Vonage Reports Third Quarter 2019 Results


November 06, 2019

HOLMDEL, N.J., Nov. 6, 2019 /PRNewswire/ -- Vonage Holdings Corp. (NYSE: VG), a global business cloud communications leader, today announced results for the quarter ended September 30, 2019.

"The OneVonage platform and strategy is resonating with customers and partners. This single platform approach, combined with ownership of the core components, enables us to innovate faster and deliver unique unified communications, contact center and API solutions to help companies transform the way they engage with their customers and employees," said Alan Masarek, Chief Executive Officer.

Mr. Masarek continued, "Vonage remains a leader in programmable communications. Revenues from our API platform grew 48% on an adjusted, constant currency basis. In Applications, we are executing on a comprehensive plan to drive up-market. We've made a lot of progress on our strategy and continue to invest in the right areas. Market demand continues to grow, and Vonage is well-positioned for long-term success."

Third Quarter Business Segment Results

  • Vonage Business Revenues were $207 million, representing 34% GAAP growth.
  • Business Service Revenues were $184 million, a 37% GAAP increase.
    • Adjusted to include acquisitions for all periods and other one-time items, Vonage Business Service Revenues(1) increased 21% year-over-year or 23% in constant currency.
    • API Platform Revenues (which are all service revenues) grew 46% GAAP and 44% adjusted or 48% adjusted, constant currency.
    • Applications Service Revenues grew 32% GAAP or 8% on both an adjusted and adjusted, constant currency basis.
  • Business Service Revenue Per Customer was $451, up 25% from the year-ago quarter.
  • Business Service Revenue Churn was 1.0%, improving from 1.1% in the year-ago quarter.

Third Quarter Consumer Segment Results

  • Consumer Revenues were $96 million, down 11% year-over-year.
  • Customer churn was 1.8%, flat compared to the year-ago quarter.
  • Average revenue per line ("ARPU") was $27.56, up $1.26 compared to the year-ago quarter.
  • Ended the quarter with approximately 1.1 million Consumer subscriber lines.

Consolidated Income and Balance Sheet

For the third quarter of 2019, Vonage reported consolidated revenues of $303 million, up from $262 million in the year-ago quarter.

The Company generated income from operations of $6 million, Adjusted Operating Income Before Depreciation and Amortization ("Adjusted OIBDA")(2) of $45 million, and Adjusted OIBDA minus Capex(2) of $31 million. Net Cash from Operations was $32 million and Free Cash Flow(3) was $18 million for the quarter.

As of September 30, 2019, the Company had a net debt to Last Twelve Months Adjusted OIBDA ratio of 3.6 times.

Guidance

For the fourth quarter of 2019, Vonage expects the following:

  • Vonage Business Revenues in the range of $214 million to $216 million.
  • Consumer Revenues in the area of $90 million to $91 million.
  • Consolidated Adjusted OIBDA in the range of $43 million to $46 million. Accordingly, 2019 Adjusted OIBDA is now expected to be in the $157 million to $160 million range. This change primarily reflects the increased lag in revenue recognition due to higher Deferred Revenues driven by larger new contact center customer bookings.

Conference Call and Webcast

The company will host a conference call to discuss its financial results for the third quarter of 2019 and other matters at 8:30 AM Eastern Time. To participate, please dial (866) 891-8177. International callers should dial (412) 902-6756.

A live webcast of the conference call will be available on the Vonage Investor Relations website. A replay of the webcast will also be available shortly after the conclusion of the call and may be accessed through Vonage's Investor Relations website or by dialing (877) 344-7529 or (412) 317-0088 for international callers and entering the passcode 10136257.

About Vonage

Vonage is redefining business communications once again. We're making communications more flexible, intelligent, and personal, to help enterprises the world over, stay ahead. We provide unified communications, contact centers and programmable communications APIs, built on the world's most flexible cloud communications platform. True to our roots as a technology disruptor, our flexible approach helps us to better serve the growing collaboration, communications, and customer experience needs of companies, across all communications channels.

Vonage Holdings Corp. is headquartered in New Jersey, with offices throughout the United States, Europe, Israel, Australia and Asia. To follow Vonage on Twitter, please visit www.twitter.com/vonage. To become a fan on Facebook, go to www.facebook.com/vonage. To subscribe on YouTube, visit www.youtube.com/vonage.

(1) This is a non-GAAP financial measure. Refer below to Table 5 for a reconciliation to GAAP total business revenues and business service revenues.

