Company Quick10K Filing
Vonage Holdings
Price12.41 EPS-0
Shares243 P/E-125
MCap3,010 P/FCF50
Net Debt252 EBIT6
TEV3,263 TEV/EBIT589
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-21
10-Q 2019-09-30 Filed 2019-11-06
10-Q 2019-06-30 Filed 2019-08-06
10-Q 2019-03-31 Filed 2019-05-08
10-K 2018-12-31 Filed 2019-02-27
10-Q 2018-09-30 Filed 2018-11-02
10-Q 2018-06-30 Filed 2018-08-01
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-02-27
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-12
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-07-30
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-13
10-Q 2014-09-30 Filed 2014-11-05
10-Q 2014-06-30 Filed 2014-07-31
10-Q 2014-03-31 Filed 2014-05-01
10-K 2013-12-31 Filed 2014-02-13
10-Q 2013-09-30 Filed 2013-11-06
10-Q 2013-06-30 Filed 2013-07-31
10-Q 2013-03-31 Filed 2013-05-01
10-K 2012-12-31 Filed 2013-02-13
10-Q 2012-09-30 Filed 2012-11-01
10-Q 2012-06-30 Filed 2012-08-01
10-Q 2012-03-31 Filed 2012-05-03
10-K 2011-12-31 Filed 2012-02-16
10-Q 2011-09-30 Filed 2011-11-04
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-02-17
10-Q 2010-09-30 Filed 2010-11-04
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-02-26
8-K 2020-08-17 Officers, Exhibits
8-K 2020-08-06 Earnings, Exhibits
8-K 2020-07-10 Officers, Exhibits
8-K 2020-06-30 Exhibits
8-K 2020-06-11
8-K 2020-06-05
8-K 2020-05-19
8-K 2020-05-07
8-K 2020-04-20
8-K 2020-03-31
8-K 2020-02-26
8-K 2020-02-18
8-K 2020-01-07
8-K 2019-12-19
8-K 2019-11-11
8-K 2019-11-06
8-K 2019-09-24
8-K 2019-08-26
8-K 2019-08-23
8-K 2019-08-06
8-K 2019-06-11
8-K 2019-06-06
8-K 2019-05-08
8-K 2019-04-06
8-K 2019-03-15
8-K 2019-03-15
8-K 2019-03-11
8-K 2019-02-21
8-K 2018-11-02
8-K 2018-10-31
8-K 2018-09-20
8-K 2018-09-20
8-K 2018-08-01
8-K 2018-07-31
8-K 2018-06-13
8-K 2018-05-28
8-K 2018-05-14
8-K 2018-05-08
8-K 2018-03-19
8-K 2018-02-21

VG 10Q Quarterly Report

Part 1 - Financial Information
Item 1 - Condensed Consolidated Financial Statements and Notes
Note 1. Nature of Business
Note 2. Summary of Significant Accounting Policies
Note 3. Revenue Recognition
Note 4. Earnings per Share
Note 5. Income Taxes
Note 6. Long - Term Debt
Note 7. Leases
Note 8. Common Stock
Note 9. Commitments and Contingencies
Note 10. Industry Segment and Geographic Information
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II - Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits
EX-31.1 a10-qq120exhibit311.htm
EX-31.2 a10-qq120exhibit312.htm
EX-32.1 a10-qq120exhibit321.htm

Vonage Holdings Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.41.10.80.60.30.02012201420172020
Assets, Equity
0.40.30.20.10.0-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From __________  to __________                    
Commission File Number 001-32887 
VONAGE HOLDINGS CORP.
(Exact name of registrant as specified in its charter)
 
Delaware11-3547680
(State or other jurisdiction of incorporation or organization)(IRS Employer Identification No.)
23 Main StreetHolmdel,NJ,07733
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (732528-2600
(Former name, former address and former fiscal year, if changed since last report): Not Applicable

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001VGNasdaq Global Select Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x  No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
x
  Accelerated filero
Non-accelerated filer
o  
  
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No  x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassOutstanding atJuly 31, 2020
Common Stock, par value $0.001245,551,723  shares


VONAGE HOLDINGS CORP.
INDEX
 
Part 1 - Financial Information
  Page
Item 1.
Item 2.
Item 3.
Item 4
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Financial Information Presentation
For the financial information discussed in this Quarterly Report on Form 10-Q, other than per share and per line amounts, dollar amounts are presented in thousands, except where noted.
2

