Cbeyond Reports 3Q
ATLANTA — Cbeyond, Inc. (NASDAQ: CBEY), (“Cbeyond”), a managed services provider that delivers integrated packages of voice, broadband, and mobile services to small businesses, today announced its results for the third quarter ended September 30, 2008.
Recent financial and operating highlights include the following:
Strong third quarter revenue growth with revenues of $90.2 million, up 24.6% over the third quarter of 2007;
Total adjusted EBITDA of $16.9 million during the third quarter of 2008, an increase of 25.5% from the third quarter of 2007 (see Schedule 1 for reconciliation to net income), which includes a positive revenue adjustment of $0.4 million and higher than typical expense credits to Cost of Service in the amount of $3.5 million (see discussion of Revenue and ARPU and Cost of Service and Gross Margin);
Net income of $1.7 million in the third quarter of 2008 compared with $3.4 million in the third quarter of 2007 (see Net Income discussion for factors affecting the comparability of income tax expense between the periods);
Total customers in Cbeyond’s eleven operating markets of 40,569, reflecting net customer additions of 1,993 in the quarter;
Average monthly revenue per customer location (ARPU) of $760 during the third quarter of 2008, or $756 excluding the effect of a positive revenue adjustment (see Revenue and ARPU discussion), compared to $754 in the second quarter of 2008 and $749 in the third quarter of 2007; and
Monthly customer churn of 1.3% in the third quarter of 2008 as compared to 1.3% in the second quarter of 2008.
Cbeyond Communications (Nasdaq: CBEY)