SOURCE: VerticalResponse

October 09, 2007 12:29 ET

VerticalResponse Projects Largest Revenue Growth to Date for Q4 2007

Profitable Since the Beginning of 2005, the Leading Provider of On-Demand Email Marketing and Direct Mail Solutions for the Small Business Market Rides Powerful Momentum Into End of Year

SAN FRANCISCO, CA--(Marketwire - October 9, 2007) - VerticalResponse, Inc., the leading provider of on-demand email marketing and direct mail solutions, today projected its highest revenue quarter-to-date, on the tails of third quarter reporting. This year, the company has invested heavily in product development; won a series of prestigious awards and honors; and harnessed the power of social media with a broad array of offerings and outreach. The result is rapid growth, with more than 7,000 new customers signed on in the first three quarters of this year, bringing the total number of paying customers to 32,000. Revenue is likewise up, with nearly 36% increase over this time last year.

"Our continued growth is incredibly exciting, given the climate we launched into at the beginning, nearly 7 years ago. Because we didn't raise a lot of capital initially, we've always had to be very smart about how we spend, and were forced to grow from our own profits and strong word of mouth marketing," said Janine Popick, founder and CEO of VerticalResponse. "The result is a lean organization that's able to quickly and nimbly respond to customer feedback and changes in communications strategies, which keeps us close to the pulse of the small businesses we serve at the core of our business."

Product

Last week, VerticalResponse launched its biggest upgrade since inception with a List Segmentation tool that promises to greatly increase the efficacy of target marketing. In addition, the first three quarters brought VerticalResponse customers incredibly robust features, including:

--  Google Analytics Integration, a new reporting solution to measure
    email campaign effectiveness
--  The Email Canvas, which provides a WYSIWYG Editor and several pre-
    built layouts into which customers can simply add text and images
--  The Media Library, granting 25 MB of free hosting for images that can
    be easily uploaded, and then categorized in folders and subfolders
--  VerticalResponse for AppExchange 3.0, which includes both new custom
    reporting objects, and reports and dashboards. The upgrade also allows
    customers to access salesforce.com mail templates
--  The VerticalResponse Application Programming Interface (API), which
    allows award-winning self-service email marketing software to be extended
    and integrated into other platforms
--  Interactive Marketing Calendar (IMC), to break down the tasks to be
    accomplished prior to an email campaign launch date, keeping business
    owners on task and helps them capitalize on opportunities presented by
    holidays and other key dates
--  Quick List Creation feature, designed as a campaign follow-up tool, to
    let users quickly create lists of recipients who opened, clicked,
    converted, purchased or performed no action for a given campaign
    

Awards

VerticalResponse's rapid growth, attention to development and commitment to customers and communication has led to a series of prestigious awards, including:

--  San Francisco Business Times' "Top 100 Fastest-Growing Private
    Companies"
--  Dreamforce Best-in-Show at salesforce.com's 2nd Annual Appy Awards
--  Best Overall Company at the American Business Awards and nominations
    as a finalist in five additional categories
--  San Francisco Business Times' list of Best Places to Work in the Bay
    Area
--  Inc. 5000 List of Fastest Growing Companies
--  Web Marketing Award for Outstanding Achievement in Website Development
--  Janine Popick's blog won Blog of the Year at the STEVIE's for Women in
    Business
    

Social Networking and Media

Part of VerticalResponse's continued success is due to its embrace of new media, and subsequent close contact with both existing customers and prospects. Among new initiatives launched this year, VerticalResponse:

--  Created the VR Lounge, its own social networking site, allowing
    customers to connect with each other and with VerticalResponse partners and
    staff, in an open, customizable experience self-tailored to fit their needs
--  Continued work with the award-winning Email Marketing Blog
    (http://blog.verticalresponse.com/verticalresponse_blog)
--  Launched a FaceBook group to solicit participation in live webinars,
    feedback on new and projected product updates and otherwise link to the
    small business community
--  Released its second viral video around salesforce.com's annual
    conference, spurring thousands of YouTube views and site visits
    

VerticalResponse launched after the dot.com bust with a business model focused on leveling the playing field for small and mid-sized business. A deep commitment to this customer base, quick product development, innovative communications and good customer service have proven the model and led to continued momentum.

About VerticalResponse

VerticalResponse, Inc. (http://www.verticalresponse.com) is a leading provider of self-service email marketing and direct mail services empowering small businesses and non profit organizations to create, manage and analyze their own direct marketing campaigns. VerticalResponse's flagship product, which allows customers to deliver sophisticated yet easily deployed email campaigns, is the most intuitive and affordable Web-based direct marketing solution available. VerticalResponse is headquartered in San Francisco, California. For additional information, please visit www.verticalresponse.com.

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