(2) This is a non-GAAP financial measure. Refer below to Table 3 for a reconciliation to GAAP income from operations.

(3) This is a non-GAAP financial measure. Refer below to Table 6 for a reconciliation to GAAP cash from operations.

 

VONAGE HOLDINGS CORP.
TABLE 1. CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share amounts)



Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018


(unaudited)


(unaudited)


(unaudited)


(unaudited)


(audited)

Statement of Operations Data:










Revenues

$

302,534



$

297,584



$

261,531



$

879,659



$

774,979












Operating Expenses:










Cost of revenues (excluding depreciation and
amortization of $9,658, $9,144, $6,386, $28,220, and
$19,046, respectively)

133,833



128,221



104,351



375,465



315,122


Sales and marketing

83,628



95,362



74,380



274,513



229,201


Engineering and development

16,901



16,891



14,309



50,318



35,504


General and administrative

41,306



36,615



37,620



113,380



97,376


Depreciation and amortization

21,319



20,662



16,024



63,195



51,886



296,987



297,751



246,684



876,871



729,089


Income (Loss) from operations

5,547



(167)



14,847



2,788



45,890


Other Income (Expense):










Interest expense

(8,454)



(8,487)



(3,036)



(24,517)



(9,294)


Other income (expense), net

58



(147)



347



(505)



431



(8,396)



(8,634)



(2,689)



(25,022)



(8,863)


(Loss) Income before income tax benefit/(expense)

(2,849)



(8,801)



12,158



(22,234)



37,027


Income tax (expense) benefit

(18,248)



13,325



(2,570)



5,127



5,644


Net (loss) income

$

(21,097)



$

4,524



$

9,588



$

(17,107)



$

42,671


(Loss) Earning per common share:










Basic

$

(0.09)



$

0.02



$

0.04



$

(0.07)



$

0.18


Diluted

$

(0.09)



$

0.02



$

0.04



$

(0.07)



$

0.17


Weighted-average common shares outstanding:










Basic

242,336



242,475



239,303



241,786



236,775


Diluted

242,336



249,720



249,516



241,786



248,780


 

 

VONAGE HOLDINGS CORP.
TABLE 1. CONSOLIDATED FINANCIAL DATA - (Continued)
(Dollars in thousands, except per share amounts)



Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018


(unaudited)


(unaudited)


(unaudited)


(unaudited)


(audited)

Statement of Cash Flow Data:










Net cash provided by operating activities

$

31,783



$

25,317



$

28,528



$

59,850



$

94,463


Net cash used in investing activities

(16,809)



(11,679)



(37,177)



(39,262)



(49,184)


Net cash (used in) provided by financing activities

(14,259)



(12,761)



6,841



(6,234)



(50,130)


Capital expenditures and acquisition and development of
software assets

(13,809)



(11,679)



(4,878)



(36,262)



(16,885)


 

 



September 30,


December 31,



2019


2018



(unaudited)


(audited)

Balance Sheet Data (at period end):





Cash and cash equivalents


$

18,741



$

5,057


Restricted cash


2,054



2,047


Accounts receivable, net of allowance


94,423



75,342


Inventory, net of allowance


970



1,470


Prepaid expenses and other current assets


36,256



34,130


Deferred customer acquisition costs, current and non-current


63,201



49,636


Property and equipment, net


48,330



49,262


Goodwill


589,923



598,499


Operating lease right of use assets


53,561




Software, net


34,269



17,430


Intangible assets, net


255,256



299,911


Deferred tax assets


103,302



102,560


Other assets


32,148



24,144


Total assets


$

1,332,434



$

1,259,488


Accounts payable and accrued expenses


$

163,646



$

140,632


Operating lease liabilities, current and non-current


61,132




Deferred revenue, current and non-current


61,105



53,447


Total notes payable, net and indebtedness under revolving credit facility, including current portion


235,500



519,228


Convertible senior notes, net


273,265




Other liabilities


3,021



10,413


Total liabilities


$

797,669



$

723,720


Total stockholders' equity


$

534,765



$

535,768


 

 

VONAGE HOLDINGS CORP.
TABLE 2. SUMMARY CONSOLIDATED OPERATING DATA
(Dollars in thousands, except per line amounts)
(unaudited)


The table below includes revenues and cost of revenues that our management uses to measure the growth and operating performance of the business focused portion of our business:


 Business

Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018

Revenues:










   Service revenues

$

183,701



$

180,014



$

133,709



$

523,060



$

377,703


   Access and product revenues(1)

