Broadsoft's First Public Quarter

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

Broadsoft's First Public Quarter

So Monday morning I was on the very short investor call for Broadsoft's first quarter being public since it's IPO. Marketwatch has the 2Q2010 results here.

  • "Total revenue was $19.8 million in the second quarter of 2010, compared to $17.7 million in the second quarter of 2009"
  • Net loss for the second quarter of 2010 was $1.8 million
  • Net loss for the first six months of 2010 was $4.4 million

"During the second quarter, our license revenue increased 20%, to $10.6 million, compared to the first quarter of this year, reflecting service providers' demand, as they transition from TDM to IP-based communications, for our flagship product, BroadWorks, which enables carriers to deliver feature-rich IP-based communications services to their enterprise and consumer customers."

More than 50% of revenue is coming from licenses. Mainly VZ FiOS, Comcast, XO and Brazilian MSO, it seemed like from the call.

The key is selling licenses. Many more licenses, since 400+ service providers already own the softswitch. How many more prospective softswitch buyers are out there? Broadsoft clients have to start selling Hosted PBX in droves. Two hurdles:

  1. In our TDM-based world, most sales people can't sell IP Communications.
  2. ISP's are blocking port traffic which disrupts the voice applications of Hosted VoIP Providers.
The timing seems right. Maybe we'll hear some promising messages at ITEXPO in LA on Oct. 4-6, 2010.

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