Benzinga | May 6, 2021 01:31PM EDT

Vonage Beats On Q1 Earnings, Issues Robust Q2 Guidance

* Vonage Holdings Corp (NASDAQ: VG) reported first-quarter FY21 revenue growth of 11.9% year-on-year to $332.9 million, beating the analyst consensus of $317.12 million.

* Service, access, and product revenues rose 11.2% Y/Y to $314.8 million, USF revenues increased 25.9% Y/Y to $18.1 million.

* Vonage Communications Platform (VCP) revenues were $255 million, with VCP service revenues growing 23% Y/Y to $240 million. API revenues rose 47% Y/Y, with High-Value API revenues increasing 112% Y/Y.

* Service Revenues from Unified Communications and Contact Center (UC and CC) customers grew 4% Y/Y. VCP Service Revenue per Customer rose 23% Y/Y to $582 per month, and VCP Service Revenue Churn declined from 0.8% to 0.5%.

* Consumer Revenues declined 11% Y/Y to $77 million. Customer churn rose 1.9%. The average revenue per line (ARPU) increased by $1.7 to $29.05. The company had 867 thousand consumer subscriber lines as of Q1, with 95% of these customers tenured over two years and 80% tenured over five years.

* The adjusted net income remained flat at $13 million, with adjusted EPS of $0.05, beating the analyst consensus of $0.04.

* Adjusted EBITDA was $48 million.

* The company generated $47.3 million in operating cash flow and held $51.6 million in cash and equivalents.

* Guidance: Vonage sees a Q2 revenue outlook of $333 million - $337 million, above the analyst consensus of $330.1 million, Vonage Communications Platform outlook of $260 million - $264 million, and Consumer revenues outlook of $73 million.

* Adjusted EBITDA outlook is $42 million - $46 million, and Capex guidance is $16 million.

* Vonage continues to see increased demand across the portfolio as hybrid working trends emerge and the focus on customer experience across channels continues to grow, CEO Rory Read said.

* Price action: VG shares traded lower by 1.01% at $12.76 on the last check Thursday.