Cbeyond Reports 3Q Revenue Up 31.9%

Cbeyond Inc. this week reported third quarter revenue was $72.4 million, up 31.9 percent over the third quarter of 2006. Its net income for the quarter was $3.4 million, up from $2 million during the same quarter last year. And total adjusted EBITDA for the quarter was up 26.9 percent year-over-year, at $13.5 million.

During the quarter, the IP-based managed services provider had 2,112 net customer additions, bringing the customer total in its eight operating markets to 33,287. Meanwhile, average monthly revenue per customer at Cbeyond has remained pretty consistent, with ARPU at $749 during the third quarter of 2007, $748 in the second quarter of 2007, and $743 in the third quarter of 2006.

Cbeyond offers SMB customers in select domestic markets feature-rich local and long-distance voice, cellular, and broadband Internet services as well as application-focused offerings including fax-to-e-mail and managed firewall. And software-as-a-service (Saas) is anticipated to become an even larger part of Cbeyond’s business down the road.

As reported in xchange’s July cover story, this broad portfolio of services, along with the company’s “an inch wide and a mile deep” strategy, through which it focuses on getting a nice chunk of market share in the areas in which it does business, has served Cbeyond well. In its first markets, the company has a 12 percent share. Its monthly churn is just 1 percent.

Cbeyond Inc. www.cbeyond.net

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