LANHAM, Md., Feb. 6, 2006 (PRIMEZONE) -- Vocus, Inc. (Nasdaq:VOCS), a leading provider of on-demand software for corporate communications and public relations, announced today financial results for the fourth quarter and full year of 2005 and initiated guidance for the first quarter and full year of 2006.
- Revenues for the quarter were $7.87 million, which represents a
41% increase over the prior year and an 8% increase over the
prior quarter. For the fiscal year, revenues were $28.06 million,
which represents a 38% increase over the prior year;
- GAAP loss from operations was $(386,000) for the fourth quarter of
2005 and $(949,000) for the fourth quarter of 2004. GAAP
net loss attributable to common stockholders was $(785,000) for
the fourth quarter of 2005 and $(1.28) million for the fourth
quarter of 2004 or $(0.11) and (0.31) per basic and diluted
share, respectively;
- Non-GAAP income from operations for the quarter was $57,000
compared to non-GAAP loss from operations of $(492,000) in the
same period a year ago. Non-GAAP net income for the quarter was
$28,000 or $0.00 per diluted share compared to non-GAAP net loss
of $(420,000) or $(0.05) per diluted share in the same period
a year ago. These non-GAAP financial measures exclude amortization
of intangible assets, certain stock-based compensation, accelerated
amortization of prepaid royalty fees and contract termination
costs and accretion of preferred stock. All of these charges are
included in Vocus' GAAP results;
- During the quarter the Company added 92 net new customers and
ended the fiscal year with 1,384 total active customers;
- Total deferred revenue as of December 31, 2005 was $20.70
million, compared to $16.05 million at December 31, 2004;
- Cash flow from operations was approximately $1 million for the
quarter.
"We are proud to report a strong fourth quarter for Vocus, one that exceeded our expectations across all key financial metrics," said Rick Rudman, president and CEO, Vocus, Inc. "In addition to our record financial performance, we were also able to make substantial investments during the year, which we believe have positioned us well for continued success in 2006. Our ability to consistently grow our business is a testament to our innovative solutions and to the large market for Corporate Communications and Public Relations software."
Vocus is providing, for the first time, first quarter and full year 2006 guidance based on information as of February 6, 2006:
- For the first quarter of 2006, revenue is expected to be in the
range of approximately $7.9 million and $8.1 million. Non-GAAP
EPS, which excludes the amortization of intangible assets and
stock-based compensation relating to FAS 123R is expected to be
in the range of break-even to $0.01 assuming an estimated
weighted average 16.6 million diluted shares outstanding and an
estimated effective tax rate of 5%. Amortization of intangible
assets and stock-based compensation, reflecting the adoption of
FAS 123R, is expected to be $0.05 per share. GAAP EPS is expected
to be in the range of $(0.05) to $(0.04) assuming an estimated
weighted average 15.1 million basic shares outstanding.
- For the full year of 2006, revenue is expected to be in the
range of $34.9 million and $35.7 million. Non-GAAP EPS, which
excludes the amortization of intangible assets and stock-based
compensation relating to FAS 123R, is expected to be in the range
of $0.14 to $0.16 assuming an estimated weighted average 16.7
million diluted shares outstanding and estimated effective tax
rate of 5%. Amortization of intangible assets and stock-based
compensation, reflecting the adoption of FAS 123R, is expected to
be $0.24 per share. GAAP EPS is expected to be in the range of
$(0.10) to $(0.08) assuming an estimated weighted average 15.3
million basic shares outstanding.
Conference Call Information
Vocus will discuss the financial results and operation highlights of the quarter and the 2005 fiscal year in a conference call at 4:30 p.m. EDT, or 1:30 p.m. PDT, today. The public is invited to listen to a live web cast of Vocus' conference call on the investor relations section of the company's website at http://onlinepressroom.net/vocus/ir/. For investors unable to participate in the live conference call, an audio replay will be available approximately two hours after the conclusion of the call. The audio replay will be available until February 13, 2006 at 12:00 a.m. EDT and can be accessed by dialing 800-642-1687 or 706-645-9291 and entering conference number 4299271. A web cast replay of the call will be available on the Investor Relations section of the company's website approximately one hour after the conclusion of the call and will remain available until March 6, 2005.
About Vocus, Inc.
