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Vonage Oh sure
Put me on the hotseat! 8)
I look at a couple things in the financials
Oh sure
Put me on the hotseat! 8)
I look at a couple things in the financials that I just think they could be doing better.
I was a little surprised to see the compensation to some of the directors. I couldn't quite decipher all the stock options, (some appear to be as low as $0.25), but I believe some are getting a healthy dose of stocks to go along with a pretty good rate of compensation. Generally, I think there is a trend that emerging companies usually compensate heavily with stock options, with the driving force being not alot of cash in the coffers and that someday stock options will be worth a lot. It just seems that there is a double whammy here, good compensation and good options. Small potatos in the scheme of things, but I think it also reflects in the company's other dealings.
Average monthly "churn" (as they call it). 2.05% in 2005. That's a yearly rate of 24.6% (a quarter of their subscriber base.) I think it's no secret that customer service has something to do with that. But they appear to have accepted this fate. Of course, it is also noted that they have a high turnover in customer care representatives.
The whopper for me is "Marketing cost per gross subscriber line addition". $221.35 per line is too high for me. Especially when they are only averaging $17 and $18 per month on each line in profit.
Now I think they do need to market themselves. They must believe that then need many more subscribers, and I do believe the cliche, it takes money to make money. When you have in the prospectus, " We have incurred increasing quarterly losses since our inception, and we expect to continue to incur losses in the future. ", well..... Let's just say that if my financials read like that, I'd be pinching every penny I could, and advertise more out of necessity, and trying to maximize cash flow.
I laughed when I read a paragraph about business travel. I don't remember it completely, but briefly, the head honcho personally owns an aircraft, and the company pays to lease it for travel for the employees including the head honcho. Now add that to the compensation package, and for what I still consider an emerging company, it strikes me more to the extravagant side of things.
Honestly, there is no question the potential is here. Truthfully, I considered the IPO but felt that until a company can turn a profit, the stock price will decline. The stock market has an unique way as to correcting itself from the hype, smoke and mirrors. But I have a relative that kind of reminds me of Vonage. I think everyone does, you know the one that has been everywhere, done everything, and knows all. They may be lofty ambitions, but neither Vonage or that relative are there yet and still have a lot of growing to do. It isn't to say they can't, all I am saying is that Vonage needs to spend more time inside the box.
Read The Full Thread: Question about Vonage
• When did Vonage Become a voip business 2001 or 2002 ?
• Hmm
I guess it's in the semantics somewhat
Started in 2001
First customer
• Agreeable.
Of course the timeline isn't that specific, and it may very well
• Yes I was reading Vonage's timeline hmmmmm.
Normally it takes a New Business
• Where do you think Vonage needs to put a band-aid to stop the bleed? I'm interested
• I could not have stated those facts and opinions any better. Before this ipo had
• That's very much the key for me. Reliable service from the start, but I will not
• ....
I will keep on as a Vonage customer as long as it is a bargain and stays a
• [font=Comic Sans MS] I'm just curious, who was the first person who signed up for
outerfire posted "Oh sure
Put me on the hotseat! 8)
I look at a couple things in the financials" on 06/14/2006 |
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