HOLMDEL, N.J., May 8, 2018 -- Vonage Holdings Corp. (NYSE: VG), a business cloud communications leader, today announced results for the quarter ended March 31, 2018.
Consolidated Results "We are proud of our strong first quarter financial results and the progress we are making transforming Vonage into a cloud communications leader," said Vonage CEO Alan Masarek. "We believe that communications is key to driving business transformation. Our unique platform strategy of combining unified communications and embedded communications is delivering better business outcomes to our customers by linking employee and customer communications seamlessly into company workflows." For the first quarter of 2018, Vonage reported revenues of $254 million, a 4% increase from the year ago quarter. Income from Operations was $18 million, up from $5 million in the prior year. Adjusted Operating Income Before Depreciation and Amortization ("Adjusted OIBDA")
1 was $42 million, up from $37 million in the prior year. GAAP net income was $25 million or $0.11 per share, up from $6 million or $0.03 per share in the year ago quarter. Adjusted net income
2 was $31 million or $0.13 per share, up from $15 million or $0.07 per share in the year ago quarter.
Business Segment Results and Highlights Vonage Business total revenues were $137 million, representing 54% of total consolidated revenues and 22% GAAP growth.
- UCaaS revenues were $95 million, of which $74 million were service revenues. Service revenues increased 16% year-over-year on an organic3basis.
- Nexmo revenues (which are all service revenues) were $42 million, a year-over-year increase of 42% on an organic4 basis.
- Increased registered developers on the Nexmo API Platform to 485,000, a sequential increase of 55,000.
- Launched a new comprehensive channel program to accelerate adoption of business cloud communications in mid-market and enterprise segments.
- Announced Vee, a virtual assistant chatbot enabling Vonage Business Cloud users to streamline managing account services via simple, natural language text commands.
The Company created new Vonage Business KPIs to better reflect how it manages its UCaaS and Nexmo products on a combined basis. The new KPIs are:
- Service Revenue per Customer, which includes UCaaS and Nexmo products. The Company is providing this metric to enable investors to track Vonage's "land and expand" strategy and its move to the mid-market and Enterprise. Service revenue per customer in the first quarter of 2018 was $328, a 3% year-over-year increase.
- Business Churn, which measures revenue churn on a combined basis, was 1.2% in the first quarter of 2018, consistent with the year ago quarter.
Consumer Segment Results and Highlights
- Consumer revenues were $117 million in the first quarter of 2018 compared to $132 million in the prior year, a decline of 11%.
- Consumer customer churn was 1.9%, flat sequentially and down from 2.2% in the year ago quarter.
- Average revenue per line ("ARPU") in Consumer was $26.58, up from $26.10 in the year ago period.
- The Consumer segment ended the first quarter with approximately 1.4 million subscriber lines.
- Consumer's tenured customers, defined as those with the Company for more than two years, increased to 83% of the base. The churn rate of this tenured cohort is 1.4%.
Conference Call and Webcast Management will host a conference call to discuss first quarter 2018 financial results and other matters at 8:30 AM Eastern Time. To participate, please dial (866) 891-8177. International callers should dial (412) 902-6756. A live webcast of the event will be available on the Vonage Investor Relations website. A replay of the call and webcast will be available shortly after the conclusion of the call and may be accessed through Vonage's Investor Relations website or by dialing (877) 344-7529 or (412) 317-0088, passcode 10119659.
(1) This is a non-GAAP financial measure. Refer below to Table 4 for a reconciliation to GAAP income from operations.
(2) This is a non-GAAP financial measure. Refer below to Table 5 for a reconciliation to GAAP net income.
(3) We define organic UCaaS growth as the increase in UCaaS revenues after giving pro forma effect for the exclusion of one-time items. See Table 3 for reference.
(4) We define organic Nexmo growth as the increase in Nexmo revenues after giving pro forma effect for the change in accounting treatment with respect to certain Nexmo revenues being recognized on a gross rather than net basis. See Table 3 for reference.
More at
https://ir.vonage.com/press-releases/2018/05-08-2018-130427239