Vocus (Nasdaq:VOCS) is a leading provider of on-demand software for corporate communications and public relations. Our web-based software suite helps organizations of all sizes manage local and global relationships and communications with journalists, analysts, public officials and other key audiences. Our software helps customers manage media relations, news monitoring and analysis, interactive email campaigns, online newsrooms, and government relations activities. Vocus software is delivered as an easy-to-use and cost-effective annual subscription, with no need for internal hardware, software or IT support. Our software is currently available in four languages, and is in use by customers around the world. Vocus is based in Lanham, MD with offices in North America and Europe. For more information please visit www.vocus.com or call 800.345.5572.
This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "expects," "projects," "anticipates," "estimates," "believes," "intends," "plans," "should," "seeks," and similar expressions. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. Forward-looking statements may be significantly impacted by certain risks and uncertainties described in Vocus' filings with the Securities and Exchange Commission.
The risks and uncertainties referred to above include, but are not limited to, risks associated with possible fluctuations in our operating results and rate of growth, our history of operating losses, the possibility that we will not achieve GAAP profitability, interruptions or delays in our service or our Web hosting, our new business model, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, successful customer deployment and utilization of our services, fluctuations in the number of shares outstanding, foreign currency exchange rates and interest rates.
Vocus, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands)
December 31, December 31,
2004 2005
-------- --------
Unaudited Unaudited
Assets
Current assets
Cash and cash equivalents $ 7,554 $ 40,027
Short-term investments -- 1,400
Accounts receivable, net 4,401 6,012
Prepaid royalty fees 1,153 493
Other current assets 233 695
-------- --------
Total current assets 13,341 48,627
Property, equipment and software, net 1,212 4,161
Intangible assets, net 4,526 2,519
Other assets 539 529
-------- --------
Total assets $ 19,618 $ 55,836
======== ========
Liabilities, redeemable stock
and stockholders' (deficit) equity
Current liabilities
Accounts payable $ 488 $ 268
Accrued compensation 1,408 1,451
Accrued expenses 1,490 1,333
Current portion of notes payable
and capital lease obligations 115 642
Current portion of deferred revenue 15,282 20,018
-------- --------
Total current liabilities 18,783 23,712
Revolving line of credit 2,389 --
Notes payable and capital lease
obligations, net of current portion 497 765
Other liabilities 87 105
Deferred revenue, net of current portion 770 678
-------- --------
Total liabilities 22,526 25,260
Redeemable convertible preferred stock 28,647 --
Redeemable common stock 183 189
Stockholders' (deficit) equity
Common stock 47 158
Additional paid-in capital -- 70,470
Treasury stock (1,520) (3,283)
Deferred compensation (34) (19)
Accumulated other comprehensive income 27 52
Accumulated deficit (30,258) (36,991)
-------- --------
Total stockholders' (deficit) equity (31,738) 30,387
-------- --------
Total liabilities, redeemable stock
and stockholders' (deficit) equity $ 19,618 $ 55,836
======== ========
Vocus, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands except per share data)
Three months ended Years ended
December 31, December 31,
2004 2005 2004 2005
--------------------- ---------------------
Unaudited Unaudited Unaudited Unaudited
Revenues $ 5,585 $ 7,871 $ 20,393 $ 28,062
Cost of revenues 1,302 1,850 4,368 6,537
Accelerated amortization
of prepaid royalty fees
and contract termination
costs -- (50) -- 1,399
--------------------- ---------------------
Gross profit 4,283 6,071 16,025 20,126
Operating expenses
Sales and marketing 3,152 4,027 11,708 14,837
Research and development 668 649 2,064 2,515
General and
administrative 1,079 1,376 3,942 6,051
Amortization of
intangible assets 333 405 976 1,605
--------------------- ---------------------
Total operating
expenses 5,232 6,457 18,690 25,008
Loss from operations (949) (386) (2,665) (4,882)
Interest and other
income 92 124 99 177
Interest expense (20) (153) (35) (359)
--------------------- ---------------------
Net loss (877) (415) (2,601) (5,064)
Accretion of preferred
stock (405) (370) (1,582) (1,900)
--------------------- ---------------------
Net loss attributable
to common
stockholders $ (1,282) $ (785) $ (4,183) $ (6,964)
===================== =====================
Earnings per share:
Basic and diluted $ (0.31) $ (0.11) $ (1.04) $ (1.43)
Weighted average shares
used in calculation:
Basic and diluted 4,079,547 6,921,331 4,032,572 4,867,710
Vocus, Inc.
