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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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11-3547680
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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23 Main Street
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Holmdel
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,
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NJ
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,
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07733
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.001
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VG
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New York Stock Exchange
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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☐
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Emerging growth company
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☐
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Class
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Outstanding at
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July 31, 2019
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Common Stock, par value $0.001
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242,097,852
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shares
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Part 1 - Financial Information
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Page
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Item 1.
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Condensed Consolidated Financial Statements and Notes
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Item 2.
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Item 3.
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Item 4
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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June 30,
2019 |
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December 31,
2018 |
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Assets
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||||
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Current assets:
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||||
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Cash and cash equivalents
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$
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17,963
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$
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5,057
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Accounts receivable, net of allowance of $4,993 and $3,542, respectively
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97,465
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75,342
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Inventory, net of allowance of $101 and $152, respectively
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1,066
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1,470
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Deferred customer acquisition costs, current portion
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11,789
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11,755
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Prepaid expenses
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25,219
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26,496
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Other current assets
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7,427
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7,634
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Total current assets
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160,929
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|
127,754
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Property and equipment, net of accumulated depreciation of $109,594 and $104,999, respectively
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47,759
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49,262
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Operating lease right-of-use assets
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49,954
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—
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Goodwill
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599,080
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598,499
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Software, net of accumulated amortization of $100,383 and $100,870, respectively
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26,945
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17,430
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Deferred customer acquisition costs
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48,222
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37,881
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Restricted cash
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1,679
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|
2,047
|
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Intangible assets, net of accumulated amortization of $191,041 and $162,788, respectively
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271,022
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299,911
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Deferred tax assets
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119,410
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102,560
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Other assets
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29,503
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24,144
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Total assets
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$
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1,354,503
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$
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1,259,488
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Liabilities and Stockholders’ Equity
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Current liabilities:
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Accounts payable
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$
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38,249
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$
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53,262
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Accrued expenses
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120,750
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87,370
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Deferred revenue, current portion
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59,704
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53,447
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Operating lease liabilities, current portion
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13,136
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—
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Current portion of notes payable
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—
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10,000
|
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Total current liabilities
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231,839
|
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|
204,079
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Indebtedness under revolving credit facility
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248,000
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425,000
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Notes payable, net of current portion
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—
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84,228
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Convertible senior notes, net
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269,924
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—
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Operating lease liabilities
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43,999
