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 Balance Sheet Health

Financial Health criteria checks 2/6

Key information

81.89%

Debt to equity ratio

US$471.12m

Debt

Interest coverage ration/a
CashUS$15.72m
EquityUS$575.30m
Total liabilitiesUS$807.16m
Total assetsUS$1.38b

Recent financial health updates

No updates

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.

Financial Position Analysis

Short Term Liabilities: VG's short term assets ($223.2M) do not cover its short term liabilities ($297.0M).

Long Term Liabilities: VG's short term assets ($223.2M) do not cover its long term liabilities ($510.2M).


Debt to Equity History and Analysis

Debt Level: VG's net debt to equity ratio (79.2%) is considered high.

Reducing Debt: VG's debt to equity ratio has increased from 73.8% to 81.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 1.7% per year.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/07/22 00:15
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