By Greg Hazley
Vocus on April 26 posted a 21% increase in first quarter revenue to $27M on a wider net loss of $1.9M compared with Q1 of 2010.
The company’s net was hit by a $1.2M, one-time cost for professional fees and a break-up fee after Vocus terminated a potential “cross-border acquisition” following its investigation, said CFO Steve Vintz. Net loss for Q1 of 2010 was $579K.
“In summary, we were a little bit uncomfortable with some of the changes we saw in the business as we were working out way through due diligence,” said CEO Rick Rudman, adding the deal was outside of North America.
Revenue rose for Q1 as the PR software provider added 682 net new subscribers like GameStop, iRobot and the Office de Tourisme de Marseille during Q1, up from about 400 for the same period of 2010. Renewal rate is in the 80-90 percent range and it had 9,256 subscribers at the close of Q1.
Vocus shares surged nearly 12 percent in Wednesday's trading to $27.92, near a 52-week high of $28.46.
Rudman said Vocus’ year-old social media add-on product is also selling well and expects that revenue to hit $5M by the end of this year. That service will be rolled out of the small business market this summer.
Although the company said it didn’t materially affect first quarter results, Vocus in Q1 paid $7M in cash for Facebook applications developer North Social, a deal that could cost up to $18M over two years.
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