Vonage Holdings Corporation Q3 2009 Earnings Call Transcript

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2009-11-04 11:03:15.0

Tags: Advertisement, Mobile, Vonage Holdings Corp., Call Transcript, Earnings, Citigroup Inc., Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question is from Michael Rollins - Citi Investment Research

Michael Rollins - Citi Investment Research

Just a couple questions, I was just curious if you can give some more specificity of results with the multiple strategies that you've embarked upon. And then secondly, can you give us - I'm not sure if you gave the number of gross ads or the percent of gross ads that were taking Vonage World versus the Heritage products. But maybe if you can give us some more details along those lines that would be fantastic. Thanks.

Marc Lefar

Mike, its Marc. Let me answer the second question first on gross ads for the period. I'll get you the exact number but the vast majority of all of our ads I believe it is the mid 90% level, 94, 95% are taking Vonage World. It is our core offer and that's with the vast majority of all the gross ads are coming in on today. Relative to mobile results, as I mentioned before the first application that we launched is a straight-forward pay-per-drink, prepaid offering and it has only been out there for about three and a half weeks. We've seen over 50,000 downloads at this point in time.

A lot of the inquiries we're getting are asking for the Vonage World for mobile products. There seems to be a lot of excitement about having that level of flexibility, the full level of service that you get without having to actually change a home phone number, make the change and commitment to putting an adapter in the home, so we're excited about that and the additional functionality that will bring.

Michael Rollins – Citi Investment Research

And then just a follow up, can you talk a little bit more about the RPU strength in the quarter and where you see that going to over time?

Marc Lefar

Sure, as I think you know Mike, we've been taking actions on pricing as well as rate plan mix strategy throughout the course of the year and what you're seeing in this quarter in strength is really just the full quarter impact of all those actions coming to bear.

Some of them in areas of fees, some of them in terms of rate plan mix, to the $25 plan versus lower plans, we've become less dependent as the strength of our value proposition has improved in retention plans, in our save centers and all those things have helped us.

 

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