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—
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Other liabilities
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3,099
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10,413
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Total liabilities
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796,861
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723,720
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||
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Commitments and Contingencies (Note 10)
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||||
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Stockholders’ Equity:
|
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||||
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Common stock, par value $0.001 per share; 596,950 shares authorized at June 30, 2019,
and December 31, 2018 |
314
|
|
|
310
|
|
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Additional paid-in capital
|
1,464,742
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1,415,682
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Accumulated deficit
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(607,537
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)
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(611,985
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)
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Treasury stock, at cost
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(304,031
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)
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(275,009
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)
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Accumulated other comprehensive income
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4,154
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6,770
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Total stockholders’ equity
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557,642
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535,768
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Total liabilities and stockholders’ equity
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$
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1,354,503
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$
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1,259,488
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Three Months Ended
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Six Months Ended
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||||||||||||
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June 30,
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June 30,
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||||||||||||
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2019
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2018
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2019
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2018
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||||||||
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Total revenues
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$
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297,584
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$
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259,875
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$
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577,125
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$
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513,448
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Operating Expenses:
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Cost of revenues (exclusive of depreciation and amortization)
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128,221
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107,204
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241,632
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210,771
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Sales and marketing
|
95,362
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77,685
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190,885
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|
154,821
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Engineering and development
|
16,891
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10,375
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33,417
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21,195
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General and administrative
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36,615
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32,174
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72,074
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59,756
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Depreciation and amortization
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20,662
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19,062
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41,876
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35,862
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||||
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Total operating expenses
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297,751
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|
|
246,500
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|
|
579,884
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|
|
482,405
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||||
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(Loss) Income from operations
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(167
|
)
|
|
13,375
|
|
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(2,759
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)
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|
31,043
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|
||||
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Other Income (Expense):
|
|
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|
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Interest expense
|
(8,487
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)
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|
(3,097
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)
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(16,063
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)
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|
(6,258
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)
|
||||
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Other income (expense), net
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(147
|
)
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|
337
|
|
|
(563
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)
|
|
84
|
|
||||
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Total other income (expense), net
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(8,634
|
)
|
|
(2,760
|
)
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|
(16,626
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)
|
|
(6,174
|
)
|
||||
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(Loss) Income before income taxes benefit
|
(8,801
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)
|
|
10,615
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|
|
(19,385
|
)
|
|
24,869
|
|
||||
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Income tax benefit (expense)
|
13,325
|
|
|
(2,056
|
)
|
|
23,375
|
|
|
8,214
|
|
||||
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Net income
|
$
|
4,524
|
|
|
$
|
8,559
|
|
|
$
|
3,990
|
|
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$
|
33,083
|
|
|
|
|
|
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||||||||
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Earnings per common share:
|
|
|
|
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|
||||||||
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Basic
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.14
|
|
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Diluted
|
$
|
0.02
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.13
