Vonage posts record revenue, cuts losses

Vonage announced record revenue of $228 million for the second quarter of 2008, according to an earnings report released Thursday.  The company is still operating at a loss; however, the $7 million loss reported this quarter is down more than 60 percent from the $23 million loss the company reported in the same quarter last year.

The company's average revenue per line increased from $28.85 to $29.04 sequentially, but it only added 2,000 net customers in the quarter, as it continues to battle churn rates of close to 3 percent. 

Vonage continues to spend heavily on advertising and marketing, with marketing expenses accounting for 29 percent of total spending. The company boasts 150,000 more subscribers than it did at this point last year, but such slow growth (6 percent) will limit the company's hope for eventual profitability.

For more:
- The Vonage 2Q earnings report is here.

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