C-Beyond Expectations

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

C-Beyond Expectations

Rich pointed out Cbeyond's 4th Q financials and they are amazing!

Highlights include:

  • 4th quarter net earnings = $12.5 million due to quarterly sales rising 31% to $76.9 million!
  • Cbeyond now has 35,041 customers in the 9 markets it has operations in; that's net 1754 customer adds this quarter, which is about 65 clients per metro per month!
  • ARPU is $750, up a dollar.
  • Mobile penetration = 24%

Cbeyond CEO Geiger did warn that the slowing economy might affect numbers the next 2 quarters, but they are watching their credit process and receivables. Cbeyond opens Miami this quarter. Minneapolis = the 11th market.

My readers are probably tired of reading the name Cbeyond, but its rare to find a company that has this kind of plan - and is executing on it so well.

  1. They sell basically 4 products: Dynamic T1, DIA, SIP Trunk and Cellular lines. (They have other apps, but this is the focus).
  2. They didn't Go Big! Meaning they hit one market at a time. (If only Covad-Rhythms-Northpoint had done that). Telcos complain about the price war, but they all sell (the same stuff) in the same 38 markets. Look up Differentiate in the dictionary or Positioning on Wikipedia
  3. They beat the street with show leather marketing.
  4. Execute on the plan and deliver the promised service to the client.

This industry seems to think that scale solves everything, but that is rarely the case. The larger you get, the harder it gets. Like Seth Godin said: Small is the new Big. And there is a lot of room in the Long Tail.

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