Vonage 10-Q 2 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Entity Registrant Name	VONAGE HOLDINGS CORP
Entity Central Index Key	1,272,830
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		239,580,512

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 25,735	$ 31,360
Accounts receivable, net of allowance of $2,480 and $2,258, respectively	57,060	44,159
Inventory, net of allowance of $198 and $108, respectively	1,420	2,971
Deferred customer acquisition costs, current portion	10,669	0
Prepaid expenses	21,344	23,763
Other current assets	5,363	7,522
Total current assets	121,591	109,775
Property and equipment, net of accumulated depreciation of $97,962 and $87,792, respectively	42,754	46,754
Goodwill	389,490	373,764
Software, net of accumulated amortization of $100,251 and $93,858, respectively	17,828	22,252
Deferred customer acquisition costs	34,821	0
Restricted cash	1,984	1,967
Intangible assets, net of accumulated amortization of $151,029 and $124,573, respectively	158,939	173,270
Deferred tax assets	114,757	110,892
Other assets	27,546	20,007
Total assets	909,710	858,681
Current liabilities:
Accounts payable	26,256	29,766
Accrued expenses	99,232	85,706
Deferred revenue, current portion	27,509	30,255
Current portion of notes payable	10,000	18,750
Total current liabilities	162,997	164,477
Indebtedness under revolving credit facility	114,000	141,000
Notes payable, net of debt related costs and current portion	86,672	72,765
Other liabilities	8,147	7,541
Total liabilities	371,816	385,783
Commitments and Contingencies (Note 7)
Stockholders’ Equity:
Common stock, par value $0.001 per share; 596,950 shares authorized at September 30, 2018 and December 31, 2017; 309,462 and 298,174 shares issued at September 30, 2018 and December 31, 2017, respectively; 239,523 and 230,939 shares outstanding at September 30, 2018 and December 31, 2017, respectively	310	298
Additional paid-in capital	1,405,991	1,375,391
Accumulated deficit	(605,042)	(672,561)
Treasury stock, at cost, 69,939 shares at September 30, 2018 and 67,235 shares at December 31, 2017	(274,336)	(244,239)
Accumulated other comprehensive income	10,971	14,009
Total stockholders’ equity	537,894	472,898
Total liabilities and stockholders’ equity	$ 909,710	$ 858,681

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 2,480	$ 2,258
Inventory, allowance	198	108
PP&E, accumulated amortization	97,962	87,792
Software, accumulated amortization	100,251	93,858
Intangible assets, accumulated amortization	$ 151,029	$ 124,573
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	596,950,000	596,950,000
Common stock, shares issued (in shares)	309,462,000	298,174,000
Common stock, shares outstanding (in shares)	239,523,000	230,939,000
Treasury stock, shares (in shares)	69,939,000	67,235,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Total revenues	$ 261,531	$ 253,083	$ 774,979	$ 748,266
Operating Expenses:
Cost of revenues (exclusive of depreciation and amortization)	104,351	102,938	315,122	301,688
Sales and marketing	74,380	73,576	229,201	235,245
Engineering and development	14,309	6,956	35,504	21,996
General and administrative	37,620	26,811	97,376	98,411
Depreciation and amortization	16,024	18,179	51,886	54,520
Total operating expenses	246,684	228,460	729,089	711,860
Income from operations	14,847	24,623	45,890	36,406
Other Income (Expense):
Interest expense	(3,036)	(3,821)	(9,294)	(11,385)
Other income (expense), net	347	468	431	943
Total other income (expense), net	(2,689)	(3,353)	(8,863)	(10,442)
Income before income taxes	12,158	21,270	37,027	25,964
Income tax (expense) benefit	(2,570)	(10,668)	5,644	(4,624)
Net income	$ 9,588	$ 10,602	$ 42,671	$ 21,340
Earnings per common share:
Basic (usd per share)	$ 0.04	$ 0.05	$ 0.18	$ 0.10
Diluted (usd per share)	$ 0.04	$ 0.04	$ 0.17	$ 0.09
Weighted-average common shares outstanding:
Basic (in shares)	239,303	227,943	236,775	223,956
Diluted (in shares)	249,516	242,720	248,780	242,552

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 9,588	$ 10,602	$ 42,671	$ 21,340
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax (benefit) expense of ($2,346), $822, ($3,702), and $3,258, respectively	1,525	6,390	(4,576)	23,622
Unrealized gain on available-for-sale securities, net of tax expense of $0, $0, $0, and $0, respectively	0	0	0	1
Unrealized gain on derivatives, net of tax benefit of $745, $0, $354, and $0, respectively	530	197	1,538	197
Total other comprehensive income (loss)	2,055	6,587	(3,038)	23,820
Comprehensive income	$ 11,643	$ 17,189	$ 39,633	$ 45,160

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax expense	$ (2,346)	$ 822	$ (3,702)	$ 3,258
Unrealized (loss)/gain on available-for-sale securities, tax expense	0	0	0	0
Unrealized gain on derivatives, tax expense	$ (745)	$ 0	$ (354)	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 42,671	$ 21,340
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,412	25,930
Amortization of intangibles	27,306	28,458
Deferred income taxes	(9,506)	2,475
Amortization of deferred customer acquisition costs	7,002	0
Allowance for doubtful accounts and obsolete inventory	1,643	901
Amortization of debt issuance costs	764	300
Gain on sale of business	0	(1,377)
Loss on disposal of fixed assets	168	132
Loss on extinguishment of debt	14	0
Share-based expense	24,495	28,997
Changes in derivatives	(65)	0
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(15,085)	(3,970)
Inventory	1,274	1,156
Prepaid expenses and other current assets	6,416	4,653
Deferred customer acquisition costs	(18,008)	0
