Vonage Holdings (NYSE: VG) is a leading provider of voice over Internet protocol (VoIP) telephone services in the U.S., with over 2.4 million subscribers. Through monthly service plans, customers can utilize many features that are not available on traditional telephone lines at little or no additional charge. Vonage competes with traditional phone companies as well as cable companies, who are becoming more prevalent in the telephone industry.
One example of Vonage's phone plans is the World Plan, which offers free unlimited calling to landline phones in all cities and locations in more than 60 countries with popular features like call waiting, call forwarding and voicemail for one low, flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy (BBY) and Wal-Mart (WMT) and is available to customers in the U.S., Canada and the United Kingdom.
Vonage is a leading provider of broadband telephone service. Their Voice over Internet Protocol (VoIP) technology allows for inexpensive communications similar to traditional telephone service. Vonage offers a number of service plans to subscribers, each with features similar to (and in some cases beyond) those available through traditional phone line services.
First Quarter 2010 Results (ended March 31, 2010)
During the first quarter, Vonage generated net income of $14 million or $0.07 per share. This was an improvement from $5 million or $0.03 per share in the first quarter of 2009 and $4 million or $0.02 per share, sequentially. Vonage reported record adjusted EBITDA of $40 million, up from $21 million in the year ago quarter and $34 million sequentially. Revenue of $228 million increased from $224 million year-over-year and sequentially. Income from operations increased to $25 million, up from $5 million in the year ago quarter and $19 million sequentially.
Vonage provides subscribers with some features that are not available on standard telephone lines. Many of these features come at no cost, while some require additional fees. All the Vonage calling plans include call waiting, caller ID, and call forwarding.
[[Image:Vonagesubscriber.jpg|350px|The number of Vonage subscriber lines has been declining for years.