Give some credit. Many an obituary has been written about the company, yet they keep hanging on. even reveals a $5 million profit, although it came about from a unique occurrence – a $13 million mark-to-market adjustment associated with a derivative liability on its convertible debt – whatever that means. The bring-your-own-broadband VoIP services provider lost 6,000 subscribers in 1Q09, ending the quarter with 2.6 million lines. Churn rose to a level of 3.1%, which is high, even for Vonage.

Revenue totaled $224 million, which was relatively flat year-over-year and 1% higher sequentially. Operating cash flow–adjusted EBITDA–rose for the sixth consecutive quarter, coming in at $21 million, up from $8 million a year ago and $20 million sequentially.

Vonage reports direct cost of telephony services declined to $52 million ($6.67 per line) from $56 million ($7.26 per line) a year ago and $57 million ($7.22 per line) in 4Q08. Selling, general and administrative expenses also fell, to $68 million from $79 million in the year-ago quarter and $69 million in Q408, the result of reductions in overhead, less costly customer care management, and compensation and benefit costs.


Pre-marketing operating income rose to a record-high $98 million ($17.71 per line), up from $83 million a year ago and $92 million sequentially. Marketing expenses rose to $66 million as compared to $61 million a year ago and $62 million in 4Q08.

Join the Conversation

Leave a Reply

Your email address will not be published.

Don’t Miss Any of Our Content

What’s happening with broadband and why is it important? Find out by subscribing to Telecompetitor’s newsletter today.

You have Successfully Subscribed!