) reported second-quarter 2013 adjusted loss per share of 12
cents, narrower than the Zacks Consensus Estimate of 19 cents
loss per share.
Revenues of $46.6 million in the second quarter increased 6.9%
from $43.6 million generated in the year-ago quarter. The
quarter's revenues were above the Zacks Consensus Estimate of
The favorable outcome was backed by customer additions, strong
demand growth from existing customers and improved adoption of
its marketing suite. The top line surpassed the company guided
range of $45.1 million to $45.5 million.
Vocus added 479 new subscribers during the second quarter
compared with 1,013 in the year-earlier quarter. Total active
subscribers were 17,801 at quarter end.
The company signed a host of subscription agreements with new and
existing customers. Notable among these are the agreements with
Ann Inc., Avaya, Centegra Health Systems, comScore Inc., Datex,
Cosmopolit Home, J. Renee, Hyatt Regency Paris Etoile, Lehigh
University, Nexcom, Organic Valley, Resource One Credit Union,
Thompson Creek Windows and Troon Golf.
Vocus initiated a pricing strategy targeting the medium-sized
businesses with higher subscriptions. The strategy resulted in
higher selling prices but lesser number of net new subscriptions.
The strategy has been adopted mainly to move away from the small
business market. Management believes that this will benefit its
revenue growth, going forward.
Gross margin was 79.0%, down from 80.1% in the year-ago quarter.
Operating loss was $5.4 million compared with operating loss of
$4.8 million in the year-ago quarter. Total operating expenses
increased 6.4% year over year. Operating expenses increased due
to growth in direct sales capacity, higher commission and
Net loss on a GAAP basis was $5.9 million or 29 cents per share
compared with a net loss of $5.2 million or 27 cents in the
second quarter of 2012. Excluding one-time items, but including
stock-based compensation expense, net loss was 12 cents per share
compared with a net loss of 4 cents a share in the year-earlier
Balance Sheet & Cash Flow
Vocus exited the quarter with $36.3 million in cash and
short-term investments versus $40.9 million in the previous
quarter. Accounts receivables were $22.0 million compared with
$21.6 million in the previous quarter. The company used $3.0
million in cash from operations compared with $10.8 million
generated in the previous quarter.
For the third quarter of 2013, the company expects revenues in
the range of approximately $46.5 million to $46.8 million.
Non-GAAP earnings per share are expected in the range of 3 to 4
cents. GAAP loss per share is expected in the range of 26 to 25
cents assuming an estimated weighted average 20.1 million shares
For full year 2013, the company expects revenues in the range of
$188.0 million to $189.0 million. Vocus expects non-GAAP earnings
per share in the range of 18 to 21 cents. GAAP loss per share is
expected to be in the range of $1.17 to $1.14. Capital
expenditure is expected to be around $6.5 million.
Vocus' second-quarter adjusted loss per share was narrower than
the Zacks Consensus Estimate. 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
Vocus has successfully capitalized on strategic acquisitions. The
company continued to acquire more customers for its marketing
suite, which reflects growing demand. The company is targeting
more customers and cloud opportunities in the SMB space. However,
tough competition remains a concern for the company.
Currently, Vocus has a Zacks Rank #2 (Buy). Investors can also
consider other technology stocks such as
), all of which carry a Zacks Rank #1 (Strong Buy).
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