Vonage has been on our minds lately. A UBS Research report reminded us that we were right in our skepticism about the future growth prospects, and there are signs of a slowdown.
The company had ended the second quarter with 1.8M lines in service. Assuming the company crossed the 2 million mark yesterday, it would imply a pace of roughly 2,220 net adds per day. This represents a slowdown from the roughly 2,800 subscribers added per day in the second quarter. The current pace would imply 2.057M subscribers at the end of 3Q06, roughly in line with our estimate of 2.128M.
A few weeks ago I got a call from a Vonage “customer service” rep — she thanked me for being a customer and offered a free 2nd line…free for two months, after which I had to call them if I wanted to cancel. Considering the horror stories I’ve read from people trying to cancel their Vonage account, this offer is neither generous nor does it make me feel like a valued customer.
Vonage is not alone — other companies make sales calls under the guise of “we want to thank you for being a customer.” Hey dirtballs, do you honestly think the majority of your customers won’t see through a thinly veiled offer? And have you considered the effects of the negative feelings these activities foster among your existing customer base?
Unless, of course, you’re not meeting your revenue targets and are willing to try anyth…ok, never mind.
Vonage lost patent suit and stock is down to $3 as or March 23, 2007. Down with vonage, down with them !