magicJack (CALL) is reiterating guidance for 2014 revenue of $158M-$163M (above a $157.5M consensus) and adjusted EBITDA of $48M-$52M.
Registered users for magicJack's VoIP calling apps rose 21% Q/Q in Q1 to 8.4M. But active magicJack subscribers fell by 100K to 3.1M, with sub activations declining by 20K to 196K. Average monthly churn was at 3.3%.
Gross margin fell to 63.2% from 63.9% in Q4 and 69.6% a year ago. A 53% Y/Y increase in ad spend to $4.3M helped fuel a 39% increase in opex to $14.7M.
Access right renewal revenue rose 4% Q/Q to $15.4M (44% of revenue), and device sales totaled $12M. Free cash flow was $12.8M, +102% Y/Y and above net income of $9.4M.
Q1 results, PR