The 10-second takeaway
For the quarter ended June 30 (Q2), Vonage Holdings met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Vonage Holdings booked revenue of $211.9 million. The one analyst polled by S&P Capital IQ expected revenue of $212.0 million on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $218.3 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 $0.09. The two earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS were -$0.01 for Q2 against $0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.2%, 80 basis points worse than the prior-year quarter. Operating margin was -1.3%, 1,560 basis points worse than the prior-year quarter. Net margin was -1.6%, 1,160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $209.4 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $845.4 million. The average EPS estimate is $0.26.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 500 members out of 1,557 rating the stock outperform, and 1,057 members rating it underperform. Among 408 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Vonage Holdings a green thumbs-up, and 347 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. The Motley Fool has no positions in the stocks mentioned above. 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.