Vonage’s Transformation Continues

Vonage’s transformation continued in Q2, with sales climbing 13 percent year on year to $351.5m.

Revenue from Vonage’s unified comms and contact centre operations were up seven percent, with API sales rocketing 40 percent to $144m.

The consumer arm, which Vonage u-turned on selling earlier this year, saw revenue drop 11 percent to $75m.

Rory Read, CEO at Vonage, said that the firm is halfway through its transformation plan and ahead of schedule.

“The real power of our portfolio is the diversity of it – geography-based, industry-based and product-based”

“We’ll see variations from quarter-to-quarter in different products; for example, this quarter, we had a lot of messaging growth; in other quarters, we’ll see video growth; in other quarters we’ll see voice growth.

“But it’s the diversity of our portfolio that allows us to participate as the industries ebb and flow [and] as we go kind of through this unprecedented time as economies and industries reopen.”

Read said that Vonage has built a strong pipeline in its UC and CC units, with the vendor poised to hit high single-digit revenue growth in Q4 and double-digit growth across its next financial year.

He added that 10 of Vonage’s 15 biggest deals in the quarter involved an integrated UC and CC offering.

The Chief Exec also highlighted the importance of the channel, with partners involved in five of the 10 top deals – including the two largest of the quarter.

Vonage launched its new partner programme in May.

“The additional resources, support and training we have implemented through Vonage Accelerate are driving early positive results,” he added.

“We’re seeing that progression in terms of volume and we saw some of our fastest growth in terms of the channel, no question about it.”

CEO Read was appointed last year, before other senior execs joined the team in February.

 

 



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