Competitive service provider cbey released its Q4 and full year 2009 financials today. Q4 Revenues of $107.7 were up sequentially but somewhat weaker than expected due to lower ARPU levels of $727, down from $744 in the prior quarter. However, revenues have never really been the company's weak spot, and they made up for it with strong Q4 EBITDA of $19M and earnings per share of $0.03, up from $15.3M and -$0.01 in the prior quarter and ahead of expectations. Churn rose slightly to 1.5%.
Unlike so many nowadays in this sector, CBeyond provided full year guidance for 2010 of:
- Revenue up 10%-13%, or about $455-467M
- Adjusted EBITDA up 15%-20%, or about $73-76M
- Capital expenditures up 2%-7%, or about $63-66M
EBITDA margins therefore appear ready to rise from 15% in 2009 to the 16% range in 2010. There's still more room for improvement there of course, but investors will surely welcome the higher EBITDA levels. They will also welcome a return to higher ARPU levels of course.
CBeyond also announced that its next expansion market will be Boston, where they expect to open for business in the summer.
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