Vonage’s Business Ambitions Gain Ground

A variety of earnings reports are now in, but one that caught my attention this morning was that of Vonage. Vonage has been working hard to transition from its original consumer VoIP business into a business VoIP and UC provider. According to today’s results, they seem to be gaining some real traction.

Vonage posted revenues of $222M, up slightly both sequentially and over the same period last year, as well as EBITDA of $38M and earnings per share of $0.04, each of which was also up.  But Vonage Business hit $49M for the quarter, up 38% organically — i.e. as if their acquisitions in the space were always part of the company. That’s now approaching a quarter of the company’s business, which is further than I thought they’d come.  They finished the quarter with 403,000 seats on the books, almost double the 217,000 they had last year at this time.

Meanwhile, they’ve lined up some significant new capital to continue rolling up assets in the UC space. They replaced their $225M credit facility with a $350M one, adding some significant firepower to their acquisition potential. Having already acquired Telesphere, SimpleSignal, and most recently gUnify, their intentions to continue on the same path are pretty clear.

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Categories: Unified Communications · VoIP