Vonage (NASDAQ: VG) reported Q1 EPS of $0.05, $0.01 better than the analyst estimate of $0.04. Revenue for the quarter came in at $333 million versus the consensus estimate of $317.12 million.

“We had a strong first quarter, demonstrating improving execution across our business,” said Rory Read, Chief Executive Officer. “VCP service revenues increased 23% year over year. API revenues grew 47%, highlighted by high-value APIs, which grew 112%, with continued strength in healthcare, collaboration and education. Video was our largest and fastest-growing product, with usage of our Voice, Verify and Messages APIs accelerating.”

“Unified Communications (UC) and Contact Center (CC) revenues were better than expected, with continued traction in cross sales, with six of our top 10 deals in the quarter including both UC and CC products. We are also seeing traction in the Channel, with nine of our top 10 deals in the quarter partner related.”

Read continued, “The need for connected experiences with customers and employees across the globe continues to be a critical market need. We continue to see increased demand across our portfolio as hybrid working trends emerge and the focus on customer experience across channels continues to grow. We are well positioned to deliver greater employee and customer experiences through the Vonage Communications Platform, our single, global cloud communications platform.”

GUIDANCE:

Vonage sees Q2 2021 revenue of $333-337 billion, versus the consensus of $330.1 billion.

Vonage sees FY2021 revenue of $1.347-1.356 billion, versus the consensus of $1.33 billion.

For the second quarter of 2021, Vonage expects the following:

• Vonage Communications Platform revenues in the range of $260 million to $264 million
  • Vonage Communications Platform service revenues are expected to grow 16% to 18%
• Consumer revenues in the $73 million range
• Consolidated revenues in the range of $333 million to $337 million
• Vonage Communications Platform adjusted EBITDA in the ($4) million to $0 million range
• Consumer adjusted EBITDA in the $46 million range
• Consolidated Adjusted EBITDA in the range of $42 million to $46 million
• Capex in the $16 million range

For the full year 2021, the Company now expects the following:

• Vonage Communications Platform segment revenues in the range of $1.062 billion to $1.071 billion; within this:
  • Vonage Communications Platform service revenues are expected to grow 18% to 19%
• Consumer revenues in the $285 million range
• Consolidated revenues in the range of $1.347 billion to $1.356 billion
• Vonage Communications Platform adjusted EBITDA in the range of $0 million to $5 million
• Consumer adjusted EBITDA in the range of $185 million to $189 million
• Consolidated adjusted EBITDA in the range of $185 million to $194 million
• Capex in the $65 million range

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