Three months ended, Years ended
December 31, December 31,
2004 2005 2004 2005
---------------------- ----------------------
Unaudited Unaudited Unaudited Unaudited
Reconciliation of GAAP
loss from operations
to non-GAAP (loss)
income from operations
(dollars in thousands):
GAAP loss from
operations $ (949) $ (386) $ (2,665) $ (4,882)
Amortization of
intangible assets 457 493 1,373 2,007
Stock-based
compensation -- -- -- 1,006
Acceleration of
prepaid royalty
fees and contract
termination costs -- (50) -- 1,399
---------------------- ----------------------
Non-GAAP (loss) income
from operations $ (492) $ 57 $ (1,292) $ (470)
====================== ======================
Reconciliation of GAAP
net loss attributable
to common stockholders
to non-GAAP net (loss)
income (dollars in
thousands):
GAAP net loss
attributable to
common stock-
holders $ (1,282) $ (785) $ (4,183) $ (6,964)
Amortization of
intangible assets 457 493 1,373 2,007
Stock-based
compensation -- -- -- 1,006
Acceleration of
prepaid royalty
fees and contract
termination costs -- (50) -- 1,399
Accretion on
preferred stock 405 370 1,582 1,900
---------------------- ----------------------
Non-GAAP net (loss)
income $ (420) $ 28 $ (1,228) $ (652)
====================== ======================
Non-GAAP net (loss)
income per share
attributable to
common stockholders
Basic $ (0.05) $ 0.00 $ (0.13) $ (0.06)
Diluted $ (0.05) $ 0.00 $ (0.13) $ (0.06)
Non-GAAP weighted
average number of
shares:
Basic 9,272,762 11,164,665 9,154,653 10,295,291
Diluted 9,272,762 12,175,454 9,154,653 10,295,291
Weighted average
shares calculation:
GAAP basic and
diluted weighted
average shares
outstanding 4,079,547 6,921,331 4,032,572 4,867,710
Conversion of
preferred stock 5,193,215 4,243,334 5,122,081 5,427,581
---------------------- ----------------------
Non-GAAP basic
weighted average
shares out-
standing 9,272,762 11,164,665 9,154,653 10,295,291
Common stock
equivalents -- 1,010,789 -- --
---------------------- ----------------------
Non-GAAP diluted
weighted average
shares out-
standing 9,272,762 12,175,454 9,154,653 10,295,291
====================== ======================
The non-GAAP financial measures discussed in the text of this press release and accompanying non-GAAP supplemental information represent financial measures used by Vocus' management to evaluate the operating performance of the company and to conduct its business operations. Non-GAAP financial measures discussed in this press release exclude amortization of intangible assets, certain stock-based compensation, accelerated amortization of prepaid royalty fees and contract termination costs and the related revision to the estimate pertaining to those costs, and accretion of preferred stock. It is management's belief that these items are not indicative of ongoing operations. For example, the amortization of intangible assets recorded in connection with our acquisitions of Gnossos Software and Public Affairs Technologies consist primarily of intangible assets pertaining to purchased technology and customer relationships that are not expected to be replaced when fully amortized, as might a depreciable tangible asset. In addition, certain stock-based compensation was recorded in connection with the purchase of shares obtained from exercise of stock options by certain former employees. The purchase of the shares was completed in anticipation of the Company's public offering and resulted in compensation expense since the purchase date was within six months of the exercise date. Management does not anticipate purchasing any additional shares from employees or former employees in the future. Also, accelerated amortization of prepaid royalty fees and estimated minimum royalty commitment and a related revision to the estimate pertaining to those costs were incurred in connection with a data resale agreement that was terminated early due to the initial release of the Company's internally developed media database. Management does not anticipate licensing such media content again from a third party and, consequently, deems the contract termination costs and related charges to be non-recurring. The accretion of preferred stock was recorded on the outstanding preferred stock which converted into common stock upon the completion of the public offering. Accordingly, the accretion of preferred stock will not result in an ongoing charge. Non-GAAP EPS also assumes the conversion of the preferred stock at the beginning of all periods presented.
Management uses the non-GAAP financial measures for planning purposes, including the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance and in assisting investors in comparing the company's financial performance to those of other companies in the company's industry. However, these non-GAAP financial measures are not intended to be an alternative to financial measures prepared in accordance with GAAP and should not be considered in isolation from our GAAP results of operations. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between the company's GAAP and non-GAAP financial results is provided in this press release and investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in the company's SEC filings.