Is it loose-end Friday? Here's Vonage

Posted by: Aaron Pressman on April 28, 2006

I was pretty skeptical about Internet telephony provider Vonage’s initial IPO filing back in February. Today they’ve updated with proposed terms of $16 to $18 dollars a share or a total market cap approaching $3 billion. I guess they looked pretty closely at the Skype-EBay deal but this seems a bit rich for a company with growing operating, net income and operating cash flow losses. In the most recent quarter, churn was up, marketing costs per customer were up and service costs per line were up. The company burned through about $90 million of cash in the first quarter and had $175 million left on March 31. Better hope that IPO prices soon.

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Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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