|
|
|
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
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Basic
|
242,475
|
|
|
237,919
|
|
|
241,507
|
|
|
235,490
|
|
||||
|
Diluted
|
249,720
|
|
|
248,256
|
|
|
249,521
|
|
|
248,373
|
|
||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income
|
$
|
4,524
|
|
|
$
|
8,559
|
|
|
$
|
3,990
|
|
|
$
|
33,083
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
|
Foreign currency translation adjustment, net of tax (benefit) expense of ($342), ($1,358), $91, and ($1,356), respectively
|
(6,343
|
)
|
|
(12,434
|
)
|
|
(1,135
|
)
|
|
(6,101
|
)
|
||||
|
Unrealized (loss) gain on derivatives, net of tax expense of $264, $89, $292 and $391, respectively
|
(794
|
)
|
|
228
|
|
|
(1,481
|
)
|
|
1,008
|
|
||||
|
Total other comprehensive loss
|
(7,137
|
)
|
|
(12,206
|
)
|
|
(2,616
|
)
|
|
(5,093
|
)
|
||||
|
Comprehensive (loss) income
|
$
|
(2,613
|
)
|
|
$
|
(3,647
|
)
|
|
$
|
1,374
|
|
|
$
|
27,990
|
|
|
|
Six Months Ended
|
||||||
|
|
June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Cash flows from operating activities:
|
|
|
|
||||
|
Net income
|
$
|
3,990
|
|
|
$
|
33,083
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
|
Depreciation and amortization
|
13,120
|
|
|
17,515
|
|
||
|
Amortization of intangibles
|
28,756
|
|
|
18,181
|
|
||
|
Deferred income taxes
|
(24,852
|
)
|
|
(10,305
|
)
|
||
|
Amortization of deferred customer acquisition costs
|
4,921
|
|
|
4,423
|
|
||
|
Allowance for doubtful accounts and obsolete inventory
|
475
|
|
|
1,427
|
|
||
|
Amortization of financing costs and debt discount
|
1,769
|
|
|
511
|
|
||
|
Loss on disposal of property and equipment
|
444
|
|
|
166
|
|
||
|
Share-based expense
|
19,231
|
|
|
15,972
|
|
||
|
Changes in derivatives
|
(265
|
)
|
|
—
|
|
||
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
||||
|
Accounts receivable
|
(23,268
|
)
|
|
(7,256
|
)
|
||
|
Inventory
|
444
|
|
|
623
|
|
||
|
Prepaid expenses and other current assets
|
1,494
|
|
|
3,032
|
|
||
|
Deferred customer acquisition costs
|
(15,372
|
)
|
|
(11,837
|
)
|
||
|
Accounts payable
|
(14,895
|
)
|
|
7,794
|
|
||
|
Accrued expenses
|
33,034
|
|
|
(3,535
|
)
|
||
|
Deferred revenue
|
6,399
|
|
|
(1,713
|
)
|
||
|
Other assets - deferred cloud computing implementation costs
|
(8,310
|
)
|
|
(3,392
|
)
|
||
|
Other assets and liabilities
|
952
|
|
|
1,246
|
|
||
|
Net cash provided by operating activities
|
28,067
|
|
|
65,935
|
|
||
|
Cash flows used in investing activities:
|
|
|
|
||||
|
Capital expenditures
|
(9,456
|
)
|
|
(7,787
|
)
|
||
|
Acquisition and development of software assets
|
(12,997
|
)
|
|
(4,220
|
)
|
||
|
Net cash used in investing activities
|
(22,453
|
)
|
|
(12,007
|
)
|
||
|
Cash flows provided by/(used in) financing activities:
|
|
|
|
||||
|
Principal payments on capital lease obligations and other financing obligations
|
—
|
|
|
(95
|
)
|
||
|
Payments for short and long-term debt
|
(406,000
|
)
|
|
(44,375
|
)
|
||
|
Proceeds from issuance of long-term debt
|
479,000
|
|
|
10,000
|
|
||
|
Payments of debt issuance costs
|
(8,891
|
)
|
|
—
|
|
||
|
Payments for capped call transactions and costs
|
(28,325
|
)
|
|
—
|
|
||
|
Common stock repurchases
|
(10,000
|
)
|
|
—
|
|
||
|
Employee taxes paid on withholding shares
|
(19,023
|
)
|
|
(28,618
|
)
|
||
|
Proceeds from exercise of stock options
|
1,264
|
|
|
5,055
|
|
||
|
Net cash provided by (used in) financing activities
|
8,025
|
|
|
(58,033
|
)
|
||
|
Effect of exchange rate changes on cash
|
(1,101
|
)
|
|
(1,205
|
)
|
||
|
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
12,538
|
|
|
(5,310
|
)
|
||
|
Cash, cash equivalents, and restricted cash, beginning of period
|
7,104
|
|
|
33,327
|
|
||
|
Cash, cash equivalents, and restricted cash, end of period
|
$
|
19,642
|
|
|
$
|
28,017
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
|
Cash paid during the periods for:
|
|
|
|
||||
|
Interest
|
$
|
13,462
|
|
|
$
|
5,695
|
|
|
Income taxes
|
$
|
2,226
|
|
|
$
|
4,855
|
|
|
Non-cash investing activities:
|
|
|
|
||||
|
Capital expenditures included in accounts payable and accrued liabilities
|
$
|
67
|
|
|
$
|
1,373
|
|
|
Debt issuance costs included in accounts payable and accrued liabilities
|
$
|
1,154
|
|
|
$
|
—
|
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Deficit
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income
|
|
Total
|
||||||||||||
|
Balance at March 31, 2018
|
|
$
|
306
|
|
|
$
|
1,384,718
|
|
|
$
|
(623,189
|
)
|
|
$
|
(270,759
|
)
|
|
$
|
21,122
|
|
|
$
|
512,198
|
|
|
Stock option exercises
|
|
3
|
|
|
2,881
|
|
|
|
|
|
|
|
|
2,884
|
|
|||||||||
|
Share-based expense
|
|
|
|
8,808
|
|
|
|
|
|
|
|
|
8,808
|
|
||||||||||
|
Employee taxes paid on
withholding shares
|
|
|
|
|
|
|
|
(1,131
|
)
|
|
|
|
(1,131
|
)
|
||||||||||
|
Foreign currency translation
adjustment
|
|
|
|
|
|
|
|
|
|
(12,434
|
)
|
|
(12,434
|
)
|
||||||||||
|
Unrealized gain on derivatives
|
|
|
|
|
|
|
|
|
|
228
|
|
|
228
|
|
||||||||||
|
Net income
|
|
|
|
|
|
8,559
|
|
|
|
|
|
|
8,559
|
|
||||||||||
|
Balance at June 30, 2018
|
|
$
|
309
|
|
|
$
|
1,396,407
|
|
|
$
|
(614,630
|
)
|
|
$
|
(271,890
|
)
|
|
$
|
8,916
|
|
|
$
|
519,112
|
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Deficit
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income
|
|
Total
|
||||||||||||
|
Balance at March 31, 2019
|
|
$
|
314
|
|
|
$
|
1,424,173
|
|
|
$
|
(612,061
|
)
|
|
$
|
(293,575
|
)
|
|
$
|
11,291
|
|
|
$
|
530,142
|
|
|
Stock option exercises
|
|
1
|
|
|
783
|
|
|
|
|
|
|
|
|
784
|
|
|||||||||
|
Share-based expense
|
|
|
|
11,216
|
|
|
|
|
|
|
|
|
11,216
|
|
||||||||||
|
Employee taxes paid on
withholding shares |
|
|
|
|
|
|
|
(457
|
)
|
|
|
|
(457
|
)
|
||||||||||
|
Common stock repurchases
|
|
(1
|
)
|
|
|
|
|
|
(9,999
|
)
|
|
|
|
(10,000
|
)
|
|||||||||
|
Equity component of convertible notes, net of issuance costs and tax
|
|
|
|
50,123
|
|
|
|
|
|
|
|
|
50,123
|
|
||||||||||
|
Purchase of capped calls, net of tax
|
|
|
|
(21,553
|
)
|
|
|
|
|
|
|
|
(21,553
|
)
|
||||||||||
|
Foreign currency translation
adjustment |
|
|
|
|
|
|
|
|
|
(6,343
|
)
|
|
(6,343
|
)
|
||||||||||
|
Unrealized loss on derivatives
|
|
|
|
|
|
|
|
|
|
(794
|
)
|
|
(794
|
)
|
||||||||||
|
Net income
|
|
|
|
|
|
4,524
|
|
|
|
|
|
|
4,524
|
|
||||||||||
|
Balance at June 30, 2019
|
|
$
|
314
|
|
|
$
|
1,464,742
|
|
|
$
|
(607,537
|
)
|
|
$
|
(304,031
|
)
|
|
$
|
4,154
|
|
|
$
|
557,642
|
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Deficit
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income
|
|
Total
|
||||||||||||
|
Balance at December 31, 2017
|
|
$
|
298
|
|
|
$
|
1,375,391
|
|
|
$
|
(672,561
|
)
|
|
$
|
(244,239
|
)
|
|
$
|
14,009
|
|
|
$
|
472,898
|
|
|
Cumulative effect adjustment upon
the adoption of Topic 606
|
|
|
|
|
|
24,848
|
|
|
|
|
|
|
24,848
|
|
||||||||||
|
Stock option exercises
|
|
11
|
|
|
5,044
|
|
|
|
|
|
|
|
|
5,055
|
|
|||||||||
|
Share-based expense
|
|
|
|
15,972
|
|
|
|
|
|
|
|
|
15,972
|
|
||||||||||
|
Employee taxes paid on
withholding shares
|
|
|
|
|
|
|
|
(27,651
|
)
|
|
|
|
(27,651
|
)
|
||||||||||
|
Foreign currency translation
adjustment
|
|
|
|
|
|
|
|
|
|
(6,101
|
)
|
|
(6,101
|
)
|
||||||||||
|
Unrealized gain on derivatives
|
|
|
|
|
|
|
|
|
|
1,008
|
|
|
1,008
|
|
||||||||||
|
Net income
|
|
|
|
|
|
33,083
|
|
|
|
|
|
|
33,083
|
|
||||||||||
|
Balance at June 30, 2018
|
|
$
|
309
|
|
|
$
|
1,396,407
|
|
|
$
|
(614,630
|
)
|
|
$
|
(271,890
|
)
|
|
$
|
8,916
|
|
|
$
|
519,112
|
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Deficit
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income
|
|
Total
|
||||||||||||
|
Balance at December 31, 2018
|
|
$
|
310
|
|
|
$
|
1,415,682
|
|
|
$
|
(611,985
|
)
|
|
$
|
(275,009
|
)
|
|
$
|
6,770
|
|
|
$
|
535,768
|
|
|
Cumulative effect adjustment upon
the adoption of Topic 842 |
|
|
|
|
|
458
|
|
|
|
|
|
|
458
|
|
||||||||||
|
Stock option exercises
|
|
5
|
|
|
1,259
|
|
|
|
|
|
|
|
|
1,264
|
|
|||||||||
|
Share-based expense
|
|
|
|
19,231
|
|
|
|
|
|
|
|
|
19,231
|
|
||||||||||
|
Employee taxes paid on
withholding shares
|
|
|
|
|
|
|
|
(19,023
|
)
|
|
|
|
(19,023
|
)
|
||||||||||
|
Common stock repurchases
|
|
(1
|
)
|
|
|
|
|
|
(9,999
|
)
|
|
|
|
(10,000
|
)
|
|||||||||
|
Equity component of convertible notes, net of issuance costs and tax
|
|
|
|
50,123
|
|
|
|
|
|
|
|
|
50,123
|
|
||||||||||
|
Purchase of capped calls, net of tax
|
|
|
|
(21,553
|
)
|
|
|
|
|
|
|
|
(21,553
|
)
|
||||||||||
|
Foreign currency translation
adjustment
|
|
|
|
|
|
|
|
|
|
(1,135
|
)
|
|
(1,135
|
)
|
||||||||||
|
Unrealized loss on derivatives
|
|
|
|
|
|
|
|
|
|
(1,481
|
)
|
|
(1,481
|
)
|
||||||||||
|
Net income
|
|
|
|
|
|
3,990
|
|
|
|
|
|
|
3,990
|
|
||||||||||
|
Balance at June 30, 2019
|
|
$
|
314
|
|
|
$
|
1,464,742
|
|
|
$
|
(607,537
|
)
|
|
$
|
(304,031
|
)
|
|
$
|
4,154
|
|
|
$
|
557,642
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Level 2 Measurements
|
|
|
|
||||
|
Interest rate swaps (1)
|
$
|
352
|
|
|
$
|
1,859
|
|
|
|
As of June 30,
|
|
As of December 31
|
||||||||||||
|
|
2019
|
|
2018
|
|
2018
|
|
2017
|
||||||||
|
Cash and cash equivalents
|
$
|
17,963
|
|
|
$
|
26,077
|
|
|
$
|
5,057
|
|
|
$
|
31,360
|
|
|
Restricted cash
|
1,679
|
|
|
1,940
|
|
|
2,047
|
|
|
1,967
|
|
||||
|
Total cash, cash equivalents and restricted cash
|
$
|
19,642
|
|
|
$
|
28,017
|
|
|
$
|
7,104
|
|
|
$
|
33,327
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Customer relationships
|
$
|
171,733
|
|
|
$
|
187,887
|
|
|
Developed technology
|
93,401
|
|
|
104,368
|
|
||
|
Patents and patent licenses
|
1,755
|
|
|
2,514
|
|
||
|
Trade names
|
4,133
|
|
|
5,005
|
|
||
|
Non-compete agreements
|
—
|
|
|
137
|
|
||
|
Finite-lived intangible assets, net
|
$
|
271,022
|
|
|
$
|
299,911
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Compensation and related taxes and temporary labor
|
$
|
27,672
|
|
|
$
|
33,249
|
|
|
Marketing
|
15,635
|
|
|
10,238
|
|
||
|
Taxes and fees
|
14,871
|
|
|
11,189
|
|
||
|
Telecommunications
|
50,334
|
|
|
21,403
|
|
||
|
Other accruals
|
7,569
|
|
|
4,729
|
|
||
|
Customer credits
|
444
|
|
|
3,325
|
|
||
|
Professional fees
|
2,679
|
|
|
2,049
|
|
||
|
Inventory
|
1,546
|
|
|
1,188
|
|
||
|
Accrued expenses
|
$
|
120,750
|
|
|
$
|
87,370
|
|
|
•
|
Recognized currently unrecognized right-of-use assets of $57.3 million net of deferred rent and lease incentives which were previously included in other liabilities.
|
|
•
|
Recognized currently unrecognized lease liabilities of $64.5 million (based on the present value of the remaining minimum rental payments for existing operating leases).
|
|
•
|
Recognized an adjustment to retained earnings of $458 thousand related to release of deferred tax assets.
|
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||||||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||
|
|
Business
|
|
Consumer
|
|
Total
|
|
Business
|
|
Consumer
|
|
Total
|
||||||||||||
|
Primary geographical markets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
United States
|
$
|
122,898
|
|
|
$
|
89,837
|
|
|
$
|
212,735
|
|
|
$
|
103,250
|
|
|
$
|
102,727
|
|
|
$
|
205,977
|
|
|
Canada
|
1,951
|
|
|
4,942
|
|
|
6,893
|
|
|
725
|
|
|
6,106
|
|
|
$
|
6,831
|
|
|||||
|
United Kingdom
|
15,625
|
|
|
2,785
|
|
|
18,410
|
|
|
7,327
|
|
|
3,200
|
|
|
$
|
10,527
|
|
|||||
|
Other Countries (1)
|
59,546
|
|
|
—
|
|
|
59,546
|
|
|
36,540
|
|
|
—
|
|
|
$
|
36,540
|
|
|||||
|
|
$
|
200,020
|
|
|
$
|
97,564
|
|
|
$
|
297,584
|
|
|
$
|
147,842
|
|
|
$
|
112,033
|
|
|
$
|
259,875
|
|
|
Major Sources of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service revenues
|
$
|
180,014
|
|
|
$
|
87,244
|
|
|
$
|
267,258
|
|
|
$
|
127,692
|
|
|
$
|
100,467
|
|
|
$
|
228,159
|
|
|
Access and product revenues
|
11,707
|
|
|
60
|
|
|
11,767
|
|
|
12,716
|
|
|
289
|
|
|
13,005
|
|
||||||
|
USF revenues
|
8,299
|
|
|
10,260
|
|
|
18,559
|
|
|
7,434
|
|
|
11,277
|
|
|
18,711
|
|
||||||
|
|
$
|
200,020
|
|
|
$
|
97,564
|
|
|
$
|
297,584
|
|
|
$
|
147,842
|
|
|
$
|
112,033
|
|
|
$
|
259,875
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||||||||||||
|
|
Business
|
|
Consumer
|
|
Total
|
|
Business
|
|
Consumer
|
|
Total
|
||||||||||||
|
Primary geographical markets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
United States
|
$
|
235,336
|
|
|
$
|
181,703
|
|
|
$
|
417,039
|
|
|
$
|
204,116
|
|
|
$
|
209,995
|
|
|
$
|
414,111
|
|
|
Canada
|
3,358
|
|
|
10,110
|
|
|
13,468
|
|
|
1,374
|
|
|
12,494
|
|
|
$
|
13,868
|
|
|||||
|
United Kingdom
|
39,506
|
|
|
5,695
|
|
|
45,201
|
|
|
13,810
|
|
|
6,449
|
|
|
$
|
20,259
|
|
|||||
|
Other Countries (1)
|
101,417
|
|
|
—
|
|
|
101,417
|
|
|
65,210
|
|
|
—
|
|
|
$
|
65,210
|
|
|||||
|
|
$
|
379,617
|
|
|
$
|
197,508
|
|
|
$
|
577,125
|
|
|
$
|
284,510
|
|
|
$
|
228,938
|
|
|
$
|
513,448
|
|
|
Major Sources of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service revenues
|
$
|
339,359
|
|
|
$
|
176,244
|
|
|
$
|
515,603
|
|
|
$
|
243,994
|
|
|
$
|
204,861
|
|
|
$
|
448,855
|
|
|
Access and product revenues
|
23,404
|
|
|
128
|
|
|
23,532
|
|
|
25,247
|
|
|
380
|
|
|
25,627
|
|
||||||
|
USF revenues
|
16,854
|
|
|
21,136
|
|
|
37,990
|
|
|
15,269
|
|
|
23,697
|
|
|
38,966
|
|
||||||
|
|
$
|
379,617
|
|
|
$
|
197,508
|
|
|
$
|
577,125
|
|
|
$
|
284,510
|
|
|
$
|
228,938
|
|
|
$
|
513,448
|
|
|
|
June 30, 2019
|
December 31, 2018
|
||||
|
Receivables (1)
|
$
|
97,465
|
|
$
|
75,342
|
|
|
Contract liabilities (2)
|
59,704
|
|
53,447
|
|
||
|
|
Preliminary Acquisition Date Fair Value as of December 31, 2018
|
|
Measurement period adjustments
|
|
Revised Preliminary Acquisition Date Fair Value
|
||||||
|
Assets
|
|
|
|
|
|
||||||
|
Cash and cash equivalents
|
$
|
1,994
|
|
|
|
|
$
|
1,994
|
|
||
|
Accounts receivable
|
13,747
|
|
|
(1,448
|
)
|
|
12,299
|
|
|||
|
Other current assets
|
3,907
|
|
|
|
|
3,907
|
|
||||
|
Property and equipment
|
3,474
|
|
|
|
|
3,474
|
|
||||
|
Intangible assets
|
154,300
|
|
|
|
|
154,300
|
|
||||
|
Other assets
|
378
|
|
|
|
|
378
|
|
||||
|
Total assets acquired
|
177,800
|
|
|
(1,448
|
)
|
|
176,352
|
|
|||
|
|
|
|
|
|
|
||||||
|
Liabilities
|
|
|
|
|
|
||||||
|
Accounts payable
|
4,712
|
|
|
|
|
4,712
|
|
||||
|
Accrued expenses
|
4,145
|
|
|
|
|
4,145
|
|
||||
|
Deferred tax liabilities
|
7,756
|
|
|
|
|
7,756
|
|
||||
|
Deferred revenue
|
22,000
|
|
|
|
|
22,000
|
|
||||
|
Total liabilities assumed
|
38,613
|
|
|
—
|
|
|
38,613
|
|
|||
|
|
|
|
|
|
|
||||||
|
Net identifiable assets acquired
|
139,187
|
|
|
(1,448
|
)
|
|
137,739
|
|
|||
|
Goodwill
|
210,992
|
|
|
1,448
|
|
|
212,440
|
|
|||
|
Total purchase price
|
$
|
350,179
|
|
|
$
|
—
|
|
|
$
|
350,179
|
|
|
|
Six Months Ended
|
||
|
|
June 30, 2018
|
||
|
Revenue
|
$
|
549,937
|
|
|
Net income
|
(1,039
|
)
|
|
|
Earnings per share - basic
|
$
|
—
|
|
|
Earnings per share - diluted
|
$
|
—
|
|
|
|
Acquisition Date Fair Value
|
||
|
Assets
|
|
||
|
Cash and cash equivalents
|
$
|
557
|
|
|
Current assets
|
2,205
|
|
|
|
Property and equipment
|
124
|
|
|
|
Intangible assets
|
15,602
|
|
|
|
Deferred tax asset
|
92
|
|
|
|
Restricted cash
|
50
|
|
|
|
Total assets acquired
|
18,630
|
|
|
|
|
|
||
|
Liabilities
|
|
||
|
Accounts payable
|
371
|
|
|
|
Accrued expenses
|
6,003
|
|
|
|
Total liabilities assumed
|
6,374
|
|
|
|
|
|
||
|
Net identifiable assets acquired
|
12,256
|
|
|
|
Goodwill
|
20,650
|
|
|
|
Net assets acquired
|
$
|
32,906
|
|
|
|
Six Months Ended
|
||
|
|
June 30, 2018
|
||
|
Revenue
|
$
|
518,604
|
|
|
Net income
|
18,995
|
|
|
|
Earnings per share - basic
|
$
|
0.08
|
|
|
Earnings per share - diluted
|
$
|
0.08
|
|
|
Balance at December 31, 2018
|
$
|
598,499
|
|
|
Increase in goodwill related to measurement period adjustments to initial acquisition accounting of NewVoiceMedia
|
1,448
|
|
|
|
Foreign currency translation adjustment
|
(867
|
)
|
|
|
Balance at June 30, 2019
|
$
|
599,080
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Numerator
|
|
|
|
|
|
|
|
|
||||||||
|
Net income
|
|
$
|
4,524
|
|
|
$
|
8,559
|
|
|
$
|
3,990
|
|
|
$
|
33,083
|
|
|
Denominator
|
|
|
|
|
|
|
|
|
||||||||
|
Basic weighted average common shares outstanding
|
|
242,475
|
|
|
237,919
|
|
|
241,507
|
|
|
235,490
|
|
||||
|
Dilutive effect of stock options and restricted stock units
|
|
7,245
|
|
|
10,337
|
|
|
8,014
|
|
|
12,883
|
|
||||
|
Diluted weighted average common shares outstanding
|
|
249,720
|
|
|
248,256
|
|
|
249,521
|
|
|
248,373
|
|
||||
|
Basic earnings per share
|
|
|
|
|
|
|
|
|
||||||||
|
Basic earnings per share
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
|
$
|
0.14
|
|
|
Diluted earnings per share
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted earnings per share
|
|
$
|
0.02
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.13
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
