period last year. See Other Supplemental Information for further discussion of non-GAAP measures.

Balance Sheet Information

Total deferred revenue as of December 31, 2008 was $42.85 million, compared to $34.96 million at December 31, 2007;
Cash flow from operations for the full year was $20.22 million, a 26% increase over the prior year;
Free cash flow for the full year was $20.36 million, a 38% increase over the prior year. See Other Supplemental Information for further discussion of non-GAAP measures;
404,960 shares of common stock were repurchased in the fourth quarter of 2008 under the stock repurchase program at an aggregate cost of $7.50 million.

Business Highlights

Added 235 net new subscription customers during the quarter compared to 213 net new subscription customers added during the same period last year and ended the fourth quarter of 2008 with 3,379 total active subscription customers;
Signed subscription agreements with new and existing customers including Bank of America, CB Richard Ellis, Cellular South, Equifax, Handwriting University, Ingersoll-Rand, Kohlberg, Kravis and Roberts, Major League Soccer, Muscular Dystrophy Association, Pet Sitters International, SanDisk, Volvo North America and Xerox Europe;
Announced a co-marketing initiative with Hewlett Packard to market PRWeb to the HP small and medium business communities;
Extended the distribution of the PRWeb platform to AOL Money & Finance;
Authorized a stock repurchase program under which up to $30 million of Vocus' common stock may be repurchased from time to time in the open market in block transactions or otherwise;
Earned several corporate awards and distinctions including recognition by Deloitte as one of North America's 500 fastest growing technology companies and inclusion in the Software 500, a ranking of the world's largest software companies.

Guidance

Vocus is providing, for the first time, guidance for the first quarter and full year 2009 based on information as of February 3, 2009:

For the first quarter of 2009, revenue is expected to be in the range of approximately $20.4 million to $20.6 million. Non-GAAP EPS is expected to be in the range of $0.13 to $0.14 assuming an estimated non-GAAP weighted average 19.8 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 24%. Amortization of intangible assets and stock-based compensation, reflecting SFAS No. 123R, is expected to be $0.18 per share. GAAP EPS is expected to be in the range of $(0.05) to $(0.04) assuming an estimated weighted average 18.1 million basic and diluted shares outstanding;
For the full year of 2009, revenue is expected to be in the range of $88.5 million to $89.5 million. Non-GAAP EPS is expected to be in the range of $0.61 to $0.63 assuming an estimated non-GAAP weighted average 20.2 million diluted shares outstanding and an estimated non-GAAP effective tax rate of 24%. Amortization of intangible assets and stock-based compensation, reflecting SFAS No. 123R, is expected to be $0.76 per share. GAAP EPS is expected to be in the range of $(0.15) to $(0.13) assuming an estimated weighted average 18.2 million basic and diluted shares outstanding. Free cash flow is expected to range from $19.5 million to $20.5 million. Our non-GAAP cash tax rate for 2009 is expected to be at 12%;
The guidance reflects the strengthening of the U.S. dollar which unfavorably impacts expected revenues by approximately $1.6 million for the full year 2009 assuming 2008 average foreign exchange rates. In addition, the guidance does not reflect the future impact, if any, of the stock repurchase program.

Conference Call Information
Vocus will discuss the financial results and business highlights of the fourth quarter and full year 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 February 10, 2009 at 11:59 p.m. ET and can be accessed by dialing (888) 203-1112 or (719) 457-0820 and entering conference number 4507202.

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 3,300 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 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.

Vocus Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in thousands)
		December 31,			December 31,
	2007			2008
					(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	56,541		$	65,429
Short-term investments			10,939			21,758
Accounts receivable, net			14,354			14,739
Current portion of deferred income taxes			--			394
Other current assets			1,957			3,340
Total current assets			83,791			105,660
Property, equipment and software, net			4,236			4,615
Intangible assets, net			8,628			5,906
Goodwill			17,090			17,090
Deferred income taxes, net of current portion			--			6,097
Other assets			498			611
Total assets		$	114,243		$	139,979
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses		$	7,212		$	5,273
Current portion of notes payable and capital lease obligations			233			185
Current portion of deferred revenue			34,333			41,775
Total current liabilities			41,778			47,233
Notes payable and capital lease obligations, net of current portion			102			188
Deferred income taxes			639			--
Other liabilities			89			71
Deferred revenue, net of current portion			631			1,079
Total liabilities			43,239			48,571
Commitments and contingencies
Stockholders' equity:
Common stock			186			194
Additional paid-in capital			109,553			129,897
Treasury stock			(3,283)			(10,783)
Accumulated other comprehensive income (loss)			(60)			564
Accumulated deficit			(35,392)			(28,464)
Total stockholders' equity			71,004			91,408
Total liabilities and stockholders' equity		$	114,243		$	139,979

