Cbeyond upbeat 3Q08 results

Announcing its third quarter 2008 results on October 30, Cbeyond reported revenue growth of 24.6 percent and adjusted EBITDA growth of 25.5 percent from the third quarter 2007.

Cbeyond brought in $90.2 million in revenues in 3Q08, with adjusted EBITDA of almost $17 million for the same quarter. Net income was $1.7 million; down from $3.4 million in net income from 3Q07, but income tax expenses are a bit different from a year ago. The company added 1,993 customers in the quarter, bringing its total number of customers to 40,569.

Average monthly revenue per customer location (ARPU) continues to increase from quarter to quarter. In 3Q07, it was $749, as compared to $754 in 2Q08 and $756 for the third quarter of 2008.

CBeyond's upward ARPU, increased applications used per customer, and an increase in mobile penetration to 31 percent of its customer base fueled its strong numbers. Apps used per customer moved from 5.9 to 6.8 when comparing 3Q07 to 3Q08.

Not all was roses. Houston is a big Cbeyond market, so the company took some collection and customer hits there due to Hurricane Ike. There's also some downturn due to the "declining economic picture."

Still, Cbeyond CEO Jim Geiger says the CLEC's long-term view is "very positive" with a debt-free balance sheet, strong cash position, and a market base of established, profitable cities. The company believes it is on track to add Washington D.C. as its twelfth market in the first quarter of 2009 and add on another market "later" in the year.

For more:
- Cbeyond chalks up 3Q08 numbers. Release [1].