Artificial Intelligence
Vonage Reports Third Quarter 2020 Financial Results
Third Quarter 2020 Highlights:
- Consolidated Revenues of $317 million
- Vonage Communications Platform (VCP) Revenues of $234 million
- VCP Service Revenues increased 19%
- API Revenues Increased 35%
- Unified Communications & Contact Center Service Revenues Increased 7%
- Net Loss of $10 Million and Adjusted EBITDA of $42 million
- Announcing business optimization and alignment project to accelerate growth and improve profitability
- Consumer Segment marketing process to begin in November
HOLMDEL, N.J., Nov. 05, 2020 (GLOBE NEWSWIRE) — Vonage Holdings Corp. (Nasdaq: VG), a global leader in cloud communications helping businesses accelerate their digital transformation, today announced results for the quarter ended September 30, 2020.
“We executed well in the third quarter and delivered solid results,” said Rory Read, Chief Executive Officer. “The Vonage Communications Platform, our single global cloud technology platform, delivers our wide range of powerful services and solutions that enable our customers to transform the way they communicate and operate as the world undergoes a secular shift in how business gets done.”
Read continued, “Vonage Communications Platform service revenues grew 19% year over year. Within this, API revenues grew 35%, highlighted by a 143% increase in high-value API revenues, driven by our leadership in video and another record quarter of new customer additions. Unified Communications and Contact Center Applications service revenue grew 7%, and we signed 17 seven-figure total contract value deals in the quarter, with a 28% increase in average deal size. Our Platform’s flexibility, scalability, security and ease of use were consistent areas of strength in our ability to win.”
Business Optimization and Alignment Project
Vonage has undertaken a multi-quarter initiative to review and optimize the Company’s operations while setting the strategy and business plans for the next two to three years. The work has provided clarity on where the Company needs to create efficiency, position its talent and invest to drive Vonage’s long-term growth and profitability.
Based on this review, the Company has implemented a number of cost saving and efficiency initiatives to improve operations and expects to reduce operating expenses by $8 to $10 million in the fourth quarter of 2020 and approximately $50 million in 2021. This resulted in a restructuring charge of approximately $15 million in the third quarter.
In parallel, Vonage is developing its business strategy and operating plan to make key investments to deliver improved growth and profitability. The Company plans to increase investments in artificial intelligence, high-value API leadership, advancements in mobility, omnichannel capabilities, and expanding its addressable market while tailoring its go-to-market initiatives to reach and win more customers.
“We are taking decisive action to improve the operational effectiveness of our business while making strategic investments where we can win a disproportionate share of the market, and where our communications platform solutions best fit the needs of our customers,” Read commented. “We are also investing in our Sales and Marketing to strengthen our channel presence, effectively reach all customer segments, and increase our cross-sell and upsell opportunities. The management team and our Board are focused on delivering on these strategic initiatives, and we expect to accelerate growth and profitability in 2021 and 2022.”
Third Quarter 2020 Vonage Communications Platform Highlights (compared to the year-ago quarter)
- Vonage Communications Platform (VCP) revenues, which consist of Unified Communications, Contact Center and API revenues, were $234 million. VCP service revenues were $218 million, a 19% increase.
- API revenues grew 35%
- High-Value API revenues grew 143%, driven by strength in programmable video.
- Service Revenues from Unified Communications and Contact Center (UC and CC) customers grew 7%.
- Service Revenues from Mid-market and Enterprise UC and CC customers (those with greater than $12,000 of ARR) grew 13%.
- VCP Service Revenue per Customer was $527 per month, up 17%.
- VCP Service Revenue Churn increased to 1.2% from 1.0%.
Third Quarter 2020 Consumer Segment Results (compared to the year-ago quarter)
- Consumer Revenues were $83 million, down 14%.
- Customer churn was stable at 1.8%.
- Average revenue per line (“ARPU”) was $28.31, up $0.75.
- Ended the quarter with approximately 1 million Consumer subscriber lines
- 96% of these customers are tenured over two years and 80% are tenured over five years.
Consolidated Income and Balance Sheet
For the third quarter of 2020, Vonage reported consolidated revenues of $317 million, up from $303 million in the year-ago quarter. GAAP net loss was $10 million, or ($0.04) per share, versus a net loss of $21 million in the prior-year period, or ($0.09) per share. Third quarter adjusted net income(1) was $17 million or $0.07 per share, an increase from a net loss of $4 million or ($0.02) per share in the prior-year period.
For the third quarter, the Company generated Adjusted EBITDA(2) of $42 million, and Adjusted EBITDA minus Capex(2) of $29 million. Net Cash from Operations was $13 million and Free Cash Flow(3) was breakeven for the quarter. As of September 30, 2020, the Company had a Net Debt to Last Twelve Months Adjusted EBITDA ratio of 3.2 times.
Strategic Review of Consumer Segment Update
The Company is nearing completion of the strategic review of its Consumer segment and has engaged advisors to proceed with its potential sale. The marketing process is expected to begin in November 2020. The Company will provide an update once a buyer is identified or at the completion of the process.
Updated 2020 and Fourth Quarter Outlook
The Company is increasing its 2020 revenue and adjusted EBITDA guidance to reflect its solid third quarter and a fourth-quarter above its prior outlook.
For the full year, Vonage now expects the following (based on constant currency as of November 2020):
- Consolidated revenues in the range of $1.239 billion to $1.242 billion
- Total Vonage Communications Platform Revenues in the range of $906 million to $909 million (which includes approximately $22 million of USF revenues)
- Total Consumer Segment Revenues in the $332 million area (which includes approximately $41 million of USF revenues)
- Consolidated Adjusted EBITDA in the $167 million area
- Capex in the $53 million area
For the fourth quarter of 2020, Vonage expects the following:
- Consolidated Revenues in the range of $314 million to $317 million
- Total Vonage Communications Platform Revenues in the range of $236 million to $239 million (which includes approximately $6 million of USF revenues)
- Total Consumer Revenues in the $78 million area (which includes approximately $11 million of USF revenues)
- Consolidated Adjusted EBITDA in the $45 million area
Conference Call and Webcast
The company will host a conference call to discuss its financial results for the third quarter of 2020 and other matters at 8:30 AM Eastern Time. To participate, please dial (877) 407-9716. International callers should dial (201) 493-6779.
