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Vonage (VG)

Vonage, a global cloud communications leader, helps businesses accelerate their digital transformation. Vonage's Communications Platform is fully programmable and allows for the integration of Video, Voice, Chat, Messaging and Verification into existing products, workflows and systems. Vonage's fully programmable unified communications and contact center applications are built from the Vonage platform and enable companies to transform how they communicate and operate from the office or anywhere, providing enormous flexibility and ensuring business continuity.

Company profile

Ticker
VG
Exchange
Website
CEO
Alan Masarek
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Vonage America LLC • Vonage Apps. Ltd. • Vonage A/S • Vonage Australia Pty Limited • Vonage Business Communications Private Limited • Vonage Brasil Tecnologia Ltda. • Vonage Business Inc. • Vonage Business Limited. • Vonage Business Mexico • Vonage B.V. ...
IRS number
113547680

VG stock data

Calendar

5 May 22
1 Oct 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 17.89M 17.89M 17.89M 17.89M 17.89M 17.89M
Cash burn (monthly) 806K 3M 7.33M 2.45M (no burn) (no burn)
Cash used (since last report) 4.86M 18.05M 44.16M 14.73M n/a n/a
Cash remaining 13.03M -158.14K -26.27M 3.16M n/a n/a
Runway (months of cash) 16.2 -0.1 -3.6 1.3 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
21 Jul 22 Akhavan Hamid Common Stock Sale back to company Dispose D No No 21 55,700 1.17M 0
21 Jul 22 Joseph Anthony Bellissimo Common Stock Sale back to company Dispose D No No 21 302,584 6.35M 0
21 Jul 22 Savinay M Berry Common Stock Sale back to company Dispose D No No 21 403,652 8.48M 0
21 Jul 22 Joy Corso Common Stock Sale back to company Dispose D No No 21 256,984 5.4M 0
21 Jul 22 Citron Jeffrey A Common Stock Sale back to company Dispose D Yes No 21 275,000 5.78M 0
21 Jul 22 Citron Jeffrey A Common Stock Sale back to company Dispose D No No 21 40,898 858.86K 0
13F holders Current Prev Q Change
Total holders 264 252 +4.8%
Opened positions 49 55 -10.9%
Closed positions 37 70 -47.1%
Increased positions 97 95 +2.1%
Reduced positions 86 74 +16.2%
13F shares Current Prev Q Change
Total value 4.7B 4.82B -2.5%
Total shares 246.54M 237.71M +3.7%
Total puts 6.26M 217.6K +2777.2%
Total calls 358.43K 66.11K +442.1%
Total put/call ratio 17.5 3.3 +430.7%
Largest owners Shares Value Change
BLK Blackrock 33.68M $634.58M +4.6%
Vanguard 28.38M $534.67M +1.0%
Ubs Oconnor 11.68M $220.07M NEW
JPM JPMorgan Chase & Co. 10.34M $194.81M +4.8%
BAC Bank Of America 8.35M $157.24M +26.7%
STT State Street 8.21M $154.76M -7.1%
Adage Capital Partners GP, L.L.C. 5.34M $100.68M +97.2%
BCS Barclays 5.28M $99.38M -1.8%
Pentwater Capital Management 5.24M $98.72M +13.9%
MS Morgan Stanley 4.64M $87.5M -10.5%
Largest transactions Shares Bought/sold Change
Ubs Oconnor 11.68M +11.68M NEW
Millennium Management 3.45M -4.04M -54.0%
DB Deutsche Bank AG - Registered Shares 1.16M -3.69M -76.1%
Glazer Capital 0 -3.64M EXIT
Magnetar Financial 3.21M -2.84M -46.9%
TIG Advisors 2.81M +2.81M NEW
Adage Capital Partners GP, L.L.C. 5.34M +2.63M +97.2%
Segantii Capital Management 1.77M +1.77M NEW
BAC Bank Of America 8.35M +1.76M +26.7%
Arp Americas 2.96M -1.69M -36.3%

