Let’s see – Vonage stock dropped 3.25% today – enough to make you wonder when the bad news is going to stop? Not any time soon. If 15 class action lawsuits were not enough, UBS Securities, one of the underwriters of the Vonage IPO, initiated coverage of the company with a “neutral” rating. Which is like saying: almost married, Just need to find a girl!
Read the report and you find that the analysts expect the churn to increase to 2.3% per month in the second quarter from the 2.1% per month reported in the first quarter. They say that things would get better, as company starts focusing on “customer service and continued aging of the base. However, we do not think the stock will move out of its recent range until it becomes clear that this metric is stabilizing.”
Okay call me old fashioned, but when selling services to customers, customer service should be the focus. Even Dell knows that! Lets read this report further: “We expect Vonage to have mixed results in 2Q, including seasonally weak net adds of 240,000 and … (higher customer acquisition) costs of around $258.”
All right I gotta move on :-)