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Vonage slips on Q3 revenue miss

Vonage (VG -8%) shares slip after the company missed revenue expectations in Q3.

Net lines grew by 11K, up from 3K in Q2 and 9K in Q3 2012.

Gross line additions totaled 175K, up from 155K in Q2 and 172K in Q3 2012, on the back of "stable volume" in the international calling segment and the first quarter of national sales of Vonage's low-cost domestic calling product BasicTalk. Churn was up 20bp to 2.6% during the quarter.

EBITDA plunged 32% Y/Y and 15% Q/Q to $23M.

Management expects Q4 EBITDA, excl. the impact of Vocalocity, to be "modestly higher" than in Q3. Net line additions are expected to be positive in Q4 due to gross additions from BasicTalk and stable churn.

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