Vonage Reports Full Year Adjusted EBITDA of $144 Million, up 16% on Revenue of $895 Million; Full Year Vonage Business Revenue Increased 132% to $219 Million;
Fourth Quarter Consolidated Revenue of $230 Million, Driven by $71 Million of Business Revenue; Fourth Quarter Business Revenue Churn of 1.1%
Holmdel, NJ, February 11, 2016 - Vonage Holdings Corp. (NYSE: VG), a leading provider of cloud communications services for businesses and consumers, today announced results for the fourth quarter and full year ended December 31, 2015.
Summary of Full Year 2015 Results
“We made enormous progress optimizing the profitability of Consumer Services while successfully pivoting to the Unified Communications for Business market,” said Alan Masarek, Chief Executive Officer of Vonage. “During the year, we successfully integrated the five companies we acquired over the last two years and built the industry’s broadest multi-channel sales distribution platform to address the full spectrum of the business market. Vonage Business now has a scalable, efficient platform capable of supporting continued rapid organic growth while successfully absorbing future acquisitions.”
Mr. Masarek continued, “I’m particularly proud of the stellar financial results we delivered in parallel with the operational improvements, acquisition integrations, and foundation building we completed. We generated consolidated revenue growth for the second consecutive year, and EBITDA was the highest in four years.”
For the full year 2015, Vonage reported revenue of $895 million, up from $869 million in the prior year. Income from operations was $53 million, down from $58 million in the prior year. Vonage Business revenue was $219 million, up from $94 million in the prior year. Adjusted earnings before interest, taxes, depreciation and amortization1 (“adjusted EBITDA”) were $144 million, a 16% increase over the prior year. GAAP net income was $23 million or $0.11 per share, up from $20 million or $0.10 per share in 2014. Adjusted net income2 was $68 million or $0.32 per share, up from $60 million, or $0.28 per share in the prior year.
Fourth Quarter Consolidated Financial Results
For the fourth quarter of 2015, Vonage reported revenue of $230 million, up from $215 million in the year ago quarter. Adjusted EBITDA for the fourth quarter was $34 million, flat sequentially and down from $35 million in the year ago quarter. GAAP net income was $3 million, or $0.02 per share, flat sequentially and down from $6 million in the prior year period. Adjusted net income was $13 million or $0.06 per share, down from $19 million, or $0.09 per share in the year ago quarter.
The following information was filed by Vonage Holdings Corp (VG) on Thursday, February 11, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.