Vonage posts Q2 profit, but sheds 90k lines

Despite a sequential and year-over-year revenue decline, Vonage managed to report a $1 million profit and its first ever quarter with positive net income. The VoIP company posted revenue of $220 million and net income excluding adjustments of $15 million for the second quarter.

However, the company lost nearly 90,000 net subscribers, saw churn creep up to 3.2 percent, and only added 143,645 gross subscriber lines in Q2, compared to 226,610 gross sub adds the previous quarter.

Vonage CEO Mark Lefar said in the earnings release that the positive net income result was a positive milestone for the company, but added that he was displeased with the net subscriber loss. Vonage also saw its oft-maligned marketing cost per gross subscriber add balloon to $363 per customer, from $290 the previous quarter and $283 from Q2 2008.

Despite some of the negative indicators, Lefar said a marketing campaign launched in the second quarter should have a positive impact on the company's Q3 earnings. He also said the company plans product and feature launches in the upcoming weeks.

Can these new features and products turn the dial for the struggling VoIP company?

For more:
- see the press release here 

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