VG

Vonage Holdings Corp

TMT


Presented:11/05/2018
Price:$11.45
Cap:$2.74B
Current Price:$20.99
Cap:$5.38B

Presented

Date11/05/2018
Price$11.45
Market Cap$2.74B
Ent Value$3.37B
P/E RatioN/A
Book Value$2.25
Div Yield0%
Shares O/S239.58M
Ave Daily Vol1,652,955
Short Int2.31%

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.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG), 8x8 Inc (EGHT), Cisco Systems Inc (CSCO), Mitel Networks Corp (MITL), RingCentral Inc (RNG), Twilio Inc (TWLO), Vonage Holdings Corp (VG)

Highlights

The presenter is long Vonage Holdings Corp (VG) and views the recent share price weakness as a buying opportunity. The company has undergone a multi-year transformation following a string of disciplined, attractive acquisitions including Nexmo, TokBox, and, most recently, NewVoiceMedia (NVM). With a complete suite of cloud communications solutions to offer, VG is now positioned to shift its business mix more aggressively in favor of enterprise business (versus consumer VoIP), expand its channel sales, and improve margins. At $11/share, downside risk appears to be extremely limited, and based on either a sum-of-the-parts (SOTP) model or multiple improvement (EV/Revenue), upside to $30+ per share could be seen within 12 - 24 months.

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Idea Discussion

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