Financial report summary

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Risks
  • If we are unable to compete successfully, we could lose market share and revenue.
  • As the cloud communications services market evolves, and the convergence of voice, video, messaging, mobility, artificial intelligence and data networking technologies accelerates, we may face competition in the future from companies that do not currently compete in the cloud communications services market.
  • Our pending merger with Telefonaktiebolaget LM Ericsson (publ) (“Ericsson”) creates incremental business, regulatory and reputational risks and failure to close the merger could negatively impact the share price and the future business and financial results of the Company.
  • If we fail to adapt to rapid changes in the market for cloud communications services, then our products and services could become obsolete.
  • The market for our API products and platform is relatively nascent and may not experience the growth that we anticipate.
  • We may face difficulties related to the acquisition or integration of businesses, which could harm our growth or operating results.
  • Our Vonage Communications Platform segment is growing rapidly, and any inability to scale our business and grow efficiently could materially and adversely harm our business and results of operations.
  • If we are unsuccessful at retaining customers or attracting new customers, we may experience a reduction in revenue or may be required to spend more money or alter our marketing approaches to grow our customer base.
  • Our success in the cloud communications market for our business services depends in part on developing and maintaining effective distribution channels. The failure to develop and maintain these channels could materially and adversely affect our business.
  • Sales of our UC and CC business services to medium-sized and enterprise customers involve significant risks which, if not managed effectively, could materially and adversely affect our business and results of operations.
  • The recent coronavirus (COVID-19) pandemic and the global attempt to contain it has impacted and may continue to impact our business and results of operations.
  • Our ability to provide our telephony service and manage related customer accounts is dependent upon third-party facilities, equipment, and systems, the failure of which could cause delays of or interruptions to our service, damage our reputation, cause us to lose customers, limit our growth, and affect our financial condition.
  • We rely on third-party vendors that may be difficult to replace or may not perform adequately.
  • We depend on third-party vendors to supply, configure and deliver the phones that we sell. Any delays in delivery, or failure to operate effectively with our own servers and systems, may result in delay or failure of our services, which could harm our business, financial condition and results of operations.
  • We rely on third parties to provide a portion of our customer service representatives, provide aspects of our E-911 service, which differs from traditional 911 service, and initiate local number portability for our customers. If these third parties do not provide our customers with reliable, high-quality service, our reputation will be harmed and we may lose customers.
  • We market our products and services to small and medium-sized businesses, which may be disproportionately impacted by fluctuations in economic conditions.
  • Significant foreign currency exchange rate fluctuations could adversely affect our financial results.
  • Growth of our business will depend on market awareness and a strong brand, and any failure to develop, maintain, protect and enhance our brand would hurt our ability to retain or attract subscribers.
  • We depend on the continued services of our senior management and other key employees, the loss of any of whom could adversely affect our business, results of operations and financial condition.
  • Security breaches and other cybersecurity or technological risks could compromise our information systems and network and expose us to liability, which could cause our business and reputation to suffer and which could have a material adverse effect on our business, financial condition, and operating results.
  • Flaws in our technology and systems or our failure to adapt our systems to any new Internet Protocol could cause delays or interruptions of service, which could damage our reputation, cause us to lose customers, and limit our growth.
  • The storage, processing, and use of personal information and other confidential information subjects us to evolving governmental laws and regulation, commercial standards, contractual obligations, and other legal obligations related to consumer and data privacy, which may have a material impact on our costs, use of our products and services, or expose us to increased liability.
  • Third parties may be capable of fraudulently using our name to obtain access to customer accounts and other personal information, use our services to commit fraud or steal our services or equipment, which could damage our reputation, limit our growth, and cause us to incur additional expenses.
  • Unfavorable litigation or governmental investigation results could require us to pay significant amounts or lead to onerous operating procedures.
