Vocus Announces Results for Fourth Quarter 2013
Beltsville, MD (PRWEB) February 04, 2014 --
<div class="WordSection1">
Vocus, Inc.
(NASDAQ: VOCS), a leading marketing cloud provider, announced today
financial results for the fourth quarter and full year ended
December 31, 2013.</p>
<p>“I am very pleased with the results for the fourth quarter
as revenue, earnings and cash flow all significantly exceeded our
expectations,” said Rick Rudman, President and CEO of Vocus,
Inc. “The better than expected results reflect the
strength and stability of our PR product and our success selling a
comprehensive, digital marketing suite to mid-sized
organizations. We believe our strong quarterly results and
our efforts to move up-market create real momentum and pave the way
for success in 2014.”
</p>
<p><b>Financial Highlights</b></p>
<p><i>Income Statement – Fourth Quarter</i></p>
<ul>
<li>GAAP revenue for the fourth quarter of 2013 was $47.5 million,
a 1% increase over the comparable period in 2012.</li>
<li>GAAP loss from operations for the fourth quarter of 2013 was
$(3.8) million, compared to $(3.2) million for the comparable
period in 2012. </li>
<li>Non-GAAP income from operations for the fourth quarter of 2013
was $1.7 million, compared to $4.4 million for the comparable
period in 2012. </li>
<li>GAAP net loss for the fourth quarter of 2013 was $(3.9) million
or $(0.20) per diluted share, compared to $(3.7) million or $(0.19)
per diluted share for the comparable period in 2012.</li>
<li>Non-GAAP net income for the fourth quarter of 2013 was $1.6
million or $0.07 per diluted share, compared to $3.9 million or
$0.16 per diluted share for the comparable period in 2012.</li>
</ul>
<p><i>Income Statement – Full Year</i></p>
<ul>
<li>GAAP revenue for the full year 2013 was $186.9 million, a 9%
increase over the comparable period in 2012.</li>
<li>Non-GAAP revenue for the full year 2013 was $187.0 million, an
8% increase over the comparable period in 2012. Non-GAAP
revenue includes the revenue excluded from the GAAP results due to
purchase accounting adjustments, which reduced deferred revenue to
its fair value as of the date of acquisition. </li>
<li>GAAP loss from operations for the full year 2013 was $(20.3)
million, compared to $(21.9) million for the comparable period in
2012. </li>
<li>Non-GAAP income from operations for the full year 2013 was $7.3
million, compared to $12.1 million for the comparable period in
2012. </li>
<li>GAAP net loss for the full year 2013 was $(21.8) million or
$(1.09) per diluted share, compared to $(23.6) million or $(1.21)
per diluted share for the comparable period in 2012.</li>
<li>Non-GAAP net income for the full year 2013 was $5.8 million or
$0.24 per diluted share, compared to $10.4 million or $0.44 per
diluted share for the comparable period in 2012.</li>
</ul>
<p><i>Balance Sheet and Other Financial Information</i></p>
<ul>
<li>Total deferred revenue as of December 31, 2013 was $84.5
million compared to $79.3 million at December 31, 2012. </li>
<li>Cash flow from operations for the full year 2013 was $6.8
million, and free cash flow for the full year 2013 was $5.5
million. </li>
</ul>
<p><b>Recent Business Highlights</b></p>
<ul>
<li>Announced the discontinuance of our North Social platform, a
stand-alone product which provides Facebook applications for small
businesses. Facebook marketing features, such as landing and
campaign pages, are included in the latest release of the Vocus
Marketing Suite. </li>
<li>Announced the closure of our small business sales office in
Manila which is expected to be completed during the first quarter
of 2014.</li>
<li>Ended the quarter with 16,854 total active annual subscription
customers compared to 17,484 active annual customers as of
September 30, 2013 and 16,494 active annual subscription customers
as of December 31, 2012. Customer counts reflect the move up market
to sell higher value subscriptions to mid-sized organizations and
the churn associated with 1,486 customers (903 in the fourth
quarter of 2013) related to the discontinuance of the Small
Business Edition in the third quarter 2013. </li>
<li>Signed subscription agreements with new and existing customers
including Amica, Animal Behavior College, The Boppy Company,
Crimson Cup Coffee & Tea, Cybex International, Econolite,
Healthgrades, Herbalife, Marine Corps Association, Silverton Hotel
and Casino, SunGard, Thomson Reuters, University of Luxembourg and
Vinexpo.</li>
<li>Released the next generation of the Vocus Marketing Suite,
which includes new features such as SEO landing pages, campaigns,
social customer relationship management (CRM), and improved
tracking.</li>
<li>Launched a completely redesigned Public Relations Suite with
several new enhancements, including advanced media and outlet
filtering and the ability to edit scheduled distributions.</li>
<li>Announced the appointment of Steve Pogorzelski, a technology
and sales veteran formerly with ClickFuel and Monster to the
position of Chief Revenue Officer at Vocus. </li>
</ul>
<p><b>Guidance</b></p>
<p>Vocus is providing, for the first time, guidance for the first
quarter and full year 2014 based on information as of February 4,
2014:</p>
<ul>
<li>For the first quarter of 2014, revenue is expected to be in the
range of approximately $45.1 million to $45.5 million.
