Vonage (NASDAQ: VG) reported Q2 EPS of $0.04, in-line with the analyst estimate of $0.04. Revenue for the quarter came in at $311 million versus the consensus estimate of $296.54 million.

Second Quarter 2020 Highlights:

• Consolidated Revenues of $311 million
• Business Segment Revenues of $226 million
  • Business Service Revenues of $212 million, an 18% Increase
• API Platform Revenues Increased 32%
• Unified Communications & Contact Center Applications Service Revenues Increased 7%
• Net Loss of $8 Million and Adjusted EBITDA of $42 million

“We executed well in the second quarter and delivered strong financial results,” said Rory Read, Chief Executive Officer. “Business segment service revenues grew 18% year over year, driven by increasing demand for our Vonage Communications Platform. API Platform revenues grew 32%, with 163% year-over-year growth in high-value API services, an area where we will continue to invest to support future growth. API Platform revenue now accounts for 47% of our Business revenues up from 41% a year ago.

“Our results in unified communications and contact center applications grew 7%, in line with expectations, despite COVID-19 headwinds. And, we continue to see momentum with larger customers, signing 11 new seven-figure total contract value deals. Going forward, we have more work to do and are building a highly-scalable streamlined go-to-market machine for our Applications products. We will focus on those customer segments where our products best fit, and where we create the most value and capture a disproportionate share of the market.”

GUIDANCE:

Vonage sees Q3 2020 revenue of $307-309 million, versus the consensus of $296.25 million.

Vonage sees FY2020 revenue of $1.215-1.23 billion, versus the consensus of $1.19 billion.

The Company is increasing its revenue guidance for 2020. For the full year, Vonage now expects the following, (based on constant currency as of August 2020):

• Consolidated revenues in the range of $1.215 billion to $1.230 billion
• Total Business Segment Revenues in the range of $885 million to $900 million (which includes approximately $21 million of USF revenues)
• Total Consumer Segment Revenues in the $330 million area (which includes approximately $41 million of USF revenues)
• Consolidated Adjusted EBITDA of between $150 to $155 million
• Capex in the $55 million area

For the third quarter of 2020, Vonage expects the following:

• Consolidated Revenues in the range of $307 million to $309 million
• Total Business Segment Revenues in the range of $226 million to $228 million (which includes approximately $6 million of USF revenues)
• Total Consumer Revenues in the $81 million area (which includes approximately $11 million of USF revenues)
• Consolidated Adjusted EBITDA in the $36 million area

For earnings history and earnings-related data on Vonage (VG) click here.