The 10-second takeaway
For the quarter ended March 31 (Q1), Vonage Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Vonage Holdings booked revenue of $215.9 million. The one analyst polled by S&P Capital IQ looked for revenue of $212.3 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $219.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The two earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.06 for Q1 were 33% lower than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 66.9%, 70 basis points worse than the prior-year quarter. Operating margin was 9.5%, 410 basis points worse than the prior-year quarter. Net margin was 6.4%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $210.9 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $847.5 million. The average EPS estimate is $0.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 495 members out of 1,566 rating the stock outperform, and 1,071 members rating it underperform. Among 423 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Vonage Holdings a green thumbs-up, and 358 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vonage Holdings is outperform, with an average price target of $3.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.