Vonage Holdings reported full year 2008 revenue of $900 million, up 9 percent from $828 million in 2007. Net loss excluding debt extinguishment costs narrowed to $34 million from $93 million excluding certain charges. GAAP net loss was $65 million or $0.41 per share in 2008.
Marc Lefar, Vonage Chief Executive Officer, said, "We improved our financial position throughout 2008, and for the first time in Vonage's history, delivered adjusted operating profit and positive cash from operations for a full year. Vonage also delivered record level pre-marketing operating income(1) reflecting increasing levels of cash generated by the existing customer base. This progress occurred despite the uncertainty and challenges of the current economy."
"While our financial performance was sound, we fell short in our ability to substantially grow our subscriber base. However, we are confident Vonage has significant opportunities to create future value for shareholders," Mr. Lefar said. "Not only is the business model solid, but the market opportunity for digital voice remains robust."
Some highlights:
- Revenue in 2008 increased 3 percent from the prior year to $222 million driven by an increase in average revenue per line (ARPU) and subscriber lines. Revenue declined 2 percent sequentially as a result of a decline in ARPU.
- ARPU was $28.33, up from $28.19 in the year-ago quarter and down from $28.75 sequentially. Telephony services ARPU was $27.28, down from $27.42 reported a year ago and $27.52 sequentially. The sequential decline in telephony services ARPU was the result of a decline in currency value of the Canadian dollar and British pound and an adjustment in international revenue which totaled $0.33. Excluding these impacts, telephony services ARPU increased $0.09 sequentially.
- The company lost 14,700 net subscriber lines, finishing the quarter with more than 2.6 million lines in service. Churn declined to 2.9% from 3.0% sequentially.
