=Vonage (VG) reported earnings on Wed 26 Oct 2016 (b/o)

Vonage beats by $0.04, reports revs in-line; reaffirms FY16 revs guidance; raises Business rev and OIBDA guidance :

• Reports Q3 (Sep) adj. earnings of $0.09 per share, $0.04 better than the Capital IQ Consensus of $0.05; revenues rose 11.2% year/year to $248.4 mln vs the $246.92 mln Capital IQ Consensus. 
  • Vonage Business revenue, which includes $24 million of Nexmo revenue, was $106 million, an 86% year-over-year increase on a GAAP basis. Ending seats at Vonage Business were 616,000, up from 514,000 seats in the year ago quarter, a 20% increase. Vonage Business revenue churn was 1.4%, compared to 1.3% in the year ago quarter.
  • The Vonage API platform, formerly Nexmo, launched its next generation voice application interface, effectively doubling the Company's addressable market in CPaaS by opening up the broader, programmable voice market.
  • Revenue from Consumer Services was $142 million, compared to $166 million in the prior year period. This decline is consistent with the Company's strategy to optimize the profitability of Consumer Services, while redeploying capital into the high-growth Business Cloud Communications sector. Consumer customer churn improved to 2.2%, down from 2.3% in the year ago quarter.
• Co reaffirms guidance for FY16, sees FY16 revs of $950-960 mln vs. $957.03 mln Capital IQ Consensus Estimate. Within this, the Company is raising guidance for Vonage Business revenues to a range of $374 to $377 million, up from $365 to $370 million. Adjusted OIBDA is expected to be in the range of $158 to $160 million, up from "at least $150 million."