Vonage Holdings Earnings: Here’s Why Investors are Not Happy Now
Vonage Holdings Corporation (NYSE:VG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.66%.
Vonage Holdings Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 33.33% to $0.06 in the quarter versus EPS of $0.09 in the year-earlier quarter.
Revenue: Decreased 3.27% to $205 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Vonage Holdings Corporation reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $0.05. It missed the average revenue estimate of $211.92 million.
Quoting Management: Marc Lefar, Vonage Chief Executive Officer said, “We are making steady progress on our growth priorities highlighted by a strong early response to BasicTalk, launched in May, which contributed to higher sequential gross line additions and positive net lines for the quarter. Our core business results were solid. Churn declined to 2.4% – its lowest level since 2010, and adjusted EBITDA was in line with our expectations.”
Key Stats (on next page)…