A live webcast of the conference call will be available on the Vonage Investor Relations website. A replay of the webcast will also be available shortly after the conclusion of the call, and may be accessed through Vonage’s Investor Relations website or by dialing (844) 512-2921 or (412) 317-6671 for international callers, and entering the passcode 13707113.
About Vonage
Vonage (Nasdaq:VG), a global cloud communications leader, helps businesses accelerate their digital transformation. Vonage’s Communications Platform is fully programmable and allows for the integration of Video, Voice, Chat, Messaging and Verification into existing products, workflows and systems. Vonage’s fully programmable unified communications and contact center applications are built from the Vonage platform and enable companies to transform how they communicate and operate from the office or anywhere, providing enormous flexibility and ensuring business continuity.
Vonage Holdings Corp. is headquartered in New Jersey, with offices throughout the United States, Europe, Israel and Asia. To follow Vonage on Twitter, please visit twitter.com/vonage. To become a fan on Facebook, go to facebook.com/vonage. To subscribe on YouTube, visit youtube.com/vonage.
Investor Contact: Hunter Blankenbaker, 732.444.4926, [email protected]
Media Contact: Jo Ann Tizzano, 732.365.1363, [email protected]
(1) This is a non-GAAP financial measure. Refer below to Table 4 for a reconciliation to GAAP net (loss) income.
(2) This is a non-GAAP financial measure. Refer below to Table 3 for a reconciliation to GAAP net (loss) income.
(3) This is a non-GAAP financial measure. Refer below to Table 5 for a reconciliation to GAAP cash from operations.
VONAGE HOLDINGS CORP.
TABLE 1. CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Statement of Operations Data: | |||||||||||||||||||||||||
Service, access and product revenues | $ | 298,991 | $ | 296,516 | $ | 279,871 | $ | 878,584 | $ | 819,006 | |||||||||||||||
USF revenues | 17,658 | 14,017 | 22,663 | 46,055 | 60,653 | ||||||||||||||||||||
Total revenues | 316,649 | 310,533 | 302,534 | $ | 924,639 | $ | 879,659 | ||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Service, access and product cost of revenues (excluding depreciation and amortization of $13,649, $11,148, $9,658, $35,953, and $28,220, respectively) | 124,243 | 119,971 | 111,170 | 357,252 | 314,812 | ||||||||||||||||||||
USF cost of revenues | 17,658 | 14,017 | 22,663 | 46,055 | 60,653 | ||||||||||||||||||||
Sales and marketing | 85,505 | 90,827 | 83,628 | 261,953 | 274,513 | ||||||||||||||||||||
Engineering and development | 20,110 | 19,784 | 16,901 | 59,097 | 50,318 | ||||||||||||||||||||
General and administrative | 56,835 | 42,820 | 41,306 | 140,537 | 113,380 | ||||||||||||||||||||
Depreciation and amortization | 22,887 | 20,692 | 21,319 | 64,064 | 63,195 | ||||||||||||||||||||
327,238 | 308,111 | 296,987 | 928,958 | 876,871 | |||||||||||||||||||||
(Loss) Income from operations | (10,589 | ) | 2,422 | 5,547 | (4,319 | ) | 2,788 | ||||||||||||||||||
Other Income (Expense): | |||||||||||||||||||||||||
Interest expense | (7,373 | ) | (9,321 | ) | (8,454 | ) | (24,776 | ) | (24,517 | ) | |||||||||||||||
Other income (expense), net | (37 | ) | (38 | ) | 58 | 154 | (505 | ) | |||||||||||||||||
(7,410 | ) | (9,359 | ) | (8,396 | ) | (24,622 | ) | (25,022 | ) | ||||||||||||||||
Loss before income tax benefit | (17,999 | ) | (6,937 | ) | (2,849 | ) | (28,941 | ) | (22,234 | ) | |||||||||||||||
Income tax benefit (expense) | 7,937 | (1,493 | ) | (18,248 | ) | 6,694 | 5,127 | ||||||||||||||||||
Net loss | $ | (10,062 | ) | $ | (8,430 | ) | $ | (21,097 | ) | $ | (22,247 | ) | $ | (17,107 | ) | ||||||||||
Loss per common share: | |||||||||||||||||||||||||
Basic and diluted | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||||
Basic and diluted | 246,697 | 245,385 | 242,336 | 245,242 | 241,786 | ||||||||||||||||||||
VONAGE HOLDINGS CORP.
TABLE 1. CONSOLIDATED FINANCIAL DATA – (Continued)
(Dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Statement of Cash Flow Data: | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 12,628 | $ | 36,300 | $ | 31,783 | $ | 51,431 | $ | 59,850 | ||||||||||||||
Net cash used in investing activities | (12,990 | ) | (12,009 | ) | (16,809 | ) | (38,234 | ) | (39,262 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 807 | (20,435 | ) | (14,259 | ) | 12,871 | (6,234 | ) | ||||||||||||||||
Capital expenditures, acquisition of intangible assets, acquisition and development of software assets | (12,990 | ) | (12,009 | ) | (13,809 | ) | (38,234 | ) | (36,262 | ) | ||||||||||||||
September 30, | December 31, | |||||||
2020 | 2019 | |||||||
Balance Sheet Data: | ||||||||
Cash and cash equivalents | $ | 48,370 | $ | 23,620 | ||||
Restricted cash | 1,999 | 2,015 | ||||||
Accounts receivable, net of allowance | 119,553 | 101,813 | ||||||
Inventory, net of allowance | 614 | 1,475 | ||||||
Prepaid expenses and other current assets | 42,639 | 32,326 | ||||||
Deferred customer acquisition costs, current and non-current | 79,644 | 68,982 | ||||||
Property and equipment, net | 37,449 | 48,371 | ||||||
Goodwill | 606,958 | 602,970 | ||||||
Operating lease right of use assets | 22,971 | 50,847 | ||||||
Software, net | 69,389 | 40,300 | ||||||
Intangible assets, net | 208,507 | 249,905 | ||||||
Deferred tax assets | 115,178 | 108,347 | ||||||
Other assets | 34,643 | 33,729 | ||||||
Total assets | $ | 1,387,914 | $ | 1,364,700 | ||||
Accounts payable and accrued expenses | $ | 183,918 | $ | 179,955 | ||||
Operating lease liabilities, current and non-current | 33,228 | 58,199 | ||||||
Deferred revenue, current | 62,813 | 59,464 | ||||||
Total notes payable, net and indebtedness under revolving credit facility, including current portion | 240,500 | 220,500 | ||||||
Convertible senior notes, net | 287,176 | 276,658 | ||||||
Other liabilities | 3,048 | 2,862 | ||||||
Total liabilities | $ | 810,683 | $ | 797,638 | ||||
Total stockholders’ equity | $ | 577,231 | $ | 567,062 | ||||
VONAGE HOLDINGS CORP.