Accounts payable and accrued expenses	6,898	(31,002)
Deferred revenue	(2,704)	(1,477)
Other assets and liabilities	(3,232)	4,084
Net cash provided by operating activities	94,463	80,600
Cash flows from investing activities:
Capital expenditures	(10,687)	(15,790)
Maturities and sales of marketable securities	0	602
Acquisition and development of software assets	(6,198)	(9,438)
Acquisition of business, net of cash acquired	(32,299)	0
Proceeds from sale of business	0	1,000
Net cash used in investing activities	(49,184)	(23,626)
Cash flows from financing activities:
Principal payments on capital lease obligations and other financing obligations	(119)	(5,701)
Payments on notes and revolving credit facility	(293,688)	(56,063)
Proceeds received from issuance of revolving credit facility and term note	272,000	15,000
Payment of debt issuance costs	3,376	0
Common stock repurchases	0	(9,542)
Employee taxes paid on withholding shares	(31,064)	(14,927)
Proceeds from exercise of stock options	6,117	14,476
Net cash used in financing activities	(50,130)	(56,757)
Effect of exchange rate changes on cash	(757)	550
Net (decrease) increase in cash, cash equivalents, and restricted cash	(5,608)	767
Cash, cash equivalents, and restricted cash, beginning of period	33,327	30,929
Cash, cash equivalents, and restricted cash, end of period	27,719	31,696
Cash paid during the periods for:
Interest	8,454	10,147
Income taxes	5,669	5,395
Non-cash investing activities:
Capital expenditures included in accounts payable and accrued liabilities	$ 1,840	$ 2,231

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment upon the adoption of Topic 606 | Accounting Standards Update 2014-09	$ 24,848			$ 24,848
Common stock, shares outstanding (in shares) at Dec. 31, 2017	230,939	230,939
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises (in shares)		11,288
Employee taxes paid on withholding shares (in shares)		(2,704)
Common stock, shares outstanding (in shares) at Sep. 30, 2018	239,523	239,523
Balance at Dec. 31, 2017	$ 472,898	$ 298	$ 1,375,391	(672,561)	$ (244,239)	$ 14,009
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises	6,117	12	6,105
Share-based expense	24,495		24,495
Employee taxes paid on withholding shares	(30,097)				(30,097)
Foreign currency translation adjustment	(4,576)					(4,576)
Unrealized gain on derivatives, net of tax benefit of $745, $0, $354, and $0, respectively	1,538					1,538
Net income	42,671			42,671
Balance at Sep. 30, 2018	$ 537,894	$ 310	$ 1,405,991	$ (605,042)	$ (274,336)	$ 10,971

Nature of Business

Nature of Business	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business Nature of Operations Vonage Holdings Corp. (“Vonage”, “Company”, “we”, “our”, “us”) is incorporated as a Delaware corporation. At Vonage, we are redefining business communications. We are embracing technology to transform how businesses communicate to create better business outcomes. Our cloud communications platform enables businesses of all sizes to collaborate more productively and engage their customers more efficiently across any device. All of our cloud communications solutions are designed to allow businesses to be more productive by integrating communications with all their existing business productivity tools and our programmable solutions allow customers to engage with their customers via embedded voice, chat, or messaging to create seamless and contextual communications that makes doing business easier for end customers. For our business customers, we provide innovative, cloud-based Unified Communications as a Service, or UCaaS, solutions, comprised of integrated voice, text, video, data, collaboration, and mobile applications over our flexible, scalable Session Initiation Protocol, or SIP, based Voice over Internet Protocol, or VoIP, network. We also offer Communications Platform as a Service, or CPaaS, solutions designed to enhance the way businesses communicate with their customers by embedding communications into apps, websites and business processes. In combination, our products and services permit our business customers to communicate with their customers and employees through any cloud-connected device, in any place, at any time without the often costly investment required with on-site equipment. We provide a robust suite of feature-rich residential communication solutions that allow consumers to connect their home phones and mobile phones on one number and we offer attractive international long distance rates that help create a loyal base of satisfied customers. Customers in the United States represented 79% and 84% of our consolidated revenues for the three months ended September 30, 2018 and 2017 and 80% and 86% for the nine months ended September 30, 2018 and 2017 , respectively, with the balance in Canada, the United Kingdom, China, Singapore, Netherlands, and many other countries around the world. Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements and information have been prepared in accordance with accounting principles generally accepted in the United States and in accordance with the SEC's regulations for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, these financial statements contain all normal and recurring adjustments considered necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows, and stockholders’ equity for the periods presented. The results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission on February 27, 2018 . Use of Estimates Our condensed consolidated financial statements and notes thereof are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. Reclassifications Reclassifications have been made to our condensed consolidated financial statements for the prior year periods to conform to classifications used in the current year periods. The reclassifications did not affect results of operations or net assets.