Vonage announced results for the first quarter ended March 31, 2012. Reflecting the company's previously stated plans to increase investment in its strategic growth initiatives, Vonage reported adjusted earnings before interest, taxes, depreciation and amortization of $32 million which includes $7 million in growth initiative funding.
Adjusted EBITDA is down from $40 million sequentially and $43 million in the year ago quarter. Similarly, income from operations was $21 million, a decrease from $28 million sequentially and $30 million in the year ago quarter.
Net income was $19 million or $0.08 per share excluding adjustments(1), a decline from $26 million or $0.11 per share sequentially, and a decline from $23 million or $0.10 per share in the year ago quarter.
GAAP net income was $14 million or $0.06 per share, down from $350 million or $1.55 per share sequentially due to a one-time non-cash income tax benefit recognized in the fourth quarter, and down from $21 million or $0.10 per share a year ago.
Revenue totaled $216 million, flat sequentially and down from $220 million the prior year.
Marc Lefar, Vonage Chief Executive Officer, said, "Our financial results were consistent with previous guidance as we increased investment in our strategic growth initiatives. Our core business is stable and generated EBITDA which was in line with recent quarters."
Vonage also announced its first international partnership with Globe in the Philippines. The partnership marks a significant milestone in Vonage's strategy to expand its services beyond North America and the United Kingdom. The company remains actively involved in discussions with several prospective partners and expects to announce additional alliances before the end of this year.
On April 18, 2012, Vonage announced key milestones for its Vonage Mobile and Extensions products. Launched in February 2012, the Vonage Mobile app surpassed one million downloads in approximately eight weeks, with usage now approaching 10 million minutes per month. Since launch, the company has steadily updated the app to enhance ease of use and performance and has implemented new releases for iOS and Android addressing top priorities including connection quality, latency load times when opening the app and battery life. Most recently, the company yesterday updated the app to enhance its messaging capability to allow photo and location sharing and sharing of the app with friends on Facebook and Twitter.