Non-GAAP EPS is expected to be in the range of $0.07 to $0.08
assuming an estimated non-GAAP weighted average 24.6 million
diluted shares outstanding and an estimated tax provision of
$500,000. The estimated non-GAAP weighted average diluted
shares outstanding assume 3.0 million common shares from the
conversion of the Series A redeemable convertible preferred stock.
Non-GAAP adjustments are expected to be $0.50 per share. GAAP
EPS is expected to be in the range of $(0.43) to $(0.42) assuming
an estimated weighted average 20.6 million basic and diluted shares
outstanding. Our first quarter 2014 guidance excludes
approximately $900,000 of expected revenue contribution and
$200,000 of expected operating losses related to the North Social
platform which was discontinued during the first quarter of
2014. Additionally, a non-GAAP adjustment related to the
closure of the small business sales office in Manila is expected to
be approximately $5.0 million or $0.20 per share.</li>
<li>For the full year of 2014, revenue is expected to be in the
range of $182.0 million to $183.0 million. Non-GAAP diluted
EPS is expected to be in the range of $0.31 to $0.34 assuming an
estimated non-GAAP weighted average 25.1 million diluted shares
outstanding and an estimated tax provision of $1.2 million.
The estimated non-GAAP weighted average diluted shares outstanding
assume 3.0 million common shares from the conversion of the Series
A redeemable convertible preferred stock. The non-GAAP
adjustments are expected to be $1.26 per share. GAAP EPS is
expected to be in the range of $(0.95) to $(0.92) assuming an
estimated weighted average 21.1 million basic and diluted shares
outstanding. Free cash flow is expected to range from $7.0
million to $8.0 million. Capital expenditures are expected to
be $7.0 million. Our full year 2014 guidance excludes
approximately $5.0 million of expected revenue contribution and
$1.0 million of expected operating losses related to the North
Social platform which was discontinued during the first quarter of
2014. Additionally, a non-GAAP adjustment related to the
closure of the small business sales office in Manila is expected to
be approximately $5.0 million or $0.20 per share.</li>
</ul>
<p>This release includes non-GAAP financial measures and
adjustments. For a description of these non-GAAP financial
measures and adjustments, please refer to section “Use of
Non-GAAP Financial Measures” and the accompanying tables
entitled “Reconciliation of Non-GAAP Measures” and
“Reconciliation of 2014 Guidance.”</p>
<p><b>Conference Call Information</b></p>
<p>Vocus will discuss the financial results and business highlights
of the fourth quarter and full year 2013 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 webcast of the conference call on the
Investor Relations section of the Company’s website at
http://investor.shareholder.com/vocs/events.cfm. 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 11, 2014 at 11:59 p.m. ET and can be
accessed by dialing (404) 537-3406 or (855) 859-2056 and entering
conference number 89155686.</p>
<p><b>About Vocus, Inc.</b></p>
<p>Vocus (NASDAQ: VOCS) provides leading cloud-based marketing and public relations software that enables companies to acquire
and retain customers. The company offers products and services to help clients attract and engage prospects, capture and keep
customers, and measure and improve marketing effectiveness. More than 16,000 annual subscription customers across a wide
variety of industries use Vocus software. The company is headquartered in Beltsville, MD with offices in North America, Europe and Asia.
