1. Vocus,
Inc.
Cloud
Marke3ng
So6ware
Analyst
Day
Presenta-on
June
6,
2012

2. Forward
Looking
Statements
During
the
course
of
this
presenta3on,
we
may
make
projec3ons
or
other
forward-­‐looking
statements
regarding
future
events
or
the
future
financial
performance
of
our
company.
We
wish
to
cau3on
you
that
such
statements
are
just
predic3ons
and
that
actual
events
or
results
may
differ
materially.
We
refer
you
to
our
filings
with
the
Securi3es
and
Exchange
Commission,
including
our
Quarterly
Report
on
Form
10-­‐Q
for
the
quarter
ended
March
31,
2012,
for
a
discussion
of
some
of
the
risks
and
other
factors
that
could
cause
our
actual
results
to
differ
materially
from
those
contained
in
our
projec3ons
or
other
forward-­‐looking
statements.

3. 1:00-­‐1:30
Vocus
and
Cloud
Marke3ng
Opportunity
• Rick
Rudman,
Chairman
and
Chief
Execu-ve
Officer
1:30-­‐2:00
Go
To
Market
Strategy
• Bill
Wagner,
EVP
and
Chief
Opera-ng
Officer
2:00-­‐2:45
Product
Overview
• You
Mon
Tsang,
SVP
Product
2:45-­‐3:00
Break
3:00-­‐3:30
Customer
Panel
3:30-­‐4:00
Financial
Overview
• Steve
Vintz,
EVP
and
Chief
Financial
Officer
4:00-­‐
4:30
Closing
Comments
and
Q&A
Agenda

4. The
Digital
Marke3ng
Revolu3on
Rick
Rudman,
Chairman
and
Chief
Execu-ve
Officer

5. Unprecedented
Change
and
Opportunity

6. S3mulus
Shelf
Experience
Tradi3onal
Marke3ng
Model

7. S3mulus
Pre-­‐Shopping
Shelf
Experience
New
Marke3ng
Model

8. New
Consumer
Buying
Process
88%
of
US
internet
users
will
research
products
online
in
2012

9. New
Consumer
Buying
Process
58%
of
online
consumers
have
liked
or
followed
a
retailer

10. Old
World
Marke3ng
in
Decline
Yellow
Page
adver3sing
has
fallen
by
50%
since
2007

11. Old
World
Marke3ng
in
Decline
Since
2006
Newspaper
Ad
dollars
have
fallen
49%

12. 70%
of
links
users
click
in
search
results
are
organic
not
paid
New
Digital
Marke3ng
Emerging

13. 61%
of
U.S.
marketers
use
social
media
to
increase
leads
New
Digital
Marke3ng
Emerging

14. 59%
of
marketers
say
email
is
s8ll
best
channel
for
driving
revenue
New
Digital
Marke3ng
Emerging

15. Rapid
Growth
in
Digital
Marke3ng
Digital
marke8ng
is
expected
to
grow
17%
CAGR
from
2011
to
2016
$34b
$77b

16. Digital
Marke3ng
Defined
Email
Social
Mobile
Search
Display

17. SMB
Digital
Marke3ng
Spend
2012
Q:
How
do
you
plan
to
allocate
your
online
marke8ng
dollars
in
2012?
17%
16%
15%
14%
12%
6%
5%

18. By
2016
70%
of
marke8ng
budgets
will
be
allocated
to
digital
SMB
Growth
in
Digital
Marke3ng
Spend
20%
70%
2011
2016

19. Leading
provider
of
cloud
marke3ng
so6ware
that
helps
businesses
aeract,
engage
and
retain
customers
Vocus
Today

20. Large
and
Growing
Marke3ng
Business
Vocus
Marke3ng
sales
are
expected
to
grow
34%
in
2012
to
$90M
$67M
$90M
2011
2012

21. Keys
to
Success
Innova3ve
Product
Integrated
cloud
marke-ng
suite
Social,
Search,
Email,
Publicity
Broad
Distribu3on
E-­‐commerce
Large
inside
sales
organiza-on
Unique
Posi3oning
SMB
Sweet
spot
$3k-­‐$30k
80%
plus
margins,
renewals
.
.
.

