Why Shares of Vonage Holdings Popped Today

Shares of Vonage Holdings (NYSE: VG) jumped on Thursday following the release of the telecom services provider's second-quarter report. The company beat analyst estimates for both revenue and earnings, driven by strong organic growth in portions of its business. As of 1:27 p.m. EDT, the stock was up 12%.

Vonage reported second-quarter revenue of $251.8 million, up 7.7% year over year and about $10 million above the average analyst estimate. Total business revenue soared 45%, driven by acquisitions and 23% organic growth. Within the business segment, unified-communications-as-a-service (UCaaS) revenue rose 9.6% to $85.5 million, while communications-platform-as-a-service (CPaaS) revenue rose 357% to $35.2 million. Adjusted for acquisitions, CPaaS organic revenue grew by 44%.

Image source: Vonage.

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Source: Fool.com