Restricted stock units
|
|
6,610
|
|
|
3,591
|
|
|
5,846
|
|
|
1,896
|
|
|
Stock options
|
|
1,828
|
|
|
1,977
|
|
|
1,823
|
|
|
1,126
|
|
|
|
|
8,438
|
|
|
5,568
|
|
|
7,669
|
|
|
3,022
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||
|
|
|
June 30,
|
June 30,
|
|||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Loss) income before income taxes
|
|
$
|
(8,801
|
)
|
|
$
|
10,615
|
|
|
$
|
(19,385
|
)
|
|
$
|
24,869
|
|
|
Income tax benefit (expense)
|
|
13,325
|
|
|
(2,056
|
)
|
|
23,375
|
|
|
8,214
|
|
||||
|
Effective tax rate
|
|
(151.4
|
)%
|
|
(19.4
|
)%
|
|
(120.6
|
)%
|
|
33.0
|
%
|
||||
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Balance as of January 1
|
$
|
1,107
|
|
|
$
|
1,086
|
|
|
Increase due to current year positions
|
—
|
|
|
1,107
|
|
||
|
Increase (decrease) due to prior year positions
|
154
|
|
|
(1,086
|
)
|
||
|
Decrease due to settlements and payments
|
(86
|
)
|
|
—
|
|
||
|
Increase due to foreign currency fluctuation
|
25
|
|
|
—
|
|
||
|
Uncertain tax benefits as of the end of the period
|
$
|
1,200
|
|
|
$
|
1,107
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Term note payable - due 2023
|
$
|
—
|
|
|
95,000
|
|
|
|
Revolving credit facility - due 2023
|
248,000
|
|
|
425,000
|
|
||
|
Convertible senior notes - due 2024
|
345,000
|
|
|
—
|
|
||
|
Long-term debt including current maturities
|
593,000
|
|
|
520,000
|
|
||
|
Less current maturities
|
—
|
|
|
10,000
|
|
||
|
Less unamortized discount
|
67,177
|
|
|
—
|
|
||
|
Less debt issuance costs
|
7,899
|
|
|
772
|
|
||
|
Total long-term debt
|
$
|
517,924
|
|
|
$
|
509,228
|
|
|
|
|
June 30, 2019
|
||
|
Principal
|
|
$
|
345,000
|
|
|
Unamortized discount
|
|
(67,177
|
)
|
|
|
Unamortized issuance cost
|
|
(7,899
|
)
|
|
|
Net carrying amount
|
|
$
|
269,924
|
|
|
|
|
June 30, 2019
|
||
|
Proceeds allocated to the conversion option (debt discount)
|
|
$
|
67,664
|
|
|
Issuance cost
|
|
(1,944
|
)
|
|
|
Income tax expense
|
|
(15,597
|
)
|
|
|
Net carrying amount
|
|
$
|
50,123
|
|
|
|
|
June 30, 2019
|
||
|
Contractual interest expense
|
|
$
|
276
|
|
|
Amortization of debt discount
|
|
487
|
|
|
|
Amortization of debt issuance costs
|
|
74
|
|
|
|
Total interest expense related to the Convertible Senior Notes
|
|
$
|
837
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Accumulated OCI beginning balance
|
|
$
|
288
|
|
|
$
|
1,745
|
|
|
$
|
975
|
|
|
$
|
965
|
|
|
Reclassified from accumulated OCI to income:
|
|
|
|
|
|
|
|
|
||||||||
|
Due to reclassification of previously deferred gain
|
|
(132
|
)
|
|
—
|
|
|
(265
|
)
|
|
—
|
|
||||
|
Change in fair value of cash flow hedge accounting contracts, net of tax
|
|
(662
|
)
|
|
228
|
|
|
(1,216
|
)
|
|
1,008
|
|
||||
|
Accumulated OCI ending balance, net of tax benefit of $100 and $711, respectively
|
|
$
|
(506
|
)
|
|
$
|
1,973
|
|
|
$
|
(506
|
)
|
|
$
|
1,973
|
|
|
Gains expected to be reclassified from accumulated OCI during the next 12 months
|
|
$
|
531
|
|
|
$
|
—
|
|
|
$
|
531
|
|
|
$
|
—
|
|
|
|
Six Months Ended
|
||
|
|
June 30, 2019
|
||
|
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
|
Operating cash flows from operating leases
|
$
|
8,681
|
|
|
|
|
||
|
Right-of-use assets obtained in exchange for lease obligations:
|
|
||
|
Operating leases
|
$
|
—
|
|
|
2019 (excluding the six months ended June 30, 2019)
|
$
|
8,099
|
|
|
2020
|
14,295
|
|
|
|
2021
|
10,921
|
|
|
|
2022
|
6,084
|
|
|
|
2023
|
5,643
|
|
|
|
Thereafter
|
22,821
|
|
|
|
Total lease payments
|
67,863
|
|
|
|
Less imputed interest
|
(10,728
|
)
|
|
|
Total
|
$
|
57,135
|
|
|
2019
|
$
|
17,204
|
|
|
2020
|
14,209
|
|
|
|
2021
|
10,378
|
|
|
|
2022
|
8,206
|
|
|
|
2023
|
8,154
|
|
|
|
Thereafter
|
9,908
|
|
|
|
Total minimum payments required
|
$
|
68,059
|
|
|
For the Three Month Ended
|
|
|
|
|
|
|||
|
(in thousands)
|
Issued
|
|
Treasury
|
|
Outstanding
|
|||
|
Balance at March 31, 2018
|
306,540
|
|
|
(69,651
|
)
|
|
236,889
|
|
|
Shares issued under the 2015 Equity Incentive Plan
|
2,029
|
|
|
—
|
|
|
2,029
|
|
|
Employee taxes paid on withholding shares
|
—
|
|
|
(100
|
)
|
|
(100
|
)
|
|
Balance at June 30, 2018
|
308,569
|
|
|
(69,751
|
)
|
|
238,818
|
|
|
|
|
|
|
|
|
|||
|
Balance at March 31, 2019
|
314,233
|
|
|
(71,857
|
)
|
|
242,376
|
|
|
Shares issued under the 2015 Equity Incentive Plan
|
492
|
|
|
—
|
|
|
492
|
|
|
Employee taxes paid on withholding shares
|
—
|
|
|
(47
|
)
|
|
(47
|
)
|
|
Common stock repurchases (Note 7)
|
—
|
|
|
(853
|
)
|
|
(853
|
)
|
|
Balance at June 30, 2019
|
314,725
|
|
|
(72,757
|
)
|
|
241,968
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
For the Six Month Ended
|
|
|
|
|
|
|||
|
(in thousands)
|
Issued
|
|
Treasury
|
|
Outstanding
|
|||
|
Balance at December 31, 2017
|
298,174
|
|
|
(67,235
|
)
|
|
230,939
|
|
|
Shares issued under the 2015 Equity Incentive Plan
|
10,395
|
|
|
—
|
|
|
10,395
|
|
|
Employee taxes paid on withholding shares
|
—
|
|
|
(2,516
|
)
|
|
(2,516
|
)
|
|
Balance at June 30, 2018
|
308,569
|
|
|
(69,751
|
)
|
|
238,818
|
|
|
|
|
|
|
|
|
|||
|
Balance at December 31, 2018
|
309,736
|
|
|
(69,993
|
)
|
|
239,743
|
|
|
Shares issued under the 2015 Equity Incentive Plan
|
4,989
|
|
|
—
|
|
|
4,989
|
|
|
Employee taxes paid on withholding shares
|
—
|
|
|
(1,911
|
)
|
|
(1,911
|
)
|
|
Common stock repurchases (Note 7)
|
—
|
|
|
(853
|
)
|
|
(853
|
)
|
|
Balance at June 30, 2019
|
314,725
|
|
|
(72,757
|
)
|
|
241,968
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
|
June 30, 2019
|
|
June 30, 2019
|
||||||||||||||||||||
|
|
Business
|
|
Consumer
|
|
Total
|
|
Business
|
|
Consumer
|
|
Total
|
||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service revenues
|
$
|
180,014
|
|
|
$
|
87,244
|
|
|
$
|
267,258
|
|
|
$
|
339,359
|
|
|
$
|
176,244
|
|
|
$
|
515,603
|
|
|
Access and product revenues (1)
|
11,707
|
|
|
60
|
|
|
11,767
|
|
|
23,404
|
|
|
128
|
|
|
23,532
|
|
||||||
|
Service, access and product revenues
|
191,721
|
|
|
87,304
|
|
|
279,025
|
|
|
362,763
|
|
|
176,372
|
|
|
539,135
|
|
||||||
|
USF revenues
|
8,299
|
|
|
10,260
|
|
|
18,559
|
|
|
16,854
|
|
|
21,136
|
|
|
37,990
|
|
||||||
|
Total revenues
|
200,020
|
|
|
97,564
|
|
|
297,584
|
|
|
379,617
|
|
|
197,508
|
|
|
577,125
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service cost of revenues (2)
|
86,290
|
|
|
8,861
|
|
|
95,151
|
|
|
156,144
|
|
|
18,119
|
|
|
174,263
|
|
||||||
|
Access and product cost of revenues (1)
|
13,594
|
|
|
917
|
|
|
14,511
|
|
|
27,465
|
|
|
1,914
|
|
|
29,379
|
|
||||||
|
Service, access and product cost of revenues
|
99,884
|
|
|
9,778
|
|
|
109,662
|
|
|
183,609
|
|
|
20,033
|
|
|
203,642
|
|
||||||
|
USF cost of revenues
|
8,299
|
|
|
10,260
|
|
|
18,559
|
|
|
16,854
|
|
|
21,136
|
|
|
37,990
|
|
||||||
|
Total cost of revenues
|
108,183
|
|
|
20,038
|
|
|
128,221
|
|
|
200,463
|
|
|
41,169
|
|
|
241,632
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Segment gross margin
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service margin
|
93,724
|
|
|
78,383
|
|
|
172,107
|
|
|
183,215
|
|
|
158,125
|
|
|
341,340
|
|
||||||
|
Access and product margin
|
(1,887
|
)
|
|
(857
|
)
|
|
(2,744
|
)
|
|
(4,061
|
)
|
|
(1,786
|
)
|
|
(5,847
|
)
|
||||||
|
Gross margin ex-USF (Service, access and product margin)
|
91,837
|
|
|
77,526
|
|
|
169,363
|
|
|
179,154
|
|
|
156,339
|
|
|
335,493
|
|
||||||
|
Segment gross margin
|
$
|
91,837
|
|
|
$
|
77,526
|
|
|
$
|
169,363
|
|
|
$
|
179,154
|
|
|
$
|
156,339
|
|
|
$
|
335,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Segment gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service margin %
|
52.1
|
%
|
|
89.8
|
%
|
|
64.4
|
%
|
|
54.0
|
%
|
|
89.7
|
%
|
|
66.2
|
%
|
||||||
|
Gross margin ex-USF (Service, access and product margin %)
|
47.9
|
%
|
|
88.8
|
%
|
|
60.7
|
%
|
|
49.4
|
%
|
|
88.6
|
%
|
|
62.2
|
%
|
||||||
|
Segment gross margin %
|
45.9
|
%
|
|
79.5
|
%
|
|
56.9
|
%
|
|
47.2
|
%
|
|
79.2
|
%
|
|
58.1
|
%
|
||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
|
June 30, 2018
|
|
June 30, 2018
|
||||||||||||||||||||
|
|
Business
|
|
Consumer
|
|
Total
|
|
Business
|
|
Consumer
|
|
Total
|
||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service revenues
|
$
|
127,692
|
|
|
$
|
100,467
|
|
|
$
|
228,159
|
|
|
$
|
243,994
|
|
|
$
|
204,861
|
|
|
$
|
448,855
|
|
|
Access and product revenues (1)
|
12,716
|
|
|
289
|
|
|
13,005
|
|
|
25,247
|
|
|
380
|
|
|
