This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Vonage Holdings' CEO Discusses Q2 2012 Results - Earnings Call Transcript

In Mobile, we delivered an important improvement to our Vonage Mobile App enhancing call and connection quality and adding key features including Bluetooth and the ability to share photos and locations. In the next few weeks, we’ll invite smartphone users to participate in the beta trial of our innovative mobile roaming solution as an important step toward a broader market launch.

Lastly, based upon our progress over the past few years, we have great confidence in the strength and sustainability of the company’s cash flow; combined with a pristine balance sheet and our belief that our stock represents a very attractive value, the Board of Directors has authorized a share repurchase of up to $50 million to be concluded by the end of 2013. This is consistent with our strategy of taking a balanced approach to capital allocation by investing in growth and returning value to shareholders while maintaining ample cash to fund the operational needs of our business.

Let me now move to a discussion of our financial and operating results. Our financial performance remains strong as we generated $35 million in adjusted EBITDA. Continuing operational improvements including lower cost of telephony services, both domestically and internationally and a 6% reduction in customer care cost per line contributed to the sequential improvement in EBITDA. Sequential revenue decline modestly and Barry will talk through the details in a few minutes.

Free cash flow increased by $23 million to $25 million, up from $2 million in the seasonally lower first quarter. Gross line additions or GLAs of a 163,000 were up 5,000 lines compared to a year ago. Similar to last year, we experienced seasonally higher media costs in the second quarter which elevated subscriber acquisition cost.

While GLAs for the full quarter were relatively flat sequentially acceleration throughout the quarter was encouraging and supported by the addition of Pakistan to Vonage World and the introduction of an enhanced plan with mobile minute to Latin America.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs