VG (Update)

Vonage Holdings Corp

TMT


Presented:03/27/2019
Price:$9.72
Cap:$2.33B
Current Price:$20.99
Cap:$5.38B

Presented

Date03/27/2019
Price$9.72
Market Cap$2.33B
Ent Value$2.61B
P/E Ratio68.16x
Book Value$2.24
Div Yield0%
Shares O/S239.86M
Ave Daily Vol2,889,626
Short Int4.30%

Current

Price$20.99
Market Cap$5.38B
Vonage Holdings Corp. engages in the provision of communication services through cloud-connected devices. It operates through the Business and Consumer segments. The Business segment provides cloud-based Unified Communications as a Service (UCaaS) solutions, which comprises of integrated voice, text, video, data, collaboration, and mobile applications over its scalable Session Initiation Protocol based Voice over Internet Protocol network. The Consumer segment offers UCaaS services and features, via a single identity. The company was founded by Jeffrey Adam Citron on May 1, 2000 and is headquartered in Holmdel, NJ.

Please note, this is an update to Vonage (VG) - Long, which was first presented on 11/5/18.

Publicly traded companies mentioned herein: 8x8 Inc (EGHT), AT&T Inc (T), RingCentral Inc (RNG), SPS Commerce Inc (SPSC), Twilio Inc (TWLO), Vonage Holdings Corp (VG)

Highlights

The presenter remains long shares of Vonage (VG), and used the share price weakness seen in late Q4'18 to add to the position. On VG’s Q4’18 earnings call (2/21/19), the key statement made by CFO David Pearson was, “Business revenue growth will accelerate through the year [2019] with 1Q revenue expected in the $177MM to $179MM range. We expect to exit 2019 with a Business Service revenue growth rate approaching 30%. With this acceleration and growth rate exit in 2019, we believe we will achieve Business segment revenue of >$1B in 2020.” This confirmed the presenter’s belief that the One Vonage platform, which includes NewVoiceMedia and TokBox, is materially undervalued at this time.

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