25,627
|
|
||||||
|
Service, access and product revenues
|
140,408
|
|
|
100,756
|
|
|
241,164
|
|
|
269,241
|
|
|
205,241
|
|
|
474,482
|
|
||||||
|
USF revenues
|
7,434
|
|
|
11,277
|
|
|
18,711
|
|
|
15,269
|
|
|
23,697
|
|
|
38,966
|
|
||||||
|
Total revenues
|
147,842
|
|
|
112,033
|
|
|
259,875
|
|
|
284,510
|
|
|
228,938
|
|
|
513,448
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service cost of revenues (2)
|
60,335
|
|
|
12,375
|
|
|
72,710
|
|
|
113,317
|
|
|
26,389
|
|
|
139,706
|
|
||||||
|
Access and product cost of revenues (1)
|
13,913
|
|
|
1,870
|
|
|
15,783
|
|
|
28,404
|
|
|
3,664
|
|
|
32,068
|
|
||||||
|
Service, access and product cost of revenues
|
74,248
|
|
|
14,245
|
|
|
88,493
|
|
|
141,721
|
|
|
30,053
|
|
|
171,774
|
|
||||||
|
USF cost of revenues
|
7,434
|
|
|
11,277
|
|
|
18,711
|
|
|
15,274
|
|
|
23,723
|
|
|
38,997
|
|
||||||
|
Total cost of revenues
|
81,682
|
|
|
25,522
|
|
|
107,204
|
|
|
156,995
|
|
|
53,776
|
|
|
210,771
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Segment gross margin
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service margin
|
67,357
|
|
|
88,092
|
|
|
155,449
|
|
|
130,677
|
|
|
178,472
|
|
|
309,149
|
|
||||||
|
Access and product margin
|
(1,197
|
)
|
|
(1,581
|
)
|
|
(2,778
|
)
|
|
(3,157
|
)
|
|
(3,284
|
)
|
|
(6,441
|
)
|
||||||
|
Gross margin ex-USF (Service, access and product margin)
|
66,160
|
|
|
86,511
|
|
|
152,671
|
|
|
127,520
|
|
|
175,188
|
|
|
302,708
|
|
||||||
|
USF margin
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(26
|
)
|
|
(31
|
)
|
||||||
|
Segment gross margin
|
$
|
66,160
|
|
|
$
|
86,511
|
|
|
$
|
152,671
|
|
|
$
|
127,515
|
|
|
$
|
175,162
|
|
|
$
|
302,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Segment gross margin %
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service margin %
|
52.7
|
%
|
|
87.7
|
%
|
|
68.1
|
%
|
|
53.6
|
%
|
|
87.1
|
%
|
|
68.9
|
%
|
||||||
|
Gross margin ex-USF (Service, access and product margin %)
|
47.1
|
%
|
|
85.9
|
%
|
|
63.3
|
%
|
|
47.4
|
%
|
|
85.4
|
%
|
|
63.8
|
%
|
||||||
|
Segment gross margin %
|
44.8
|
%
|
|
77.2
|
%
|
|
58.7
|
%
|
|
44.8
|
%
|
|
76.5
|
%
|
|
58.9
|
%
|
||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Total reportable gross margin
|
$
|
169,363
|
|
|
$
|
152,671
|
|
|
$
|
335,493
|
|
|
$
|
302,677
|
|
|
Sales and marketing
|
95,362
|
|
|
77,685
|
|
|
190,885
|
|
|
154,821
|
|
||||
|
Engineering and development
|
16,891
|
|
|
10,375
|
|
|
33,417
|
|
|
21,195
|
|
||||
|
General and administrative
|
36,615
|
|
|
32,174
|
|
|
72,074
|
|
|
59,756
|
|
||||
|
Depreciation and amortization
|
20,662
|
|
|
19,062
|
|
|
41,876
|
|
|
35,862
|
|
||||
|
(Loss) Income from operations
|
(167
|
)
|
|
13,375
|
|
|
(2,759
|
)
|
|
31,043
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Interest expense
|
(8,487
|
)
|
|
(3,097
|
)
|
|
(16,063
|
)
|
|
(6,258
|
)
|
||||
|
Other (expense) income, net
|
(147
|
)
|
|
337
|
|
|
(563
|
)
|
|
84
|
|
||||
|
(Loss) Income before income taxes benefit
|
$
|
(8,801
|
)
|
|
$
|
10,615
|
|
|
$
|
(19,385
|
)
|
|
$
|
24,869
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Long-lived assets:
|
|
|
|
||||
|
United States
|
$
|
582,735
|
|
|
$
|
596,820
|
|
|
United Kingdom
|
358,831
|
|
|
366,594
|
|
||
|
Israel
|
3,240
|
|
|
1,688
|
|
||
|
|
$
|
944,806
|
|
|
$
|
965,102
|
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Business
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Service revenue per customer
|
|
$
|
440
|
|
|
$
|
348
|
|
|
$
|
416
|
|
|
$
|
338
|
|
|
Business revenue churn
|
|
1.0
|
%
|
|
1.2
|
%
|
|
1.0
|
%
|
|
1.2
|
%
|
||||
|
Consumer
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Average monthly revenues per subscriber line
|
|
$
|
26.89
|
|
|
$
|
26.37
|
|
|
$
|
26.62
|
|
|
$
|
26.45
|
|
|
Subscriber lines (at period end)
|
|
1,185,835
|
|
|
1,393,131
|
|
|
1,185,835
|
|
|
1,393,131
|
|
||||
|
Customer churn
|
|
1.7
|
%
|
|
1.7
|
%
|
|
1.8
|
%
|
|
1.8
|
%
|
||||
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Total revenues
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
||||
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
||||
|
Cost of revenues (exclusive of depreciation and amortization)
|
|
43
|
|
|
41
|
|
|
42
|
|
|
41
|
|
|
Sales and marketing
|
|
32
|
|
|
30
|
|
|
33
|
|
|
30
|
|
|
Engineering and development
|
|
6
|
|
|
4
|
|
|
6
|
|
|
4
|
|
|
General and administrative
|
|
12
|
|
|
13
|
|
|
12
|
|
|
12
|
|
|
Depreciation and amortization
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
Total operating expenses
|
|
100
|
|
|
95
|
|
|
100
|
|
|
94
|
|
|
(Loss) income from operations
|
|
—
|
|
|
5
|
|
|
—
|
|
|
6
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
||||
|
Interest expense
|
|
(3
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
Other income (expense), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total other income (expense), net
|
|
(3
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(Loss) income before income taxes
|
|
(3
|
)
|
|
4
|
|
|
(3
|
)
|
|
5
|
|
|
Income tax benefit (expense)
|
|
5
|
|
|
(1
|
)
|
|
4
|
|
|
1
|
|
|
Net income
|
|
2
|
%
|
|
3
|
%
|
|
1
|
%
|
|
6
|
%
|
|
(in thousands, except percentages)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
|
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
|
2019
|
|
2018
|
|
Dollar
Change
|
|
Percent
Change
|
||||||||||||||
|
Total revenues
|
|
$
|
297,584
|
|
|
$
|
259,875
|
|
|
$
|
37,709
|
|
|
15
|
%
|
|
$
|
577,125
|
|
|
$
|
513,448
|
|
|
$
|
63,677
|
|
|
12
|
%
|
|
Cost of revenues (1)
|
|
128,221
|
|
|
107,204
|
|
|
21,017
|
|
|
20
|
%
|
|
241,632
|
|
|
210,771
|
|
|
30,861
|
|
|
15
|
%
|
||||||
|
Gross margin
|
|
$
|
169,363
|
|
|
$
|
152,671
|
|
|
$
|
16,692
|
|
|
11
|
%
|
|
$
|
335,493
|
|
|
$
|
302,677
|
|
|
$
|
32,816
|
|
|
11
|
%
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
(in thousands, except percentages)
|
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Service revenues
|
|
$
|
180,014
|
|
|
$
|
127,692
|
|
|
$
|
52,322
|
|
|
41
|
%
|
|
$
|
339,359
|
|
|
$
|
243,994
|
|
|
$
|
95,365
|
|
|
39
|
%
|
|
Access and product revenues(1)
|
|
11,707
|
|
|
12,716
|
|
|
(1,009
|
)
|
|
(8
|
)%
|
|
23,404
|
|
|
25,247
|
|
|
(1,843
|
)
|
|
(7
|
)%
|
||||||
|
Service, access and product revenues
|
|
191,721
|
|
|
140,408
|
|
|
51,313
|
|
|
37
|
%
|
|
362,763
|
|
|
269,241
|
|
|
93,522
|
|
|
35
|
%
|
||||||
|
USF revenues
|
|
8,299
|
|
|
7,434
|
|
|
865
|
|
|
12
|
%
|
|
16,854
|
|
|
15,269
|
|
|
1,585
|
|
|
10
|
%
|
||||||
|
Total revenues
|
|
200,020
|
|
|
147,842
|
|
|
52,178
|
|
|
35
|
%
|
|
379,617
|
|
|
284,510
|
|
|
95,107
|
|
|
33
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Service cost of revenues (2)
|
|
86,290
|
|
|
60,335
|
|
|
25,955
|
|
|
43
|
%
|
|
156,144
|
|
|
113,317
|
|
|
42,827
|
|
|
38
|
%
|
||||||
|
Access and product cost of revenues (1)
|
|
13,594
|
|
|
13,913
|
|
|
(319
|
)
|
|
(2
|
)%
|
|
27,465
|
|
|
28,404
|
|
|
(939
|
)
|
|
(3
|
)%
|
||||||
|
Service, access and product cost of revenues
|
|
99,884
|
|
|
74,248
|
|
|
25,636
|
|
|
35
|
%
|
|
183,609
|
|
|
141,721
|
|
|
41,888
|
|
|
30
|
%
|
||||||
|
USF cost of revenues
|
|
8,299
|
|
|
7,434
|
|
|
865
|
|
|
12
|
%
|
|
16,854
|
|
|
15,274
|
|
|
1,580
|
|
|
10
|
%
|
||||||
|
Total cost of revenues
|
|
108,183
|
|
|
81,682
|
|
|
26,501
|
|
|
32
|
%
|
|
200,463
|
|
|
156,995
|
|
|
43,468
|
|
|
28
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Segment gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Service margin
|
|
93,724
|
|
|
67,357
|
|
|
26,367
|
|
|
39
|
%
|
|
183,215
|
|
|
130,677
|
|
|
52,538
|
|
|
40
|
%
|
||||||
|
Gross margin ex-USF (Service, access and product margin)
|
|
91,837
|
|
|
66,160
|
|
|
25,677
|
|
|
39
|
%
|
|
179,154
|
|
|
127,520
|
|
|
51,634
|
|
|
40
|
%
|
||||||
|
Segment gross margin
|
|
$
|
91,837
|
|
|
$
|
66,160
|
|
|
$
|
25,677
|
|
|
39
|
%
|
|
$
|
179,154
|
|
|
$
|
127,515
|
|
|
$
|
51,639
|
|
|
40
|
%
|
|
Segment gross Margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Service margin %
|
|
52.1
|
%
|
|
52.7
|
%
|
|
|
|
|
|
54.0
|
%
|
|
53.6
|
%
|
|
|
|
|
|
Gross margin ex-USF (Service, access and product margin) %
|
|
47.9
|
%
|
|
47.1
|
%
|
|
|
|
|
|
49.4
|
%
|
|
47.4
|
%
|
|
|
|
|
|
Segment gross margin %
|
|
45.9
|
%
|
|
44.8
|
%
|
|
|
|
|
|
47.2
|
%
|
|
44.8
|
%
|
|
|
|
|
|
(1)
|
Includes customer premise equipment, access, and shipping and handling.
