Although Vonage is still not profitable it is doing better. In its latest quarter it reported a loss of $0.22. This compares to a loss of $1.16 per share last year. Vonage said it gained about 57,000 net subscriber lines, decelerating from a gain of 166,000 in Q1.
It ended the second quarter with 2.45 million users.
The reason for lower losses and slower growth is in part due to a reduced marketing spend. This is exactly what the company should be doing. Going forward, Vonage needs to find ways to generate faster growth without breaking the bank. They need to lower their cost per subscriber and monitor their marketing ROI very closely.
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