Vonage - reality check

So, whats happening with Vonage. I have been a Vonage customer for about two years now. After 2 years and having 2 lines with them - what do I think about the company? Lets do a reality check.

If you look at latest financials, you’d notice that they don’t look that pretty at all. So, here’s the laundry list:

1.  Net new subscribers were 205,000 down from 256,000 in the quarter before. That’s a huge difference.
2. Average revenue per user is down as well - by $1 to $27.40. APRU in last quarter was $27.70.
3. Subscriber acquisition costs are about $254 versus $239 in the second quarter (independent study via UBS)