TABLE 2. SUMMARY CONSOLIDATED OPERATING DATA
(Dollars in thousands, except per line amounts)
(unaudited)
The table below includes revenues and cost of revenues that our management uses to measure the growth and operating performance of the Vonage Communications Platform focused portion of our business:
Vonage Communications Platform | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Revenues: | |||||||||||||||||||
Service revenues | $ | 218,456 | $ | 212,310 | $ | 183,701 | $ | 626,416 | $ | 523,060 | |||||||||
Access and product revenues(1) | 8,757 | 9,109 | 12,120 | 27,987 | 35,524 | ||||||||||||||
Service, access and product revenues excluding USF | 227,213 | 221,419 | 195,821 | 654,403 | 558,584 | ||||||||||||||
USF revenues | 6,613 | 4,830 | 10,709 | 15,925 | 27,563 | ||||||||||||||
Total revenues | $ | 233,826 | $ | 226,249 | $ | 206,530 | $ | 670,328 | $ | 586,147 | |||||||||
Cost of Revenues: | |||||||||||||||||||
Service cost of revenues(2) | $ | 105,593 | $ | 100,638 | $ | 87,352 | $ | 298,588 | $ | 243,496 | |||||||||
Access and product cost of revenues(1) | 9,894 | 10,266 | 13,858 | 31,756 | 41,323 | ||||||||||||||
Service, access and product cost of revenues excluding USF | 115,487 | 110,904 | 101,210 | 330,344 | 284,819 | ||||||||||||||
USF revenues | 6,613 | 4,830 | 10,709 | 15,925 | 27,563 | ||||||||||||||
Total cost of revenues | $ | 122,100 | $ | 115,734 | $ | 111,919 | $ | 346,269 | $ | 312,382 | |||||||||
Service margin % | 51.7 | % | 52.6 | % | 52.4 | % | 52.3 | % | 53.4 | % | |||||||||
Gross margin % excluding USF (Service, access and product margin %) | 49.2 | % | 49.9 | % | 48.3 | % | 49.5 | % | 49.0 | % | |||||||||
Gross margin % | 47.8 | % | 48.8 | % | 45.8 | % | 48.3 | % | 46.7 | % |
(1) Includes customer premise equipment, access, professional services, and shipping and handling.
(2) Excludes depreciation and amortization of $12,691, $9,891, and $8,492 for the quarters ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and $32,370 and $24,684 for the nine months ended September 30, 2020 and 2019, respectively.
The table below includes revenues and cost of revenues that our management uses to measure the growth and operating performance of the Consumer focused portion of our business:
Consumer | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Revenues: | |||||||||||||||||||
Service revenues | $ | 71,693 | $ | 75,045 | $ | 83,981 | $ | 223,981 | $ | 260,225 | |||||||||
Access and product revenues(1) | 85 | 52 | 69 | 200 | 197 | ||||||||||||||
Service, access and product revenues excluding USF | 71,778 | 75,097 | 84,050 | 224,181 | 260,422 | ||||||||||||||
USF revenues | 11,045 | 9,187 | 11,954 | 30,130 | 33,090 | ||||||||||||||
Total revenues | $ | 82,823 | $ | 84,284 | $ | 96,004 | $ | 254,311 | $ | 293,512 | |||||||||
Cost of Revenues: | |||||||||||||||||||
Service cost of revenues(2) | $ | 8,287 | $ | 8,671 | $ | 8,587 | $ | 25,470 | $ | 26,706 | |||||||||
Access and product cost of revenues(1) | 469 | 396 | 1,373 | 1,438 | 3,287 | ||||||||||||||
Service, access and product cost of revenues excluding USF | 8,756 | 9,067 | 9,960 | 26,908 | 29,993 | ||||||||||||||
USF revenues | 11,045 | 9,187 | 11,954 | 30,130 | 33,090 | ||||||||||||||
Total cost of revenues | $ | 19,801 | $ | 18,254 | $ | 21,914 | $ | 57,038 | $ | 63,083 | |||||||||
Service margin % | 88.4 | % | 88.4 | % | 89.8 | % | 88.6 | % | 89.7 | % | |||||||||
Gross margin % excluding USF (Service, access and product margin %) | 87.8 | % | 87.9 | % | 88.1 | % | 88.0 | % | 88.5 | % | |||||||||
Gross margin % | 76.1 | % | 78.3 | % | 77.2 | % | 77.6 | % | 78.5 | % |
(1) Includes customer premise equipment, access, professional services, and shipping and handling.
(2) Excludes depreciation and amortization of $958, $1,257, $1,166 for the quarters ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively, and $3,583 and $3,536 for the nine months ended September 30, 2020 and 2019, respectively.
