Vonage beats by $0.02, reports revs in-line; reaffirms FY17 rev guidance ex-divestment (7.01)
- Reports Q1 (Mar) adj. earnings of $0.07 per share, $0.02 better than the Capital IQ Consensus of $0.05; revenues rose 7.3% year/year to $243.3 mln vs the $242.4 mln Capital IQ Consensus.
- Revenues at Vonage Business, which includes $26 million of Nexmo revenue, were $112 million, a 51% year-over-year increase on a GAAP basis. In April, Vonage signed the largest UCaaS deal in its history, with a global real estate firm. Vonage will deliver its UCaaS suite to more than 20,000 corporate seats across 550 company-owned locations. In addition, Vonage will partner with the customer's Corporate Franchise team to offer its services to their 4,000 franchisee offices in the United States. Ending seats at Vonage Business were 659,000, up from 570,000 seats in the year ago quarter, a 16% increase. Vonage Business revenue churn was 1.4%, flat sequentially and up from 1.3% in the year ago quarter.
- The Vonage API Platform increased its registered developer count to 249,000, a sequential increase of 42,000. The Vonage API platform secured several enterprise wins in the first quarter, including: Microsoft, Gett, Lyft and Zoho.
- Consumer rev fell 14% to $132 mln, consistent with the Company's expectations and its strategy to redeploy capital into the rapidly growing, Business Cloud Communications sector.
- Co reaffirms guidance for FY17, sees FY17 revs of $966-981 mln (ex-$4 mln in rev from divested business from $970-985 mln prior) vs. $978.71 mln Capital IQ Consensus Estimate. The Company is adjusting its revenue guidance solely to reflect the divestiture of the hosted infrastructure services business. Within this, the Company expects Vonage Business revenues, which include both UCaaS and CPaaS, to be in the range of $483 million to $489 million, which takes into account ~$4 million of anticipated revenue from the divested business for the period from the end of May through the end of December.
- In the first quarter, Vonage repurchased 1.6 million shares of stock for $10 million at an average price of $5.95 under its current four-year $100 million program.