Vocus Inc. (VOCS) filed Quarterly Report for the period ended 2009-09-30.
Vocus Inc. is a leading provider of on-demand software for public relations management. The Companies web-based software suite helps organizations of all sizes to fundamentally change the way they communicate with both the media and the public optimizing their public relations and increasing their ability to measure its impact. There on-demand software addresses the critical functions of public relations including media relations news distribution and news monitoring. The Company deliver there solutions over the Internet using a secure scalable application and system architecture which allows our customers to eliminate expensive up-front hardware and software costs and to quickly deploy and adopt our on-demand software. Vocus Inc. has a market cap of $353.4 million; its shares were traded at around $18.31 with a P/E ratio of 152.6 and P/S ratio of 4.6.
Highlight of Business Operations:
Revenues. Revenues for the three months ended September 30, 2009 were $21.0 million, an increase of $1.0 million, or 5%, over revenues of $20.0 million for the comparable period in 2008. The increase in revenues was primarily due to the increase in the number of total active subscription customers to 4,001 as of September 30, 2009 from 3,144 as of September 30, 2008. The increase in active subscription customers was the result of additional sales personnel focused on acquiring new customers and renewing existing customers. Revenue growth from the increase in active subscription customers was $593,000. Revenue growth from transaction revenue was $504,000. Total deferred revenue as of September 30, 2009 was $39.6 million, representing an increase of $1.7 million, or 4%, over total deferred revenue of $37.9 million as of September 30, 2008.
Revenues. Revenues for the nine months ended September 30, 2009 were $62.5 million, an increase of $5.6 million, or 10%, over revenues of $56.9 million for the comparable period in 2008. The increase in revenues was primarily due to the increase in the number of total active subscription customers to 4,001 as of September 30, 2009 from 3,144 as of September 30, 2008. The increase in active subscription customers was the result of additional sales personnel focused on acquiring new customers and renewing existing customers. Revenue growth from the increase in active subscription customers was $4.0 million. Revenue growth from transaction revenue was $1.6 million. Total deferred revenue as of September 30, 2009 was $39.6 million, representing an increase of $1.7 million, or 4%, over total deferred revenue of $37.9 million as of September 30, 2008.
Cost of Revenues. Cost of revenues for the nine months ended September 30, 2009 was $11.6 million, an increase of $855,000, or 8%, over cost of revenues of $10.8 million for the comparable period in 2008. The increase in cost of revenues was primarily due to an increase of $428,000 in employee-related costs, $255,000 in stock-based compensation and $201,000 in third-party license and royalty fees, offset by a decrease of $167,000 in incentive compensation reflecting our relative performance against established incentive targets. We had 143 full-time
Sales and Marketing Expenses. Sales and marketing expenses for the nine months ended September 30, 2009 were $29.9 million, an increase of $4.4 million, or 17%, over sales and marketing expenses of $25.5 million for the comparable period in 2008. The increase was primarily due to an increase of $2.2 million in employee-related costs from additional personnel, $2.2 million in marketing program costs primarily to increase awareness and attract customers to our online press release services and $680,000 in stock-based compensation, offset by a decrease of $558,000 in incentive compensation and $323,000 in sales commissions reflecting our relative sales performance against established incentive targets. Our sales and marketing headcount increased by 23% as we hired additional sales personnel to focus on acquiring new customers and increasing revenues from existing customers and marketing personnel to expand our activities to build brand awareness. We had 254 full-time employee equivalents in sales and marketing at September 30, 2009 compared to 206 full-time employee equivalents at September 30, 2008.
Research and Development Expenses. Research and development expenses for the nine months ended September 30, 2009 were $3.4 million, a decrease of $434,000, or 11%, compared to research and development expenses of $3.9 million for the comparable period in 2008. The decrease in research and development was primarily due to decreases of $305,000 in employee-related costs and $111,000 in incentive compensation reflecting our relative performance against established incentive targets, offset by an increase of $188,000 in stock-based compensation. For the nine months ended September 30, 2009, we capitalized $142,000 of employee-related costs for internally developed software. For the nine months ended September 30, 2008, we capitalized $23,000 employee-related costs for internally developed software used in our subscription services. We had 29 full-time employee equivalents in research and development at September 30, 2009 and 2008. Compensation costs for our content group in the United Kingdom were included in research and development prior to the launch of our United Kingdom and Ireland media database in September 2008. Subsequent to the launch, the compensation costs and related headcount are included in costs of revenues.
Net cash provided by operating activities for the nine months ended September 30, 2009 was $12.9 million reflecting a net loss of $1.2 million and non-cash charges for depreciation and amortization charges of $2.7 million and stock-based compensation expense of $9.6 million, offset by the excess tax benefit from stock awards of $4.4 million. Changes in operating assets and liabilities were $7.6 million resulting primarily resulting from a decrease of $4.8 million in accounts receivable attributable to th
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