12,120



11,707



12,427



35,524



37,674


      Service, access and product revenues

195,821



191,721



146,136



558,584



415,377


   USF revenues

10,709



8,299



7,499



27,563



22,768


Total revenues

$

206,530



$

200,020



$

153,635



$

586,147



$

438,145












Cost of Revenues:










   Service cost of revenues(2)

$

87,352



$

86,290



$

59,600



$

243,496



$

172,917


   Access and product cost of revenues(1)

13,858



13,594



14,887



41,323



43,291


      Service, access and product cost of revenues

101,210



99,884



74,487



284,819



216,208


   USF revenues

10,709



8,299



7,499



27,563



22,773


Total cost of revenues

$

111,919



$

108,183



$

81,986



$

312,382



$

238,981












Service margin %

52.4

%


52.1

%


55.4

%


53.4

%


54.2

%

Gross margin % ex-USF (Service, access and product margin %)

48.3

%


47.9

%


49.0

%


49.0

%


47.9

%

Gross margin %

45.8

%


45.9

%


46.6

%


46.7

%


45.5

%

(1) Includes customer premise equipment, access, professional services, and shipping and handling.(2) Excludes depreciation and amortization of $8,492, $7,978, and $5,141 for the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively, and $24,684 and $15,092 for the nine months ended September 30, 2019 and 2018, respectively.

The table below includes revenues and cost of revenues that our management uses to measure the growth and operating performance of the consumer focused portion of our business:

 

Consumer

Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018

Revenues:










   Service revenues

$

83,981



$

87,244



$

97,093



$

260,225



$

301,954


   Access and product revenues(1)

69



60



92



197



472


      Service, access and product revenues

84,050



87,304



97,185



260,422



302,426


   USF revenues

11,954



10,260



10,711



33,090



34,408


Total revenues

$

96,004



$

97,564



$

107,896



$

293,512



$

336,834












Cost of Revenues:










   Service cost of revenues(2)

$

8,587



$

8,861



$

10,661



$

26,706



$

37,050


   Access and product cost of revenues(1)

1,373



917



993



3,287



4,657


      Service, access and product cost of revenues

9,960



9,778



11,654



29,993



41,707


   USF revenues

11,954



10,260



10,711



33,090



34,434


Total cost of revenues

$

21,914



$

20,038



$

22,365



$

63,083



$

76,141












Service margin %

89.8

%


89.8

%


89.0

%


89.7

%


87.7

%

Gross margin % ex-USF (Service, access and product margin %)

88.1

%


88.8

%


88.0

%


88.5

%


86.2

%

Gross margin %

77.2

%


79.5

%


79.3

%


78.5

%


77.4

%

(1) Includes customer premise equipment, access, professional services, and shipping and handling.(2) Excludes depreciation and amortization of $1,166, $1,166, $1,245 for the quarters ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively. and  $3,536 and $3,954 for the nine months ended September 30, 2019 and 2018, respectively.

The table below includes key operating data that our management uses to measure the growth and operating performance of the business focused portion of our business:

 

 Business

Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018

Service revenue per customer

$

451



$

440



$

362



$

435



$

345


Business revenue churn

1.0

%


1.0

%


1.1

%


1.1

%


1.2

%

 

The table below includes key operating data that our management uses to measure the growth and operating performance of the consumer focused portion of our business:

 

Consumer

Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018

Average monthly revenues per line

$

27.56



$

26.89



$

26.30



$

26.91



$

26.41


Subscriber lines (at period end)

1,136,112



1,185,835



1,341,662



1,136,112



1,341,662


Customer churn

1.8

%


1.7

%


1.8

%


1.8

%


1.8

%

 

 

VONAGE HOLDINGS CORP.
TABLE 3. RECONCILIATION OF GAAP INCOME FROM OPERATIONS
TO ADJUSTED OIBDA AND TO ADJUSTED OIBDA MINUS CAPEX
(Dollars in thousands)
(unaudited)



Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018

Income (Loss) from operations

$

5,547



$

(167)



$

14,847



$

2,788



$

45,890


Depreciation and amortization

21,319



20,662



16,024



63,195



51,886


Amortization of costs to implement cloud computing
arrangements

411



146





682




Share-based expense

12,941



11,271



8,484



32,152



23,690


Acquisition related transaction and integration costs

174



256



9,509



621



9,941


Acquisition related consideration accounted for as
compensation





39





1,425


Organizational transformation

4,331



5,371



923



14,360



4,043


Adjusted OIBDA

44,723



37,539



49,826



113,798



136,875


Less:










