Cbeyond Inc. (CBEY, Financial) filed Quarterly Report for the period ended 2010-06-30.
Cbeyond Inc. has a market cap of $428.8 million; its shares were traded at around $14.04 with and P/S ratio of 1. Cbeyond Inc. had an annual average earning growth of 13.4% over the past 5 years.CBEY is in the portfolios of George Soros of Soros Fund Management LLC, Bruce Kovner of Caxton Associates.
Customer revenues are generated under contracts that run up to three-year terms. Therefore, customer churn rates have an impact on projected future revenue streams. Through mid-2007, we maintained average monthly churn rates of approximately 1.0% (we define average monthly churn rate as the average of monthly churn, which is defined for a given month as the number of customer locations disconnected in that month divided by the total number of customer locations on our network at the beginning of that month). Since that time, however, we have experienced elevated churn rates that we believe are attributable primarily to the inability of certain of our customers to meet their payment obligations as a result of deteriorated economic conditions or its impact on our target of small business customers, as well as increased competition. We cannot predict the duration or magnitude of the currently deteriorated economic environment, but we expect our monthly churn rate will continue to be more than 1.0% for at least as long as the current economic environment persists.
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Cbeyond Inc. has a market cap of $428.8 million; its shares were traded at around $14.04 with and P/S ratio of 1. Cbeyond Inc. had an annual average earning growth of 13.4% over the past 5 years.CBEY is in the portfolios of George Soros of Soros Fund Management LLC, Bruce Kovner of Caxton Associates.
Highlight of Business Operations:
Average monthly revenue per customer location, or ARPU, is impacted by a variety of factors, including lower prices of the new packages introduced in 2010, the decline in customers demand for mobile hardware and services, decreased charges for usage above levels of voice minutes included in our packages, and from customers reducing the number of additional lines and services with incremental charges, the proportion of customers signing three-year contracts at lower package prices as compared to shorter term contracts, the distribution of customer installations during a period, customers ordering or discontinuing applications with incremental fees, the use of customer incentives employed when needed to be competitive, as well as additional terminating access charges and customer usage and purchase patterns. Customer revenues represented approximately 98.4% and 98.3% of total revenues for the three and six months ended June 30, 2010 as compared to 98.2% for the comparable periods in 2009. Access charges paid to us by other communications companies to terminate calls to our customers represented the remainder of total revenues.Customer revenues are generated under contracts that run up to three-year terms. Therefore, customer churn rates have an impact on projected future revenue streams. Through mid-2007, we maintained average monthly churn rates of approximately 1.0% (we define average monthly churn rate as the average of monthly churn, which is defined for a given month as the number of customer locations disconnected in that month divided by the total number of customer locations on our network at the beginning of that month). Since that time, however, we have experienced elevated churn rates that we believe are attributable primarily to the inability of certain of our customers to meet their payment obligations as a result of deteriorated economic conditions or its impact on our target of small business customers, as well as increased competition. We cannot predict the duration or magnitude of the currently deteriorated economic environment, but we expect our monthly churn rate will continue to be more than 1.0% for at least as long as the current economic environment persists.
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