VoIP provider Vonage had a revenue increase of 9 per cent to USD $900 million in 2008.
However, reporting on its fourth-quarter and full-year 2008 earnings report, the company said it had lost a net of 14,700 subscribers in Q4.
Net loss excluding debt extinguishment costs narrowed to USD $34 million from USD $93 million excluding certain charges.
GAAP net loss was USD $65 million or $0.41 per share in 2008.
Marc Lefar, Vonage’s CEO, said the company had improved its financial position throughout 2008 – to the extent that it delivered adjusted operating profit and positive cash from operations for a full year for the first time.
Noting the loss of subscribers, he was optimistic about Vonage’s business model, which he said was solid and the market opportunity for digital voice remains robust.
"While our financial performance was sound, we fell short in our ability to substantially grow our subscriber base," he said.
"However, we are confident Vonage has significant opportunities to create future value for shareholders."
Lefar said a range of initiatives were being lined up for launch, including:
- improving the customer experience
- enhancing distribution and marketing
- improving quality and reliability
- initiating new products and features
- optimizing our cost structure
- improving talent management
Lefar said he was confident these will drive Vonage forward as a business model poised to achieve significant new growth.