Capital expenditures

(5,970)



(4,179)



(2,900)



(15,426)



(10,687)


Acquisition and development of software assets

(7,839)



(7,500)



(1,978)



(20,836)



(6,198)


Adjusted OIBDA Minus Capex

$

30,914



$

25,860



$

44,948



$

77,536



$

119,990


 


 

VONAGE HOLDINGS CORP.
TABLE 4. RECONCILIATION OF GAAP NET INCOME TO
NET INCOME EXCLUDING ADJUSTMENTS
(Dollars in thousands, except per share amounts)
(unaudited)



Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018

Net (loss) income

$

(21,097)



$

4,524



$

9,588



$

(17,107)



$

42,671


Amortization of acquisition - related intangibles

13,962



13,818



8,746



41,959



26,170


Amortization of costs to implement cloud computing
arrangements

411



146





682




Amortization of debt discount

2,948



487





3,435




Acquisition related transaction and integration costs

174



256



9,509



621



9,941


Acquisition related consideration accounted for as
compensation





39





1,425


Organizational transformation

4,331



5,371



923



14,360



4,043


Tax effect on adjusting items

(4,583)



(4,217)



(7,283)



(12,822)



(14,761)


Net (loss) income excluding adjustments

$

(3,854)



$

20,385



$

21,522



$

31,128



$

69,489


(Loss) Earnings per common share:










Basic

$

(0.09)



$

0.02



$

0.04



$

(0.07)



$

0.18


Diluted

$

(0.09)



$

0.02



$

0.04



$

(0.07)



$

0.17


Weighted-average common shares outstanding:










Basic

242,336



242,475



239,303



241,786



236,775


Diluted

242,336



249,720



249,516



241,786



248,780


(Loss) Earnings per common share, excluding adjustments:










Basic

$

(0.02)



$

0.08



$

0.09



$

0.13



$

0.29


Diluted

$

(0.02)



$

0.08



$

0.09



$

0.12



$

0.28


Weighted-average common shares outstanding:










Basic

242,336



242,475



239,303



241,786



236,775


Diluted

242,336



249,720



249,516



250,094



248,780



 

 

VONAGE HOLDINGS CORP.
TABLE 5. RECONCILIATION OF BUSINESS SEGMENT - GAAP REVENUES AND SERVICE REVENUES
TO BUSINESS SEGMENT - ADJUSTED REVENUES, ADJUSTED SERVICE REVENUES, ADJUSTED APPLICATIONS GROUP SERVICE REVENUES AND ADJUSTED API PLATFORM GROUP SERVICE REVENUES
(Dollars in thousands)
(unaudited)



Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018











Business total revenues

$

206,530



$

200,020



$

153,635



$

586,147



$

438,145


Deferred revenue adjustment from acquired companies

760



1,656





4,915




Revenue from acquired companies (prior to acquisition) less
revenue from divested businesses





19,052





57,089


Outage credits and significant one-time items



(440)





(440)



933


Adjusted Business total revenues

$

207,290



$

201,236



$

172,687



$

590,622



$

496,167












Business service revenues

$

183,701



$

180,014



$

133,709



$

523,060



$

377,703


Deferred revenue adjustment from acquired companies

760



1,656





4,915




Revenue from acquired companies (prior to acquisition) less
revenue from divested businesses





18,961





56,776


Outage credits and significant one-time items



(440)





(440)



933


Adjusted Business service revenues

$

184,461



$

181,230



$

152,670



$

527,535



$

435,412






















Business service revenues

$

183,701



$

180,014



$

133,709



$

523,060



$

377,703


Less: API Platform Group service revenue

80,331



78,082



55,106



218,276



149,412


Applications Group service revenue

103,370



101,932



78,603



304,784



228,291


Deferred revenue adjustment from acquired companies

760



1,656





4,915




Revenue from acquired companies (prior to acquisition) less
revenue from divested businesses





18,148





50,805


Outage credits and significant one-time items



(440)





(440)



933


Adjusted Applications Group service revenues

$

104,130



$

103,148



$

96,751



$

309,259



$

280,029






















Business service revenues

$

183,701



$

180,014



$

133,709



$

523,060



$

377,703


Less: Applications Group service revenue

103,370



101,932



78,603



304,784



228,291


API Platform Group service revenue

80,331



78,082



55,106



218,276



149,412


Revenue from acquired companies prior to acquisition





813





5,971


Adjusted API Platform Group service revenues

$

80,331



$

78,082



$

55,919



$

218,276



$

155,383


 

