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Vonage Holdings Corp. CEO Discusses Q1 2012 Results - Earnings Call Transcript

More information about those risks and uncertainties is highlighted on the second page of the slides and contained in our SEC filings. We caution listeners not to rely unduly on forward-looking statements and disclaims any intent or obligation to update them.

During this call, we will be referring to non-GAAP financial measures. A reconciliation to GAAP measures is available on the IR website.

And now, I will turn the call over to Marc.

Marc Lefar

Thank you, Leslie, and good morning, everyone. We entered 2012 with a financially strong business, characterized by strong flow, our lowest cost structure in six years and a clean balance sheet. With a stable core business, we're continuing to focus our effects to drive revenue in three major areas.

The first, is international long distance, where we will build on our success through continued penetration of ethnic calling segments and expanded distribution. The second, is mobile services, which builds on the recently launched Vonage Mobile platform. And third, is international expansion as we enter new geographic markets outside North America and the UK through strategic partnerships.

In the past year, Vonage world customers have grown from 43% of our base to nearly 50% today. Our base of active international callers now comprises 35% of all customers. In recent months, we continued to grow our international long distance space driven by our continued efforts in Hispanic segment. In the first quarter, we experienced 6% growth in the number of callers to Mexico and Central America.

This builds upon our success that began in 2011 with the launch of our end-to-end Spanish language experience for our customers. This capability has contributed to an increase of 60% in monthly usage to Mexico, the Caribbean and Latin America since the beginning of 2011.

In addition, we've expanded the number of community sales teams and broadened our retail distribution. These channels now deliver over 20% of total sales primarily in key ethnic segments.

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