Vocus Inc. (VOCS, Financial) filed Quarterly Report for the period ended 2011-03-31.
Vocus Inc. has a market cap of $538.3 million; its shares were traded at around $27.88 with a P/E ratio of 697 and P/S ratio of 5.6.
Cost of Revenues. Cost of revenues for the three months ended March 31, 2011 was $5.5 million, an increase of $1.1 million, or 23%, over cost of revenues of $4.4 million for the comparable period in 2010. The increase in cost of revenues was primarily due to an increase of $556,000 in employee related costs from additional personnel including increases in headcount from our acquisitions, $134,000 in third-party license and royalty fees for content and $120,000 in amortization of technology from our acquisitions in 2010 and 2011. We had 204 full-time employee equivalents in our professional and other support services group at March 31, 2011 compared to 147 full-time employee equivalents at March 31, 2010.
Sales and Marketing Expenses. Sales and marketing expenses for the three months ended March 31, 2011 were $13.8 million, an increase of $2.4 million, or 21%, over sales and marketing expenses of $11.4 million for the comparable period in 2010. The increase in sales and marketing was primarily due to an increase of $1.1 million in employee-related costs from additional personnel including increases in headcount from our acquisitions, $246,000 in sales commissions and incentive compensation and $746,000 in stock-based compensation. We had 367 full-time employee equivalents in sales and marketing at March 31, 2011 compared to 266 full-time employee equivalents at March 31, 2010.
Research and Development Expenses. Research and development expenses for the three months ended March 31, 2011 were $2.0 million, an increase of $701,000, or 53%, over research and development expenses of $1.3 million for the comparable period in 2010. The increase in research and development was primarily due to an increase of $251,000 in employee-related costs from additional personnel including increases in headcount from our acquisitions and $261,000 in stock-based compensation. For the three months ended March 31, 2011, we capitalized $42,000 of employee-related costs for internally developed software. For the three months ended March 31, 2010, we capitalized $185,000 of employee-related costs for internally developed software. We had 44 full-time employee equivalents in research and development at March 31, 2011 compared to 31 full-time employee equivalents at March 31, 2010.
General and Administrative Expenses. General and administrative expenses for the three months ended March 31, 2011 were $8.2 million, an increase of $3.0 million or 58%, over general and administrative expenses of $5.2 million for the comparable period in 2010. The increase in general and administrative expenses was primarily due to an increase of $481,000 in employee-related costs including increases in headcount from our acquisitions, $447,000 in stock-based compensation and $1.2 million in non-recurring professional fees and transaction costs from the termination of a potential acquisition. We had 66 full-time employee equivalents in our general and administrative group at March 31, 2011 compared to 46 full-time employee equivalents at March 31, 2010.
We have various non-cancelable operating leases, primarily related to office real estate including the office space in Beltsville, MD, that expire through 2023 and generally contain renewal options for up to five years. As of March 31, 2011, minimum required payments in future years under these leases are $1,657,000, $2,601,000, $2,672,000, $2,665,000, $2,439,000, and $15,035,000 in 2011, 2012, 2013, 2014, 2015, and 2016 and thereafter, respectively.
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Vocus Inc. has a market cap of $538.3 million; its shares were traded at around $27.88 with a P/E ratio of 697 and P/S ratio of 5.6.
Highlight of Business Operations:
Revenues. Revenues for the three months ended March 31, 2011 were $27.0 million, an increase of $4.7 million, or 21%, over revenues of $22.3 million for the comparable period in 2010. The increase in revenues was primarily due to the increase in the number of total active subscription customers to 9,256 as of March 31, 2011, including 1,900 from our acquisition of Datapresse in April 2010, from 4,834 as of March 31, 2010. Total revenue from active subscriptions through acquired companies contributed $1.6 million of incremental revenue in 2011. The remaining increase in active subscription customers was the result of additional sales and marketing personnel focused on acquiring new customers and renewing existing customers. Revenue growth from the increase in active subscription customers, excluding revenue from acquired companies, was $3.3 million. Total deferred revenue as of March 31, 2011 was $55.8 million, representing an increase of $10.2 million, or 22%, over total deferred revenue of $45.6 million as of March 31, 2010.Cost of Revenues. Cost of revenues for the three months ended March 31, 2011 was $5.5 million, an increase of $1.1 million, or 23%, over cost of revenues of $4.4 million for the comparable period in 2010. The increase in cost of revenues was primarily due to an increase of $556,000 in employee related costs from additional personnel including increases in headcount from our acquisitions, $134,000 in third-party license and royalty fees for content and $120,000 in amortization of technology from our acquisitions in 2010 and 2011. We had 204 full-time employee equivalents in our professional and other support services group at March 31, 2011 compared to 147 full-time employee equivalents at March 31, 2010.
Sales and Marketing Expenses. Sales and marketing expenses for the three months ended March 31, 2011 were $13.8 million, an increase of $2.4 million, or 21%, over sales and marketing expenses of $11.4 million for the comparable period in 2010. The increase in sales and marketing was primarily due to an increase of $1.1 million in employee-related costs from additional personnel including increases in headcount from our acquisitions, $246,000 in sales commissions and incentive compensation and $746,000 in stock-based compensation. We had 367 full-time employee equivalents in sales and marketing at March 31, 2011 compared to 266 full-time employee equivalents at March 31, 2010.
Research and Development Expenses. Research and development expenses for the three months ended March 31, 2011 were $2.0 million, an increase of $701,000, or 53%, over research and development expenses of $1.3 million for the comparable period in 2010. The increase in research and development was primarily due to an increase of $251,000 in employee-related costs from additional personnel including increases in headcount from our acquisitions and $261,000 in stock-based compensation. For the three months ended March 31, 2011, we capitalized $42,000 of employee-related costs for internally developed software. For the three months ended March 31, 2010, we capitalized $185,000 of employee-related costs for internally developed software. We had 44 full-time employee equivalents in research and development at March 31, 2011 compared to 31 full-time employee equivalents at March 31, 2010.
General and Administrative Expenses. General and administrative expenses for the three months ended March 31, 2011 were $8.2 million, an increase of $3.0 million or 58%, over general and administrative expenses of $5.2 million for the comparable period in 2010. The increase in general and administrative expenses was primarily due to an increase of $481,000 in employee-related costs including increases in headcount from our acquisitions, $447,000 in stock-based compensation and $1.2 million in non-recurring professional fees and transaction costs from the termination of a potential acquisition. We had 66 full-time employee equivalents in our general and administrative group at March 31, 2011 compared to 46 full-time employee equivalents at March 31, 2010.
We have various non-cancelable operating leases, primarily related to office real estate including the office space in Beltsville, MD, that expire through 2023 and generally contain renewal options for up to five years. As of March 31, 2011, minimum required payments in future years under these leases are $1,657,000, $2,601,000, $2,672,000, $2,665,000, $2,439,000, and $15,035,000 in 2011, 2012, 2013, 2014, 2015, and 2016 and thereafter, respectively.
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