Vocus, Inc. and Subsidiaries
Consolidated Statements of Operations
(dollars in thousands, except per share data)
	Three Months Ended				Year Ended
	December 31,				December 31,
	2007		2008			2007		2008
	(unaudited)		(unaudited)					(unaudited)
Revenues	$	16,327	$	20,615	$	58,076	$	77,520
Cost of revenues, including amortization of intangible assets of $30 for the three months ended December 31, 2007 and $120 and $71 for the year ended December 31, 2007 and 2008, respectively		2,937		3,915		10,922		14,675
Gross profit		13,390		16,700		47,154		62,845
Operating expenses:
Sales and marketing		7,574		9,644		26,548		35,140
Research and development		1,052		1,119		3,822		4,998
General and administrative		4,025		4,721		14,743		20,356
Amortization of intangible assets		705		553		2,862		2,651
Total operating expenses		13,356		16,037		47,975		63,145
Income (loss) from operations		34		663		(821)		(300)
Other income (expense):
Interest and other income		768		524		2,541		2,136
Interest expense		(7)		(6)		(47)		(27)
Income before provision (benefit) for income taxes		795		1,181		1,673		1,809
Provision (benefit) for income taxes		270		(268)		674		(5,119)
Net income	$	525	$	1,449	$	999	$	6,928

Net income per share:
Basic	$	0.03	$	0.08	$	0.06	$	0.38
Diluted	$	0.03	$	0.08	$	0.05	$	0.37

Weighted average shares outstanding used in computing per share amounts:
Basic		17,625,002		18,239,463		17,147,889		17,997,123
Diluted		19,184,725		18,523,210		18,267,020		18,958,500

Vocus, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
	Three Months Ended					Year Ended
	December 31,				December 31,
	2007		2008		2007		2008
	(unaudited)		(unaudited)				(unaudited)
Cash flows from operating activities:
Net income	$	525	$	1,449	$	999	$	6,928
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,115		1,017		4,462		4,543
Other non-cash charges, net		1,933		828		6,106		4,332
Changes in operating assets and liabilities		2,745		(306)		4,465		4,421
Net cash provided by operating activities		6,318		2,988		16,032		20,224
Cash flows from investing activities:
Net change in short-term investments		(4,411)		1,391		(7,569)		(10,771)
Purchases of property and equipment, net		(380)		(64)		(1,012)		(1,742)
Software development costs		--		(51)		(322)		(74)
Net cash provided by (used in) investing activities		(4,791)		1,276		(8,903)		(12,587)
Cash flows from financing activities:
Proceeds from public offering, net of costs		--		--		21,657		--
Purchases of common stock		--		(7,500)		--		(7,500)
Proceeds from exercise of stock options		393		180		1,598		7,226
Tax benefit from exercise of stock options		78		1,951		78		1,951
Payments on notes payable and capital lease obligations		(89)		(42)		(427)		(360)
Net cash provided by (used in) financing activities		382		(5,411)		22,906		1,317
Effect of exchange rate changes on cash and cash equivalents		(2)		(45)		--		(66)
Net increase (decrease) in cash and cash equivalents		1,907		(1,192)		30,035		8,888
Cash and cash equivalents, beginning of period		54,634		66,621		26,506		56,541
Cash and cash equivalents, end of period	$	56,541	$	65,429	$	56,541	$	65,429

Other Supplemental Information

We define non-GAAP income from operations as income from operations excluding amortization of acquired intangible assets and stock-based compensation. We define non-GAAP net income as net income excluding amortization of acquired intangible assets, stock-based compensation and the income tax benefit related to the reversal of a portion of the valuation allowance against deferred tax assets. Amortization of intangible assets recorded in connection with our acquisitions consist of non-compete agreements, trade names, purchased technology and customer relationships that are not expected to be replaced when fully amortized, as a depreciable tangible asset might. Companies record stock-based compensation under SFAS No. 123R by applying varying valuation methodologies and subjective assumptions to different types of equity awards. The income tax benefit related to the reversal of a portion of the valuation allowance is a non-cash benefit that we do not consider part of our ordinary results of operations. Management uses non-GAAP income from operations and non-GAAP net income to evaluate operating performance, to determine incentive compensation and to prepare operating budgets and determine the appropriate levels of capital investments. Management believes the exclusion of amortization of acquired intangible assets, stock-based compensation under SFAS No. 123R and the income tax benefit related to the reversal of a portion of the valuation allowance allows management and investors to make meaningful comparisons between our operating results and those of other companies, as well as providing a consistent comparison of our relative historical financial performance. However, management believes that non-GAAP income from operations and non-GAAP net income are subject to material limitations since they may not be indicative of ongoing operating results.