22. o Digital
marke3ng
represents
one
of
the
most
significant
opportuni3es
in
so6ware
today
o Vocus
so6ware
suite
uniquely
addresses
cri3cal
func3ons
of
modern
digital
marke3ng
o Pricing
and
posi3oning
creates
scalable
and
profitable
long-­‐term
business
model
o Posi3oned
for
market
leadership
with
one
of
the
fastest
growing
cloud
marke3ng
businesses
Vocus
Investment
Highlights

23. Go
To
Market
Strategy
Bill
Wagner,
EVP
and
Chief
Opera-ng
Officer

24. Vocus
Total
Available
Market
Large
1,000+
employees
Mid-­‐sized
10-­‐999
employees
Small
2-­‐9
employees
Personal
businesses
1
employee
1M
orgs
x
$7K
ASP
=
$7B
5M
orgs
x
$3K
ASP
=
$15B
Vocus
TAM
=
$22B

25. Customer
Acquisi3on
Model
Mobile
Email
Publicity
Social
Media
Marke3ng
eCommerce
Sales
Suite
o Free
Trials
provide
high
volume
lead
flow
o E-­‐commerce
sales
reduce
customer
acquisi3on
costs
o Inside
sales
upgrades
to
Vocus
marke3ng
suite
o Account
Execu3ve
team
op3mizes
renewals
and
upgrades
Free
Trial
Website
Email
SEO
Free
Trial
Free
Trial
Free
Trial
Free
Trial
Free
Trial

26. Vocus
Sales
Model
o 0-­‐4
years
experience
o $250K
quota
o $75K
compensa3on
New
Sales
o 0-­‐4
years
experience
o $600K
quota
o $70K
compensa3on
Account
Sales
Large
Mid-­‐sized
Small
Personal
Businesses

27. Total
Quota
Carrying
Sales
Reps
-­‐
100
200
300
400
500
2005
2006
2007
2008
2009
2010
2011
2012
Quota
Carrying
Reps
*
*
Es3mated
as
of
12/31/2012

28. Customer
Success
Across
All
Industries
Healthcare
Technology
Non-­‐Profit
Consumer

29. Customer
Mix
Buyers
-­‐
Small
Business
Owners
-­‐
Marke3ng
Professionals
-­‐
PR
Professionals
Customer
Size
-­‐
Small
(
<$5M)
-­‐
Mid/Large
(
>$5M)

30. Customer
Mix
Geography
-­‐
US
-­‐
EMEA
Channel
-­‐
Field
-­‐
Inside
-­‐
eCommerce

31. Customer
Mix
Product
-­‐
SEO
News
Release
-­‐
Publicity
-­‐
Social
Media
-­‐
Email
Packaging
-­‐
Stand
Alone
Products
-­‐
Suite

32. Vocus
Market
Posi3oning
Marke8ng
Suites
o
Mul3-­‐channel
o
Integrated
o
$3k-­‐$30k
ASP
Enterprise
Marke8ng
PlaUorms
o
Complex
lead
scoring
&
CRM
integra3on
o
Dedicated
staff
and
services
o
$100k-­‐$1M+
ASP
Point
Solu8ons
o
Social,
Email,
Website
o
Freemium-­‐$30/mo.
Large
Mid-­‐sized
Small
Personal
Businesses

33. Product
Overview,
Demo
and
Roadmap
You
Mon
Tsang,
SVP
Product

34. Building
The
Modern
SMB
Marke3ng
Suite
o All-­‐in-­‐one
trumps
point
products
o Time
to
“WOW”
measured
in
minutes
o Always
Prescribe
Ac8on
o “Signature”
Features
o Generate
leads
and
a[racts
and
retain
customers

