Vocus Announces Results for Second Quarter 2013
Beltsville, MD (PRWEB) July 23, 2013 --
<div class="WordSection1">
Vocus, Inc. (NASDAQ:
VOCS), a leading marketing cloud provider, announced today
financial results for the second quarter ended June 30, 2013.</p>
<p>“Q2 was highlighted by a number of exciting results
including continued rapid bookings growth for the marketing suite
and better than expected earnings,” said Rick Rudman,
President and CEO of Vocus, Inc. “We are also excited
about our move up-market and the new pricing and packaging
introduced in Q2 which resulted in notably higher selling prices on
fewer net new subscription customers. This shift to larger
subscriptions will provide better unit economics and more
profitable growth for Vocus going forward.”
</p>
<p><b>Financial Highlights</b></p>
<ul>
<li>GAAP revenue for the second quarter of 2013 was $46.6 million,
a 7% increase over the comparable period in 2012.</li>
<li>GAAP loss from operations for the second quarter of 2013 was
$(5.4) million, compared to $(4.8) million for the comparable
period in 2012. </li>
<li>Non-GAAP income from operations for the second quarter of 2013
was $594,000, compared to $2.9 million for the comparable period in
2012. </li>
<li>GAAP net loss for the second quarter of 2013 was $(5.9) million
or $(0.29) per diluted share, compared to $(5.2) million or $(0.27)
per diluted share for the comparable period in 2012.</li>
<li>Non-GAAP net income for the second quarter of 2013 was $139,000
or $0.01 per diluted share, compared to $2.5 million or $0.11 per
diluted share for the comparable period in 2012.</li>
<li>Total deferred revenue as of June 30, 2013 was $78.5 million
compared to $68.1 million at June 30, 2012.</li>
</ul>
<p><b>Business Highlights</b></p>
<ul>
<li>Added 479 net new annual subscription customers during the
second quarter of 2013 compared to 1,013 net new annual
subscription customers added during the comparable period in 2012
and ended the quarter with 17,801 total active annual subscription
customers.</li>
<li>Signed subscription agreements with new and existing customers
including Ann Inc., Avaya, Centegra Health Systems, Comscore,
Datex, Cosmopolit Home, J. Reneé, Hyatt Regency Paris Etoile,
Lehigh University, Nexcom, Organic Valley, Resource One Credit
Union, Thompson Creek Windows and Troon Golf.</li>
<li>Introduced new email features to the Vocus Marketing Suite that
enhance the experience and functionality for our customers who wish
to do more sophisticated marketing.</li>
<li>Released major updates to PRWeb which focus on streamlining and
modernizing issuer identity and new, innovative independent social
authentication.</li>
<li>Held our Demand
Success 2013 Marketing Conference where over 700 attendees
gathered with thought leaders and industry experts to share digital
marketing best practices and network. </li>
</ul>
<p><b>Guidance</b></p>
<p>Vocus is providing, for the first time, guidance for the third
quarter and revising guidance for the full year 2013 based on
information as of July 23, 2013:</p>
<ul>
<li>For the third quarter of 2013, revenue is expected to be in the
range of approximately $46.5 million to $46.8 million.
Non-GAAP EPS is expected to be in the range of $0.03 to $0.04
assuming an estimated non-GAAP weighted average 24.4 million
diluted shares outstanding and an estimated tax provision of
$400,000. 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 $0.29 per share. GAAP
EPS is expected to be in the range of $(0.26) to $(0.25) assuming
an estimated weighted average 20.1 million basic and diluted shares
outstanding.</li>
<li>For the full year of 2013, revenue is expected to be in the
range of $188.0 million to $189.0 million. Non-GAAP diluted
EPS is expected to be in the range of $0.18 to $0.21 assuming an
estimated non-GAAP weighted average 24.4 million diluted shares
outstanding and an estimated tax provision of $1.7 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 $1.35 per share. GAAP EPS is
expected to be in the range of $(1.17) to $(1.14) assuming an
estimated weighted average 20.1 million basic and diluted shares
outstanding. Free cash flow is expected to range from $11.0
million to $12.0 million. Capital expenditures are expected
to be $6.5 million.</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 2013 Guidance.”</p>
<p><b>Disclosure Using Social Media Channels</b></p>
<p>Given Vocus’ role as a leading marketing cloud provider,
Vocus believes that in today’s evolving digital environment
those interested in our company look to various communication
channels for information about the company. Vocus announces
material information using its websites, filings with the US
Securities and Exchange Commission, press releases, public
conference calls and webcasts. Vocus also uses social media
and other internet sources to communicate with its customers and
the public about the company, its services and other issues.
