) reported third-quarter 2013 adjusted loss per share of 6 cents,
narrower than the Zacks Consensus Estimate of 9 cents loss per
Revenues of $46.6 million in the third-quarter increased 1.9%
from $45.7 million generated in the year-ago quarter. Quarterly
revenues, however, marginally missed the Zacks Consensus Estimate
of $47.0 million.
The year-over-year increase was backed by customer additions,
strong demand from existing customers and improved adoption of
its marketing suite. Revenues were within the company guided
range of $46.5 million to $46.8 million.
Total active subscribers were 17,484 at the end of the third
quarter compared to 15,131 active subscribers in the year-ago
The company signed a host of subscription agreements with new
and existing customers. Notable among these were the agreements
with Adeptia, Dish Network, Dole Packaged Foods, Eurotalk,
GoDaddy, Investor's Business Daily, Kunzler, Lululemon Athletica,
Mila Publishing, National Cancer Institute, SimplifyMD, US
Environmental Protection Agency, University of Maryland and
Adjusted gross margin was 82.9%, down from 83.7% in the
year-ago quarter. Adjusted operating income was $2.5 million
compared with $3.9 million in the year-ago quarter. Reported
operating margin was 5.3%, down from 8.7% in the year-ago
quarter. Adjusted operating expenses increased 5.0% year over
year. Operating expenses increased due to growth in direct sales
capacity, higher commission and investments.
Net loss excluding one-time items but including stock-based
compensation expense was $2.1 million or 9 cents per share
compared with a net loss of $1.5 million or 6 cents per share in
the third quarter of 2012.
Balance Sheet & Cash Flow
Vocus exited the quarter with $32.8 million in cash and
short-term investments versus $36.3 million in the previous
quarter. Accounts receivables were $29.8 million compared with
$22.0 million in the previous quarter. Cash from operations was
$4.2 million compared with $3.0 million generated in the previous
For the fourth-quarter of 2013, the company expects revenues
in the range of approximately $45.1 million to $45.5 million.
Non-GAAP earnings per share are expected in the range of 3 to 4
For full year 2013, the company expects revenues in the range
of $184.6 million to $185.0 million. Vocus expects non-GAAP
earnings per share in the range of 20 to 21 cents. Capital
expenditure is expected to be around $6.5 million.
Vocus' third-quarter adjusted loss per share was narrower than
the Zacks Consensus Estimate. The company's revenues increased on
a year-over-year basis but just fell short of the consensus
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 small and medium
business space. However, tough competition remains a concern for
Additionally, continuous decline in demand for its legacy PR
solution, lesser focus on selling low-end solutions to small
businesses, margin contraction, currency fluctuations and
) could prove to be headwinds. But growing popularity of its
marketing suite and renewed focus on the mid-sized market are
Currently, Vocus has a Zacks Rank #3 (Hold). Investors can
also consider other technology stocks such as
Western Digital Corp.
), both carrying a Zacks Rank #1 (Strong Buy).
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