The table below includes key operating data that our management uses to measure the growth and operating performance of the Vonage Communications Platform focused portion of our business:
Vonage Communications Platform | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Service revenue per customer | $ | 527 | $ | 509 | $ | 451 | $ | 504 | $ | 435 | |||||||||
Vonage Communications Platform revenue churn | 1.2 | % | 0.9 | % | 1.0 | % | 1.0 | % | 1.1 | % | |||||||||
The table below includes key operating data that our management uses to measure the growth and operating performance of the Consumer focused portion of our business:
Consumer | Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Average monthly revenues per line | $ | 28.31 | $ | 27.59 | $ | 27.56 | $ | 27.71 | $ | 26.91 | |||||||||
Subscriber lines (at period end) | 951,729 | 998,475 | 1,136,112 | 951,729 | 1,136,112 | ||||||||||||||
Customer churn | 1.8 | % | 1.5 | % | 1.8 | % | 1.7 | % | 1.8 | % | |||||||||
VONAGE HOLDINGS CORP.
TABLE 3. RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA AND TO ADJUSTED EBITDA MINUS CAPEX
(Dollars in thousands)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net loss | $ | (10,062 | ) | $ | (8,430 | ) | $ | (21,097 | ) | $ | (22,247 | ) | $ | (17,107 | ) | |||||||||
Interest expense | 7,373 | 9,321 | 8,454 | 24,776 | 24,517 | |||||||||||||||||||
Income tax | (7,937 | ) | 1,493 | 18,248 | (6,694 | ) | (5,127 | ) | ||||||||||||||||
Depreciation and amortization | 22,887 | 20,692 | 21,319 | 64,064 | 63,195 | |||||||||||||||||||
Amortization of costs to implement cloud computing arrangements | 670 | 668 | 411 | 1,947 | 682 | |||||||||||||||||||
EBITDA | 12,931 | 23,744 | 27,335 | 61,846 | 66,160 | |||||||||||||||||||
Share-based expense | 11,530 | 11,326 | 12,941 | 33,972 | 32,152 | |||||||||||||||||||
Acquisition related transaction and integration costs | — | — | 174 | — | 621 | |||||||||||||||||||
Organizational transformation (1) | — | 3,925 | 3,317 | 5,119 | 11,186 | |||||||||||||||||||
Restructuring activities (2) | 15,182 | — | — | 15,182 | — | |||||||||||||||||||
Other non-recurring items (3) | 1,959 | 2,549 | 1,014 | 5,864 | 3,174 | |||||||||||||||||||
Adjusted EBITDA | 41,602 | 41,544 | 44,781 | 121,983 | 113,293 | |||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capital expenditures | (2,863 | ) | (1,968 | ) | (5,970 | ) | (7,718 | ) | (15,426 | ) | ||||||||||||||
Intangible assets | (70 | ) | (115 | ) | — | (260 | ) | — | ||||||||||||||||
Acquisition and development of software assets | (10,057 | ) | (9,926 | ) | (7,839 | ) | (30,256 | ) | (20,836 | ) | ||||||||||||||
Adjusted EBITDA Minus Capex | $ | 28,612 | $ | 29,535 | $ | 30,972 | $ | 83,749 | $ | 77,031 |
(1) The costs identified as “Organizational transformation” are related to the Company’s announced goal of becoming a pure-play Business software-as-a-service (“SaaS”) company, offering a suite of communications solutions for businesses. These costs include employee related exits including CEO succession, system change management, facility exit costs, and rebranding.
(2) Restructuring activities relate to the Company’s business-wide optimization and alignment project initiated in 2020 and include employee related exits and facility exit costs.
(3) Other non-recurring items principally include certain litigation charges and other non-recurring project costs.
VONAGE HOLDINGS CORP.
TABLE 4. RECONCILIATION OF GAAP NET LOSS TO
NET INCOME (LOSS) EXCLUDING ADJUSTMENTS
(Dollars in thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net loss | $ | (10,062 | ) | $ | (8,430 | ) | $ | (21,097 | ) | $ | (22,247 | ) | $ | (17,107 | ) | ||||
Amortization of acquisition – related intangibles | 12,948 | 13,681 | 13,962 | 40,408 | 41,959 | ||||||||||||||
Amortization of costs to implement cloud computing arrangements | 670 | 668 | 411 | 1,947 | 682 | ||||||||||||||
Amortization of debt discount | 3,159 | 3,109 | 2,948 | 9,322 | 3,435 | ||||||||||||||
Acquisition related transaction and integration costs | — | — | 174 | — | 621 | ||||||||||||||
Organizational transformation (1) | — | 3,925 | 3,317 | 5,119 | 11,186 | ||||||||||||||
Restructuring activities (2) | 15,182 | — | — | 15,182 | — | ||||||||||||||
Other non-recurring items (3) | 1,959 | 2,549 | 1,014 | 5,864 | 3,174 | ||||||||||||||
Tax effect on adjusting items | (7,123 | ) | (5,026 | ) | (4,583 | ) | (16,347 | ) | (12,822 | ) | |||||||||
Net income (loss) excluding adjustments | $ | 16,733 | $ | 10,476 | $ | (3,854 | ) | $ | 39,248 | $ | 31,128 | ||||||||
Loss per common share: | |||||||||||||||||||
Basic and diluted | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic and diluted | 246,697 | 245,385 | 242,336 | 245,242 | 241,786 | ||||||||||||||
Earnings per common share, excluding adjustments: | |||||||||||||||||||
Basic | $ | 0.07 | $ | 0.04 | $ | (0.02 | ) | $ | 0.16 | $ | 0.13 | ||||||||
Diluted | $ | 0.07 | $ | 0.04 | $ | (0.02 | ) | $ | 0.15 | $ | 0.12 | ||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||
Basic | 246,697 | 245,385 | 242,336 | 245,242 | 241,786 | ||||||||||||||
Diluted | 256,318 | 253,509 | 242,336 | 253,585 | 250,094 |
(1) The costs identified as “Organizational transformation” are related to the Company’s announced goal of becoming a pure-play Business software-as-a-service (“SaaS”) company, offering a suite of communications solutions for businesses. These costs include employee related exits including CEO succession, system change management, facility exit costs, and rebranding.
