Vonage sees income jump in Q1

Vonage has released its Q1 earnings report and things are looking up for the VoIP company. Net income jumped from $5 million in the same quarter in 2009 to $14 million in 2010.

Revenue was also up from last quarter and as a company that used to be posting losses, Vonage seems to be seeing some great numbers. Revenue for Q1 came in at $228 million an increase from $224 million year-over-year and sequentially.

"Our financial performance was particularly strong, as we achieved record high net income and EBITDA. We more than doubled cash from operations sequentially and generated $47 million in free cash flow in the quarter. This strong cash generation enabled us to reduce our debt by prepaying $23 million in first lien obligations. This prepayment will reduce 2010 interest expense by $2.5 million and approximately $13 million over the life of the remaining debt," said Marc Lefar, Vonage Chief Executive Officer in a release.

The company's subscriber numbers were also doing interesting things. Churn declined to 2.6 percent from 3.1 percent in the year ago quarter and 2.8 percent sequentially which means more satifisfied hanging on to their Vonage lines. The problem apparently is that new subscribers weren't enough to close the gap created by even the lower churn. The release noted that international customers had a higher net present value than domestic-only users due to their lower churn rates and that is an area where Vonage subscribers seem to be growing.

For more:
- read the release
- read the AP story

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