BELTSVILLE, MD: Vocus reported a $10.8 million net loss in the first quarter. The cloud marketing software provider saw $34.9 million in first-quarter revenue, a 29% increase compared with Q1 2011.
The company said $4.8 million in losses was acquisition-related, including $2.9 million in professional fees and $1.9 million in severance costs. Vocus also ran a loss from operations of $10.4 million in Q1.
Vocus acquired cloud-based email and social marketing software provider iContact in February for $169 million, including cash and stock options. The deal allowed Vocus to add email to its marketing suite.
William Wagner, EVP and COO at Vocus, said most of the loss was due to the acquisition and the company's significant investments in sales and marketing.
“We said we would really ramp up sales and spending to support sales and marketing,” he said. “That's the tradeoff you get for getting the high growth; we are spending more to get it.”
Wagner added that organic growth was higher than 20%, not counting the iContact acquisition.
Vocus also added 1,196 annual subscription customers during the first quarter, up from 682 during Q1 2011. The company ended the quarter with 13,103 active annual subscription customers. Customers signed in Q1 included Under Armour, Urban Outfitters, Whirlpool, and Cincinnati Children's Hospital.
Vocus predicted that it will earn between $42.8 million and $43.1 million in second-quarter revenue. For full-year 2012, it predicted $169.1 million to $170.3 million in revenue.