(2) Restructuring activities relate to the Company’s business-wide optimization and alignment project initiated in 2020 and include employee related exits and facility exit costs.
(3) Other non-recurring items principally include certain litigation charges and other non-recurring project costs.
VONAGE HOLDINGS CORP.
TABLE 5. FREE CASH FLOW
(Dollars in thousands)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 12,628 | $ | 36,300 | $ | 31,783 | $ | 51,431 | $ | 59,850 | ||||||||||||||
Less: | ||||||||||||||||||||||||
Capital expenditures | (2,863 | ) | (1,968 | ) | (5,970 | ) | (7,718 | ) | (15,426 | ) | ||||||||||||||
Intangible assets | (70 | ) | (115 | ) | — | (260 | ) | — | ||||||||||||||||
Acquisition and development of software assets | (10,057 | ) | (9,926 | ) | (7,839 | ) | (30,256 | ) | (20,836 | ) | ||||||||||||||
Free cash flow | $ | (362 | ) | $ | 24,291 | $ | 17,974 | $ | 13,197 | $ | 23,588 | |||||||||||||
VONAGE HOLDINGS CORP.
TABLE 6. RECONCILIATION OF INDEBTEDNESS UNDER REVOLVING CREDIT FACILITY AND CONVERTIBLE SENIOR NOTES TO NET DEBT
(Dollars in thousands)
(unaudited)
September 30, | December 31, | |||||||
2020 | 2019 | |||||||
Notes payable and indebtedness under revolving credit facility, net of current maturities | 240,500 | 220,500 | ||||||
Convertible senior notes, net | 287,176 | 276,658 | ||||||
Unamortized discount on debt | 5,912 | 7,108 | ||||||
Unamortized debt related costs | 51,912 | 61,234 | ||||||
Gross debt | 585,500 | 565,500 | ||||||
Less: | ||||||||
Unrestricted cash | 48,370 | 23,620 | ||||||
Net debt | $ | 537,130 | $ | 541,880 | ||||
Use of Non-GAAP Financial Measures
This press release includes measures defined as non-GAAP financial measures by Regulation G adopted by the Securities and Exchange Commission, including: adjusted EBITDA, adjusted EBITDA less Capex, adjusted net income, constant currency, net debt (cash), and free cash flow.
Adjusted EBITDA
Vonage uses adjusted EBITDA as a principal indicator of the operating performance of its business.
Vonage defines adjusted EBITDA as GAAP net income (loss) before interest, tax, depreciation and amortization, share-based expense, amortization of costs to implement cloud computing arrangements, acquisition related transaction and integration costs, organizational transformation costs and other non-recurring items. The costs identified as “organizational transformation” are related to the Company’s announced goal of becoming a pure-play Business software-as-a-service (“SaaS”) company, offering a suite of communications solutions for businesses. These costs include employee related exits, system change management, facility exit costs, and rebranding.
Vonage believes that adjusted EBITDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of interest, tax, depreciation and amortization, which may vary from period to period without any correlation to underlying operating performance; of share-based expense, which is a non-cash expense that also varies from period to period; of one-time acquisition related transaction and integration costs, organizational transformation costs and other non-recurring items. Organizational transformation consists principally of costs in connection with exits of employees and facilities, system migration costs and certain professional related fees. Other non-recurring items principally include certain litigation charges and other non-recurring project costs.
The Company provides information relating to its adjusted EBITDA so that investors have the same data that the Company employs in assessing its overall operations. The Company believes that trends in its adjusted EBITDA are valuable indicators of the operating performance of the Company on a consolidated basis.
The Company does not reconcile its forward-looking adjusted EBITDA to the corresponding GAAP measure of net income because stock-based compensation expense and other non-recurring items cannot be reasonably calculated or predicted at this time as they may be significantly impacted by future events, the timing and nature of which cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.
Adjusted EBITDA less Capex
Vonage uses adjusted EBITDA less Capex as an indicator of the operating performance of its business. The Company provides information relating to its adjusted EBITDA less Capex so that investors have the same data that the Company employs in assessing its overall operations. The Company believes that trends in its Adjusted EBITDA less Capex are valuable indicators of the operating performance of the Company on a consolidated basis because they provide our investors with insight into current performance and period-to-period performance.
Adjusted net income
Vonage defines adjusted net income, as GAAP net income (loss) excluding amortization of acquisition-related intangible assets, amortization of costs to implement cloud computing arrangements, acquisition related transaction and integration costs, amortization of debt discount, organizational transformation costs, other non-recurring items and tax effect on adjusting items.
The Company believes that excluding these items will assist investors in evaluating the Company’s operating performance and in better understanding its results of operations as amortization of acquisition-related intangible assets is a non-cash item, one-time acquisition related transaction and integration costs, organizational transformation, other non-recurring items, and tax effect on adjusting items are not reflective of operating performance. Organizational transformation consists principally of costs in connection with exits of employees and facilities, system migration costs and certain related professional fees. Other non-recurring items principally include certain litigation charges and other non-recurring project costs.
Constant Currency
Vonage reviews its results of operations on both an as reported and on a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, consistent with how we evaluate our performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior period exchange rates and comparing these adjusted amounts to our prior period reported results.
Net debt (cash)
Vonage defines net debt (cash) as indebtedness under revolving credit facility, convertible senior notes, discount on debt, and debt related costs less unrestricted cash.
Vonage uses net debt (cash) as a measure of assessing leverage, as it reflects the gross debt under the Company’s credit agreements and capital leases less cash available to repay such amounts. The Company believes that net cash is also a factor that first parties consider in valuing the Company.
Free cash flow
Vonage defines free cash flow as net cash provided by operating activities minus capital expenditures, purchase of intangible assets, and acquisition and development of software assets.
Vonage considers free cash flow to be a liquidity measure that provides useful information to management about the amount of cash generated by the business that, after the acquisition of equipment and software, can be used by Vonage for debt service and strategic opportunities. Free cash flow is not a measure of cash available for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.