  • If we fail to protect unique aspects of our internally developed systems, technology, products, and software and our trademarks, we may become involved in costly litigation or our business or brand may be harmed.
  • We may be subject to damaging and disruptive intellectual property disputes that could materially and adversely affect our business, results of operations, and financial condition, as well as the continued viability of our company.
  • Our VoIP services are subject to country-specific governmental regulation and related actions and taxes that may increase our costs or impact our product offerings.
  • Our VoIP services are subject to regulation in the United States, United Kingdom, and Canada, and in additional countries as we expand globally. Future legislative, regulatory or judicial actions could adversely affect our business and expose us to liability and limit our growth potential.
  • Customer misuse of our API products in violation of the Telephone Consumer Protection Act may cause us to face litigation risk.
  • We may be exposed to liabilities under anti-corruption, export control and economic sanction regulations, and similar laws and regulations, and any determination that we violated any of these laws or regulations could have a material adverse effect on our business.
  • Our API offerings may be subject to liability for historic and future sales, use and similar taxes, that may increase our costs or impact our product offerings.
  • The global scope of our operations may subject us to potentially adverse tax consequences.
  • We have incurred cumulative losses since our inception and may not achieve consistent profitability in the future.
  • We may be unable to fully realize the benefits of our net operating loss, or NOL, carry forwards if an ownership change occurs.
  • Actions of activist stockholders could cause us to incur substantial costs, divert management’s attention and resources, and have an adverse effect on our business.
  • The debt agreements governing our financing contain restrictions that may limit our flexibility in operating our business or executing on our acquisition strategy.
  • If we require additional capital, we may not be able to obtain additional financing on favorable terms or at all.
  • Our certificate of incorporation and bylaws and the agreements governing our indebtedness contain provisions that could delay or discourage a takeover attempt, which could prevent the completion of a transaction in which our stockholders could receive a substantial premium over the then-current market price for their shares.
Management Discussion
  • The Company reported loss before income taxes of $21,988 and income before income taxes of $1,805 for the three months ended March 31, 2022 and March 31, 2021, respectively. The loss before income taxes for the three months ended March 31, 2022 was primarily due higher operating expenses of $28,105 due to increased general and administrative expenses resulting from consulting fees associated with the pending Ericsson acquisition, facility exits costs associated with lease abandonment, and higher stock based compensation.
  • The Company reported net loss of $17,122 and $376 for the three months ended March 31, 2022 and March 31, 2021, respectively. The increase in net loss for the three months ended March 31, 2022 compared to the three months ended March 31, 2021 was due to the loss before income taxes for the three months ended March 31, 2022 and income before income taxes for the three and three months ended March 31, 2021 as discussed above. While the Company reported loss before income tax for the three months ended March 31, 2022 and income before income tax for the three months ended March 31, 2021, the Company recognized an income tax benefit of $4,866 during the three ended March 31, 2022 and an income tax expense of $2,181 during the three months ended March 31, 2021. The income tax benefit during the three months ended March 31, 2022 was driven by a benefit related to equity compensation which was slightly offset by an increase in permanent items related to limitations on executive compensation and limitation on foreign nondeductible losses.
  • The Adjusted EBITDA for Vonage Communications Platform has improved from loss of $1,846 for the three months ended March 31, 2021 to income of $2,166 for the three months ended March 31, 2022, respectively. This improvement in Vonage Communications Platform Adjusted EBITDA is primarily due to an increase in Vonage Communications Platform gross margin dollars of $9,636 for the three months ended March 31, 2022, as the Company experience growth in API services as compared to the prior year quarter. Adjusted EBITDA for Vonage Communications Platform was also positively impacted in the three months ended March 31, 2022 due to the realization of cost saving initiatives that were implemented towards the end of 2020 mainly driven by reductions in headcount related costs. The decline of Consumer Adjusted EBITDA for the three months ended March 31, 2022 as compared to the three months ended March 31, 2021 is primarily driven by the decrease in subscriber lines year over year as further described below.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
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