Subscriber adds help Vonage shave its Q3 loss
Vonage Holdings added 204,000 new subscribers in its third quarter, for a total of just over 2 million customers.
Vonage finished the quarter with 2,057,844 lines in service, an increase of 11 percent sequentially and 94 percent above the year-ago level. The company upped its guidance on full-year customer totals from 2.2 million customers, to 2.3 million.
The additions helped Vonage rack up $161 million in sales in its third quarter, up 12 percent sequentially, and up 118 percent from the year-ago quarter. The record earnings helped to narrow the company's losses from $74 million the previous quarter to $62 million in the quarter just ended. Vonage lost $66 million in the same quarter last year.
The company said it was the first time its losses narrowed year-over-year. Vonage said it is aggressively managing direct costs and achieving scale benefits due to growth in its subscriber base.
The company has been criticized for having miserable customer care. Consequently, customer care was an area that received both attention and investment. Vonage reported "marked improvements" in most service metrics, including call abandonment rates, first call resolution and overall customer satisfaction. Churn began to lower in September, the last month of the quarter.