The non-GAAP financial measures used by Vonage may not be directly comparable to similarly titled measures reported by other companies due to differences in accounting policies and items excluded or included in the adjustments, which limits its usefulness as a comparative measure. These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
The Company does not reconcile its forward-looking adjusted business total revenue and adjusted business service revenue to the corresponding GAAP measures due to the significant variability and difficulty in making accurate forecasts with respect to the various acquisition-related and one-time events that we exclude, as they may be significantly impacted by future events the timing and nature of which are difficult to predict or are not within the control of management. As such, the Company has determined that reconciliations of these forward-looking non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.
Safe Harbor Statement
This press release contains forward-looking statements, including statements about the outcome and timing of the strategic review of consumer and operational review, including whether or not the reviews result in a transaction and if so the nature and timing of any such transaction, our business transformation, financing activity, growth priorities or plans, revenues, adjusted EBITDA, churn, seats, lines or accounts, average revenue per customer, cost of communications services, capital expenditures, new products and related investment, and other statements that are not historical facts or information, that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. In addition, other statements in this press release that are not historical facts or information may be forward-looking statements. The forward-looking statements in this release are based on information available at the time the statements are made and/or management’s belief as of that time with respect to future events and involve risks and uncertainties that could cause actual results and outcomes to be materially different. Important factors that could cause such differences include, but are not limited to: realizing the benefits of optimization and cost-saving initiatives; the impact of the COVID-19 pandemic; the competition we face; the expansion of competition in the cloud communications market; risks related to the acquisition or integration of businesses we have acquired; our ability to adapt to rapid changes in the cloud communications market; the nascent state of the cloud communications for business market; our ability to retain customers and attract new customers cost-effectively; developing and maintaining market awareness and a strong brand; developing and maintaining effective distribution channels; security breaches and other compromises of information security; risks associated with sales of our services to medium-sized and enterprise customers; our reliance on third-party hardware and software; our dependence on third-party vendors; system disruptions or flaws in our technology and systems; our ability to comply with data privacy and related regulatory matters; our ability to scale our business and grow efficiently; the impact of fluctuations in economic conditions, particularly on our small and medium business customers; the effects of significant foreign currency fluctuations; our ability to obtain or maintain relevant intellectual property licenses or to protect our trademarks and internally developed software; fraudulent use of our name or services; restrictions in our debt agreements that may limit our operating flexibility; our ability to obtain additional financing if required; retaining senior executives and other key employees; intellectual property and other litigation that have been and may be brought against us; rapid developments in global API regulation and uncertainties relating to regulation of VoIP services; risks associated with legislative, regulatory or judicial actions regarding our business products; reliance on third parties for our 911 services; liability under anti-corruption laws or from governmental export controls or economic sanctions; actions of activist shareholders; risks associated with the taxation of our business; governmental regulation and taxes in our international operations; our history of net losses and ability to achieve consistent profitability in the future; our ability to fully realize the benefits of our net operating loss carry-forwards if an ownership change occurs; risks associated with the settlement and conditional conversion of our Convertible Senior Notes; potential effects the capped call transactions may have on our stock in connection with our Convertible Senior Notes; certain provisions of our charter documents; and other factors that are set forth in the “Risk Factors” in our Annual Report on Form 10-K and in the Company’s Quarterly Reports on Form 10-Q filed with the SEC. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so except as required by law, and therefore, you should not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to today.
(vg-f)
Artificial Intelligence
US Air Force Awards ThroughPut.ai Direct-to-Phase-II Contract for Boeing, Lockheed Martin, and Sikorsky Mission Design Series to Accelerate Aircraft Readiness
Leveraging Data to Drive Maintenance-first actions that improve overall supply chain throughput across the DAF.
NEW YORK, May 28, 2024 /PRNewswire/ — ThroughPut.ai, the Supply Chain Decision Intelligence Pioneer, announces it has been selected by AFWERX for a (SBIR Direct-to-Phase II contract) in the amount of $1,248,627.00 focused on “AI-Powered Proactive Supply Chain Capabilities” to address the most pressing challenges in the Department of the Air Force (DAF). The Air Force Research Laboratory and AFWERX have partnered to streamline the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) process by accelerating the small business experience through faster proposal to award timelines, changing the pool of potential applicants by expanding opportunities to small business and eliminating bureaucratic overhead by continually implementing process improvement changes in contract execution. The DAF began offering the Open Topic SBIR/STTR program in 2018 which expanded the range of innovations the DAF funded and now on April 17th, 2024, ThroughPut.ai will start its journey to create and provide innovative capabilities that will strengthen the national defense of the United States of America.
“ThroughPut.ai looks forward to supporting efforts to accelerate inventory flow across the United States Air Force,” said Ali Raza, CEO & Founder of ThroughPut.ai. “By driving inventory/materiel management changes at the maintenance endpoint first, supply chain improvements can then be amplified across the greater industrial base to create aircraft capacity.”
“The views expressed are those of the author and do not necessarily reflect the official policy or position of the Department of the Air Force, the Department of Defense, or the U.S. government.”
About (ThroughPut.ai)
ThroughPut.ai is a Silicon Valley-based supply chain optimization & predictive replenishment company. The company’s software AI platform has the ability to identify location-, product-, and customer-based demand changes sooner in order to adjust order frequencies, vendor sources, and parts buffer levels at a global and local scale. ThroughPut’s platform was designed by Fortune 500 & technology executives with real-world experience managing demand & supply chain disruptions and war-zone logistics across the Middle East.
About AFRLThe Air Force Research Laboratory is the primary scientific research and development center for the Department of the Air Force. AFRL plays an integral role in leading the discovery, development, and integration of affordable warfighting technologies for our air, space and cyberspace force. With a workforce of more than 12,500 across nine technology areas and 40 other operations across the globe, AFRL provides a diverse portfolio of science and technology ranging from fundamental to advanced research and technology development. For more information, visit afresearchlab.com.
