LANHAM, MD: Vocus reported $84.6 million in 2009 revenues, a 9% increase from the prior year. But the on-demand PR management software creator ended the year with a loss of $2 million, following four straight quarters of negative net income.
Vocus CMO William Wagner pointed to the economy and an investment in the company's salesforce as reason for the decline. In 2009, Vocus grew its sales reps from 135 to 175.
"It all boils down to the economy," he said. "We know that it makes sense to invest in our salesforce, and we know what our salespeople can sell in a normal economy. We expect these numbers to come back up once the economy stabilizes."
In 2008, the company had reported a profit of $6.9 million buoyed by a $5.2 million tax benefit.
Revenues for the fourth quarter, which ended December 31, 2009, exceeded the company's expectations at $22 million, up 7% year-over-year. Net loss for Q4 was $821,000, compared to a profit of $1.4 million in the year ago period.
The company added 437 new subscribers in Q4, nearly double the 235 new subscribers during the same period last year. It finished the year with a total of 4,438 subscribers. Among its new clients are the New York Institute of Technology, the Coleman Company, Dusseldorf Marketing & Tourism, and the Harlem Globetrotters.
For 2010's upcoming Q1, Vocus expects revenues of $21.8 and $22 million, and for the whole year it said it expected between $90-$92 million.