For more information, visit http://www.vocus.com or call (800) 345-5572. </p>
<p><b>Forward-Looking Statement</b></p>
<p>This release contains “forward-looking” statements
that are made pursuant to the Safe Harbor provision of the Private
Securities Litigation Reform Act of 1995. These statements
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.</p>
<p>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, risks associated with acquisitions, including our ability
to successfully integrate acquired businesses, risks associated
with our foreign operations, 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.</p>
<table width="100%" border="0">
<tr>
<td align="left" valign="top" class="style79"><strong>Vocus, Inc. and Subsidiaries </strong></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="left" valign="top" class="style77"> </td>
<td align="left" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="left" valign="top" class="style79"><strong><span class="style79">Condensed Consolidated Balance Sheets</span></strong></td>
<td align="right" valign="top" class="style77"> </td>
<td colspan="2" align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td colspan="2" align="right" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="left" valign="top" class="style77">(dollars in thousands) </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" class="style77"><p align="center"><strong>December 31, 2012</strong></p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"><p align="center"><strong>December 31, 2013</strong></p></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left"><strong>Assets</strong></div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"><div align="center"><strong>(unaudited)</strong></div></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Current assets:</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Cash and cash equivalents</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">32,107</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">34,740</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Short-term investments</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">662</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">-</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Accounts receivable, net</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">29,841</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">28,862</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Deferred income taxes</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">1,478</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">271</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Prepaid expenses and other current assets</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">2,933</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">4,728</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Total current assets</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">67,021</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">68,601</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Long-term investments</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">1,322</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">-</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Property, equipment and software, net</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">20,068</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">20,134</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Intangible assets, net</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">26,751</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">14,805</td>
</tr>
<tr>
<td align="left" valign="top" class="style79">Goodwill</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">177,011</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">177,264</td>
</tr>
<tr>
<td align="left" valign="top" class="style79">Deferred income taxes</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">-</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">105</td>
</tr>
<tr>
<td align="left" valign="top" class="style79">Other assets</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">641</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">471</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Total assets</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">292,814</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">281,380</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left"></div></td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left"><strong>Liabilities, Series A redeemable convertible preferred stock and stockholders' equity</strong></div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Current liabilities: </div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Accounts payable and accrued expenses</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">21,701</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">15,799</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">
<p>Notes payable and capital lease obligations</p>
</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">854</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">137</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">
<p>Deferred revenue</p>
</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">77,098</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">81,675</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Total current liabilities</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">99,653</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">97,611</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Notes payable and capital lease obligations, net of current portion</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">751</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">1,218</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Other liabilities</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">6,786</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">6,371</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Deferred income taxes, net of current portion</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">5,120</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">4,546</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Deferred revenue, net of current portion</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">2,235</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">2,842</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Total liabilities</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">114,545</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">112,588</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Series A redeemable convertible preferred stock</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">77,490</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">77,490</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Stockholders' equity:</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">
<p>Common stock</p>
</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">219</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">219</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">
<p>Additional paid-in capital</p>
</div></td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style77">215,226</td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style77">227,699</td>
</tr>
<tr>
<td align="right" valign="top" class="style79"><p align="left" class="style79">Treasury stock</p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">(41,909)</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">(42,320)</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">
<p>Accumulated other comprehensive loss</p>
</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">(426)</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">(159)</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left" class="style82">
<p>Accumulated deficit</p>
</div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">(72,331)</td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">(94,137)</td>
</tr>
