Annual Revenues Grew Organically by 30.9% and Annual Adjusted EBITDA Increased 31.8%
ATLANTA (February 21, 2008) — 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 fourth quarter ended December 31, 2007.
Recent financial and operating highlights include the following:
• Strong fourth quarter revenue growth with revenues of $76.9 million, up 30.6% over the fourth quarter of 2006;
• Net income of $12.5 million in the fourth quarter of 2007 compared with $4.3 million in the fourth quarter of 2006, reflecting a benefit of $9.6 million in 2007 arising from the expected future realization of operating loss carryforwards;
• Total adjusted EBITDA of $14.0 million during the fourth quarter of 2007, an increase of 13.2% from the fourth quarter of 2006 (see Schedule 1 for reconciliation to net income);
• Total customers in Cbeyond’s nine operating markets of 35,041, reflecting net customer additions of 1,754 in the quarter;
• Average monthly revenue per customer location (ARPU) of $750 during the fourth quarter of 2007 compared to $749 in the third quarter of 2007 and $742 in the fourth quarter of 2006; and
• Increase in the number of applications used per customer to 6.3 in the fourth quarter of 2007 as compared to 6.1 at the end of the third quarter of 2007 and 5.6 in the fourth quarter of 2006, with mobile penetration at 24% of the customer base.
Financial Overview and Key Operating Metrics
Financial and operating metrics, which include non-GAAP financial measures, for the three and twelve months ended December 31, 2006 and 2007, include the following: