Are you kidding,

Did you see how many gross additions they had int he first qtr. No offense dude but you must be a jealous wannabe.

They have a proven business model, if they wanted to stop markeitng tomorrow they'd be rollign in posotive cash.

Guess you never heard about laying foundations for the future.

vonage maybe adding more subscribers but the COA is very high and the company is bleeding red ink. if vonage decided to stop marketing, the big fear is subscriber growth would tank - it's the out of sight, out of mind theory. as well, you have to wonder how vonage came with such a high valuation at a time when the competition is getting even more fierce.

Agreed. But I would go further. As you say; they are losing money, largely due (it would appear) to unsustainable expenditures on marketing. The question is; will they ever be able to obtain a critical mass, such that:

- they can be profitable at that level, and/or
- they can achieve a tipping point, attracting more subscribers by sheer virtue of their current customer base (perhaps exploiting the Network Effect)

The dilemma they face, is that they have not been able to (from what I can see) create a unique value proposition. More and more, Voice and VoIP are becoming commodities. The cost difference between conventional access and VoIP is shrinking, and almost everyone is promising VoIP today or in the near future. Add to this, the ease with which people will be able to switch Service Providers, and Vonage will learn the lessons of the European and American wireless operators - the cost of subscriber churn can be very high. Now consider the potential implications from negative decisions around so-called 'net neutrality' for VoIP SPs like Vonage, and an investment in this company appears pretty risky.

Ultimately, those who succeed in the VoIP space will be those that understand that sustainable value in the VoIP world will come from innovative services and service enablers, and not just cheap voice.

Folks,

With the greatest respect, please tell me who is making more progess in this space? The gross ads are in line with a company that is making a market so to speak.

You cannot argue the marketing spend, how does one know how much is enough to capture a new customer in this unique market.

Churn is not an issue

Slow your marketing spend down and your profitable.

More importantly, with a potential float of only 20% I suspect that Verizon or Sprint Local which gets spun off may take a crack a paying a premium. Thus, a double down effect on the value.

I would say invest but carefully.

You make me laugh (and just because of your bad grammar). You sound like the same clowns who thought the Google IPO was a "pie-in-the-sky" number with its initial public offering pegged at ~$84. Remember the old proverb, hero: he who laughs last....

I make more on the Google IPO (riding the clib to $210/share and some change) than you have made your whole life.

PS...learn subjunctive tense, please. "If I was an investor, ..." If you WAS half as smart as you think you are, you would know it's "were," champ.

What did you expect from Mark? He's Candian, remember? They have made not a single contribution to the human condition, and this blog is a perfect case-in-point. :)

Canucks make me laugh. USA sneezes; they catch a cold. Socialist pricks.