Vonage reported another strong quarter of earnings on Wednesday.
The cloud communications provider saw revenue jump to $223 million in the third quarter, up from $215 million during the same period a year ago. Profit was $9 million, down from $15 million in Q3 2014.
Vonage Business was a real strength for the company last quarter, accounting for $57 million in sales; that was a significant year-over-year increase of 134 percent on a GAAP basis.
Much of that can be attributed to the company’s ongoing M&A activity. In August, Vonage wrapping its acquisition of iCore Networks, which the company says expands its presence with midmarket and enterprise businesses. iCore is a provider of BroadSoft-based and Microsoft Skype for Business UCaaS offerings, as well as complementary desktop cloud services.
In just the past year, Vonage has completed mergers with Telesphere and SimpleSignal – and now iCore. Those deals have increased Vonage’s number of seats from 242,000 to 514,000 in just 12 months’ time.
“And our intent is to continue to be acquisitive,” Alan Masarek, Vonage CEO, told us at Cloud Partners, a Channel Partners event, in September.
Wall Street liked the earnings report. Vonage stock was up nearly 11 percent on Wednesday, to $6.95 per share, before falling back a bit in after-hours trading.
“The third quarter marks our third consecutive quarter of consolidated revenue growth, driven by our strong revenue growth in Vonage Business,” Masarek stated in conjunction with the earnings news. “We also had another quarter of excellent cash flows from Consumer Services, which continue to support our investments in the high-growth UCaaS for [the] business sector,” said Alan Masarek, Chief Executive Officer of Vonage. “We made great progress … in cloud communications. … And, we made significant progress integrating our recent acquisitions to build a scalable, efficient organization capable of serving the full spectrum of business customers from SMB up through large enterprises.”
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May 18 2018 @ 20:40:07 UTC