Given the recent SEC guidance regarding the use of social media
channels to announce material information, Vocus is notifying
investors, the media, its customers and others interested in the
company that it may communicate material, non-public information
through social media or other internet sources or that information
that it posts on social media or other internet sources may be
deemed to be material, non-public information. Vocus
encourages investors, the media, its customers and others
interested in our company to review the information that we post on
the social media channels and internet sources listed below.
Any changes to the list of social media channels and internet
sources that Vocus may use to announce material, non-public
information will be posted in the Investor Relations section of its
website.</p>
<p>Vocus’ Facebook Page (https://www.facebook.com/vocus) </p>
<p>Vocus’ Twitter Feed (https://twitter.com/vocus) </p>
<p>Vocus’ LinkedIn Page (http://www.linkedin.com/company/vocus) </p>
<p>Vocus’ Google+ Page (https://plus.google.com/+vocus) </p>
<p>Vocus’ Blog (http://vocus.com/blog) </p>
<p>Our CEO, Rick Rudman’s Twitter Feed (https://twitter.com/vocuschairman) </p>
<p><b>Conference Call Information</b></p>
<p>Vocus will discuss the financial results and business highlights
of the second quarter of 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 July 30, 2013 at 11:59 p.m. ET and can be
accessed by dialing (404) 537-3406 or (855) 859-2056 and entering
conference number 73930336.</p>
<p><b>About Vocus, Inc.</b></p>
<p>Vocus, Inc. is a leading marketing cloud provider that helps
businesses reach and influence buyers across social networks,
online and through media. Vocus provides an integrated suite
that combines social marketing, search marketing, email marketing
and publicity into a comprehensive solution to help businesses
attract, engage and retain customers. Vocus software is used
by more than 120,000 organizations worldwide and is available in
seven languages. Vocus is based in Beltsville, MD with
offices in North America, Europe and Asia. For further
information, please 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="style77"><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="style77"><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>June 30, 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">36,283</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">21,987</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">1,098</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">3,056</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">62,424</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Long-term investments</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">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">21,562</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">20,582</td>
</tr>
<tr>
<td align="left" valign="top" class="style77">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">176,926</td>
</tr>
<tr>
<td align="left" valign="top" class="style77">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">653</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">$</td>
<td align="right" valign="top" class="style77">282,147</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left"></div></td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bordercolor="#FFFFFF" bgcolor="#FFFFFF" class="style77"><hr size=3 color="#000000"></td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left"><strong>Liabilities, Series A redeemable convertible preferred stock and stockholders' equity</strong></div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><div align="left">Current liabilities: </div></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77"> </td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left">Accounts payable and accrued expenses </p></td>
<td align="right" valign="top" class="style77"> </td>
<td align="right" valign="top" class="style77">$</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">20,540</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">163</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">76,333</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">97,036</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">763</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">6,559</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">5,134</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">2,181</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">111,673</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">221,968</td>
</tr>
<tr>
<td align="right" valign="top" class="style77"><p align="left" class="style77">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">(42,300)</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">(555)</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">(86,348)</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="style77">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">92,984</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="style77">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">282,147</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>
<p> </p>
<p> </p>
<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
June 30, </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">Six Months Ended June 30,</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"><div align="center"><span class="style81">(unaudited)</span></div></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">$
</p></td>
<td align="right" class="style83" scope="col">43,620</td>
<td align="right" class="style83" scope="col">$</td>
<td align="right" class="style83" scope="col">46,617</td>
<td align="right" class="style83" scope="col">$</td>
<td align="right" class="style83" scope="col">78,473</td>
<td align="right" class="style83" scope="col">$</td>
<td align="right" class="style83" scope="col">92,864</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Cost of revenues</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">8,700</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">9,804</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">16,014</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">19,556</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="style83" scope="row">Gross profit</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">34,920</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">36,813</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">62,459</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">73,308</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" 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="style83" scope="row">Sales and marketing</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">24,014</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">27,620</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">44,845</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">54,455</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Research and development</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">3,303</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">2,725</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">6,959</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">5,723</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">General and administrative</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">10,364</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">9,891</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">22,757</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">22,224</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Amortization of intangible assets
</p></td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">2,020</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">2,014</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">3,120</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">4,034</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="style83" scope="row">Total operating expenses</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">39,701</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">42,250</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">77,681</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">86,436</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Loss from operations</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(4,781)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(5,437)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(15,222)</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(13,128)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Other income (expense) </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(65)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(141)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(123)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(136)</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="style83" scope="row">Loss before provision for income taxes</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(4,846)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(5,578)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(15,345)</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">(13,264)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Provision for income taxes</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">343</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">314</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">669</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">753</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="style83" scope="row">Net loss</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(5,189)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(5,892)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(16,014)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(14,017)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style83"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Net loss per share:</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style83" scope="row">Basic and diluted </td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(0.27)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(0.29)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(0.83)</td>
<td align="right" bgcolor="#FFFFFF" class="style83">$</td>
<td align="right" bgcolor="#FFFFFF" class="style83">(0.70)</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="style83" 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="style83" scope="row">Basic and diluted </td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">19,540,700</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">20,099,700</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">19,291,730</td>
<td align="right" bgcolor="#FFFFFF" class="style83"> </td>