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies This footnote should be read in conjunction with the complete description of our significant accounting policies under Note 2, Summary of Significant Accounting Policies to our Annual Report on Form 10-K for the year ended December 31, 2017 . Cost of Revenues Cost of revenues excludes depreciation and amortization expense of $6,386 and $6,852 for the three months ended September 30, 2018 and 2017 and $19,046 and $20,497 for the nine months ended September 30, 2018 and 2017 , respectively. In addition, costs of goods sold included in cost of revenues during the three months ended September 30, 2018 and 2017 were $6,386 and $6,306 and during the nine months ended September 30, 2018 and 2017 were $18,854 and $19,786 , respectively. Advertising Costs We incurred advertising costs which are included in sales and marketing of $12,883 and $11,423 for the three months ended September 30, 2018 and 2017 and $41,805 and $43,760 for the nine months ended September 30, 2018 and 2017 , respectively. Engineering and Development Expenses Engineering and development expenses predominantly include personnel and related costs for developers responsible for research and development of new products. Fair Value of Financial Instruments The Company records certain of its financial assets at fair value on a recurring basis as described below. Certain of the Company's other financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate fair value because of their short-term maturities. The carrying amounts of our capital leases approximate fair value of these obligations based upon management’s best estimates of interest rates that would be available for similar debt obligations at September 30, 2018 and December 31, 2017 . We believe the fair value of our debt at September 30, 2018 and December 31, 2017 was approximately the same as its carrying amount as market conditions, including available interest rates, credit spread relative to our credit rating, and illiquidity, remain relatively unchanged from the issuance date of our debt obligations for a similar debt instrument and are classified as Level 3 within the fair value hierarchy. We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories: • Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2 - observable prices that are based on inputs not quoted on active markets but corroborated by market data; and • Level 3 - unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs. The following table presents the assets that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of September 30, 2018 and December 31, 2017: September 30, December 31, 2017 Level 2 Measurements Interest rate swaps (1) $ 2,805 $ 1,285 (1) Included in other assets on our condensed consolidated balance sheets. Supplemental Balance Sheet Information Cash, cash equivalents and restricted cash September 30, December 31, 2017 Cash and cash equivalents $ 25,735 $ 31,360 Cash collateralized letter of credit - lease deposits 1,513 1,563 Cash reserves 471 404 Restricted cash 1,984 1,967 Cash, cash equivalents, and restricted cash $ 27,719 $ 33,327 Intangible assets, net September 30, December 31, 2017 Customer relationships $ 108,224 $ 122,393 Developed technology 47,574 46,004 Patents and patent licenses 2,893 4,030 Trade names 25 352 Non-compete agreements 223 491 Intangible assets, net $ 158,939 $ 173,270 Accrued expenses September 30, December 31, 2017 Compensation and related taxes and temporary labor $ 28,331 $ 30,059 Marketing 11,592 10,759 Taxes and fees 16,982 13,353 Acquisition related consideration accounted for as compensation — 2,534 Telecommunications 20,686 16,068 Other accruals 7,200 7,078 Customer credits 2,800 2,310 Professional fees 10,313 1,618 Inventory 1,328 1,927 Accrued expenses $ 99,232 $ 85,706 Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, "Intangibles - Goodwill and Other". The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. This ASU is effective for an annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 will not have a material impact on our condensed consolidated financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, "Leases". This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about their leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective transition method at the beginning of the earliest period presented in the financial statements. Early adoption is permitted for all entities. The adoption of this ASU will increase our assets and liabilities for real estate and equipment operating leases for which we are the lessee and increase our lease disclosures. In July 2018, FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”, both of which affect narrow aspects of the guidance issued in ASU 2016-02. In addition, ASU 2018-11 provides an additional (and optional) transition method upon adoption of ASU 2016-02 to initially apply the new lease standard at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption in lieu of the comparative reporting initially required under ASU 2016-02. We have substantially completed our review of contracts in the scope