Vocus, Inc.: Heard it through the grapevine

Vocus, Inc (Nasdaq:VOCS)
Lanham, Md.
http://www.vocus.com 

52-week low / high: $19.22 / $38.57
Shares Outstanding: 17.63 million
Market Capitalization: $458 million

With 70 million blogs and counting, along with new media outlets opening in record numbers, the word-of-mouth terrain is rapidly changing. Vocus, Inc. (Nasdaq:VOCS) understands this and has joined the revolution by offering a sort of PR 2.0 for today’s real-time needs. 

The company, which went public in 2005, provides on-demand software for PR management that includes focusing on media relations, news distribution and news monitoring. By automating these essential PR elements, Vocus’ software allows companies to correspond directly with the press and the public.

The company provides an information database of over 800,000 journalists, analysts, media outlets and publicity opportunities to its customers. The database includes journalist profiles, contact schedules, podcast interviews and pitching preferences, all assembled by Vocus’ media research team.

While the company’s press release distribution is typically offered on a per-transaction basis, its software is usually offered as an annual or multi-year subscription and is available in five languages. As of Dec. 31, 2007, Vocus had 2,427 active subscription customers, representing organizations of all sizes across a variety of industries, including BMW, Southwest Airlines (NYSE:LUV) and The Coca-Cola Company (NYSE:KO).

Although Vocus initially sold the software in its infancy, it changed its model in 1999 to sell the software services, instead. SaaS, or "software as a service," was an innovative way for companies to outsource work through the Internet, in lieu of buying software and training employees to utilize it. Employing the SaaS method was a turnaround point for the Latham, Md.-based company, and it has been flourishing ever since.

For the fourth quarter ended Dec. 31, 2007, net income rose about 10% to $525,000 compared with $475,000 a year earlier. Revenue for the quarter increased 35% to $16.3 million from $15 million, and for the year rose 44% to $58.1 million from $40.3 million. Adjusted earnings for full year 2007 were $9.5 million, or $0.50 per share, compared with $4.35 million, or $0.26 per share, for the same period last year.

"The significant growth we're seeing across all areas of our business is reflective of the large and untapped market opportunity for our on-demand PR software and a testament to the compelling value we deliver to our customers,” said Vocus president and CEO Rick Rudman in a press release on Feb. 5. “Given our achievements to date we expect continued growth and success for the year ahead and are very optimistic about our outlook for 2008.”

More and more media outlets and companies are popping up every day, and with every new idea comes the demand to promote it. Vocus is one company that has adapted to the ever-changing PR needs of companies across the globe. Viva la revolution.

Note: Vocus, Inc. (Nasdaq:VOCS) is on the "Watch List" of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Vocus displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

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