Vonage’s business unit continues to grow as a reliable revenue source for the telecommunications company.
The company posted total revenue of $248 million in the third quarter of 2016, up from $233 million and $226 million in the two respective previous quarters.
Driving an increasing portion of those sales is Vonage Business, which posted $106 million in Q3, an 86 percent increase from a year ago. The unit has added more than 100,000 seats since this time last year — from 514,184 to 615,728.
“Our results reflect good progress integrating our acquisitions and building a winning product and go-to-market value proposition for our customers,” Vonage CEO Alan Masarek said. “The significant investments in Vonage Business continue to support our growth initiatives, highlighted by 86 percent revenue growth in the third quarter. Our disciplined focus on profitability continues to produce strong results, highlighted by a 21percent increase in adjusted OIBDA.”
The unit hit the M&A trail last year, acquiring Telesphere, SimpleSignal and iCore Networks.
Vonage’s purchase of the “communications platform-as-a-service provider” Nexmo earlier this year is a key component of the company’s attempt to succeed in the enterprise space, but the company noted that revenue numbers from the Q3 report don’t include Nexmo’s.
“We are very pleased with the progress we’ve made executing on our strategy to be the clear leader in business cloud communications,” Masarek said. “The integration of our UCaaS and CPaaS solutions will create the most vertically integrated communications company in our industry, with the scale and capabilities to provide better outcomes for our business customers.”
The growth of Vonage’s enterprise unit comes at an opportune time, as the company’s consumer unit has been dropping in revenue over the course the past year. The consumer side posted $142 million in Q3 revenue, down from $166 million a year ago. It has also now has more than 200,000 subscriber lines than it did a year ago.
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August 22 2019 @ 21:32:04 UTC