of Topic 842 and are currently evaluating the financial impact of the guidance on our financial statements. While this review is still in the process, the Company expects the adoption of Topic 842 will have a material impact on its balance sheet. Additionally, the Company plans to utilize the transition method provided by ASU 2018-11 and will recognize the cumulative effect of the adoption in retained earnings as of January 1, 2019. The following standards were adopted by the Company during the current period: In August 2018, FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)”. Under this ASU, a customer in a cloud computing arrangement that is a service contract would look to existing guidance for internal-use software under ASC 350-40 to determine whether implementation costs incurred under such arrangement may be capitalized and subsequently amortized over the periods covered under any applicable renewal options that are reasonably certain to be exercised. In addition, the guidance in this ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early adopted this ASU on a retrospective basis and began capitalizing implementation costs associated with cloud computing arrangements entered into that are service contracts. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In October 2016, FASB issued ASU 2016-16, "Income Taxes". This ASU improves the accounting for income tax consequences of intra-entity transfers of assets other than inventory. This ASU is effective for fiscal years beginning after December 15, 2017 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this ASU on January 1, 2018 and the adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In August 2016, FASB issued ASU 2016-15, "Statement of Cash Flows". This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for fiscal years beginning after December 15, 2017 on a retrospective basis. Early adoption is permitted, including adoption in an interim period. We adopted this ASU on January 1, 2018 and the adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". This ASU, as amended, provided comprehensive guidance on the recognition of revenue from contracts with customers arising from the transfer of goods and services, guidance on accounting for certain contract costs and new disclosures. Topic 606 also amends the current guidance for the recognition of costs to obtain and fulfill contracts with customers requiring that all incremental costs of obtaining and direct costs of fulfilling contracts with customers such as commissions be deferred and recognized over the expected customer life. On January 1, 2018, we adopted this ASU. Refer to Note 3. Revenue Recognition for related disclosures required upon adoption. In August 2017, FASB issued ASU 2017-12, "Derivatives and Hedging". The ASU improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and simplifies the application of the hedge accounting guidance in current generally accepted accounting principles ("GAAP"). It also amends the disclosures requirements by requiring a tabular disclosure related to the effect on the incomes statement of fair value and cash flow hedges and eliminating the ineffective portion of the change in fair value of hedging instrument disclosures. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance and is applied to hedging relationships existing on the date of adoption. We adopted ASU 2017-12 during the third quarter of 2018 and the adoption did not have a material impact on our condensed consolidated financial statements and related disclosures.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted the guidance of ASC Topic 606, Revenue from Contracts with Customers using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Our results for reporting periods beginning after January 1, 2018 are presented in accordance with the provisions under Topic 606 but any prior period amounts have not been adjusted and continue to be reported in accordance with our revenue recognition policy as further described in Note 2, Summary of Significant Accounting Policies to our Annual Report on Form 10-K for the year ended December 31, 2017. In connection with our adoption of Topic 606, we recognized a net increase to opening retained earnings of $24,848 , net of tax, as of January 1, 2018 related to commissions paid associated with the acquisition of business customers and associated deferred tax liability. Upon our adoption of Topic 606, we measure revenue based upon consideration specified by contracts with our customers. Revenue is recognized when our performance obligation under the contract is satisfied by transferring control over the product or service to the customer. We derive our revenues for our Consumer and Business segments primarily from the sale of our communication services and customer equipment as further described below. The majority of the Company's contracts with customers have a single performance obligation for service revenues. We recognize revenue with customers when control transfers, which occurs upon delivery of a service or product. For our Business segment, the typical life of a customer for service is six years. The adoption of Topic 606 did not result in a change in the timing of how the Company recognizes revenue. Service Revenues Substantially all of our revenues are service revenues, which are derived from monthly subscription fees under usage based or pay-per-use type billing arrangements, and contract-based services plans. For consumer