<td align="right" bgcolor="#FFFFFF" class="style83">19,946,050</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>
<p> </p>
<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
June 30,</span></div></td>
<td align="right" scope="col"> </td>
<td colspan="3" align="right" scope="col"><div align="center"><span class="style81">Six Months Ended June 30, </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="style84"> </P></td>
<td align="right" scope="col"><div align="center" class="style84"><strong>(unaudited)</strong></div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><div align="center" class="style84"><strong>(unaudited)</strong></div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"><P align="center" class="style84"> </P></td>
<td align="right" scope="col"><div align="center"><span class="style84"><strong>(unaudited)</strong></span></div></td>
<td align="right" bgcolor="#FFFFFF" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" scope="col"><div align="center"><span class="style84"><strong>(unaudited)</strong></span></div></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style84" 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="style84" scope="row">Net loss</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(5,189)</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(5,892)</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(16,014)</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84" scope="col">(14,017)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" 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="style84" scope="row">Depreciation and amortization </td>
<td width="3%" align="right" bgcolor="#FFFFFF"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">4,309</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">4,444</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">6,901</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">8,741</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row">Other non-cash charges, net</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">5,290</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">3,377</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">9,813</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">10,901</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row">Payments of contingent consideration for business acquisiton in excess of fair value on acquisition date</td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">-</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(4,560)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(494)</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="style84" 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">(922)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">(364)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">6,793</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">6,760</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="style84" scope="row"><p>Net cash provided by (used in) operating activities </p></td>
<td width="3%" align="right" bgcolor="#FFFFFF"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">3,488</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">(2,995)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">6,999</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">7,825</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" 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="style84" 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">(79,649)</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="style84" 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">(496)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">651</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style84">6,279</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="style84" 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">(1,206)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,780)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,433)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(3,991)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" scope="row"><p>Software development costs </p></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">(87)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(198)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(216)</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="style84" scope="row">Net cash used in investing activities </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,702)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,216)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(75,001)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(2,228)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" 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="style84" scope="row">Purchases of common stock </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(31)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(44)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(3,002)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(457)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" 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">1</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">15</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="style84" 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">-</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">(3,112)</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="style84" 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">(83)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">50</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(132)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(679)</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="style84" scope="row">Net cash provided by (used in) financing activities </td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(113)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">6</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(6,231)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(1,136)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" 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">(258)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">156</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(23)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(285)</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="style84" 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">1,415</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(4,049)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">(74,256)</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">4,176</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style84" 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">22,613</td>
<td align="right" bgcolor="#FFFFFF" class="style84"> </td>
<td align="right" bgcolor="#FFFFFF" class="style84">40,332</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="style84" 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">24,028</td>
<td align="right" bgcolor="#FFFFFF" class="style84">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84">36,283</td>
<td align="right" bgcolor="#FFFFFF" class="style84">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84">24,028</td>
<td align="right" bgcolor="#FFFFFF" class="style84">$</td>
<td align="right" bgcolor="#FFFFFF" class="style84">36,283</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 adjustments to contingent consideration and
acquisition-related expenses. </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 adjustments
to contingent consideration including the effect of foreign
currencies and acquisition-related expenses. </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 non-compete agreements, trade names, purchased
technology and customer relationships that are not expected to be
replaced when fully amortized, as a depreciable tangible asset
might. 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 operating expenses 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. 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 43% and 42% for the three and six months
ended June 30, 2012 and 2013, respectively, and non-GAAP diluted
net income per share of $0.07 and $0.01 for the three months ended
June 30, 2012 and 2013, respectively, and $0.09 and $0.07 for the
six months ended June 30, 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 and payments of
contingent consideration for business acquisitions in excess of
fair value on acquisition date. 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 and to
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
June 30, </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">Six Months Ended June 30, </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="style85"> </P></td>
<td align="right" class="style85" scope="col"><div align="center"><strong>(unaudited)</strong></div></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><div align="center"><strong>(unaudited)</strong></div></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" class="style85" scope="col"><div align="center"><strong>(unaudited)</strong></div></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><div align="center"><strong>(unaudited)</strong></div></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style85" 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="style85" scope="col">GAAP revenue</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">43,620</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">46,617</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">78,473</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">92,864</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style85" scope="col">Fair value adjustment to deferred revenue </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">729</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">-</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">1,400</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">44</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="17" valign="top" bgcolor="#FFFFFF" class="style85" scope="col">Non-GAAP revenue</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">44,349</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">46,617</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">79,873</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">92,908</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="style85" 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="style85" 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">(4,781)</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">(5,437)</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">(15,222)</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">(13,128)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Stock-based compensation </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,474</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,970</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">7,458</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">6,633</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style85" 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>3,133</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><p>3,061</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">4,741</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">6,131</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style85" 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">729</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">1,400</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="style85" scope="row">Fair value adjustments to contingent consideration </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">232</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">464</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="style85" 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">157</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">-</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="style85" 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">2,944</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">594</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">3,798</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">3,133</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="style85" 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="style85" scope="row">Net loss</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(5,189)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(5,892)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(16,014)</td>
<td width="3%" align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td width="10%" align="right" bgcolor="#FFFFFF" class="style85">(14,017)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Stock-based compensation </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,474</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,970</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">7,458</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">6,633</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style85" 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>3,133</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"><p>3,061</p></td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">4,741</td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85" scope="col">6,131</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="24" bgcolor="#FFFFFF" class="style85" 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">729</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">1,400</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="style85" 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">232</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">446</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="style85" scope="row">Acquisition-related expenses</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">157</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">-</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="style85" scope="row">Non-GAAP net income</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,536</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">139</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,988</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,244</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Non-GAAP diluted net income per share </td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.11</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.01</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.13</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">0.09</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="style85" 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">23,965,235</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,188,135</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">22,854,023</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,131,857</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="style85" 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="style85" scope="row">GAAP diluted weighted average shares outstanding</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">19,540,700</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">20,099,700</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">19,291,730</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">19,946,050</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td height="38" bgcolor="#FFFFFF" class="style85" scope="row">Dilutive effect of outstanding equity securities</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,424,535</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,088,435</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,562,293</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">4,185,807</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="style85" 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">23,965,235</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,188,135</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">22,854,023</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">24,131,857</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">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="style85" scope="row">Cost of revenues </td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">326</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">322</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">825</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">790</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Sales and marketing </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">973</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">801</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,145</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,735</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Research and development </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">643</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">458</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,147</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,081</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">General and administrative </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,532</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">1,389</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,341</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,027</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="style85" scope="row">Total stock-based compensation</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,474</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,970</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">7,458</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">6,633</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style85"><hr size=3 color="#000000"></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Reconciliation of cash flow from operations to free cash flow: </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Net cash provided by (used in) operating activities</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">3,488</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">(2,995)</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">6,999</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">7,825</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" 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">(1,206)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(1,780)</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">(3,991)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Software development costs</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">(87)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(198)</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">(216)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style85" scope="row">Payments of contingent consideration for business acquisiton in excess of fair value on acquisition date</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">4,560</td>
<td align="right" bgcolor="#FFFFFF" class="style85"> </td>
<td align="right" bgcolor="#FFFFFF" class="style85">494</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="style85" scope="row">Free cash flow</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">2,282</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">(302)</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">5,862</td>
<td align="right" bgcolor="#FFFFFF" class="style85">$</td>
<td align="right" bgcolor="#FFFFFF" class="style85">8,178</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>
<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 2013 Guidance</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 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">Q3 2013</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 2013</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"><strong>(unaudited)</strong></div></td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"> </td>
<td align="right" bgcolor="#FFFFFF" class="style77" scope="col"><div align="center"><strong>(unaudited)</strong></div></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"><strong>GAAP EPS to Non-GAAP Diluted EPS: </strong></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>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row">GAAP EPS</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">(0.26) to (0.25)</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">(1.17) to (1.14)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row">Effect of non-GAAP adjustments</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">0.34</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">1.56</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row">Dilutive effect of outstanding equity securities</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">(0.05)</td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style77">(0.21)</td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row"> </td>
<td align="right" bgcolor="#FFFFFF"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"> </td>
<td align="right" valign="middle" bgcolor="#FFFFFF" class="style72"><hr size=1></td>
</tr>
<tr valign="top" bgcolor="#f2f2f2">
<td bgcolor="#FFFFFF" class="style77" scope="row">Non-GAAP diluted EPS</td>
<td align="right" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" bgcolor="#FFFFFF" class="style77">0.03 to 0.04</td>
<td align="right" bgcolor="#FFFFFF" class="style77">$</td>
<td align="right" bgcolor="#FFFFFF" class="style77">0.18 to 0.21</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, 301-459-2590, [email protected]
Share this article