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 Management

Management criteria checks 4/4

Key information

Rory Read

Chief executive officer

US$2.2m

Total compensation

CEO salary percentage38.37%
CEO tenure2yrs
CEO ownership0.08%
Management average tenure2yrs
Board average tenure3.1yrs

Recent management 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.

CEO Compensation Analysis

How has Rory Read's remuneration changed compared to Vonage Holdings's earnings?
DateTotal CompensationSalaryCompany Earnings
Mar 31 2022n/an/a

-US$41m

Dec 31 2021US$2mUS$850k

-US$24m

Sep 30 2021n/an/a

-US$16m

Jun 30 2021n/an/a

-US$24m

Mar 31 2021n/an/a

-US$33m

Dec 31 2020US$29mUS$435k

-US$36m

Compensation vs Market: Rory's total compensation ($USD2.22M) is below average for companies of similar size in the US market ($USD8.41M).

Compensation vs Earnings: Rory's compensation has been consistent with company performance over the past year.

CEO

Rory Read (60 yo)

2yrs
Tenure
US$2,215,292
Compensation

Mr. Rory P. Read serves as Chief Executive Officer and Director at Vonage Holdings Corp. since July 1, 2020. Mr. Read served as President and Chief Executive Officer at Virtustream, Inc. He is Chief Operat...

Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Citron
Founder & Independent Chairman of the Board21.5yrsUS$297.44k0.12%
$ 6.6m
Rory Read
CEO & Director2yrsUS$2.22m0.083%
$ 4.5m
Stephen Lasher
Chief Financial Officer1.5yrsUS$11.75m0.037%
$ 2.0m
Joseph Bellissimo
Chief Operating Officer1.5yrsUS$9.45m0.030%
$ 1.6m
Joy Corso
Chief Marketing Officer2yrsUS$5.19m0.039%
$ 2.1m
Savinay Berry
Executive Vice President of Product & Engineering1.4yrsUS$11.83m0.021%
$ 1.1m
David Levi
Senior VP5.3yrsno data0.031%
$ 1.7m
Sanjay Macwan
Chief Information Officer & Chief Information Security Officer1.5yrsno data0.032%
$ 1.7m
Monica Gould
Investor Relations Officerno datano datano data
Randy Rutherford
Chief Legal Officer & Corporate Secretary5.6yrsno data0.068%
$ 3.7m
Vinod Lala
Chief Strategy Officer6yrsno data0.032%
$ 1.7m
Valerie Kahn
Senior Vice President of Business Developmentno datano datano data
2.0yrs
Average Tenure
53yo
Average Age

Experienced Management: VG's management team is considered experienced (2 years average tenure).

Board Members

NamePositionTenureCompensationOwnership
Jeffrey Citron
Founder & Independent Chairman of the Board21.5yrsUS$297.44k0.12%
$ 6.6m
Rory Read
CEO & Director2yrsUS$2.22m0.083%
$ 4.5m
Michael McConnell
Independent Director3.3yrsUS$199.97k0.0054%
$ 290.3k
John Roberts
Lead Independent Director17.9yrsUS$224.97k0.084%
$ 4.5m
Carolyn Katz
Independent Director8.5yrsUS$209.97k0.047%
$ 2.5m
Stephen Ward
Independent Director1.3yrsUS$108.75k0.0017%
$ 90.5k
Tien Tzuo
Independent Director2yrsUS$194.97k0.0033%
$ 175.6k
Priscilla Hung
Independent Director2.9yrsUS$204.97k0.0086%
$ 465.9k
Jan Hauser
Independent Director2.8yrsUS$219.97k0.0086%
$ 465.9k
Hamid Akhavan
Independent Director5.6yrsUS$194.97k0.022%
$ 1.2m
3.1yrs
Average Tenure
60yo
Average Age

Experienced Board: VG's board of directors are considered experienced (3.1 years average tenure).

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/07/22 21:04
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