customers in the United States, we offer domestic and international rate plans, including a variety of residential plans and mobile plans. For business customers, we offer small and medium business, mid-market, and enterprise customers several service plans with different pricing structures and contractual requirements ranging in duration from month-to-month to three years. In addition, we provide managed equipment to business customers for a monthly fee. Customers also have the opportunity to purchase premium features for additional fees. We also derive service revenues from per minute fees for international calls if not covered under a plan, including calls made via applications for mobile devices and other stand-alone products, and for any calling minutes in excess of a customer's monthly plan limits. For a portion of our customers, monthly subscription fees are automatically charged to customers' credit cards, debit cards or electronic check payments ("ECP"), in advance and are recognized over the following month as service is provided. Service revenue also includes supplying messaging (SMS and Voice) services to customers as part of our CPaaS offerings. Revenue is recognized in the period when messages are sent by the customer. We also transact with providers or bulk SMS aggregators and sell services to these customers who then onsell to their customers. Since the aggregator is our customer, revenue is recognized on a gross basis with related costs included in cost of revenues. In the United States, we charge regulatory, compliance, E-911 and intellectual property-related fees on a monthly basis to defray costs and to cover taxes that we are charged by the suppliers of telecommunications services. These charges, along with the remittance to the relevant government entity, are recorded on a net basis. In addition, we charge customers Federal Universal Service Fund ("USF") fees from customers to recover our obligation to contribute to the fund, as allowed by the Federal Communications Commission ("FCC"). We recognize USF revenue on a gross basis and record the related fees in cost of revenues. Customer Equipment and Shipping Revenues Revenues are generated from sales of customer equipment directly to customers for replacement devices, or for upgrading their device at the time of customer sign-up for which we charge an additional fee. In addition, customer equipment and shipping revenues include revenues from the sale of VoIP telephones in order to access our small and medium business services. Customer equipment and shipping revenues also include the fees that customers are charged for shipping their customer equipment to them. Disaggregation of Revenue The following table details our revenue from customers disaggregated by primary geographical market, source of revenue, and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue for our Business and Consumer segments. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Business Consumer Total Business Consumer Total Primary geographical markets United States $ 107,446 $ 99,061 $ 206,507 $ 311,562 $ 309,056 $ 620,618 Canada 919 5,781 6,700 2,293 18,275 $ 20,568 United Kingdom 6,505 3,054 9,559 20,315 9,503 $ 29,818 Other Countries (1) 38,765 — 38,765 103,975 — $ 103,975 153,635 107,896 261,531 438,145 336,834 774,979 Major Sources of Revenue Service revenues $ 133,709 $ 97,093 $ 230,802 $ 377,703 $ 301,954 $ 679,657 Access and product revenues 12,427 92 12,519 37,674 472 38,146 USF revenues 7,499 10,711 18,210 22,768 34,408 57,176 153,635 107,896 261,531 438,145 336,834 774,979 (1) No individual other international country represented greater than 10% of total revenue during the periods presented. In addition, the Company recognizes service revenues from its customers through subscription services provided or through usage or pay-per-use type arrangements. During the three months ended September 30, 2018 , the Company recognized $149,091 related to subscription services, $63,857 related to usage, and $48,583 related to other revenues such as USF, other regulatory fees, and credits. During the nine months ended September 30, 2018 , the Company recognized $452,257 related to subscription services, $175,764 related to usage, and $146,958 related to other revenues such as USF, other regulatory fees, and credits. Contract Assets and Liabilities The following table provides information about receivables and contract liabilities from contracts with customers: September 30, 2018 Receivables (1) $ 57,060 Contract liabilities (2) 27,509 (1) Amounts included in accounts receivables on our condensed consolidated balance sheet. (2) Amounts included in deferred revenues and other liabilities on our condensed consolidated balance sheet. Our deferred revenue represents the advance consideration received from customers for subscription services and is predominantly recognized over the following month as transfer of control occurs. During the three and nine months ended September 30, 2018 , the Company recognized revenue of $105,494 and $332,480 , respectively, related to its contract liabilities. We expect to recognize $27,509 into revenue over the next twelve months related to our deferred revenue as of September 30, 2018 . Contract Acquisition Costs We have various commission programs for which eligible employees and third parties may earn commission on sales of services and products to customers. We expect that these commission fees are recoverable and, therefore, we have capitalized $45,490 (net of accumulated amortization) and $34,484 as contract costs as of September 30, 2018 and January 1, 2018, respectively, included within deferred customer acquisitions costs, current and deferred customer acquisition costs on our condensed consolidated balance sheet. In addition, we established a deferred tax liability associated with the transition asset of $9,636 . Capitalized commission fees are amortized to sales and marketing expense over estimated customer life, which is six years for Business customers. During the three and nine months ended September 30, 2018 , the amounts amortized to sales and marketing were $2,579 and $7,002 , respectively, and there were no impairment losses recognized in relation to the costs capitalized. In addition, the Company expenses sales commissions for commission plans related to customer arrangements deemed less than a year and for residuals and renewals.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table sets forth the computation for basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator Net income $ 9,588 $ 10,602 $ 42,671 $ 21,340 Denominator Basic weighted average common shares outstanding 239,303 227,943 236,775 223,956 Dilutive effect of stock options and restricted stock units 10,213 14,777 12,005 18,596 Diluted weighted average common shares outstanding 249,516 242,720 248,780 242,552 Basic earnings per share Basic earnings per share $ 0.04 $ 0.05 $ 0.18 $ 0.10 Diluted earnings per share Diluted earnings per share $ 0.04 $ 0.04 $ 0.17 $ 0.09 For the three and nine months ended September 30, 2018 and 2017 , the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Restricted stock units 3,368 4,938 2,200 2,458 Stock options 1,637 5,362 1,013 4,023 5,005 10,300 3,213 6,481

Long-Term Note and Revolving Cr

Long-Term Note and Revolving Credit Facility	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Long-Term Note and Revolving Credit Facility	Long-Term Note and Revolving Credit Facility This footnote should be read in conjunction with the complete description of our financing arrangements under Note 7, Long-Term Debt and Revolving Credit Facility to our Annual Report on Form 10-K for the year ended December 31, 2017 . A schedule of long-term note and revolving credit facility at September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, 2.00-2.75 Term note - due 2023, net of debt related costs $ 86,672 $ — 2.00-2.75 Revolving credit facility - due 2023 114,000 — 2.50-3.25% Term note - due 2020, net of debt related costs — 72,765 2.50-3.25% Revolving credit facility - due 2020 — 141,000 Total Long-term note and revolving credit facility $ 200,672 $ 213,765 2018 Term Note and Revolving Credit Facility On July 31, 2018, the Company replaced its 2016 Credit Facility previously consisting of a $125 million term loan and a $325 million revolving credit facility with the 2018 Credit Facility consisting of a $100 million senior secured term loan and a $500 million revolving credit facility. The co-borrowers under the 2018 Credit Facility are the Company and Vonage America Inc., the Company’s wholly owned subsidiary. Obligations under the 2018 Credit Facility are guaranteed, fully and unconditionally, by the Company’s other United States subsidiaries and are secured by substantially all of the assets of each borrower and each guarantor. The company used $232,000 of the proceeds available under our 2018 Credit Facility plus cash on hand to retire all of the debt outstanding under our 2016 Credit Facility and to cover transaction fees and expenses. Total transaction fees and expense incurred were $3,376 , of which $474 was allocated to the term note and $2,813 was allocated to the revolving credit facility which will be amortized over the term of 2018 Credit Facility. The remaining $89 of transaction fees were expensed during the three months ended September 30, 2018. The Company recognized a loss on extinguishment of debt of $14 which primarily consisted of the write off of previously deferred financing costs offset by the realization of a portion of gains associated with the interest rate swaps included in accumulated other comprehensive income. Remaining proceeds available from the undrawn revolving credit facility under our 2018 Credit Facility will be used for general corporate purposes and to fund potential additional acquisitions. 2018 Credit Facility Terms The following description summarizes the material terms of the 2018 Credit Facility: The loans under the 2018 Credit Facility mature on July 31, 2023. Principal amounts under the 2018 Credit Facility are repayable in quarterly installments of $2.5 million for the term loan. The unused portion of the Company's revolving credit facility incurs a 0.30% per annum commitment fee. Outstanding amounts under the 2018 Credit Facility, at the Company's option, will bear interest at: • LIBOR (applicable to one-, two-, three-, six-, or twelve-month periods) plus an applicable margin equal to 2.00% up to 2.75% per annum payable on the last day of each relevant interest period or, if the interest period is longer than three months, each day that is three months after the first day of the interest period, or • the base rate determined by reference to the highest of (a) the rate of interest last quoted by the Wall Street Journal as the “Prime Rate” in the U.S., (b) the federal funds effective rate from time to time plus 0.50% , and (c) the adjusted LIBO rate applicable to one month interest periods plus 1.00% , plus an applicable margin equal to 1.00% up to 1.75% per annum payable on the last business day of each March, June, September, and December and the maturity date of the 2018 Credit Facility. During the nine months ended September 30, 2018 , we made mandatory repayments of $2.5 million under the 2018 term note and made discretionary repayments of $18 million under the 2018 revolving credit facility. In addition, the effective interest rate was 4.50% as of September 30, 2018 . 