Question about Vonage

Posts: 409 · Posted: Tue Jun 13, 2006 10:27 pm Post subject: Question about Vonage

When did Vonage Become a Voip business 2001 or 2002 ?

Posts: 293 · Vonage Forum Master Joined: Jan 22, 2006 Posts: 293

Hmm

I guess it's in the semantics somewhat

Started in 2001
First customer in 2002

according to Vonage Timeline

Posts: 409 · Posted: Wed Jun 14, 2006 8:41 am Post subject:

outerfire wrote:

Hmm

I guess it's in the semantics somewhat

Started in 2001
First customer in 2002

according to Vonage Timeline

Yes I was reading Vonage's timeline hmmmmm.

Normally it takes a New Business 7 years in the making to know if it will be a profitable and solid business. Since the financing rounds started in 01 my guess would be thats the year to start.

So in about one more year Vonage should know if they are going to stay as and use this newfound money to build on or sell out.

I guess we can track their intentions by how they utilize the stock profits in the Company.

Posts: 293 · Vonage Forum Master Joined: Jan 22, 2006 Posts: 293

Agreeable.

Of course the timeline isn't that specific, and it may very well have been Q4 that the business started. I didn't now how specific you were looking for and that's all I could find.

I would also agree that it is going to be interesting and very telling to see how Vonage uses their IPO money. I think to many users bought into the IPO looking for the quick buck, and failed to realize that the only purpose of the IPO at this time was for Vonage to add some cash to it's bottom line. The stock price may rise, and hopefully will. But we forget that it was merely a cash injection to help grow the company. Personally, $2.50 as a stock price would not surprise me.

I like your thoughts to track their intentions by utilizing the stock profits in the company. IMHO, they must use the funds to 1) stop the money bleed, 2) continue to grow the company, 3) fix customer service, and 4) maintain quality service.

I love my Vonage service, however, when they fail to met my needs, I have no problem moving to someone that will. As a user since 2004, I've had near flawless service, and for that I am most grateful.

Posts: 409 · Posted: Wed Jun 14, 2006 11:21 am Post subject:

outerfire wrote:

I like your thoughts to track their intentions by utilizing the stock profits in the company. IMHO, they must use the funds to 1) stop the money bleed, 2) continue to grow the company, 3) fix customer service, and 4) maintain quality service.

Where do you think Vonage needs to put a band-aid to stop the bleed? I'm interested in your opinion.

Posts: 293 · Vonage Forum Master Joined: Jan 22, 2006 Posts: 293

Oh sure

Put me on the hotseat! Cool

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.

Posts: 409 · Posted: Thu Jun 15, 2006 9:46 am Post subject:

I could not have stated those facts and opinions any better. Before this ipo had started I had my speculations and opinions on where this was all going, yet that thread had bit the cyber dust.

I'd rather not re post those thoughts as there are some angry consumers that would feed off it now .....

I'm intrigued as to how this new found money will be put to use.

I'm very interested in the Board of Directors, a very impressive array of people.

I will keep on as a Vonage customer as long as it is a bargain and stays a reliable service that meets my needs. I had put up with some major service issues in the beginning hopefully that will keep in the past.

Posts: 293 · Vonage Forum Master Joined: Jan 22, 2006 Posts: 293

maryjane wrote:

....

I will keep on as a Vonage customer as long as it is a bargain and stays a reliable service that meets my needs. I had put up with some major service issues in the beginning hopefully that will keep in the past.

That's very much the key for me. Reliable service from the start, but I will not hesitate to get my money's worth.

Vonage shows a lot of potential. I truly hope that they will grow and I have no issues being a customer for life as long as they continue to provide a competitive service for me.

I think I've seen some of your other posts and some of your expressions and I will try to say this in a brief and simple manner, as I have no real interest in dwelling on the IPO issue. All we will really do is upset other forum users and the cliche about hindsight makes this the perfect wikipaedia definitation. I will not opinion whether anyone should have bought into the IPO, that's a personal decision. But, I honestly believe that not enough investors read the prospectus. VG is no means a blue chip stock, at best it was a spec stock and any investor that rants on and on about being taken by the IPO does not understand that.

So I'm glad I wasn't alone in my feelings.

Posts: 409 · Posted: Sat Jun 17, 2006 7:58 pm Post subject:

outerfire wrote:

maryjane wrote:

....

I will keep on as a Vonage customer as long as it is a bargain and stays a reliable service that meets my needs. I had put up with some major service issues in the beginning hopefully that will keep in the past.

Vonage shows a lot of potential. I truly hope that they will grow and I have no issues being a customer for life as long as they continue to provide a competitive service for me.

This Company has enough key people that are paid amply, there is no doubt about this Companys potential.

There intentions on the other hand , are yet to be seen.

When/if they re invest the new monies back into this company they should offer something extra special or unique to their existing customer base and to draw more potential customers, the competition is growing.

Better Customer Service is a given.

Posts: 2

[font=Comic Sans MS]I'm just curious, who was the first person who signed up for Vonage service?

Thanks a lot![/font] Very Happy