<tr>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr>
<td align="right" valign="top" class="style72"><div align="left" class="style79">Total stockholders' equity</div></td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style77">100,779 </td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style77">91,302</td>
</tr>
<tr>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="top" bordercolor="#FFFFFF" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr>
<td align="right" valign="top" class="style72"><div align="left" class="style79">Total liabilities, Series A redeemable convertible preferred stock and stockholders' equity</div></td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">292,814</td>
<td align="right" valign="top" class="style72"> </td>
<td align="right" valign="top" class="style77">$</td>
<td align="right" valign="top" class="style77">281,380</td>
</tr>
<tr>
<td align="right" valign="top" class="style72"></td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
</tr>
<tr>
<td align="right" valign="top" class="style72"></td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
</tr>
</table>
<table width="100%" border="0" cellpadding="1" cellspacing="1" bordercolor="#FFFFFF">
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style83"><div align="left"><strong>Vocus, Inc. and Subsidiaries</strong> </div></td>
<td colspan="4" align="right" scope="col"> </td>
<td colspan="4" align="right" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style83"><div align="left"><strong><span class="style79">Consolidated Statements of Operations </span></strong></div></td>
<td colspan="4" align="right" scope="col"> </td>
<td colspan="4" align="right" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style83"><div align="left" class="style79">(dollars in thousands, except per share data) </div></td>
<td colspan="4" align="right" scope="col"> </td>
<td colspan="4" align="right" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td class="style83" scope="col"> </td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td colspan="3" align="right" scope="col"><div align="center"><span class="style81">Three Months Ended
December 31, </span></div></td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td colspan="3" align="right" scope="col"><div align="center"><span class="style81">Year Ended December 31,</span></div></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td class="style83" scope="col"> </td>
<td align="right" scope="col"> </td>
<td colspan="3" align="right" scope="col"> </td>
<td align="right" scope="col"> </td>
<td colspan="3" align="right" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td class="style83" scope="col"> </td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td align="right" scope="col"><div align="center"><span class="style81">2012</span></div></td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td align="right" scope="col"><div align="center"><span class="style81">2013</span></div></td>
<td align="right" scope="col"> </td>
<td align="right" scope="col"><div align="center"><span class="style81">2012</span></div></td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td align="right" scope="col"><div align="center"><span class="style81">2013</span></div></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right"> </td>
<td align="right" valign="middle" class="style83"><hr size=1></td>
<td align="right" valign="middle" class="style83"> </td>
<td align="right" valign="middle" class="style83"><hr size=1></td>
<td align="right"> </td>
<td align="right" valign="middle" class="style83"><hr size=1></td>
<td align="right" valign="middle" class="style83"> </td>
<td align="right" valign="middle" class="style83"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><P align="center" class="style81"> </P></td>
<td align="right" scope="col"><div align="center" class="style81">(unaudited)</div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><div align="center" class="style81">(unaudited)</div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"><P align="center" class="style81"> </P></td>
<td align="right" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><div align="center"><span class="style81">(unaudited)</span></div></td>
</tr>
<tr>
<td height="17" valign="top" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83" scope="col"> </td>
</tr>
<tr>
<td align="right" valign="top" class="style83"><div align="left">Revenues</div></td>
<td align="right" class="style83">$</td>
<td align="right" class="style83" scope="col">47,114</td>
<td align="right" class="style83" scope="col">$</td>
<td align="right" class="style83" scope="col">47,452</td>
<td align="right" class="style83" scope="col">$</td>
<td align="right" class="style83" scope="col">170,804</td>
<td align="right" class="style83" scope="col">$</td>
<td align="right" class="style83" scope="col">186,931</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Cost of revenues</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">8,803</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">9,363</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">33,749</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">38,220</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Gross profit</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">38,311</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">38,089</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">137,055</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">148,711</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Operating expenses:</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Sales and marketing</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">27,405</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">28,187</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">97,873</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">109,768</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Research and development</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">3,033</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">2,500</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">13,272</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">10,649</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">General and administrative</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">9,089</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">9,361</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">40,651</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">40,753</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Amortization of intangible assets
</p></td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">2,021</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">1,879</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">7,157</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">7,841</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Total operating expenses</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">41,548</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">41,927</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">158,953</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">169,011</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Loss from operations</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(3,237)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(3,838)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(21,898)</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(20,300)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Other income (expense), net</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(38)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(29)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(266)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(301)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Loss before provision for income taxes</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(3,275)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(3,867)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(22,164)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(20,601)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Provision