We define free cash flow as cash flow from operations less net capital expenditures and capitalized software development costs plus tax benefits from stock-based compensation. Management considers free cash flow to be a liquidity measure which provides useful information to management and investors regarding our ability to generate cash from operations that is available for acquisitions and other investments. Management also uses free cash flow as a measure to evaluate performance and determine incentive compensation. Our definition of free cash flow may be different from definitions used by other companies.

Management compensates for the limitations in the use of non-GAAP financial measures by also utilizing GAAP financial measures and by providing investors with a detailed reconciliation between our GAAP and non-GAAP financial results. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in our SEC filings.

Vocus, Inc. and Subsidiaries
Reconciliation of Non-GAAP Measures
(dollars in thousands, except per share data)
	Three Months Ended				Year Ended
	December 31,				December 31,
	2007		2008		2007		2008
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Reconciliation of GAAP income (loss) from operations to non-GAAP income from operations:
Income (loss) from operations	$	34	$	663	$	(821)	$	(300)
Amortization of intangible assets (including $30 in cost of revenues for the three months ended December 31, 2007 and $120 and $71 for the year ended December 31, 2007 and 2008, respectively)		735		553		2,982		2,722
Stock-based compensation		1,501		2,759		5,542		11,088
Non-GAAP income from operations	$	2,270	$	3,975	$	7,703	$	13,510

Reconciliation of GAAP net income to non-GAAP net income:
Net income	$	525	$	1,449	$	999	$	6,928
Amortization of intangible assets (including $30 in cost of revenues for the three months ended December 31, 2007 and $120 and $71 for the year ended December 31, 2007 and 2008, respectively)		735		553		2,982		2,722
Stock-based compensation		1,501		2,759		5,542		11,088
Effect of reversal of valuation allowance		--		(247)		--		(5,171)
Non-GAAP net income	$	2,761	$	4,514	$	9,523	$	15,567

Non-GAAP net income per share:
Non-GAAP diluted	$	0.14	$	0.23	$	0.50	$	0.78

Weighted average shares outstanding used in computing per share amounts:
Non-GAAP diluted		19,698,084		19,652,427		18,968,370		19,935,666

Reconciliation of GAAP diluted weighted average shares outstanding to non-GAAP diluted weighted average shares outstanding:
Diluted weighted average shares outstanding		19,184,725		18,523,210		18,267,020		18,958,500
Treasury stock effect on outstanding equity securities of SFAS No. 123R		513,359		1,129,217		701,350		977,166
Non-GAAP diluted weighted average shares outstanding		19,698,084		19,652,427		18,968,370		19,935,666

Supplemental information of stock-based compensation included in:
Cost of revenues	$	139	$	376	$	581	$	1,262
Sales and marketing		367		1,018		1,498		3,212
Research and development		150		230		548		769
General and administrative		845		1,135		2,915		5,845
Total stock-based compensation	$	1,501	$	2,759	$	5,542	$	11,088

Reconciliation of cash flow from operations to free cash flow:
Net cash provided by operating activities	$	6,318	$	2,988	$	16,032	$	20,224
Purchases of property and equipment, net		(380)		(64)		(1,012)		(1,742)
Software development costs		--		(51)		(322)		(74)
Tax benefit from exercise of stock options		78		1,951		78		1,951
Free cash flow	$	6,016	$	4,824	$	14,776	$	20,359

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Other Releases by this Member

Agway Selects Vocus as Public Relations Management Software Vendor 2009-09-09
Vocus Renews Partnership Agreement with CIPR 2009-08-20
PRSA and Vocus Present PR Webinar: Does Traditional Media Still Matter? 2009-08-11
Vocus Announces Schedule of Upcoming Financial Conferences 2009-07-27
Vocus Virtual Social Media Conference: "How to Effectively Leverage Social Media" 2009-07-21

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CONTACT INFORMATION


Robin Lane
Vocus, Inc.
301-683-6022
Email us Here

ATTACHED FILES

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