Vonage Holdings Corp. (NYSE:VG) stock was soaring on Wednesday after the release of its earnings report for the third quarter of 2016.
Vonage Holdings Corp reported revenue of $248.36 million for the third quarter of 2016. This is an increase over the $223.68 million that it reported during the same time of 2015. It also came in above the $246.92 million that Wall Street was looking for in the quarter.
Earnings per share reported by Vonage Holdings Corp in the third quarter of 2016 was 9 cents. The cloud communications company reported earnings per share of 5 cents in the third quarter of 2015. Analysts were expecting the company to report earnings per share of 5 cents.
Vonage Holdings Corp also reported net income of $19 million for its third quarter of the year. This is up from the net income of $11 million that it reported during the same time last year.
Vonage Holdings Corp saw its revenue for its Business division greatly increase during the third quarter of 2016. VG Business revenue was $106 million for the quarter. This is an 86% increase for Business revenue when compared to the third quarter of 2015.
“The significant investments in Vonage Business continue to support our growth initiatives, highlighted by 86% revenue growth in the third quarter,”Alan Masarek, CEO of Vonage Holdings Corp, said in a statement. “Our disciplined focus on profitability continues to produce strong results, highlighted by a 21% increase in adjusted OIBDA.”
Vonage Holdings Corp is also increasing its guidance for the full year of 2016. It now expects Business revenue to range from $374 million to $377 million. Previous expectations had Business revenue coming in between $365 million to $370 million.
VG is still expecting overall revenue for 2016 to range from $950 million to $960 million. Wall Street is estimating that the company will report revenue of $957 million for the year.
VG stock was up 15% as of noon Wednesday.
