VerticalResponse Ends 2007 With a Bang

Profitable Since 2005, the Leading Provider of On-Demand Email Marketing the Small Business Market Grows Partner, Customer and Employee Counts by More Than 50% Each

SAN FRANCISCO, CA – (Marketingwire – March 13, 2008) –VerticalResponse, Inc., the leading provider of on-demand email marketing and direct mail solutions, today announced a stellar 2007. The company 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 with the end result showing sharp growth in key areas, including:

• 34% jump in revenue
• 67% increase in VerticalResponse employees
• 57% growth in partnerships
• 52% increase in customers, bringing the total number of paying customers to more than 36,000

The rapid growth recognizes VerticalResponse's commitment to constant improvement and marks the company's third consecutive profitable year*.

"I'm incredibly proud of my team for getting us to where we are today. The tight focus on our customers, and the constant push to improve products and services really show when you look at the year in review," said Janine Popick, founder and CEO of VerticalResponse. "Maintaining VerticalResponse as a great place to work while keeping our collective nose to the grindstone will help us continue to grow."

Products & Services

At the core of VerticalResponse, Inc. are the products and services that are helping establish VerticalResponse as a one-stop marketing resource for many small businesses. From the Customer Service team taking customer requests through online and phone support, to the engineering and product teams who develop new offerings, the entire VerticalResponse team works constantly to upgrade and improve.

In addition to a new User Interface, updated sign-up processes, and other features, in 2007, the company launched a series of major updates that serve the customer, highlights of which include: 

• VerticalResponse for AppExchange 3.0, which included better query tools, SalesForce.com-specific mail templates and other upgrades to the most popular partner application on Force.com
• List Segmentation, which allows users to divide lists based on any information they collect as well as campaign response data, helping achieve higher response rates
• Google Analytics Integration, Click-to-Conversion Tracking and an ROI Calculator to better measure campaign success
• The Email Canvas and Media Library, which provides a WYSIWYG Editor and several pre-built layouts and 25 MB of free hosting for images respectively
• The VerticalResponse Application Programming Interface (API), which allows the award-winning self-service email marketing software to be extended and integrated into other platforms and sites at the core of many partnerships
• 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 helping them capitalize on opportunities presented by holidays and other key dates

Awards

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

• Stevie® Award for Women for Fastest Growing Company of the Year
• Ranked 21 on the Silicon Valley Technology Fast 50, which is a ranking of the 50 fastest growing technology firms in the Bay Area
• Number 254 Fastest Growing Company in North America on Deloitte's 2007 Technology Fast 500
• Ranked 22 on 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

Social Networking and Media

Part of VerticalResponse's continued success can be credited to Popick's commitment to staying ahead of new media. Among new initiatives launched in 2007 to keep her and the rest of the team in close contact with new and prospective customers, 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
• Launched the VerticalResponse for AppExchange Blog
• Regularly released Podcasts relating to email marketing
• 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

A Look Ahead at 2008 - VerticalResponse Goes Green and Goes out on the Road

Among the key goals of the company for 2008 is to be recognized as a San Francisco Green Business. To that end, the company has donated employee time to clean up an oil spill in San Francisco; greened the office to include only post-consumer paper products; offset carbon emissions with Native Energy; uses local products and works with local businesses; and actively participates in a computer recycling drive.

Another program launched this year is "Get Vertical," a series of workshops that focus on helping small businesses grow their customer lists and communicate to them through easy to use tools from VerticalResponse and the VerticalResponse Partners. The workshops include hands-on demonstrations, highlight best practices from the experts in the field, and send attendees home with great tips and tricks guaranteed to grow their business.

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.

*Based on unaudited financial statements

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