SOURCE: VerticalResponse, Inc.

August 01, 2006 08:00 ET

VerticalResponse Reports First Half 2006 Results

Second Quarter Revenue Grows 85 Percent Year-Over-Year; Earnings Increase 349 Percent

SAN FRANCISCO, CA -- (MARKET WIRE) -- August 1, 2006 -- VerticalResponse, Inc. announced today its first half 2006 financial results, reporting the highest revenue and earnings in the company's history. VerticalResponse's strong showing in the year's opening two quarters saw the company best results from the comparable period of the previous year for the 16th and 17th consecutive time.

In the first quarter of 2006, the provider of email and direct mail marketing solutions boosted sales by 96 percent over the year-ago quarter and followed with a 91 percent increase in year-over-year revenues for the second quarter of 2006. The company's net income growth was similarly impressive as first quarter 2006 profits rose 85 percent from the opening quarter of 2005, and second quarter earnings jumped 349 percent from the same period a year ago.

VerticalResponse officials attributed the robust performance to expansion of the company's client base, particularly among its core demographic of small and medium-sized businesses. In the first quarter of 2006, VerticalResponse saw its customer growth total increase 286 percent from the opening period of 2005, while second quarter customer growth figures topped the results of the year-ago quarter by 244 percent. The popularity of VerticalResponse's flagship email marketing tool drove the returns, which were augmented by growth in the company's direct mail postcard offering as well as steady adoption of its integration with the CRM solution via the AppExchange.

"We're excited that we've been able to extend our streak of sales and profit growth into 2006 and look to continue this trend throughout the year," said VerticalResponse CEO Janine Popick. "These encouraging results show that customers appreciate the ease-of-use, affordability and functionality presented by our self-service email marketing tool, as well as the flexibility offered by our direct mail postcard product. We will continue to refine these solutions so small and mid-sized businesses can enjoy the most rewarding e-mail marketing experience possible."

About VerticalResponse

VerticalResponse, Inc. ( is a leading provider of self-service email and direct mail services empowering businesses of all sizes to create, manage and assess 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

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