 

VONAGE HOLDINGS CORP.
TABLE 6. FREE CASH FLOW
(Dollars in thousands)
(unaudited)



Three Months Ended


Nine Months Ended


September 30,


June 30,


September 30,


September 30,


2019


2019


2018


2019


2018

Net cash provided by operating activities

$

31,783



$

25,317



$

28,528



$

59,850



$

94,463


Less:










Capital expenditures

(5,970)



(4,179)



(2,900)



(15,426)



(10,687)


Acquisition and development of software assets

(7,839)



(7,500)



(1,978)



(20,836)



(6,198)


Free cash flow

$

17,974



$

13,638



$

23,650



$

23,588



$

77,578


 

 

VONAGE HOLDINGS CORP.
TABLE 7. RECONCILIATION OF NOTES PAYABLE, INDEBTEDNESS UNDER REVOLVING CREDIT FACILITY, AND CAPITAL LEASES TO NET DEBT
(Dollars in thousands)
(unaudited)




September 30,


December 31,



2019


2018






Current portion of notes payable




10,000


Notes payable and indebtedness under revolving credit facility, net of current maturities


235,500



509,228


Convertible senior notes, net


273,265




Unamortized discount on debt


64,229




Unamortized debt related costs


7,506



772


Gross debt


580,500



520,000


Less:





Unrestricted cash


18,741



5,057


Net debt


$

561,759



$

514,943











 

Use of Non-GAAP Financial Measures

This press release includes measures defined as non-GAAP financial measures by Regulation G adopted by the Securities and Exchange Commission, including: adjusted Operating Income Before Depreciation and Amortization ("adjusted OIBDA"), adjusted OIBDA less Capex, adjusted net income, adjusted business total revenue, adjusted business service revenue, constant currency, net debt (cash), and free cash flow.

Adjusted OIBDA

Vonage uses adjusted OIBDA as a principal indicator of the operating performance of its business.

Vonage defines adjusted OIBDA as GAAP income (loss) from operations excluding depreciation and amortization, share-based expense, acquisition related transaction and integration costs, change in contingent consideration, acquisition related consideration accounted for as compensation, organizational transformation costs and loss on sublease.

Vonage believes that adjusted OIBDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of depreciation and amortization, which may vary from period to period without any correlation to underlying operating performance; of share-based expense, which is a non-cash expense that also varies from period to period; of one-time acquisition related transaction and integration costs, acquisition related consideration accounted for as compensation and change in contingent consideration, organizational transformation costs and loss on sublease.

The Company provides information relating to its adjusted OIBDA so that investors have the same data that the Company employs in assessing its overall operations. The Company believes that trends in its Adjusted OIBDA are valuable indicators of the operating performance of the Company on a consolidated basis.

The Company does not reconcile its forward-looking adjusted OIBDA to the corresponding GAAP measure of income from operations due to the significant variability and difficulty in making accurate forecasts with respect to the various expenses we exclude, as they may be significantly impacted by future events the timing and nature of which are difficult to predict or are not within the control of management.  As such, the Company has determined that reconciliations of this forward-looking non-GAAP financial measure to the corresponding GAAP measure is not available without unreasonable effort.

Adjusted OIBDA less Capex

Vonage uses adjusted OIBDA less Capex as an indicator of the operating performance of its business. The Company provides information relating to its adjusted OIBDA less Capex so that investors have the same data that the Company employs in assessing its overall operations. The Company believes that trends in its Adjusted OIBDA less Capex are valuable indicators of the operating performance of the Company on a consolidated basis because they provide our investors with insight into current performance and period-to-period performance.

Adjusted net income

Vonage defines adjusted net income, as GAAP net income (loss) excluding amortization of acquisition-related intangible assets, acquisition related transaction and integration costs, change in contingent consideration, acquisition related consideration accounted for as compensation, organizational transformation costs, loss on sublease and tax effect on adjusting items.

The Company believes that excluding these items will assist investors in evaluating the Company's operating performance and in better understanding its results of operations as amortization of acquisition-related intangible assets is a non-cash item, one-time acquisition related transaction and integration costs, change in contingent consideration, acquisition related consideration accounted for as compensation, loss on sublease and tax effect on adjusting items are not reflective of operating performance.

Constant Currency

Vonage reviews its results of operations on both an as reported and on a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior period exchange rates and comparing these adjusted amounts to our prior period reported results.