2016 Term Note and Revolving Credit Facility On June 3, 2016, the company entered into Amendment No. 1 to the Amended and Restated Credit Agreement (the “2016 Credit Facility”) consisting of a $125.0 million term note and a $325.0 million revolving credit facility. During the nine months ended September 30, 2018 , we made mandatory repayments of $9.4 million under the term note and made discretionary repayments of $35.0 million under the revolving credit facility and borrowed $40.0 million under the revolving credit facility, of which $32.9 million was used in connection with the acquisition of TokBox on August 1, 2018. Interest Rate Swaps On July 14, 2017, we executed on three interest rate swap agreements in order to hedge the variability of expected future cash interest payments related to the 2016 Credit Facility. The swaps have an aggregate notional amount of $150 million and became effective on July 31, 2017 and will expire on June 3, 2020 concurrent with the term of the 2016 Credit Facility. Under the swaps our interest rate is fixed at 4.7% . The interest rate swaps are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging . In connection with the $14 debt extinguishment, the Company reclassified $271 from accumulated other comprehensive income to earnings. The remaining $2,654 gain accumulated in other comprehensive income will be amortized over the term of the 2018 Credit Facility. The cash flows on the 2018 Credit Facility have been designated and qualify as a cash flow hedge of forecasted interest coupon payments. As of September 30, 2018 , the fair market value of the swaps was $2,805 , which is included in other assets on our condensed consolidated balance sheet. The following table summarizes the effects of ASC 815 on the Company's accumulated OCI balance attributable to cash flow derivatives: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Accumulated OCI beginning balance $ 1,973 $ — $ 965 $ — Reclassified from accumulated OCI to income: Due to reclassification of previously deferred gain (336 ) — (336 ) — Change in fair value of cash flow hedge accounting contracts, net of tax 866 197 1,874 197 Accumulated OCI ending balance, net of tax benefit of $34 and $0, respectively $ 2,503 $ 197 $ 2,503 $ 197 Gains expected to be reclassified from accumulated OCI during the next 12 months $ 531 $ — $ 531 $ —

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Common Stock	Common Stock As of September 30, 2018 and December 31, 2017 , the Company had 596,950 shares of common stock authorized and had 8,386 shares available for grants under our share-based compensation programs as of September 30, 2018 . For a detailed description of our share-based compensation programs refer to Note 10, Employee Stock Benefit Plans in our Annual Report on Form 10-K for the year ended December 31, 2017 . Common Stock Repurchases On December 9, 2014, Vonage's Board of Directors authorized a program for the Company to repurchase up to $100.0 million of its outstanding common stock (the "2014 $100.0 million repurchase program"). Repurchases under the 2014 $100.0 million repurchase program are expected to be made over a four -year period ending on December 31, 2018. We repurchased the following shares of common stock with cash resources under the 2014 $100.0 million repurchase program during the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 Shares of common stock repurchased — 1,599 Value of common stock repurchased $ — $ 9,510 There were no repurchases for the three and nine months ended September 30, 2018 and the three months ended September 30, 2017 . As of September 30, 2018 , $42,533 remained of our 2014 $100.0 million repurchase program. The repurchase program expires on December 31, 2018 but may be suspended or discontinued at any time without notice. In any period under the 2014 $100.0 million repurchase program, cash used in financing activities related to common stock repurchases may differ from the comparable change in stockholders' equity, reflecting timing differences between the recognition of share repurchase transactions and their settlement for cash.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, in addition to those identified below, we are subject to legal proceedings, claims, investigations, and proceedings in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. From time to time, we receive letters or other communications from third parties inviting us to obtain patent licenses that might be relevant to our business or alleging that our services infringe upon third party patents or other intellectual property. In accordance with generally accepted accounting principles, we make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss or range of loss can be reasonably estimated. These provisions, if any, are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. We believe that we have valid defenses with respect to the legal matters pending against us and are vigorously defending these matters. Given the