Vonage (News - Alert) Holdings Corp. recently released results for the third quarter of fiscal year 2012, ended September 30, 2012. All in all, it was a bright quarter for the communications services provider with a net profit and respectable earnings.
Adjusted earnings for the company before interest, taxes, depreciation and amortization (EBITDA) was $34 million, down from $35 million the previous quarter and $40 million in Q3 2011. However, this is because Vonage went ahead with its previously stated plan to increase investment in strategic growth initiatives by $5-$10 million per quarter throughout 2012. As such, the company invested $5 million in growth initiatives in Q3, for $16 million invested in total for 2012 so far.
GAAP net income was $13 million for the quarter, up from a GAAP net loss of $3 million sequentially, and down from a GAAP net income of $16 million in Q3 2011. In non-GAAP terms, net income was $21 million.
The company's success extended into its user base for the quarter, with 172,000 active users, up from 163,000 from the previous quarter and 170,000 in the same period last year. As such, Vonage grew its customer base by 9,000 net lines during the quarter.
It's no surprise that Vonage has been doing well, as the company has been downright aggressive in its efforts. In February, the company launched new Android (News - Alert) and iOS apps with free app-to-app calling and international calling rates that are on average 70 percent less than major mobile providers, as well as 30 percent less than Skype.
Later, in May, Vonage entered into an agreement with Globe, a telecommunications provider in the Philippines, to deliver market pricing to and from the country, which obviously led to an increase in customers.
"We reported a solid third quarter marked by stability in our core business, resulting in the growth of our customer base and steady cash flow," said Marc Lefar, Vonage CEO. "During the quarter, we launched several key services in support of our growth initiatives. These included a compelling new international plan for calls to the Philippines through our partnership with Globe; unlimited calling to mobile phones in Mexico; and, the addition of Vietnam and South Korea to our flagship Vonage World plan."
Edited by Brooke Neuman