CBeyond Revenues Grow 9.7% YoY to $112 Million

Cbeyond, a managed service provider operating in 13 U.S. markets, reported Q2 revenue of $111.8 million, up 9.7% over the second quarter of 2009. The company's adjusted EBITDA was $18.4 million for Q2 2010 compared with $13.8 million in the second quarter of 2009, and $18.6 million in Q1 2010. There was a net loss of ($0.1) million in the second quarter of 2010 compared with a net loss of ($2.2) million in the second quarter of 2009.


As of the end of Q2, Cbeyond was serving 53,518 total customers in its 13 operating markets, reflecting net customer additions of 1,787 in the second quarter of 2010, an increase of 15.3% in total customers year-over-year. Average monthly revenue per customer location (ARPU) was $708 during Q2, compared with $723 in Q1 and $748 in the Q2 2009.


"We are pleased to report continued strong results in adjusted EBITDA and free cash flow during the second quarter of 2010," said Jim Geiger, chief executive officer of Cbeyond. "Our adjusted EBITDA of $18.4 million represents an increase of approximately 33% over the second quarter of 2009. We are also pleased to note that Cbeyond posted ‘free cash flow' of $3.2 million in the second quarter, with free cash flow totaling $8.6 million in the first half of 2010. Free cash flow is a non-GAAP measure that we define as adjusted EBITDA less capital expenditures. While adjusted EBITDA and free cash flow results have developed largely as planned, revenue and ARPU have continued to be challenging in this tough economic and increasingly price-sensitive environment. Our efforts are focused on trying to optimize profitability in our target markets while continuing to grow and maintain our customer base."


Geiger added, "Despite the still-sluggish small business sector, Cbeyond posted an increase in the level of customer additions in the second quarter, the San Francisco Bay Area market became an Established Market this quarter, and we are excited to note that we recently launched services in Boston, our 14th market."http://www.cbeyond.com