|
|
(2)
|
Excludes depreciation and amortization of $7,978 and $4,978 for the three months ended June 30, 2019 and 2018, respectively and $16,192 and $9,951 for the six months ended June 30, 2019 and 2018.
|
|
|
(in thousands)
|
||
|
Service gross margin excluding the impact of the acquisitions increased 16% primarily due to overall growth in our Business customer base of 10% as compared to the prior year quarter
|
$
|
10,813
|
|
|
Service gross margin also increased due to acquisitions of TokBox on August 1, 2018 and NewVoiceMedia on October 31, 2018, respectively
|
15,554
|
|
|
|
Access and product gross margin decreased due to higher costs providing access services to Business customers during the current quarter
|
(690
|
)
|
|
|
Increase in segment gross margin
|
$
|
25,677
|
|
|
|
(in thousands)
|
||
|
Service gross margin excluding the impact of the acquisitions increased 17% primarily due to overall growth in our Business customer base of 10% as compared to the prior year quarter
|
$
|
22,580
|
|
|
Service gross margin also increased due to acquisitions of TokBox on August 1, 2018 and NewVoiceMedia on October 31, 2018, respectively
|
29,958
|
|
|
|
Access and product gross margin decreased due to higher costs providing access services to Business customers during the current quarter
|
(904
|
)
|
|
|
USF gross margin increased mainly due to payment during the first quarter of 2018 for USF fees not collected in 2017
|
5
|
|
|
|
Increase in segment gross margin
|
$
|
51,639
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
(in thousands, except percentages)
|
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Service revenues
|
|
$
|
87,244
|
|
|
$
|
100,467
|
|
|
$
|
(13,223
|
)
|
|
(13
|
)%
|
|
$
|
176,244
|
|
|
$
|
204,861
|
|
|
$
|
(28,617
|
)
|
|
(14
|
)%
|
|
Access and product revenues(1)
|
|
60
|
|
|
289
|
|
|
(229
|
)
|
|
(79
|
)%
|
|
128
|
|
|
380
|
|
|
(252
|
)
|
|
(66
|
)%
|
||||||
|
Service, access and product revenues
|
|
87,304
|
|
|
100,756
|
|
|
(13,452
|
)
|
|
(13
|
)%
|
|
176,372
|
|
|
205,241
|
|
|
(28,869
|
)
|
|
(14
|
)%
|
||||||
|
USF revenues
|
|
10,260
|
|
|
11,277
|
|
|
(1,017
|
)
|
|
(9
|
)%
|
|
21,136
|
|
|
23,697
|
|
|
(2,561
|
)
|
|
(11
|
)%
|
||||||
|
Total revenues
|
|
97,564
|
|
|
112,033
|
|
|
(14,469
|
)
|
|
(13
|
)%
|
|
197,508
|
|
|
228,938
|
|
|
(31,430
|
)
|
|
(14
|
)%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Service cost of revenues (2)
|
|
8,861
|
|
|
12,375
|
|
|
(3,514
|
)
|
|
(28
|
)%
|
|
18,119
|
|
|
26,389
|
|
|
(8,270
|
)
|
|
(31
|
)%
|
||||||
|
Access and product cost of revenues (1)
|
|
917
|
|
|
1,870
|
|
|
(953
|
)
|
|
(51
|
)%
|
|
1,914
|
|
|
3,664
|
|
|
(1,750
|
)
|
|
(48
|
)%
|
||||||
|
Service, access and product cost of revenues
|
|
9,778
|
|
|
14,245
|
|
|
(4,467
|
)
|
|
(31
|
)%
|
|
20,033
|
|
|
30,053
|
|
|
(10,020
|
)
|
|
(33
|
)%
|
||||||
|
USF cost of revenues
|
|
10,260
|
|
|
11,277
|
|
|
(1,017
|
)
|
|
(9
|
)%
|
|
21,136
|
|
|
23,723
|
|
|
(2,587
|
)
|
|
(11
|
)%
|
||||||
|
Total cost of revenues
|
|
20,038
|
|
|
25,522
|
|
|
(5,484
|
)
|
|
(21
|
)%
|
|
41,169
|
|
|
53,776
|
|
|
(12,607
|
)
|
|
(23
|
)%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Segment gross margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Service margin
|
|
78,383
|
|
|
88,092
|
|
|
(9,709
|
)
|
|
(11
|
)%
|
|
158,125
|
|
|
178,472
|
|
|
(20,347
|
)
|
|
(11
|
)%
|
||||||
|
Gross margin ex-USF (Service, access and product margin)
|
|
77,526
|
|
|
86,511
|
|
|
(8,985
|
)
|
|
(10
|
)%
|
|
156,339
|
|
|
175,188
|
|
|
(18,849
|
)
|
|
(11
|
)%
|
||||||
|
Segment gross margin
|
|
$
|
77,526
|
|
|
$
|
86,511
|
|
|
$
|
(8,985
|
)
|
|
(10
|
)%
|
|
$
|
156,339
|
|
|
$
|
175,162
|
|
|
$
|
(18,823
|
)
|
|
(11
|
)%
|
|
Segment gross Margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Service margin %
|
89.8
|
%
|
|
87.7
|
%
|
|
|
|
|
|
89.7
|
%
|
|
87.1
|
%
|
|
|
|
|
|
Gross margin ex-USF (Service, access and product margin) %
|
88.8
|
%
|
|
85.9
|
%
|
|
|
|
|
|
88.6
|
%
|
|
85.4
|
%
|
|
|
|
|
|
Segment gross margin %
|
79.5
|
%
|
|
77.2
|
%
|
|
|
|
|
|
79.2
|
%
|
|
76.5
|
%
|
|
|
|
|
|
(1)
|
Includes customer premise equipment and shipping and handling.
|
|
(2)
|
Excludes depreciation and amortization of $1,166 and $1,248 for the three months ended June 30, 2019 and 2018, respectively and $2,370 and $2,709 for the six months ended June 30, 2019 and 2018.