37. “It
makes
things
a
lot
easier
for
me.
The
recommenda3ons
are
just
fantas3c
and
they
take
the
guesswork
out
of
social
media.
It
makes
social
media
simple
and
much
easier
to
grasp.”
“Comfortable
and
easy
to
go
to...when
in
a
rush
it’s
a
nice
place
to
be.”
Recommenda3on
Engine
Tes3monials

43. Page
1
of
Google
results
for
Boston
rare
coin
dealer
#3:
PRWeb.com
#4:
PRWeb.com
#5:
Yahoo
News
(thru
PRWeb)
#6:
beantowncoins.com

46. “We
have
risen
to
the
first
page
on
search
engine
rankings
for
most
of
our
key
terms
in
under
90
days.”
o Joe
Palmieri,
Beantown
Coins
“The
coverage
we
got
was
nothing
short
of
incredible.
I
think
gevng
onto
Forbes
was
my
favorite.”
o Sco[
McIntosh,
CEO,
MusikPitch
PRWeb
Tes3monials

52. o Added
over
24,000
fans
in
120
days
a6er
installing
apps.
o Free
so6ware
product
sample
was
downloaded
over
30,000
3mes.
o Increased
fanbase
from
8,000
fans
to
over
20,000
fans
in
4
months.
o Collec3ng
over
6,000
email
addresses
of
poten3al
customers.
o Gained
over
8,000
new
fans
in
two
months.
o 4,000
entrants
into
Sweepstakes
campaign
in
4
weeks.
Facebook
Apps
Customer
Results

54. o Experts
about
spices
o Ideas
for
luxury
market
column
o Owners
of
companies
to
chat
about
their
2012
hiring
Publicity
Alerts
From
2012-­‐06-­‐01

55. “Thanks
to
HARO,
our
sales
have
tripled.
Our
website
traffic
increased
by
3,000%
in
one
day
alone,
and
its
kept
up.”
“Three
weeks
a6er
responding
to
the
HARO
query,
I
was
on
a
plane
to
Florida,
where
I
shot
four
na3onal
television
appearances.
I
did
not
expect
that
to
happen.”
“It
was
June
when
HARO
got
us
into
Beeer
Homes
and
Gardens.
I
remember
because
we’d
just
released
our
new
product,
the
S2H
STEP.
When
our
coverage
appeared,
the
whole
produc3on
run
sold
out
in
two
weeks.”
HARO
Tes3monials

59. Vocus
Mobile
Start
Page

60. Vocus
Mobile
Recommenda3ons

61. Vocus
Mobile
Twee3ng

62. Vocus
Mobile
Dashboard
Metrics

68. iContact
for
Salesforce

69. Designed
for
Mid-­‐Market
Customers
and
Large
Senders
• Advisory
Services
• Web
Site
Tracking
• Custom
Reports
• Advanced
Segmenta3on
• A/B
Split
Tes3ng
iContact
Premier

70. “When
we
first
started
out,
we
would
do
snail
mail
and
postcard
mailers,
which
were
very
expensive…The
value
that
we
get
from
iContact
really
is
huge
for
us.”
“iContact
allows
us
to
take
client
lists
and
data
from
a
variety
of
different
applica3ons
and
bring
them
into
one
place.
We
can
create
campaigns
very
quickly,
test
new
ideas,
and
communicate
with
our
customers.
Being
a
small
business,
we
don't
have
a
large
marke3ng
staff,
so
iContact
makes
that
very
easy
for
us.”
“There
are
a
lot
of
email
marke3ng
solu3ons
out
there,
but
it's
difficult
to
know
which
ones
will
be
here
tomorrow...
If
customer
service
and
stability
are
your
top
priori3es,
I
wouldn't
look
anywhere
other
than
iContact.”
iContact
Tes3monials

71. Coming
End
of
Year:
o Fully
Integrated
Email
o Social
Business
Stream
o Buying
Signals
o Local
Search
Lis3ngs
Vocus
Marke3ng
2.0

