Vonage -13.7% on sub losses, guidance; new financing obtained

Along with its Q2 results, Vonage (NYSE:VG) announces it has obtained a new $225M credit facility. $90M of the proceeds will be used to retire debt under an existing facility.

Vonage lost 6.7K subs in Q2, a reversal from Q1 and year-ago adds of 12.5K and 2.5K, respectively. Its total sub base stood at 2.55M at quarter's end.

The company now expects 5% 2014 revenue growth, below a 6.9% consensus. If adjusted for the acquisition of business VoIP service provider Vocalocity, guidance would be for revenue to be flat to down 2%.

2H net customer adds will be lower than previously expected due to "actions to optimize the profitability of certain sales channels, and timing differences in the rollout of BasicTalk to additional locations and in the expansion of marketing in Brazil." Nonetheless, EBITDA guidance has been hiked to $106M-$112M.

ARPU fell to $28.59 in Q2 from $28.86 in Q1 and $29.06 a year ago. Churn was 2.6%, even with Q1 but up from 2.4% a year ago. Marketing costs per gross sub add were $342 vs. $299 in Q1 and $375 a year ago. $13M was spent on buybacks.

Shares had rallied going into earnings, aided by positive reports from peers.

Q2 results, PR

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