|
|
|
(in thousands)
|
||
|
Service gross margin decreased primarily due to a decrease in subscriber lines of 15% resulting in lower gross margin of $10,745 as we have reallocated resources focused on attracting Business customers. This was offset by a slight increase in average revenue per customer and lower overall costs incurred by the Consumer segment resulting in increased gross margin of $1,036
|
$
|
(9,709
|
)
|
|
Access and product gross margin increased 46% primarily due lower equipment costs associated with sales to customers during the current quarter
|
724
|
|
|
|
Decrease in segment gross margin
|
$
|
(8,985
|
)
|
|
|
(in thousands)
|
||
|
Service gross margin decreased primarily due to a decrease in subscriber lines of 15% resulting in lower gross margin of $21,165 as we have reallocated resources focused on attracting Business customers. This was offset by a slight increase in average revenue per customer and lower overall costs incurred by the Consumer segment resulting in increased gross margin of $818
|
$
|
(20,347
|
)
|
|
Access and product gross margin increased 46% primarily due lower equipment costs associated with sales to customers during the current quarter
|
1,498
|
|
|
|
USF gross margin increased mainly due to payment during the first quarter of 2018 for USF fees not collected in 2017
|
26
|
|
|
|
Decrease in segment gross margin
|
$
|
(18,823
|
)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
(in thousands, except percentages)
|
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||
|
Sales and marketing
|
|
$
|
95,362
|
|
|
$
|
77,685
|
|
|
$
|
17,677
|
|
|
23
|
%
|
|
$
|
190,885
|
|
|
$
|
154,821
|
|
|
$
|
36,064
|
|
|
23
|
%
|
|
Engineering and development
|
|
16,891
|
|
|
10,375
|
|
|
6,516
|
|
|
63
|
%
|
|
33,417
|
|
|
21,195
|
|
|
12,222
|
|
|
58
|
%
|
||||||
|
General and administrative
|
|
36,615
|
|
|
32,174
|
|
|
4,441
|
|
|
14
|
%
|
|
72,074
|
|
|
59,756
|
|
|
12,318
|
|
|
21
|
%
|
||||||
|
Depreciation and amortization
|
|
20,662
|
|
|
19,062
|
|
|
1,600
|
|
|
8
|
%
|
|
41,876
|
|
|
35,862
|
|
|
6,014
|
|
|
17
|
%
|
||||||
|
Total other operating expenses
|
|
$
|
169,530
|
|
|
$
|
139,296
|
|
|
$
|
30,234
|
|
|
22
|
%
|
|
$
|
338,252
|
|
|
$
|
271,634
|
|
|
$
|
66,618
|
|
|
25
|
%
|
|
•
|
Sales and marketing expense increased by $17,677, primarily due to additional costs from TokBox and NewVoiceMedia which were acquired in August 2018 and October 2018, respectively. Additionally, sales and marketing costs were impacted by increased spending in the current year related to media marketing initiatives and the attendance at certain conferences which were not attended in the previous year.
|
|
•
|
Engineering and development expense increased by $6,516, in connection with the Company's continued transformation focus on innovation especially in regards to developing further functionality related to its proprietary platform in order to support customers through the mid-market and enterprise sector.
|
|
•
|
General and administrative expense increased by $4,441, primarily due to higher personnel costs driven by the increase in headcount following the acquisition of TokBox and NewVoiceMedia.
|
|
•
|
Depreciation and amortization expense increased by $1,600 primarily due to the amortization of acquired intangible assets related to TokBox and NewVoiceMedia.
|
|
•
|
Sales and marketing expense increased by $36,064, primarily due to additional costs from TokBox and NewVoiceMedia which were acquired in August 2018 and October 2018, respectively. Additionally, sales and marketing costs were impacted by increased spending in the current year related to media marketing initiatives and the attendance at certain conferences which were not attended in the previous year.
|
|
•
|
Engineering and development expense increased by $12,222, in connection with the Company's continued transformation focus on innovation especially in regards to developing further functionality related to its proprietary platform in order to support customers through the mid-market and enterprise sector.
|
|
•
|
General and administrative expense increased by $12,318, primarily due to higher personnel costs driven by the increase in headcount following the acquisition of TokBox and NewVoiceMedia.
|
|
•
|
Depreciation and amortization expense increased by $6,014 primarily due to the amortization of acquired intangible assets related to TokBox and NewVoiceMedia.
|
|
(in thousands, except percentages)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
|
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||
|
Interest expense
|
|
$
|
(8,487
|
)
|
|
$
|
(3,097
|
)
|
|
$
|
5,390
|
|
|
174
|
%
|
|
$
|
(16,063
|
)
|
|
$
|
(6,258
|
)
|
|
$
|
9,805
|
|
|
157
|
%
|
|
Other income (expense), net
|
|
(147
|
)
|
|
337
|
|
|
(484
|
)
|
|
(144
|
)%
|
|
(563
|
)
|
|
84
|
|
|
(647
|
)
|
|
(770
|
)%
|
||||||
|
|
|
$
|
(8,634
|
)
|
|
$
|
(2,760
|
)
|
|
$
|
(5,874
|
)
|
|
|
|
$
|
(16,626
|
)
|
|
$
|
(6,174
|
)
|
|
$
|
(10,452
|
)
|
|
|
||
|
(in thousands, except percentages)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
|
2019
|
|
2018
|
|
Dollar
Change |
|
Percent
Change |
||||||||||||||
|
Income tax benefit (expense)
|
$
|
13,325
|
|
|
$
|
(2,056
|
)
|
|
$
|
15,381
|
|
|
748
|
%
|
|
$
|
23,375
|
|
|
$
|
8,214
|
|
|
$
|
15,161
|
|
|
185
|
%
|
|
Effective tax rate
|
(151
|
)%
|
|
(19
|
)%
|
|
|
|
|
|
(121
|
)%
|
|
33
|
%
|
|
|
|
|
||||||||||
|
|
Six Months Ended
|
||||||||||
|
|
June 30,
|
||||||||||
|
(in thousands)
|
2019
|
|
2018
|
|
Dollar
Change |
||||||
|
Net cash provided by operating activities
|
$
|
28,067
|
|
|
$
|
65,935
|
|
|
$
|
(37,868
|
)
|
|
Net cash used in investing activities
|
(22,453
|
)
|
|
(12,007
|
)
|
|
(10,446
|
)
|
|||
|
Net cash provided by (used in) financing activities
|
8,025
|
|
|
(58,033
|
)
|
|
66,058
|
|
|||
|
Effect of exchange rate changes on cash and cash equivalents
|
(1,101
|
)
|
|
(1,205
|
)
|
|
104
|
|
|||
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
Item 4.
|
Controls and Procedures
|
|
Item 1.
|
Legal Proceedings
|
|
Item 1A.
|
Risk Factors
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Issuer Purchases of Equity Securities
|
||||||||||||
|
Period
|
|
Total Number of Shares (or Units) Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
|
||||
|
April 1 - April 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
May 1 - May 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
-
|
|
|
June 1 - June 30, 2019(1)
|
|
852,515
|
|
|
11.73(2)
|
|
|
—
|
|
|
—
|
|
|
|
|
852,515
|
|
|
|
|
—
|
|
|
|
||
|
Item 3.
|
Defaults Upon Senior Securities
|
|
Item 4.
|
Mine Safety Disclosures
|
|
Item 5.
|
Other Information
|
|
Item 6.
|
Exhibits
|
|
|
|
|
VONAGE HOLDINGS CORP.
|
||
|
|
|
|
|
||
|
Dated:
|
August 6, 2019
|
|
By:
|
|
/s/ David T. Pearson
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David T. Pearson
Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer)
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1.
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Grant of Restricted Stock Units
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2.
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Vesting of Restricted Stock Units
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3.
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Settlement of Restricted Stock Units
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5.
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Rights as Stockholder; Dividend Equivalent Rights
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6.
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Transferability
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8.
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Miscellaneous
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By:
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______________________
Name: Title: Participant |
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Date:
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August 6, 2019
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/s/ Alan Masarek
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Alan Masarek
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Chief Executive Officer
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Date:
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August 6, 2019
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/s/ David T. Pearson
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David T. Pearson
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Chief Financial Officer
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Date:
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August 6, 2019
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/s/ Alan Masarek
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Alan Masarek
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Chief Executive Officer
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Date:
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August 6, 2019
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/s/ David T. Pearson
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David T. Pearson
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Chief Financial Officer
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