Cbeyond reports 25% revenue growth over prior year

Bad economic news hasn't fazed Cbeyond. The company added nearly 1,900 net customers in the fourth quarter of 2008 and reported "strong" fourth-quarter revenue of nearly $94 million, a 25 percent increase from Q4 2007.

Some number did take a dip; net income was only $500,000 for Q4 2008, down $12 million from Q4 last year, but some of that's income tax expense. ARPU was down a little as well to $754 in Q4, compared to $760 in Q3 and $750 in Q4 2007; the decline from Q3 to Q4 is attributed to seasonable usage patterns (i.e. people not using services as much due to the holidays). Customer churn is also up a tick to 1.4 percent, as compared to 1.3 percent for the third quarter of 2008.

Cbeyond CEO Jim Geiger is bullish on the future, noting the company closed the year with a cash balance of $37 million and no debt. "Cbeyond continues to produce strong results across a wide range of key business metrics, despite the backdrop of a worsening economy," he said in comments attached to the company's earnings release.

As part of the announcement, Cbeyond announced its thirteenth market launch will be in Seattle and anticipates its first customer installations in the market will occur in the second half of 2009.

For 2009 the company expects to bring in between $420 million to $440 million, with adjusted EBDITA of $62 million to 70 million. It also anticipates investing $65 million to $70 million in capital expenditures. The numbers assume the launching of services into Washington D.C. in the first quarter of 2009 and Seattle later in the year.

For more:
- Cbeyond release [1] on Q4 numbers.