Vonage Holdings Corporation (NYSE:VG) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 08:30 am ET


Vonage Holdings Corporation (NYSE:VG) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Vonage Holdings Corporation's Third Quarter 2019 earnings conference call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Hunter Blankenbaker, Vice President of Investor Relations. Please, go ahead.

Hunter Blankenbaker

Okay. Great. Thanks, Debbie, and good morning, and welcome to our third quarter 2019 earnings conference call. Speaking on our call this morning is Alan Masarek, Chief Executive Officer; and Dave Pearson, CFO. Also joining us is Omar Javaid, President of the API platform. Alan will discuss our strategy and third quarter results. Dave will provide a more detailed view on our third quarter results and our fourth quarter guidance. Slides that accompany today's discussion are available on the IR website. At the conclusion of our prepared remarks, we'll be happy to take your questions.

As referenced on Slide 2, I would like to remind everyone that statements made during this call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations, depend on assumptions that may be incorrect or imprecise, and are subject to risks and uncertainties that could cause actual results to differ materially. More information about those risks and uncertainties is highlighted on the second page of the slides and contained in our SEC filings. We caution listeners not to rely unduly on these statements and disclaim any intent or obligation to update them. During this call, we will be referring to non-GAAP financial measures. A reconciliation to GAAP is available in the third quarter earnings press release or the third quarter earnings slides posted on the IR site.

Additionally, during prepared remarks, all comparisons to prior periods are year-over-year, unless otherwise noted as sequential. So with that, I'll turn the call over to Alan.

Alan Masarek

Thanks, Hunter. Good morning. We delivered a solid third quarter. Consolidated revenues increased 16% to $303 million, and Business revenues reached $207 million. Business Service revenues grew 23% on an adjusted constant currency basis. Adjusted OIBDA was $45 million. I'm delighted to report that Vonage Campus, our first ever worldwide user developer partner and customer conference held last week in San Francisco, was a great success. We unveiled a completely revitalized Vonage brand as our single, unified global identity. Our new branding positions Vonage as a modern B2B SaaS company.

At Campus, we highlighted our differentiation as the world's most flexible cloud communications platform to emphasize our ownership of the entire communications stack across Unified Communications, Contact Center and programmable APIs. Campus had more than 1,000 registered attendees, representing a broad cross section of communications users. This is consistent with our integrated strategy for platform-based communications, where we uniquely serve the entirety of the cloud communications TAM from one flexible cloud-native platform.

Vonage Campus helped me to step back and reflect on the enormity of our transformation. I joined as Vonage's CEO exactly five years ago today. Our goal then and our goal now is