HOLMDEL, N.J., Nov. 04, 2021 (GLOBE NEWSWIRE) — Vonage Holdings Corp. (Nasdaq: VG), a global leader in cloud communications helping businesses accelerate their digital transformation, today announced results for the quarter ended September 30, 2021.
Third Quarter 2021 Highlights:
- Vonage Communications Platform (VCP) Revenue of $288 million
- VCP Service Revenue increased 25%
- API Revenue increased 43%
- Unified Communications & Contact Center Service Revenue increased 8%
- Consolidated Net Loss of $2 million and Adjusted EBITDA of $51 million
- VCP Adjusted EBITDA of $5 million
“We had another strong quarter of results across the Vonage Communications Platform driven by disciplined go-to-market execution, increased product innovation delivery and continued demand from new and existing customers,” said Rory Read, Chief Executive Officer. “This is reflected in VCP service revenue increasing 25% year over year led by API revenue growing at 43% and Unified Communications and Contact Center again beating expectations and on track for double digit growth in early 2022.”
Read continued, “We are seeing customers across all industries increasingly choose Vonage to help them digitally transform their customer communications and engagement solutions as companies continue to embrace hybrid work, develop disruptive solutions and expand communication channels. We believe Vonage is well positioned to continue to execute our business plan and deliver on our commitments to customers and shareholders.”
Third Quarter 2021 Vonage Communications Platform Highlights (compared to the year-ago quarter)
- VCP revenue, which consists of Unified Communications, Contact Center and API revenue, was $288 million. VCP service revenue was $274 million, a 25% increase.
- API revenue grew 43% driven by broad-based demand across geographies, verticals and customers, and dollar-based net expansion (DBNE) was 129%.
- Unified Communications and Contact Center service revenue grew 8%, ahead of expectations.
- Ten out of our top 15 deals included a combined UC and CC solution for the second quarter in a row.
- VCP service revenue per customer rose 25% to $657 per month.
- VCP service revenue churn of 0.6% declined by 60 basis points.
Third Quarter 2021 Consumer Segment Results (compared to the year-ago quarter)
- Consumer revenue of $70 million declined 15%.
- Customer churn was 1.5% down 30 basis points.
- Average revenue per line (ARPU) of $28.47, increased by $0.16.
- Ended the quarter with approximately 807,000 consumer subscriber lines.
- 95% of these customers are tenured over two years and 83% are tenured over five years.
Product Innovation
- Added Conversational Commerce solution to product portfolio with acquisition of Jumper.ai, which provides significant technology, talent, and expertise to capitalize on the growing convergence of seamless shopping and conversations on services such as Messenger, WhatsApp and Instagram.
- Launched AI Virtual Assistant for Vonage Business Communications (VBC), one of the first AI-driven conversational solutions to deliver enhanced self-service interactions for unified communications.
- Vonage’s Contact Center solution was one of the first to be selected by Google in its new “Chrome Enterprise Recommended” contact center category.
Industry Accolades
- Received the Salesforce Partner Innovation Award for Customer Success, showcasing leadership within the Salesforce ecosystem.
- Placed in the Gartner 2021 Magic Quadrant for Unified Communications as a Service, Worldwide.
- Placed in the Gartner 2021 Magic Quadrant for Contact Center as a Service.
- Earned 2021 Asia-Pacific Communications Platform-as-a-Service (CPaaS) Company of the Year Award from Frost & Sullivan.
- Named a Leader in the Frost RadarTM Communications Platforms as a Service Industry, 2021 report from Frost & Sullivan.
- Recognized as Google Cloud Customer Award Winner for exceptional customer service.
Consolidated Income and Balance Sheet
For the third quarter of 2021, Vonage reported consolidated revenue of $358 million, up from $317 million in the year-ago quarter. GAAP net loss was $2 million, or ($0.01) per share, versus a net loss of $10 million in the prior-year period, or ($0.04) per share. Third quarter adjusted net income(1) was $10 million or $0.04 per share, down from adjusted net income(1) of $17 million or $0.07 per share in the prior-year period.
For the third quarter, the Company generated Adjusted EBITDA(2) of $51 million, and Adjusted EBITDA minus Capex(2) of $38 million. Net Cash from Operations was $44 million and Free Cash Flow(3) was $31 million for the quarter. As of September 30, 2021, the Company had a Net Debt to Last Twelve Months Adjusted EBITDA ratio of 2.3 times.
Fourth Quarter and Updated 2021 Outlook
For the fourth quarter of 2021, Vonage expects the following:
- VCP revenue in the range of $293 million to $301 million; within this:
- VCP service revenue is expected to grow in the range of 22% to 25%.
- Consumer revenue in the $65 million range.
- Consolidated revenue in the range of $358 million to $366 million.
- VCP adjusted EBITDA in the $4 million to $8 million range.
- Consumer adjusted EBITDA in the $42 million range.
- Consolidated Adjusted EBITDA in the range of $46 million to $50 million.
- Capex in the $16 million range.
For the full year 2021, the Company now expects the following:
- VCP segment revenue in the range of $1.113 billion to $1.121 billion; within this:
- VCP service revenue is expected to grow in the range of 23% to 24%.
- Consumer revenue in the $288 million range.
- Consolidated revenue in the range of $1.400 billion to $1.409 billion.
- VCP adjusted EBITDA in the range of $8 million to $12 million.
- Consumer adjusted EBITDA in the $186 million range.
- Consolidated adjusted EBITDA in the range of $194 million to $198 million.
- Capex in the $60 million range.
Conference Call and Webcast
The Company will host a conference call to discuss its financial results for the third quarter of 2021 and other matters at 8:30 AM Eastern Time today. To participate, please dial (877) 407-9716. International callers should dial (201) 493-6779.
A live webcast of the conference call will be available on the Vonage Investor Relations website. A replay of the webcast will also be available shortly after the conclusion of the call, and may be accessed through Vonage’s Investor Relations website or by dialing (844) 512-2921 or (412) 317-6671 for international callers, and entering the passcode 13714230.
About Vonage
Vonage (Nasdaq:VG), a global cloud communications leader, helps businesses accelerate their digital transformation. Vonage’s Communications Platform is fully programmable and allows for the integration of Video, Voice, Chat, Messaging and Verification into existing products, workflows and systems. Vonage’s fully programmable unified communications and contact center applications are built from the Vonage platform and enable companies to transform how they communicate and operate from the office or anywhere, providing enormous flexibility and ensuring business continuity.
Vonage Holdings Corp. is headquartered in New Jersey, with offices throughout the United States, Europe, Israel and Asia. To follow Vonage on Twitter, please visit twitter.com/vonage. To become a fan on Facebook, go to facebook.com/vonage. To subscribe on YouTube, visit youtube.com/vonage.
Investor Contact: Monica Gould, 212.871.3927, ir@vonage.com
Media Contact: Jo Ann Tizzano, 732.365.1363, joann.tizzano@vonage.com
Author Information
As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.
She brings more than 20 years of experience in technology research and marketing; prior to her current role, she was a Research Analyst at Omdia, authoring market and ecosystem reports on Artificial Intelligence, Robotics, and User Interface technologies. Sherril was previously Manager of Market Research at Intrado Life and Safety, providing competitive analysis and intelligence, business development support, and analyst relations.
Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.
