Vonage Holdings Corp. (VG) has reported a 25.44 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $5.91 million, or $0.02 a share in the quarter, compared with $7.93 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.24 million, or $0.06 a share compared with $12.07 million or $0.05 a share, a year ago.

Revenue during the quarter grew 7.28 percent to $243.35 million from $226.82 million in the previous year period. Gross margin for the quarter contracted 451 basis points over the previous year period to 61.01 percent. Total expenses were 97.89 percent of quarterly revenues, up from 91.83 percent for the same period last year. That has resulted in a contraction of 606 basis points in operating margin to 2.11 percent.

Operating income for the quarter was $5.12 million, compared with $18.52 million in the previous year period.

"We are off to a solid start in 2017. Consolidated revenues were $243 million, a 7% year-over year increase and our eighth consecutive quarter of year-over-year consolidated revenue growth," said Vonage chief executive officer Alan Masarek. "We are transforming our Company to capitalize on the enormous cloud communications market opportunity. Our strategy remains rooted in continued investment in Vonage Business to drive faster long-term growth, leveraging the Company’s strategic assets to become the clear leader in business cloud communications."

For financial year 2017, Vonage Holdings Corp. expects revenue to be in the range of $966 million to $981 million.

The company has spent $6.76 million cash to meet investing activities during the quarter as against cash outgo of $10.88 million in the last year period.

The company has spent $13.54 million cash to carry out financing activities during the quarter as against cash outgo of $29 million in the last year period.