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Table of Contents
24 VONAGE ANNUAL REPORT 2014
ITEM 6. Selected Financial Data
The following table sets forth our selected historical
financial information. The statement of operations and cash flow data
for the years ended December 31, 2014, 2013, and 2012 and the
balance sheet data as of December 31, 2014 and 2013 are derived
from our audited consolidated financial statements and related notes
included elsewhere in this Annual Report on Form 10-K. The
statement of operations and cash flow data for the years ended
December 31, 2011 and 2010 and the balance sheet data as of
December 31, 2012, 2011 and 2010 are derived from our audited
consolidated financial statements and related notes not included in
this Annual Report on Form 10-K. The results included below and
elsewhere are not necessarily indicative of our future performance.
You should read this information together with “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” and our consolidated financial statements and the related
notes included elsewhere in this Annual Report on Form 10-K.
For the years ended December 31,
(In thousands, except per share amounts) 2014 (1) 2013 (2) 2012 2011 2010
Statement of Operations Data:
Revenues $ 868,953 $ 829,067 $ 849,114 $ 870,323 $ 885,042
Operating Expenses:
Cost of telephony services (3) (4) 232,053 237,294 259,224 267,338 277,753
Cost of goods sold 36,815 37,586 39,133 41,756 55,965
Selling, general and administrative (4) 274,750 238,720 215,021 203,565 205,027
Marketing 226,121 227,052 212,540 204,263 198,170
Depreciation and amortization 51,407 36,066 33,324 37,051 53,073
Loss from abandonment of software assets — — 25,262 — —
821,146 776,718 784,504 753,973 789,988
Income from operations 47,807 52,349 64,610 116,350 95,054
Other Income (Expense):
Interest income 212 307 109 135 519
Interest expense (6,823) (6,557) (5,986) (17,118) (48,541)
Change in fair value of embedded features within notes payable
and stock warrant ———(950) (99,338)
Loss (gain) on extinguishment of notes — — — (11,806) (31,023)
Other (expense) income, net 11 (104) (11)(271)(18)
(6,600) (6,354) (5,888) (30,010) (178,401)
Income (loss) before income tax (expense) benefit 41,207 45,995 58,722 86,340 (83,347)
Income tax (expense) benefit (21,760) (18,194) (22,095) 322,704 (318)
Net Income (loss) $ 19,447 $ 27,801 $ 36,627 $ 409,044 $ (83,665)
Plus: Net loss attributable to noncontrolling interest $819 $488 $ — $ — $ —
Net income (loss) attributable to Vonage $ 20,266 $ 28,289 $ 36,627 $ 409,044 $ (83,665)
Net income (loss) attributable to Vonage per common share:
Basic $0.10 $0.13 $0.16 $1.82 $ (0.40)
Diluted $0.09 $0.13 $0.16 $1.69 $ (0.40)
Weighted-average common shares outstanding:
Basic 209,822 211,563 224,264 224,324 209,868
Diluted 219,419 220,520 232,633 241,744 209,868