75. Buying
Signals

76. Tele
Atlas
(TomTom)
Comcast.net
Search
Dexknows.com
Foursquare
yellowbook.com
Kudzu.com
7mainstreet.com
Grote
Sims
realtor.com
Acme
Media
Guide
Me
RepairPal
anywho.com
hamptonroads.com
Reply.com
apartmentguide.com
Hello
Hi
Technologies
SanDiego.com
Atlanta
New
Homes
Directory
Hillclimb
Media
SimpleGeo
Ausili
Produc3ons
HomeAndRoad.com
Siri
Inc.
B2B
Yellowpages
Homestore
Snapfinger.com
beachcalifornia.com
Hostway
SnapMeals
BestOfTheWebLocal
ho{rog.com
Swipely
Boulevards
New
Media
Innova
Electronics
TechnoCom
BuyerZone
Intellistrand
Teleroute
campusfood.com
InTheMO.com
Tello
ChaCha
Search
Intuit
TenList.com
CheckPoints
JHE
Marke3ng
thefeast.com
Chevia
justclicklocal.com
thelocallife.com
Ci3es2Night.com
keen.com
townme.com
CityMaps.com
kgb
Townsquare
Media
CitySquares.com
KSL.com
TravelPost
Closely
License
Holding
Tribune
Interac3ve
Contractors.com
Local
Insight
Media
T-­‐Tell
CrowdSpot
Localbase
Tworkz.com
DDC
Locallife
Holdings
Upnext.com
DirectoryCentral.com
LymaBean
usdirectory.com
Local
Search
Op3miza3on
with
Local
Lis3ngs

77. o Social
CRM
o Web
Pages
o Mobile
Marke3ng
o Cross-­‐channel
Campaigns
o Universal
Designer
2013
Roadmap
Highlights

79. Social
CRM

80. Break
We
will
return
aXer
a
15
minute
break

81. Customer
Panel

82. Amy
S.
Gebhardt
Director
of
Public
Rela3ons,
Oneida
Steve
Phillips
President
,
Purple
Trout
Kathryn
Seifert
CEO,
Eastern
Shore
Psychological
Services
Moderated
by
Bill
Wagner,
EVP
and
COO
Customer
Panel

83. Financial
Overview
Steve
Vintz,
EVP
and
Chief
Financial
Officer

84. o Annual
prepaid
subscrip3on
model
and
strong
renewals
create
predictable
revenue
stream
o Monthly
and
transac3on
eCommerce
customers
yields
low
CAC
and
drives
upsell
to
annual
subscrip3ons
o Investment
in
sales
provides
aerac3ve
cash
returns
and
long-­‐term
leverage
o Proven
track
record
of
balancing
top-­‐line
growth
with
profitability
Financial
Highlights

85. Consistent
Revenue
Growth
13
consecu-ve
years
of
growth
Non-­‐GAAP.
*2012
at
mid
point
of
guidance
provided
on
5/1/2012
and
reaffirmed
today
$
Millions
-­‐
20
40
60
80
100
120
140
160
180
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012*

86. Balanced
Mix
of
Business
Revenue
by
subscrip8on
type
Annual
Monthly
Transac3on
Customer
count
by
subscrip8on
type
Annual
Monthly
Transac3on

87. 87
Record
Customer
Growth
Over
13,000
annual
subscrip-on
customers*
*
As
of
3/31/2012
-­‐
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2,000
acquired
customers
from
DataPresse

88. E-­‐Commerce
(Monthly/
Transac8on)
Annual
Subscrip8on
ASP
$480
$5,000
$$
Renewal
Rate
n/a
80%
Customer
Life
(years)
n/a
5.0
Total
Life8me
Sales
$960
$25,000
Marke3ng
Acquisi3on
Cost
$300
$1,000
Sales
Cost
$0
$8,000
Total
Life3me
S&M
Cost
$300
$9,000
Total
Life8me
Contribu8on
$660
$16,000
Life3me
Profitability
69%
64%
Payback
3me
(months)
7.5
8.4
Compelling
Customer
Economics

89. Investments
Drive
Strong
Returns
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Cumulative
Cash Cumulative
Profit
Cash
Break-­‐
even
Profit
Break-­‐
even
Collec8on,
revenue
starts
First
Sale
Hiring
a
Sales
Rep
is
Accre8ve
to
Cash
Flow
in
Year
1
and
Profit
in
Year
2.

90. Significant
Growth
in
Marke3ng
Marke3ng
PR
Marke3ng
represents
over
47%
of
total
sales
for
FY2012
Growth
in
marke3ng
accelera3ng
to
37%
for
2H2012
0%
5%
10%
15%
20%
25%
30%
35%
40%
1H12
2H12

91. Q2’12
o Non-­‐GAAP
Revenue
$43.5M
-­‐
$43.8M
o GAAP
Revenue
$42.8M
-­‐
$43.1M
o Non-­‐GAAP
EPS
$0.08
-­‐
$0.09
on
24.2M
diluted
shares
o GAAP
EPS
$(0.30)-­‐$(0.29)
on
19.5M
basic
and
diluted
shares
FY
2012
o Non-­‐GAAP
Revenue
$171.3M
-­‐
$172.5M
o GAAP
Revenue
$169.1M
-­‐
$170.3M
o Non-­‐GAAP
EPS
$0.38
-­‐
$0.40
on
24.0M
diluted
shares
o Free
Cash
Flow
$15.5M
-­‐
$16.5M
o GAAP
EPS
$(1.25)-­‐$(1.23)
on
19.5M
basic
and
diluted
shares
Reaffirming
Q2’12
and
FY2012
Guidance

92. Balance
Sheet
Highlights
Cash
&
Investments
Total
Debt
Total
Assets
2012
$25.8
2010
$100.4
Deferred
Revenue
$
in
Millions
2011
$108.2
$283.9
$174.5
$195.7
$1.8
$0.3
$1.0
$66.4
$56.6
$63.0
Shareholders’
Equity
$102.4
$104.4
$102.7
December
31
March
31
92

93. Long-­‐Term
Financial
Model
(2%)
Revenue
Opera8ng
Margin
G&A
R&D
S&M
Gross
Margin
2012*
78%
$28.1
53%
9%
18%
Free
Cash
Flow
($2M)
$
in
Millions
2005
6%
83%
$171.9
54%
6%
17%
$16M
25-­‐30%
Long-­‐Term
Op
Model
85-­‐87%
100%
41-­‐42%
5-­‐7%
10-­‐12%
25-­‐30%
All
data-­‐points
referenced
above
are
on
a
Non-­‐GAAP
basis.
*2012
at
mid
point
of
guidance
provided
on
5/1/2012
and
reaffirmed
today.
18%
83%
$84.6
44%
4%
17%
$20M
2009

94. o Expand
cloud
marke3ng
suite
o Grow
inside
direct
sales
force
o Expand
e-­‐commerce
and
alternate
channels
o Expand
interna3onal
opera3ons
o Selec3ve
opportunis3c
acquisi3ons
Long-­‐Term
Growth
Levers

95. Concluding
Remarks
and
Q&A

96. o Digital
marke3ng
represents
one
of
the
most
significant
opportuni3es
in
so6ware
today
o Vocus
so6ware
suite
uniquely
addresses
cri3cal
func3ons
of
modern
digital
marke3ng
o Pricing
and
posi3oning
creates
scalable
and
profitable
long-­‐term
business
model
o Posi3oned
for
market
leadership
with
one
of
the
fastest
growing
cloud
marke3ng
businesses
Vocus
Investment
Highlights

97. Vocus,
Inc.
Cloud
Marke3ng
So6ware
Analyst
Day
Presenta-on
June
6,
2012