About AFWERXAs the innovation arm of the DAF and a directorate within the Air Force Research Laboratory, AFWERX brings cutting-edge American ingenuity from small businesses and start-ups to address the most pressing challenges of the DAF. AFWERX employs approximately 370 military, civilian and contractor personnel at five hubs and sites executing an annual $1.4 billion budget. Since 2019, AFWERX has executed over 6,100 new contracts worth more than $4 billion to strengthen the U.S. defense industrial base and drive faster technology transition to operational capability. For more information, visit: www.afwerx.com.
Company Press Contact:Ali RazaCEO/[email protected]
View original content:https://www.prnewswire.co.uk/news-releases/us-air-force-awards-throughputai-direct-to-phase-ii-contract-for-boeing-lockheed-martin-and-sikorsky-mission-design-series-to-accelerate-aircraft-readiness-302156930.html
Artificial Intelligence
Data Center Investments Soar: 200% Rise Since 2016 and Projected 89% Increase by 2028
USA News Group CommentaryIssued on behalf of Avant Technologies Inc.
VANCOUVER, BC, May 28, 2024 /PRNewswire/ — Since 2016, investment in data centre infrastructure has risen 200%, with a further 89% increase expected by 2028 as more opportunities emerge with the rise of artificial intelligence (AI). According to Jones Lang LaSalle Inc.’s CEO Christian Ulbrich, data centers are “the hottest asset class at the moment.” Analysts at Technavio are projecting the global data center market to record an additional US$329.82 billion in growth at a CAGR of 12.73% through 2027. Capitalizing on the opportunity are several players recently announcing developments regarding their involvement in the data centers sector, including
Avant Technologies Inc. (OTCQB: AVAI), Amazon.com, Inc. (NASDAQ: AMZN), Applied Digital Corporation (NASDAQ: APLD), Digital Realty Trust, Inc. (NYSE: DLR), and Equinix, Inc. (NASDAQ: EQIX).
As an early pioneer in generative AI, Avant Technologies Inc. (OTCQB: AVAI) continues to enhance its flagship asset, Avant AITM, a sophisticated machine and deep learning AI system designed for versatility and customization across various industries and applications. Recently, Avant announced plans to equip its AI-managed data center, currently in development, with High-Performance Computing (HPC) systems. According to IBM, HPC technology utilizes clusters of powerful processors working in parallel to process massive multi-dimensional data sets and solve complex problems at exceptionally high speeds.
“The rise of AI is revolutionizing industries, and Avant Technologies is committed to being at the forefront of this transformation,” said William Hisey, CEO of Avant. “By building an AI-managed data center with HPC systems, we will gain the computational power and infrastructure required to train and deploy sophisticated AI models, which will ultimately provide even greater value to our customers.”
The new data center will leverage AI-driven management technology to optimize resource allocation and enhance efficiency in all aspects of data center operations. Avant will meticulously design its HPC infrastructure to meet the demands of AI workloads, selecting high-performance CPUs and GPUs (or TPUs) specifically suited for deep learning tasks. This cutting-edge facility will enable Avant to accelerate AI advancements, delivering innovative solutions to clients by improving data center efficiency and empowering them with exceptional AI capabilities.
Additionally, Avant will implement a high-speed network to ensure efficient data transfer and select a scalable storage solution to manage the large datasets necessary for training and utilizing AI models. The HPC systems will prioritize security, incorporating robust measures to protect sensitive data and create a secure environment for AI deployment. Furthermore, the data center will integrate energy-efficient technologies and sustainable design practices, reflecting Avant’s commitment to environmental responsibility.
Avant Technologies also recently announced plans to implement AI-empowered Zero Trust Architecture (ZTA) across its data center operations. Additionally, the company has expanded its AvantAI™ platform to include intelligent, proactive monitoring and management for data centers.
Over the past few weeks Amazon.com, Inc. (NASDAQ: AMZN) has collectively committed to investing $20 billion into new data centers for its subsidiary Amazon Web Services (AWS). The first to be announced was an $11-billion data center to be built in Indiana, with another $9 billion set to accelerate cloud-infrastructure in Singapore. The moves fall in line with Amazon CEO Andy Jassy’s projection that 85% of IT spending will remain on premises, in the race for Gen AI supremacy.
Amazon also recently announced an extension on its partnership between AWS and CrowdStrike to unify cybersecurity protection on its CrowdStrike Falcon platform. As per the agreement, Amazon is replacing a variety of cloud point products with Falcon Cloud Security, is using Falcon Next-Gen SIEM to secure big data logging and is deploying Identity Threat Detection and Response to prevent identity-based attacks.
“CrowdStrike and AWS have a deep history of working together to secure the most innovative companies in the world,” said CJ Moses, Chief Information Security Officer and Vice President of Security Engineering at Amazon. “Amazon uses CrowdStrike to provide visibility, detection, and response across our businesses in order to protect the cloud, infrastructure, and services for our customers. This is part of our shared mission to help all organizations build, operate, and secure their business.”
In a move to shore-up its market position as a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (“HPC”) applications, Applied Digital Corporation (NASDAQ: APLD) recently announced the appointment of industry veteran Todd Gale as its new Chief Development Officer. The announcement came just one month after the company announced it had issued a $50 million unsecured convertible debenture to advance its HPC Data Center Project in Ellendale, North Dakota.
“We intend to use the net proceeds from the private financing, supplemented by the proceeds from our announced sale of the Garden City facility, to finance substantial advancements in our construction phase of the HPC data center in Ellendale, North Dakota,” said David Rench, CFO of Applied Digital. “Concurrently, we continue negotiating our project-level financing to ensure timely project completion and fulfillment of our contractual obligations.”
Applied Digital intends to utilize chipmaking giant NVIDIA’s new Blackwell platform into its cloud offerings. The company’s next-generation data center campuses are specifically designed to host HPC/AI applications, offering more cost-effective and efficient alternatives to traditional data centers.
