Vonage: win some, lose some

27 Feb 2009

Vonage reported its first year of positive cash flow from operations, with a revenue increase of 9% to USD900 million for the full year 2008. For the first time in its history, Vonage reported positive operating income in the fourth quarter, generating USD3 million in operating income, up from operating losses of USD9 million in the year-ago quarter and USD3 million in the third quarter of 2008. However, the company reported a net decline in subscribers, losing 14,700 customers in the fourth quarter despite churn falling slightly to 2.9% from 3% in the third quarter. GAAP net loss was USD65 million in 2008. Marc Lefar, Vonage CEO, said, ‘While our financial performance was sound, we fell short in our ability to substantially grow our subscriber base.’

United States