The Holmdel, N.J., Net calling shop posted a net loss of $65 million, or 42 cents a share. Those numbers compare with a loss of $72 million in the year-ago quarter. The company's adjusted loss from operations was $53 million, compared with $68 million a year ago.
Sales for the quarter were $181 million, up from the $95 million level a year ago. Analysts were looking for $179.3 million in sales according to Thomson First Call.
For the year, Vonage's net loss widened to $286 million, from $261 million in 2005. Revenue for 2006 was $607 million, more than double the $269 million in 2005.
The company added 166,000 new subscriber lines in the fourth quarter and a total of 955,000 lines for the year. That leaves the company with 2,224,000 lines at the end of December, 75% above the year-ago level of 1,269,000.
"In 2006, the build-out of the business was clearly seen through the growth of our customer base and the resulting impact of scale benefits," CEO Mike Snyder said in a press release. "We continue to make progress toward our goal of positive adjusted operating profits as early as the first quarter 2008."
Looking ahead, the company expects to hit the 3 million line mark by year end, which calls for about 750,000 net new lines, far less than pace of growth last year.
The company expects sales for 2007 to be in a range of $850 million to $900 million. That's below the $913 million analysts had been looking for.
Marketing costs are also expected to increase to somewhere between $400 million and $425 million, up from $365 million last year.
Vonage shares fell 28 cents to $5.56 in early trading Thursday.