GLOSSARY OF TERMS

When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below:
2018 Credit Facility$100 million senior secured term loan and $500 million revolving facility due 2023
Convertible Senior Notes$345 million aggregate principal amount of 1.75% convertible notes due 2024
APIApplication Program Interfaces
API Platform GroupComprised of CPaaS programmable communication solutions for business customers
Applications GroupComprised of UCaaS and CCaaS communication solutions for business customers
ASCThe FASB Accounting Standards Codification, which the FASB established as the source of authoritative GAAP
ASUAccounting Standards Updates - updates to the ASC
CCaaSContact Center as a Service
CPaaSCommunications Platform as a Service
CRMCustomer Relationship Management
Exchange ActThe Securities Exchange Act of 1934, as amended
EPSEarnings Per Share
FASBFinancial Accounting Standards Board
FCCFederal Communications Commission
IPInternet Protocol
LIBORLondon Inter-Bank Offered Rate
MPLSMulti-Protocol Label Switching
NOLsNet Operating Losses
SaaSSoftware as a Service
SABStaff Accounting Bulletin
SD-WANSoftware-Defined Wide Area Network
SECU.S. Securities and Exchange Commission
SIPSession Initiation Protocol
SMBSmall to medium-sized business
SMSShort Message Service
UCaaSUnified Communications as a Service
USFFederal Universal Service Fund
VoIPVoice over Internet Protocol
3

PART 1 - FINANCIAL INFORMATION
ITEM 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
VONAGE HOLDINGS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value) 
June 30,
2020
December 31,
2019
Assets
(Unaudited) 
Current assets:
Cash and cash equivalents
$47,565  $23,620  
Accounts receivable, net of allowance of $9,708 and $5,494, respectively
114,554  101,813  
Inventory, net of allowance of $65 and $76, respectively
997  1,475  
Deferred customer acquisition costs, current portion
15,868  13,834  
Prepaid expenses
24,413  22,338  
Other current assets
6,211  9,988  
Total current assets
209,608  173,068  
Property and equipment, net of accumulated depreciation of $115,807 and $109,646, respectively
40,163  48,371  
Operating lease right-of-use assets31,329  50,847  
Goodwill593,722  602,970  
Software, net of accumulated amortization of $102,665 and $102,133, respectively
60,521  40,300  
Deferred customer acquisition costs60,545  55,148  
Restricted cash2,046  2,015  
Intangible assets, net of accumulated amortization of $247,635 and $221,182, respectively
214,284  249,905  
Deferred tax assets110,040  108,347  
Other assets33,631  33,729  
Total assets
$1,355,889  $1,364,700  
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$29,383  $42,366  
Accrued expenses
145,467  137,589  
Deferred revenue, current portion
65,171  59,464  
Operating lease liabilities, current portion
11,396  12,477  
Total current liabilities
251,417  251,896  
Indebtedness under revolving credit facility245,500  220,500  
Convertible senior notes, net283,619  276,658  
Operating lease liabilities25,042  45,722  
Other liabilities2,672  2,862  
Total liabilities
808,250  797,638  
Commitments and Contingencies (Note 9)
Stockholders’ Equity:
Common stock, par value 0.001 per share; 596,950 shares authorized at June 30, 2020, and December 31, 2019
320  316  
Additional paid-in capital1,519,055  1,494,469  
Accumulated deficit(643,194) (631,009) 
Treasury stock, at cost(319,314) (306,043) 
Accumulated other comprehensive (loss) income(9,228) 9,329  
Total stockholders’ equity
547,639  567,062  
Total liabilities and stockholders’ equity
$1,355,889  $1,364,700  
See accompanying notes to condensed consolidated financial statements.
4


VONAGE HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
 2020201920202019
Revenues:
Service, access and product revenues
$296,516  $279,025  $579,593  $539,135  
USF revenues
14,017  18,559  28,397  37,990  
Total revenues310,533  297,584  607,990  577,125  
Operating Expenses:
Service, access and product cost of revenues (excluding depreciation and amortization)
119,971  109,662  233,009  203,642  
USF cost of revenues
14,017  18,559  28,397  37,990  
Sales and marketing
90,827  95,362  176,448  190,885  
Engineering and development
19,784  16,891  38,987  33,417  
General and administrative
42,820  36,615  83,702  72,074  
Depreciation and amortization
20,692  20,662  41,177  41,876  
Total operating expenses
308,111  297,751  601,720  579,884  
Income (loss) from operations2,422  (167) 6,270  (2,759) 
Other Income (Expense):
Interest expense
(9,321) (8,487) (17,403) (16,063) 
Other income (expense), net
(38) (147) 191  (563) 
Total other expense, net
(9,359) (8,634) (17,212) (16,626) 
Loss before income tax benefit(6,937) (8,801) (10,942) (19,385) 
Income tax (expense) benefit(1,493) 13,325  (1,243) 23,375  
Net (loss) income$(8,430) $4,524  $(12,185) $3,990  
(Loss) Earnings per common share:
Basic
$(0.03) $0.02  $(0.05) $0.02  
Diluted
$(0.03) $0.02  $(0.05) $0.02  
Weighted-average common shares outstanding:
Basic
245,385  242,475  244,506  241,507  
Diluted
245,385  249,720  244,506  249,521  

See accompanying notes to condensed consolidated financial statements.
5

VONAGE HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) / INCOME
(In thousands)
(Unaudited)
 
  Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
Net (loss) income$(8,430) $4,524  $(12,185) $3,990  
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax expense (benefit) of $281, $(342), $(189), and $91, respectively
4,069  (6,343) (19,558) (1,135) 
Unrealized gain (loss) on derivatives, net of tax expense (benefit) of $46, $264, $(4) and $292, respectively
1,419  (794) 1,001  (1,481) 
Total other comprehensive income (loss)5,488  (7,137) (18,557) (2,616) 
Comprehensive (loss) income$(2,942) $(2,613) $(30,742) $1,374  