for income taxes</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">457</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">71</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">1,427</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">1,205</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net loss</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(3,732)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(3,938)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(23,591)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(21,806)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net loss per share:</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Basic and diluted </td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(0.19)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(0.20)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(1.21)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(1.09)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Weighted average shares outstanding used in computing per share amounts: </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Basic and diluted </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">19,600,644</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">20,185,672</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">19,437,076</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">20,058,231</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
</tr>
</table>
<table width="100%" border="0" cellpadding="1" cellspacing="1" bordercolor="#FFFFFF">
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style84"><div align="left"><strong>Vocus, Inc. and Subsidiaries </strong></div></td>
<td colspan="4" align="right" scope="col"> </td>
<td colspan="4" align="right" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style84"><div align="left"><strong><span class="style79">Condensed Consolidated Statements of Cash Flows </span></strong></div></td>
<td colspan="4" align="right" scope="col"> </td>
<td colspan="4" align="right" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style84"><div align="left" class="style79">(dollars in thousands) </div></td>
<td colspan="4" align="right" scope="col"> </td>
<td colspan="4" align="right" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td class="style84" scope="col"> </td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td colspan="3" align="right" scope="col"><div align="center"><span class="style81">Three Months Ended
December 31,</span></div></td>
<td align="right" scope="col"> </td>
<td colspan="3" align="right" scope="col"><div align="center"><span class="style81">Year Ended December 31, </span></div></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td class="style84" scope="col"> </td>
<td align="right" scope="col"> </td>
<td align="right" scope="col"><div align="center"><span class="style81">2012</span></div></td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td align="right" scope="col"><div align="center"><span class="style81">2013</span></div></td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td align="right" scope="col"><div align="center"><span class="style81">2012</span></div></td>
<td align="right" scope="col"><div align="center" class="style81"></div></td>
<td align="right" scope="col"><div align="center"><span class="style81">2013</span></div></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right"> </td>
<td align="right" valign="middle" class="style84"><hr size=1></td>
<td align="right" valign="middle" class="style84"> </td>
<td align="right" valign="middle" class="style84"><hr size=1></td>
<td align="right" valign="middle" class="style84"> </td>
<td align="right" valign="middle" class="style84"><hr size=1></td>
<td align="right" valign="middle" class="style84"> </td>
<td align="right" valign="middle" class="style84"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><P align="center" class="style81"> </P></td>
<td align="right" scope="col"><div align="center" class="style81">(unaudited)</div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><div align="center" class="style81">(unaudited)</div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"><P align="center" class="style81"> </P></td>
<td align="right" scope="col"><div align="center"></div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><div align="center"><span class="style81">(unaudited)</strong></span></div></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style79" scope="col">Cash flows from operating activities:</td>
<td width="3%" align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net loss</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(3,732)</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(3,938)</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(23,591)</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(21,806)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Adjustments to reconcile net loss to net cash provided by (used in) operating activities: </td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Depreciation and amortization </td>
<td width="3%" align="right" bgcolor="#FFFFFF"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">4,209</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">4,374</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">15,843</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">17,535</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Other non-cash charges, net</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">4,711</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">3,098</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">18,541</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">17,220</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Payments of contingent consideration for business acquisitions in excess of fair value on acquisition date</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,941)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">-</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(2,435)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(4,560)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><p>Changes in operating assets and liabilities </p></td>
<td width="3%" align="right" bgcolor="#FFFFFF"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">4,348</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">(4,174)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">10,467</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">(1,544)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net cash provided by (used in) operating activities </td>
<td width="3%" align="right" bgcolor="#FFFFFF"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">7,595</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">(640)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">18,825</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">6,845</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Cash flows from investing activities: </td>
