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Vonage Holdings Corp.NasdaqGS:VG Stock Report

Market Cap US$5.4b
Share Price
n/a
US$19.7
n/aintrinsic discount
1Y46.1%
7D6.8%
1D
Portfolio Value
​
View

Vonage Holdings Corp.

NasdaqGS:VG Stock Report

Market Cap: US$5.4b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Vonage Holdings (VG) Stock Overview

Vonage Holdings Corp. primarily operates as a cloud communications company in the United States, Canada, the United Kingdom, the European Union, and Asia. More details

VG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends0/6

Rewards

Revenue is forecast to grow 14.62% per year

Risk Analysis

Earnings are forecast to decline by an average of 11.1% per year for the next 3 years

Shareholders have been diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years


VG Community Fair Values

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Vonage Holdings Corp. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Vonage Holdings
Historical stock prices
Current Share PriceUS$20.99
52 Week HighUS$21.00
52 Week LowUS$12.85
Beta0.60
1 Month Change25.16%
3 Month Change4.43%
1 Year Change46.07%
3 Year Change71.35%
5 Year Change206.42%
Change since IPO41.35%

Recent News & Updates

Seeking Alpha • Jun 30

Vonage In The Golden Age Of Arb

$2 in 1 month = >100% IRR. Ericsson thinks they can do this. Despite monster downside, EV is +. Merger arbitrage All else being equal, the wider the merger arb spread, the more ways there are to win. Today, the spread in the Ericsson (ERIC)-Vonage (VG) deal is among the very widest. Who? Vonage is a cloud communications company. VG What? Ericsson is buying Vonage for $21 per share in cash. The deal has secured VG shareholders, HSR, FCC, CRTC, German FCO, and UK OFCOM signoffs. That leaves only CFIUS. The deal is not conditioned on financing. When? The deal will probably close by August 1, 2022. Where? Vonage operates in the US, Canada, the UK, the EU, and Asia. It is headquartered in New Jersey. Why? The spread adequately compensates VG holders for CFIUS risk. Target Ticker Parity Spread IRR Vonage (VG) $21.00 $2.07 >100% Caveat

Recent updates

Seeking Alpha • Jun 30

Vonage In The Golden Age Of Arb

$2 in 1 month = >100% IRR. Ericsson thinks they can do this. Despite monster downside, EV is +. Merger arbitrage All else being equal, the wider the merger arb spread, the more ways there are to win. Today, the spread in the Ericsson (ERIC)-Vonage (VG) deal is among the very widest. Who? Vonage is a cloud communications company. VG What? Ericsson is buying Vonage for $21 per share in cash. The deal has secured VG shareholders, HSR, FCC, CRTC, German FCO, and UK OFCOM signoffs. That leaves only CFIUS. The deal is not conditioned on financing. When? The deal will probably close by August 1, 2022. Where? Vonage operates in the US, Canada, the UK, the EU, and Asia. It is headquartered in New Jersey. Why? The spread adequately compensates VG holders for CFIUS risk. Target Ticker Parity Spread IRR Vonage (VG) $21.00 $2.07 >100% Caveat
Seeking Alpha • Nov 29

Merger Arbitrage Mondays - Ericsson To Acquire Vonage Holdings

Initially a VOIP service provider, Vonage refocused its business from a home phone provider to a global business cloud communications provider. This transformation was key to Vonage's recent success. Ericsson to acquire Vonage for $6.2 billion or $21 per share in cash, representing a premium of 28%.
Seeking Alpha • Nov 22

Vonage: $21/Share Takeover From Ericsson

$6.2 billion deal approved by both boards. Price is a bit of a disappointment but still about 50% gain from original write up. Possible but unlikely another bidder comes in.
Seeking Alpha • Nov 05

Vonage: Accelerating Growth Areas And Activist Still Present

13% consolidated revenue growth. 43% API revenue growth, accelerating. EBITDA dollars, EBITDA margin, Total Revenues, and Cash Flow better than guidance for the quarter and raised year guidance. Balance sheet stronger and getting stronger driven by growing cash flows. Stock still a double from here.
Seeking Alpha • Sep 01

Vonage: A Potential Double With A Smart Activist Reportedly Pushing For A Sale

Activist firm owns 4% of the company. Stock is still down from where it traded post solid Q2 earnings. Sum of the Parts indicates a much higher stock price, potentially double.
Seeking Alpha • Aug 06

Vonage: A Fast Grower Hidden Under A Cash Cow

13% consolidated revenue growth. 40% API revenue growth. EBITDA margin and absolute dollars better than guidance. Balance sheet in great shape with cash flow well above $100mm. Stock is a potential double from here.

Shareholder Returns

VGUS SoftwareUS Market
7D6.8%-8.5%-4.1%
1Y46.1%-14.0%20.6%

Return vs Industry: VG exceeded the US Software industry which returned -21.3% over the past year.

Return vs Market: VG exceeded the US Market which returned -15.4% over the past year.

Price Volatility

Is VG's price volatile compared to industry and market?
VG volatility
VG Average Weekly Movement4.6%
Software Industry Average Movement9.8%
Market Average Movement7.2%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: VG has not had significant price volatility in the past 3 months.

Volatility Over Time: VG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20002,082Rory Readwww.vonage.com

Vonage Holdings Corp. primarily operates as a cloud communications company in the United States, Canada, the United Kingdom, the European Union, and Asia. It operates in two segments, Vonage Communications Platform and Consumer. The Vonage Communications Platform segment offers programmable, embeddable, and customizable application program interfaces that enable software developers to build communications capabilities, such as messaging and voice calling within their applications; and Vonage Contact Center, a cloud contact center solution.

Vonage Holdings Corp. Fundamentals Summary

How do Vonage Holdings's earnings and revenue compare to its market cap?
VG fundamental statistics
Market capUS$5.39b
Earnings (TTM)-US$41.24m
Revenue (TTM)US$1.37b
3.9x
P/S Ratio
-130.6x
P/E Ratio

Is VG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
VG income statement (TTM)
RevenueUS$1.37b
Cost of RevenueUS$654.29m
Gross ProfitUS$714.84m
Other ExpensesUS$756.08m
Earnings-US$41.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.16
Gross Margin52.21%
Net Profit Margin-3.01%
Debt/Equity Ratio81.9%

How did VG perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/07/22 03:42
End of Day Share Price 2022/07/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Vonage Holdings Corp. is covered by 16 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William PowerBaird
Ryan MacWilliamsBarclays
Gregory MillerCanaccord Genuity