See accompanying notes to condensed consolidated financial statements.
6

VONAGE HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited) 
Six Months Ended
June 30,
 20202019
Cash flows from operating activities:
Net (loss) income$(12,185) $3,990  
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization12,967  13,120  
Amortization of intangibles28,210  28,756  
Deferred income taxes(1,952) (24,852) 
Amortization of deferred customer acquisition costs7,567  4,921  
Allowances for doubtful accounts and obsolete inventory3,509  475  
Amortization of financing costs and debt discount7,367  1,769  
Loss on disposal of property and equipment740  444  
Share-based expense22,442  19,231  
Changes in derivatives1,055  (265) 
Changes in operating assets and liabilities:
Accounts receivable(16,927) (23,268) 
Inventory484  444  
Prepaid expenses and other current assets1,413  1,494  
Deferred customer acquisition costs(15,389) (15,372) 
Accounts payable and accrued expenses(4,318) 18,139  
Deferred revenue6,533  6,399  
Other assets - deferred cloud computing implementation costs(3,013) (8,310) 
Other assets and liabilities300  952  
Net cash provided by operating activities38,803  28,067  
Cash flows used in investing activities:
Capital expenditures
(4,855) (9,456) 
Purchase of intangible assets
(190)   
Acquisition and development of software assets
(20,199) (12,997) 
Net cash used in investing activities(25,244) (22,453) 
Cash flows provided by/(used in) financing activities:
Payments for short and long-term debt
(50,000) (406,000) 
Proceeds from issuance of long-term debt
75,000  479,000  
Payments of debt issuance costs
  (8,891) 
Payments for capped call transactions and costs
  (28,325) 
Common stock repurchases
  (10,000) 
Employee taxes paid on withholding shares
(13,179) (19,023) 
Proceeds from exercise of stock options
243  1,264  
Net cash provided by financing activities12,064  8,025  
Effect of exchange rate changes on cash
(1,647) (1,101) 
Net increase in cash, cash equivalents, and restricted cash23,976  12,538  
Cash, cash equivalents, and restricted cash, beginning of period25,635  7,104  
Cash, cash equivalents, and restricted cash, end of period$49,611  $19,642  
Supplemental disclosures of cash flow information:
Cash paid (received) during the periods for:
Interest
$8,856  $13,462  
Income taxes
$(2,766) $2,226  
Non-cash investing activities:
Acquisition of long-term assets included in accounts payable and accrued expenses
$1,980  $67  
Debt issuance costs included in accounts payable and accrued liabilities
$  $1,154  
See accompanying notes to condensed consolidated financial statements.
7

VONAGE HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)
 
Common StockAdditional
Paid-in
Capital
Accumulated
Deficit
Treasury
Stock
Accumulated
Other
Comprehensive
Income
Total
Balance at March 31, 2019$314  $1,424,173  $(612,061) $(293,575) $11,291  $530,142  
Stock option exercises1  783  784  
Share-based expense11,216  11,216  
Employee taxes paid on
withholding shares
(457) (457) 
Common stock repurchases(1) (9,999) (10,000) 
Equity component of convertible
notes, net of issuance costs and tax
50,123  50,123  
Purchase of capped calls, net of tax(21,553) (21,553) 
Foreign currency translation
adjustment
(6,343) (6,343) 
Unrealized gain on derivatives(794) (794) 
Net income4,524  4,524  
Balance at June 30, 2019$314  $1,464,742  $(607,537) $(304,031) $4,154  $557,642  
Common StockAdditional
Paid-in
Capital
Accumulated
Deficit
Treasury
Stock
Accumulated
Other
Comprehensive
Income
Total
Balance at March 31, 2020$320  $1,506,664  $(634,764) $(318,791) $(14,716) $538,713  
Stock option exercises  88  88  
Share-based expense12,303  12,303  
Employee taxes paid on withholding
shares
(523) (523) 
Foreign currency translation
adjustment
4,069  4,069  
Unrealized loss on derivatives1,419  1,419  
Net loss(8,430) (8,430) 
Balance at June 30, 2020$320  $1,519,055  $(643,194) $(319,314) $(9,228) $547,639  
See accompanying notes to condensed consolidated financial statements.
8

VONAGE HOLDINGS CORP.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(In thousands)
(Unaudited)
Common StockAdditional
Paid-in
Capital
Accumulated
Deficit
Treasury
Stock
Accumulated
Other
Comprehensive
Income
Total
Balance at December 31, 2018$310  $1,415,682  $(611,985) $(275,009) $6,770  $535,768  
Cumulative effect adjustment upon
the adoption of Topic 842
458  458  
Stock option exercises5  1,259  1,264  
Share-based expense19,231  19,231  
Employee taxes paid on
withholding shares
(19,023) (19,023) 
Common stock repurchases(1) (9,999) (10,000) 
Equity component of convertible
notes, net of issuance costs and tax