<td width="3%" align="right" bgcolor="#FFFFFF"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Business acquisition, net of cash acquired</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">-</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">-</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(79,801)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">-</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><p>Net change in available-for-sale securities</p></td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">628</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">-</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">7,936</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">1,979</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Purchases of property, equipment and software, net</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,963)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(434)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(4,690)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(5,185)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><p>Software development costs </p></td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(162)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(264)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(360)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(742)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net cash used in investing activities </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,497)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(698)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(76,915)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(3,948)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Cash flows from financing activities:</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Purchases of common stock </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(28)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(19)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(3,086)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(477)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><p>Proceeds from exercises of stock options</p></td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">14</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">1</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">73</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">85</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><p>Payments of contingent consideration for business acquisitions </p></td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(2,059)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">-</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(5,171)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">-</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><p>Net proceeds from (payments on) notes payable and capital lease obligations </p></td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(36)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(36)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(204)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(250)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net cash used in financing activities </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(2,109)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(54)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(8,388)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(642)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Effect of exchange rate changes on cash and cash equivalents </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">148</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">200</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">301</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">378</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net increase (decrease) in cash and cash equivalents </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">4,137</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,192)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(66,177)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">2,633</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Cash and cash equivalents, beginning of period </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">27,970</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">35,932</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">98,284</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">32,107</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Cash and cash equivalents, end of period </td>
<td align="right" bgcolor="#FFFFFF" class="style84">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84">32,107</td>
<td align="right" bgcolor="#FFFFFF" class="style84">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84">34,740</td>
<td align="right" bgcolor="#FFFFFF" class="style84">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84">32,107</td>
<td align="right" bgcolor="#FFFFFF" class="style84">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84">34,740</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style84"><hr size=3 color="#000000"></td>
</tr>
</table>
<p><b>Use of Non-GAAP Financial Measures</b></p>
<p>Vocus provides non-GAAP measures for revenue, income from
operations, net income, diluted net income per share and free cash
flow as supplemental information. </p>
<p>We define non-GAAP revenue as GAAP revenue adjusted for the
impact of the fair value adjustment to deferred revenue related to
purchase accounting. Management believes the adjustment is
useful to investors as a more accurate measure of our ongoing
performance from the acquisitions.</p>
<p>We define non-GAAP income from operations as GAAP income from
operations including the impact of non-GAAP revenue and excluding
stock-based compensation, amortization of acquired intangible
assets, fair value adjustment to deferred revenue, fair value
adjustments to contingent consideration, acquisition-related
expenses and restructuring charges. </p>
<p>We define non-GAAP net income as GAAP net income including the
impact of non-GAAP revenue and excluding stock-based compensation,
amortization of acquired intangible assets, fair value adjustment
to deferred revenue, fair value adjustments to contingent
consideration including the effect of foreign currencies,
acquisition-related expenses and restructuring charges. </p>
<p>Stock-based compensation included in our GAAP financial results
relates to stock option and restricted stock awards.
Companies record stock-based compensation by applying varying
valuation methodologies and subjective assumptions to different
types of equity awards. Amortization of acquired intangible
assets included in our GAAP financial results consists of
amortization of trade names, purchased technology and customer
relationships that are not expected to be replaced when fully
amortized, as a depreciable tangible asset might.
Amortization expense can vary from period to period due to the
timing and size of our acquisitions. Adjustments to deferred
revenue reflect the reductions in the fair value of the acquired
company’s deferred revenue due to purchase accounting.
Our GAAP financial results include adjustments to the fair value of
contingent consideration for acquisition earn-outs as of each
reporting date from the fair value recorded on the acquisition
date. Acquisition-related expenses included in our GAAP
financial results consist of professional fees for legal,
accounting and other advisory services, integration related
professional services, severance costs and retention payments
incurred during the reporting period in connection with our
acquired businesses. Restructuring charges included in our
GAAP financial results consist primarily of adjustments related to
severance, lease termination costs and impairment of leasehold
improvements and other long-lived assets. Management believes
these non-GAAP measures allow management and investors to make
meaningful comparisons between our operating results and those of
the other companies, as well as provide a consistent comparison of
our relative historical financial performance. </p>
<p>We have not presented the tax impact of non-GAAP adjustments in
the calculation of non-GAAP net income as a result of the valuation
allowance in nearly all of our taxing jurisdictions. The tax
impact of the non-GAAP adjustments would have resulted in an annual
effective tax rate of 42.6% and 40.1% for the three months and
years ended December 31, 2012 and 2013, respectively, and non-GAAP
diluted net income per share of $0.10 and $0.04 for the three
months ended December 31, 2012 and 2013, respectively, and $0.29
and $0.17 for the years ended December 31, 2012 and 2013,
respectively.</p>
<p>We define free cash flow as cash flow from operations less net
capital expenditures and capitalized software development costs
plus the excess tax benefits from equity awards, payments of
contingent consideration for business acquisitions in excess of
fair value on acquisition date and restructuring charges.
