Sunday, February 18, 2007

Vonage Numbers

Vonage said "its revenue doubled from the fourth quarter of 2005 and its income loss shrank to $65 million. But the stock dropped on news it signed 166,000 new subscribers in the fourth quarter and predicted 676,000 to 876,000 new subscribers in 2007." [Source]. However, this is the lowest subscriber figure for Vonage at a time when Cable VoIP is ramping up. The stock was at a low of $5!

A deeper look at the numbers:

  • 4Q06 revenue up almost double from last year to $181M
  • year's net loss increased to $286M
  • marketing costs were up 50% this quarter to $96M - just 53% of revenue
  • marketing expenses for the annum up 50% to $365M
  • "marketing costs per gross subscriber line addition have soared to $306 for 4Q06 compared with $249 for the year as a whole [source]
  • average monthly customer churn improved to 2.3 percent in 4Q06 from 2.6 in 3Q
  • "Average monthly telephony services revenue per line for the quarter was $27.41, an increase of $1.41 from 4Q05. However, Vonage said, the increase was primarily due to regulatory recovery fees and the impact of the Universal Service Fund, which became effective Oct. 1, 2006." [source]


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