Vocus Reports 1Q Loss, Rev Grows Y/Y

Zacks

Vocus Inc.(VOCS) reported first-quarter 2013 adjusted loss per share of 6 cents, wider than the Zacks Consensus Estimate of 4 cents.

Revenues

Revenues of $46.2 million in the first quarter increased 32.7% from $34.8 million generated in the year-ago quarter. The second-quarter revenues include around 150,000 coming from the exchange rate fluctuation.

Moreover, the company took into account a total active annual subscription from customers, which increased by 828 this quarter compared with 1,196 last year.

During the first quarter, the company added over 1,300 new Marketing Suite customers, which will take the total number of Marketing Suite customers to over 4,000.

Operating Results

Gross margin was 78.9%, marginally down from 79.0% in the year-ago quarter. Operating loss was $10.4 million compared with operating loss of $7.7 million in the year-ago quarter. The operating loss can be traced back to a 21.6% year-over-year rise in operating expenses. Operating expenses increased due to growth in direct sales capacity.

Net loss on a GAAP basis was $8.1 million or 41 cents per share compared with a net loss of $10.8 million or 57 cents in the first quarter of 2012. Excluding one-time items, but including stock-based compensation expense, net loss was $980.1 million or 6 cents per share compared with a net loss of 16 cents in the year-earlier period.

Balance Sheet & Cash Flow

Vocus exited the quarter with $40.9 million in cash and short-term investments versus $32.8 million in the previous quarter. Accounts receivables were $21.6 million compared with $29.8 million in the previous quarter. The company generated $10.8 million in cash from operations compared with $7.6 million in the previous quarter.

Guidance

For the second quarter of 2013, the company expects revenues in the range of approximately $45.1 million to $45.5 million. Non-GAAP loss per share is expected in the range of 2 to 3 cents. GAAP loss per share is expected in the range of 34 to 35 cents assuming an estimated weighted average 20.1 million shares outstanding.

For the full year of 2013, the company expects revenues in the range of $188.0 million to $189.0 million. Vocus expects non-GAAP EPS is expected in the range of 15 to 18 cents. GAAP loss per share is expected to be in the range of $1.23 to $1.20. Capital expenditures are expected to be around $6.5 million.

Outlook

Vocus’ posted first-quarter adjusted loss per share. However, the company generated decent revenue growth on a year-over-year basis. Vocus benefited from the high revenue generation ability of its new marketing suite.

Vocus has successfully capitalized on strategic acquisitions. The company added more marketing suite customers during the first quarter, but the same did not have a meaningful impact on revenue during the same period. The company is targeting more SMB customers, and the cloud-space opportunities in the SMBs. However, tough competition also remains a concern for the company.

Currently, Vocus has a Zacks Rank #3 (Hold). Investors can also consider other technology stocks such as Progress Software (PRGS) , which carries a Zacks Rank #1 (Strong Buy), and Adobe Systems (ADBE) and Symantec Corp. (SYMC) which carry a Zacks Rank #2 (Buy)

Read the Full Research Report on VOCS

Read the Full Research Report on SYMC

Read the Full Research Report on ADBE

Read the Full Research Report on PRGS

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)