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. Our definition of free
cash flow may be different from definitions used by other
companies.</p>
<p>Management uses non-GAAP revenue, non-GAAP income from
operations, non-GAAP net income and free cash flow to evaluate
operating performance, determine incentive compensation, prepare
operating budgets and determine the appropriate levels of capital
investments. However, management believes that the use of
non-GAAP measures is subject to material limitations since they may
not be indicative of ongoing operating results. Management
compensates for the limitations in the use of non-GAAP 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.</p>
<table width="100%" border="0" cellpadding="1" cellspacing="1" bordercolor="#FFFFFF">
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style85"><div align="left"><strong>Vocus, Inc. and Subsidiaries</strong> </div></td>
<td colspan="4" align="right" class="style85" scope="col"> </td>
<td colspan="4" align="right" class="style85" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style85"><div align="left"><strong>Reconciliation of Non-GAAP Measures </strong></div></td>
<td colspan="4" align="right" class="style85" scope="col"> </td>
<td colspan="4" align="right" class="style85" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style85"><div align="left" class="style79">(dollars in thousands, except per share data) </div></td>
<td colspan="4" align="right" class="style85" scope="col"> </td>
<td colspan="4" align="right" class="style85" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td class="style85" scope="col"> </td>
<td align="right" class="style85" scope="col"><div align="center" class="style81"></div></td>
<td colspan="3" align="right" class="style85" scope="col"><div align="center"><span class="style81">Three Months Ended
December 31, </span></div></td>
<td align="right" class="style85" scope="col"><div align="center" class="style81"></div></td>
<td colspan="3" align="right" class="style85" scope="col"><div align="center" class="style81">Year Ended December 31, </div></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td class="style85" scope="col"> </td>
<td align="right" class="style85" scope="col"><div align="center" class="style81"></div></td>
<td align="right" class="style85" scope="col"><div align="center"><span class="style81">2012</span></div></td>
<td align="right" class="style85" scope="col"><div align="center" class="style81"></div></td>
<td align="right" class="style85" scope="col"><div align="center"><span class="style81">2013</span></div></td>
<td align="right" class="style85" scope="col"><div align="center" class="style81"></div></td>
<td align="right" class="style85" scope="col"><div align="center"><span class="style81">2012</span></div></td>
<td align="right" class="style85" scope="col"><div align="center" class="style81"></div></td>
<td align="right" class="style85" scope="col"><div align="center"><span class="style81">2013</span></div></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right"> </td>
<td align="right" valign="middle" class="style85"><hr size=1></td>
<td align="right" valign="middle" class="style85"> </td>
<td align="right" valign="middle" class="style85"><hr size=1></td>
<td align="right" valign="middle" class="style85"> </td>
<td align="right" valign="middle" class="style85"><hr size=1></td>
<td align="right" valign="middle" class="style85"> </td>
<td align="right" valign="middle" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><P align="center" class="style81"> </P></td>
<td align="right" class="style85" scope="col"><div align="center"><span class="style81">(unaudited)</span></div></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><div align="center"><span class="style81">(unaudited)</span></div></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" class="style85" scope="col"><div align="center"><span class="style81">(unaudited)</span></div></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><div align="center"><span class="style81">(unaudited)</span></div></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style79" scope="col">Reconciliation of GAAP revenue to non-GAAP revenue:</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style79" scope="col">GAAP revenue</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">47,114</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">47,452</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">170,804</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">186,931</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style79" scope="col">Fair value adjustment to deferred revenue </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">272</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><span class="style84">-</span></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">2,185</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">44</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style79" scope="col">Non-GAAP revenue</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">47,386</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">47,452</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">172,989</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">186,975</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style79" scope="col">Reconciliation of GAAP loss from operations to non-GAAP income from operations: </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><p>Loss from operations </p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">(3,237)</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">(3,838)</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">(21,898)</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">(20,300)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Stock-based compensation </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,726</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,650</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">14,665</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">12,099</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style79" scope="row">Amortization of intangible assets</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><p>3,129</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><p>2,928</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">10,999</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">12,035</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style79" scope="row">Fair value adjustment to deferred revenue</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">272</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><span class="style84">-</span></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">2,185</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">44</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Fair value adjustments to contingent consideration </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">480</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"><span class="style84">-</span></td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,176</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,453</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Acquisition-related expenses</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">-</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">-</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">4,957</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"><span class="style84">-</span></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Non-GAAP income from operations</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">4,370</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">1,740</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">12,084</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">7,331</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Reconciliation of GAAP net loss to non-GAAP net income: </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net loss</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(3,732)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(3,938)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(23,591)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(21,806)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Stock-based compensation </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,726</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,650</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">14,665</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">12,099</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style79" scope="row">Amortization of intangible assets</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><p>3,129</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><p>2,928</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">10,999</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">12,035</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style79" scope="row">Fair value adjustment to deferred revenue</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">272</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><span class="style84">-</span></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">2,185</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">44</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Fair value