[ACCESSWIRE]
Upcoming AWS Coverage on Level 3 Communications Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 22, 2017 / Active Wall St. announces its post-earnings coverage on Vonage Holdings Corp. (NYSE: VG). The Company reported its fourth quarter and fiscal 2016 financial results on February 14, 2017. The provider of phone services through cloud-connected devices reported a y-o-y increase in revenue, but revenue number fell below market expectations. Register with us now for your free membership at:
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One of Vonage Holdings' competitors within the Diversified Communication Services space, Level 3 Communications, Inc. (NYSE: LVLT), reported its results for the quarter and full year ended December 31, 2016, on February 08, 2017. AWS will be initiating a research report on Level 3 Communications in the coming days.
Today, AWS is promoting its earnings coverage on VG; touching on LVLT. Get our free coverage by signing up to:
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Earnings Reviewed
For the quarter ended December 31, 2016, Vonage reported revenue of $247 million, up from revenue of $230 million in Q4 2015, but came in below the analysts' consensus of $247.5 million. The Company's income from operations was $5 million in the reported quarter, down from $8 million in the prior year's same quarter.
For Q4 2016, Vonage's Adjusted Operating Income Before Depreciation and Amortization ("Adjusted OIBDA") for Q4 2016 was $37 million, up from $34 million in Q4 2015. The Company reported GAAP net income of breakeven, or $0.00 per share, down compared to net income of $3 million, or $0.02 per share, in the prior year's comparable period. The Company's adjusted net income was $7 million, or $0.03 per share, down from $8 million, or $0.04 per share, in the year earlier corresponding quarter. Vonage's earnings figure came in below analysts' expectations of $0.05 per share.
For FY16, Vonage reported revenue of $956 million, up from $895 million in the prior year. The Company's income from operations was $44 million in the reported quarter, down from $53 million in the prior year. Vonage reported FY16 adjusted OIBDA of $160 million, reflecting an increase of 11% on the year earlier same period. The Company's GAAP net income was $18 million, or $0.08 per share, for FY16 compared to $23 million, or $0.11 per share, in FY15. Vonage reported adjusted net income of $45 million, or $0.21 per share, for FY16, up from $39 million, or $0.18 per share, in the prior year.
Business Segment Results
For Q4 2016, Vonage's total Business revenue grew 56% on a y-o-y basis to $111 million. For FY16 total Business revenue surged 72% to $376 million. For the reported quarter, Business service's revenue totaled 92 million, reflecting a 69% increase from Q4 2015. The Company's FY16 service revenue was $302 million, up 77% from the prior year. Vonage's UCaaS revenue churn was 1.4% in Q4 2016, up from 1.1% in the year ago same quarter. UCaaS ending seats were 638,000, up from 542,000 seats in the year ago corresponding quarter, reflecting strong organic growth. The Vonage API Platform, formerly Nexmo, generated Q4 2016 revenue of $27 million, a 43% pro-forma year-over-year increase. The Vonage API Platform increased its registered developer count to 207,000, a 54% year-over-year increase.
Consumer Segment Results
Vonage's revenue from the Consumer segment was $136 million in Q4 2016, down 14% on a y-o-y basis. The Company's FY16 revenue was $579 million, down 14%, reflecting the Company's decision to redeploy capital into the Vonage Business' segment. Consumer churn was 2.2% in the fourth quarter, in-line with the year ago same quarter. Vonage's Average revenue per line ("ARPU") in Consumer Services was $26.11, down from $26.93 in the year ago comparable period. The Consumer's segment ended the fourth quarter with 1.7 million subscriber lines.
Patent Portfolio
Vonage announced that the Company was granted a record 40 new patents in FY16, and as of December 31, 2016, the Company owned 146 US patents, with nearly 200 US patent applications pending.
Share Repurchase
During FY16, Vonage repurchased 7.4 million shares for $33 million at an average price of $4.43. This represents approximately one-third of the four-year, $100 million authorization the Company initiated in the beginning of 2015. The Company has repurchased 55.6 million shares for $181 million, at a highly accretive average price of $3.26, since the Company began repurchasing stock in August 2012.
2017 Outlook
For full year 2017, Vonage is projecting consolidated revenues in the range of $970 million to $985 million. Total Business' revenue, which includes UCaaS and CPaaS, is projected in the range of $487 million to $493 million and Consumer's revenue is expected in the range of $483 million to $492 million. The Company is forecasting consolidated adjusted OIBDA of at least $165 million and CapEx of approximately $40 million for FY17.
Stock Performance
On Tuesday, February 21, 2017, the stock closed the trading session at $6.09, declining 1.62% from its previous closing price of $6.19. A total volume of 3.60 million shares have exchanged hands, which was higher than the 3-month average volume of 2.66 million shares. Shares of the company have a PE ratio of 77.09.
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