Venture Global, Inc. Q3 FY2021 earnings call

• Rory discussed the convergence of Internet, mobility, cloud, and 5G driving digital transformation. Vonage's Communications Platform enables composable API-based programming. Acquired Jumper.ai for conversational commerce capabilities. - VCP service revenues up 25%, API revenues up 43%, with strong new customer growth and existing customers expanding. - Unified Communications and Contact Center service revenue grew 8%, with combined BBC and BCC cloud product growth at 13%. Key wins included integrated UC and CC solutions for various customers. - Product innovations included AI virtual assistant for BBC, Vonage Video Express, and Vonage Contact Center selected by Google.

Vonage Communication Platform (VCP) service revenue was $274 million, representing 25% year-over-year growth. VCP adjusted EBITDA was $5 million, a $19 million year-over-year improvement. VCP Rule of 40 this quarter was 27. API revenues increased 43% year-over-year to $155 million in the quarter. Unified Communications and Contact Center product service revenue grew 8% ahead of expectations, with combined BBC and BCC cloud product growth at 13%. VCP revenue now represents 80% of consolidated revenue. VCP service revenue churn was 0.6% in the third quarter, with monthly service revenue per customer increasing 25% to $657 from $527 over the prior year quarter.

• Fourth quarter: VCP revenue expected in $293M-$301M range, VCP service revenue growth 22%-25%, API revenue growth 34%-40%, Unified Communications and Contact Center service revenue high single-digit growth. Consolidated revenue expected $358M-$366M, adjusted EBITDA $46M-$50M. - Full year 2021: Raised VCP revenue to $1.113B-$1.121B, VCP service revenue $1.55B-$1.63B (23%-24% growth). API revenue growth 40%, UC/CC service revenue mid to high single-digit growth. VCP adjusted EBITDA $8M-$12M, consolidated revenue $1.400B-$1.409B, adjusted EBITDA $194M-$198M.

Q: Mike Latimore with Northland Capital Markets asked about VCP gross margin longer-term.

A: Rory and Steve discussed robust demand across product areas, mix with messaging, and gross margin expected to stay mid-40s.

Q: Mike Latimore asked about FX impact to VCP growth.

A: Steve said FX was relatively flat, VCP service revenue 25% both reported and constant currency.

Q: Will Power with Baird asked about Jumper.ai impact.

A: Rory discussed Jumper.ai's role in conversational commerce, integration progress, and no significant initial revenue/cost impacts.

Q: Mason Marion with Jefferies asked about API growth drivers.

A: Rory discussed messaging growth from conversational commerce trend, and other APIs like video/voice with vertical differentiation.

Q: Tim Horan with Oppenheimer asked about API market share.

A: Rory said product quality improved, demand robust, and focus on customer needs to gain share.

Q: Drew Glaeser with JPMorgan asked about channel partner incentives.

A: Rory discussed channel partner communication, tooling, and feedback being positive.

Q: George Sutton with Craig-Hallum asked about Salesforce and Microsoft.

A: Steve and Rory discussed strong Salesforce pipeline, win rates, and Microsoft opportunity.

Q: Ryan MacWilliams with Barclays asked about M&A.

A: Steve and Rory discussed net debt position, M&A focus on strategic plays, and Jumper.ai as an example.

Q: Andrew King with Colliers asked about UC CC bundled deals and engineering spend.

A: Rory discussed increasing bundled UC CC deals and engineering spend as investment in product innovation.

Q: George on for Steve Enders with KeyBanc asked about VCP carrier fees.

A: Steve said carrier fees had no impact on guidance, with progress baked into projections