In Japan, Digital Realty Trust, Inc. (NYSE: DLR) recently announced the expansion of its NRT Campus, by commencing construction of its third data center to support AI. Upon completion of the site in late 2025, the campus’s capacity will rise to 104MW, with the intention of meeting rising demand for next-generation infrastructure, and seamless access to Japan’s connected data communities.
“Japan’s rapidly increasing demand for AI deployments creates the need for scalable, flexible, and highly connected AI-ready data centers in the Tokyo metropolitan area,” said Serene Nah, Managing Director and Head of Asia Pacific, Digital Realty. “We believe NRT14’s next-generation data center infrastructure and Digital Realty’s connected global open data center platform provide the foundational pillars our customers need to drive innovation in the coming years.”
Equinix, Inc. (NASDAQ: EQIX), another digital infrastructure company, has recently launched a $600 million joint venture with PGIM Real Estate to develop and operate the first xScale data center in the US, situated in California’s Silicon Valley. This follows their successful collaboration on the first xScale data center in Australia in 2022, which was part of a similar $575 million joint venture announced in 2021.
Under the terms of the new agreement, PGIM Real Estate will hold an 80% equity interest in the joint venture, while Equinix will retain a 20% equity stake. xScale data centers by Equinix enable hyperscale companies to expand their core deployments within Equinix’s IBX data centers, facilitating growth in over 70 global metros through a platform that supports direct interconnections with more than 10,000 customers.
This joint venture complements Equinix’s existing hyperscale collaborations in Europe, Asia-Pacific, and the Americas, significantly enhancing the global xScale data center portfolio. Once completed, this global expansion is set to exceed $8 billion, encompassing more than 35 facilities and providing over 725 megawatts of power capacity.
Source: https://usanewsgroup.com/2023/10/26/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
CONTACT:USA NEWS [email protected](604) 265-2873
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Avant Technologies Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares Avant Technologies Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Avant Technologies Inc. which were purchased as a part of a private placement. MIQ reserves the right to buy and sell, and will buy and sell shares of Avant Technologies Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
View original content:https://www.prnewswire.co.uk/news-releases/data-center-investments-soar-200-rise-since-2016-and-projected-89-increase-by-2028-302156928.html
Artificial Intelligence
Lucinity Wins the Microsoft Partner Awards for 2024 for Partner of the Year – Iceland and Sustainability and Social Impact
REYKJAVÍK, Iceland, May 28, 2024 /PRNewswire/ — Lucinity, a leading AI company for financial crime prevention, won two awards at the Microsoft Partner Awards for 2024, including Partner of the Year – Iceland and Sustainability and Social Impact, highlighting Lucinity’s innovations and contribution to positive societal change.
“Congratulations to Lucinity for being recognized as the Partner of the Year – Iceland 2024! Lucinity is leading digital transformation and delivering innovative products in their domain,” says Microsoft’s leadership.
“For the past year, they have played a key role with their offerings, skilled resources, and their ability to drive change and innovative solutions both locally in Iceland and across the globe. Lucinity has had significant social impact and growth while supporting our joint customers in their AI-transformation journeys.”
In June 2023, Lucinity launched the world’s first copilot for FinCrime prevention powered by Microsoft Azure OpenAI called Luci. Luci stands out in the financial services industry with specialized skills for FinCrime prevention such as adverse media checks, case analysis, and SAR writing.
Built on the robust and scalable Microsoft Azure platform, Lucinity offers customers a trusted SaaS product. Additionally, Lucinity’s presence on the Microsoft Azure Marketplace allows companies to leverage their Microsoft Azure credits to access the platform.
The seamless integration with Microsoft’s Azure stack has enabled Lucinity to implement advanced AI capabilities, fostering rapid innovation and enabling banks and fintech companies to utilize AI securely and audibly. Furthermore, Luci significantly reduces investigation times from 2.5 hours to just 25 minutes, saving Tier 1 banks an estimated $25 million annually.
Guðmundur Kristjánsson (GK), Lucinity’s Founder and CEO comments, “These awards are a testament to the strength and reliability of our solutions, made possible by our strategic partnership with Microsoft. Utilizing Microsoft Azure, we have been able to drive rapid innovation and create a robust, scalable platform that meets the rigorous requirements of compliance teams.”
On the Sustainability and Social Impact Partner Award, Microsoft says, “Lucinity, with their innovative AI solutions, has really tried to combat this huge global challenge. They use ‘Human AI’ to enhance financial crime prevention, combining AI with human expertise for efficient, user-friendly solutions. Additionally, Lucinity has developed a tool called Luci, an AI-powered copilot that helps transform financial crime prevention from a process that took hours to one that takes minutes.”
Logo: https://mma.prnewswire.com/media/2208676/4669079/Lucinity_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/lucinity-wins-the-microsoft-partner-awards-for-2024-for-partner-of-the-year—iceland-and-sustainability-and-social-impact-302156888.html
-
Artificial Intelligence4 days ago
Titans of Tech: GP Bullhound releases its annual report on the European tech ecosystem
-
Artificial Intelligence4 days ago
Bybit Web3 Announces Upcoming IDO for Aperture Finance, Simplifying Web3 Finance
-
Uncategorized4 days ago
GienTech Hosted the “2024 GienTech Digital Transformation Conference” to Promote Overseas Collaborative Ecosystem Development
-
Uncategorized4 days ago
Hyreo ushers in a New Dawn for Recruitment Technology with Hyreo Labs
-
Artificial Intelligence6 days ago
HONOR Unveils Four-Layer AI Architecture and Forges Ahead with Google Cloud for More AI Experiences at VivaTech 2024
-
Artificial Intelligence4 days ago
Overseas Expansion Strategy of K-OTT Introduced in France, KOCCA holds the ‘2024 Korea-France Content Forum’
-
Artificial Intelligence4 days ago
IoT Node and Gateway Market worth $604.7 billion by 2029 – Exclusive Report by MarketsandMarkets™
-
Artificial Intelligence4 days ago
Northern Data Group’s Peak Mining, announces purchase of a second 300MW data center location in Corpus Christi, Texas