adjustments to contingent consideration including effects of foreign currency </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">480</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"><span class="style84">-</span></td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,158</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,453</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Acquisition-related expenses</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">-</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">-</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,957</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"><span class="style84">-</span></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Non-GAAP net income</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,875</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,640</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">10,373</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">5,825</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Non-GAAP diluted net income per share </td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.16</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.07</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.44</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.24</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Non-GAAP diluted weighted average shares used in computing per share amounts </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,173,459</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,178,956</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">23,547,885</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,170,761</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Reconciliation of GAAP diluted weighted average shares outstanding to non-GAAP diluted weighted average shares outstanding: </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">GAAP diluted weighted average shares outstanding</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">19,600,644</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">20,185,672</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">19,437,076</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">20,058,231</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="38" bgcolor="#FFFFFF" class="style79" scope="row">Dilutive effect of outstanding equity securities</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,572,815</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,993,284</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,110,809</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,112,530</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Non-GAAP diluted weighted average shares outstanding </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,173,459</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,178,956</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">23,547,885</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,170,761</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Supplemental information of stock-based compensation included in: </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Cost of revenues </td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">346</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">270</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,514</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,356</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Sales and marketing </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,160</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">689</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,299</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,162</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Research and development </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">787</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">443</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,646</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,933</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">General and administrative </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,433</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,248</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">6,206</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">5,648</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Total stock-based compensation</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,726</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,650</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">14,665</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">12,099</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Reconciliation of cash flow from operations to free cash flow: </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Net cash provided by (used in) operating activities</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">7,595</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">(640)</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">18,825</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">6,845</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Purchases of property, equipment and software, net</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(1,963)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(434)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(4,690)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(5,185)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Software development costs</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(162)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(264)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(360)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(742)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Payments of contingent consideration for business acquisitions in excess of fair value on acquisition date</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,941</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"><span class="style84">-</span></td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,435</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,560</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Free cash flow</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">7,411</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">(1,338)</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">16,210</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">5,478</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
</table>
<p> </p>
<table width="100%" border="0" cellpadding="1" cellspacing="1" bordercolor="#FFFFFF">
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style77"><div align="left"><strong>Vocus, Inc. and Subsidiaries</strong></div></td>
<td colspan="4" align="right" class="style77" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style77"><div align="left"><strong>Reconciliation of 2014 Guidance</strong></div></td>
<td colspan="4" align="right" class="style77" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#FFFFFF">
<td align="right" class="style77"><div align="left"><strong>GAAP EPS to Non-GAAP Diluted EPS</strong></div></td>
<td colspan="4" align="right" class="style77" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td width="3%" align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style77" scope="col"><div align="center"><span class="style81">Q1 2014</span></div></td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style77" scope="col"><div align="center" class="style81"></div></td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style77" scope="col"><div align="center"><span class="style81">Full Year 2014</span></div></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"><div align="center"><span class="style81">(unaudited)</span></div></td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"><div align="center"><span class="style81">(unaudited)</span></div></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">GAAP EPS</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77" style="white-space:nowrap">(0.43) to (0.42)</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77" style="white-space:nowrap">(0.95) to (0.92)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Effect of non-GAAP adjustments</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">0.57</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">1.41</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row"><span class="style85">Dilutive effect of outstanding equity securities</span></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">(0.07)</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">(0.15)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style79" scope="row">Non-GAAP diluted EPS</td>
<td align="right" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" bgcolor="#FFFFFF" class="style77" style="white-space:nowrap">0.07 to 0.08</td>
<td align="right" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" bgcolor="#FFFFFF" class="style77" style="white-space:nowrap">0.31 to 0.34</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
</tr>
</table>
<p> </p>
</div>
Investor Relations, Vocus, http://www.vocus.com, +1 301-459-2590, [email protected]
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