Vocus (VOCS) reports record results, raises guidance


Vocus, Inc. (NASDAQ: VOCS) is one of the top on-demand companies in the world -- and one of the most profitable. Its technology helps PR folks with media campaigns, targeting, press releases and the like.

With a tough economy, it would seem that Vocus would hit some headwinds. But so far, there are no signs of trouble.

Just look at the company's Q2 report. Revenues spiked 36% to $19.09 million (with a 7% sequential increase). It's the 36th consecutive quarter of revenue growth.

Net income was $5.66 million, or $0.30 per share. Moreover, cash flow from operations was $6.52 million.

Why the success? A key is that the company's products sell at competitive price points. In fact, in Q2 Vocus snagged 265 net new subscription customers (the total is 2,911).

It also helps that Vocus' product offering fits the needs of small business as well as large ones. For example, some of the Q2 customers included CITGO Petroleum, Deli Management, Easter Seals Chicago, OfficeMax (NYSE: OMX) and United States Olympic Committee;

Vocus has raised its guidance. The forecast for full-year revenues is $77.3 million to $77.8 million, with earnings of $0.73 to $0.75 per share.

All in all, it's good stuff. And, on news of the earnings report, shares of Vocus are up almost 4% to $33.84.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Last updated: February 12, 2012: 09:45 PM

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