Net debt (cash)

Vonage defines net debt (cash) as the current maturities of capital lease obligations, current portion of notes payable, notes payable and indebtedness under revolving credit facility, net of current maturities and debt related costs, and capital lease obligations, net of current maturities, less unrestricted cash and marketable securities.

Vonage uses net debt (cash) as a measure of assessing leverage, as it reflects the gross debt under the Company's credit agreements and capital leases less cash available to repay such amounts. The Company believes that net cash is also a factor that first parties consider in valuing the Company.

Free cash flow

Vonage defines free cash flow as net cash provided by operating activities minus capital expenditures, purchase of intangible assets, and acquisition and development of software assets.

Vonage considers free cash flow to be a liquidity measure that provides useful information to management about the amount of cash generated by the business that, after the acquisition of equipment and software, can be used by Vonage for debt service and strategic opportunities. Free cash flow is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.

The non-GAAP financial measures used by Vonage may not be directly comparable to similarly titled measures reported by other companies due to differences in accounting policies and items excluded or included in the adjustments, which limits its usefulness as a comparative measure. These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

Adjusted business total revenue and Adjusted business service revenue

Vonage defines adjusted business total revenue and adjusted business service revenues as business segment revenue and business segment service revenues to give effect for acquisition-related activities and other one-time items.

The Company does not reconcile its forward-looking adjusted business total revenue and adjusted business service revenue to the corresponding GAAP measures due to the significant variability and difficulty in making accurate forecasts with respect to the various acquisition-related and one-time events that we exclude, as they may be significantly impacted by future events the timing and nature of which are difficult to predict or are not within the control of management.  As such, the Company has determined that reconciliations of these forward-looking non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

Safe Harbor Statement

This press release contains forward-looking statements, including statements about acquisitions, acquisition integration, financing activity, growth priorities or plans, revenues, adjusted OIBDA, churn, seats, lines or accounts, average revenue per customer, cost of communications services, capital expenditures, new products and related investment, and other statements that are not historical facts or information, that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. In addition, other statements in this press release that are not historical facts or information may be forward-looking statements. The forward-looking statements in this release are based on information available at the time the statements are made and/or management's belief as of that time with respect to future events and involve risks and uncertainties that could cause actual results and outcomes to be materially different. Important factors that could cause such differences include, but are not limited to: the competition we face; the expansion of competition in the cloud communications market; risks related to the acquisition or integration of businesses we have acquired; our ability to adapt to rapid changes in the cloud communications market; the nascent state of the cloud communications for business market; our ability to retain customers and attract new customers cost-effectively; the risk associated with developing and maintaining effective internal sales teams and effective distribution channels; security breaches and other compromises of information security; risks associated with sales of our services to medium-sized and enterprise customers; our reliance on third-party hardware and software; our dependence on third-party facilities, equipment, systems and services; system disruptions or flaws in our technology and systems; our ability to comply with data privacy and related regulatory matters; our ability to scale our business and grow efficiently; our dependence on third party vendors; the impact of fluctuations in economic conditions, particularly on our small and medium business customers; our ability to obtain or maintain relevant intellectual property licenses or to protect our trademarks and internally developed software; restrictions in our debt agreements that may limit our operating flexibility; our ability to obtain additional financing if required; our ability to raise funds necessary to settle conversion of the 2024 convertible senior notes; conditional conversion features of the convertible senior notes; the cash settlement of the convertible senior notes; the effects of the capped call transactions in connection with the convertible senior notes; fraudulent use of our name or services; intellectual property and other litigation that have been and may be brought against us; reliance on third parties for our 911 services; uncertainties relating to regulation of business services; risks associated with legislative, regulatory or judicial actions regarding our business products; risks associated with operating abroad; risks associated with the taxation of our business; governmental regulation and taxes in our international operations; liability under anti-corruption laws or from governmental export controls or economic sanctions; our dependence on our customers' unimpeded access to broadband connections; foreign currency exchange risk; our history of net losses and ability to achieve consistent profitability in the future; our ability to fully realize the benefits of our net operating loss carry-forwards if an ownership change occurs; certain provisions of our charter documents; and other factors that are set forth in the "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018 and in the Company's Quarterly Reports on Form 10-Q filed with the SEC. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so except as required by law, and therefore, you should not rely on these forward-looking statements as representing the Company's views as of any date subsequent to today.

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Cision View original content:http://www.prnewswire.com/news-releases/vonage-reports-third-quarter-2019-results-300952716.html

SOURCE Vonage Holdings Corp.

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