uncertainty surrounding litigation and our inability to assess the likelihood of a favorable or unfavorable outcome in the matters noted below and our inability to reasonably estimate the amount of loss or range of loss, it is possible that the resolution of one or more of these matters could have a material adverse effect on our condensed consolidated financial position, cash flows or results of operations. Litigation IP Matters RPost Holdings, Inc. On August 24, 2012, RPost Holdings, Inc., RPost Communications Limited, and RMail Limited (collectively, “RPost”) filed a lawsuit against StrongMail Systems, Inc. (“StrongMail”) in the United States District Court for the Eastern District of Texas alleging that StrongMail’s products and services, including its electronic mail marketing services, are covered by United States Patent Nos. 8,224,913, 8,209,389, 8,161,104, 7,966,372, and 6,182,219. On February 11, 2013, RPost filed an amended complaint, adding 27 new defendants, including Vonage America Inc. RPost’s amended complaint alleges willful infringement of the RPost patents by Vonage and each of the other new defendants because they are customers of StrongMail. StrongMail has agreed to fully defend and indemnify Vonage in this lawsuit. Vonage answered the complaint on May 7, 2013. On September 17, 2015, the Court ordered the consolidation for pre-trial purposes of this case with other cases by RPost. The lead case has been administratively closed and stayed since January 30, 2014 due to multiple pending actions by third parties regarding ownership of the patents at issue. In a parallel Arizona district court litigation involving RPost, certain of the asserted patent claims were invalidated on June 7, 2016, which decision was affirmed by the Federal Circuit, with the Supreme Court denying certiorari on December 11, 2017. On September 5, 2018, the parties in the consolidated actions filed a joint notice regarding status of the co-pending actions. Plaintiffs requested that the stay be lifted, while defendants maintain that the stay should remain in place. Commercial Litigation Merkin & Smith, et al . On September 27, 2013, Arthur Merkin and James Smith filed a putative class action lawsuit against Vonage America, Inc. in the Superior Court of the State of California, County of Los Angeles, alleging that Vonage violated California’s Unfair Competition Law by charging its customers fictitious 911 taxes and fees. On October 30, 2013, Vonage filed a notice removing the case to the United States District Court for the Central District of California. On November 26, 2013, Vonage filed its Answer to the Complaint. On December 4, 2013, Vonage filed a Motion to Compel Arbitration, which the Court denied on February 4, 2014. On March 5, 2014, Vonage appealed that decision to the United States Court of Appeals for the Ninth Circuit. On March 26, 2014, the district court proceedings were stayed pending the appeal. On February 29, 2016, the Ninth Circuit reversed the district court’s ruling and remanded with instructions to grant the motion to compel arbitration. On March 22, 2016, Merkin and Smith filed a petition for rehearing. On May 4, 2016, the Ninth Circuit withdrew its February 29, 2016 decision and issued a new order reversing the district court’s order and remanded with instructions to compel arbitration. The Ninth Circuit also declared as moot the petition for rehearing. On June 27, 2016, the lower court stayed the case pending arbitration. A joint status report was filed with the District Court on December 23, 2016. A second joint status report was filed with the District Court on March 23, 2017. A third joint status report was filed with the District Court on June 27, 2017. A fourth joint status report was filed with the District Court on September 26, 2017. A fifth joint status report was filed with the District Court on December 26, 2017. Counsel for Vonage spoke with counsel for plaintiffs in mid-February 2018, seeking voluntary dismissal. Plaintiff's counsel advised they intended to seek public injunctive relief. The parties are reviewing their respective positions. The parties continue to file quarterly joint status reports pending plaintiffs decision on next steps. Regulation Telephony services are subject to a broad spectrum of state, federal and foreign regulations. Because of the uncertainty over whether Voice over Internet Protocol (“VoIP”) should be treated as a telecommunications or information service, we have been involved in a substantial amount of state and federal regulatory activity. Implementation and interpretation of the existing laws and regulations is ongoing and is subject to litigation by various federal and state agencies and courts. Due to the uncertainty over the regulatory classification of VoIP service, there can be no assurance that we will not be subject to new regulations or existing regulations under new interpretations, and that such change would not introduce material additional costs to our business. Federal - Net Neutrality Clear and enforceable net neutrality rules make it more difficult for broadband Internet service providers to block or discriminate against Vonage service. In addition, explicitly applying net neutrality rules to wireless broadband Internet service providers could create greater opportunities for VoIP applications that run on wireless broadband Internet service. In December 2010, the Federal Communications Commission, or FCC, adopted net neutrality rules that applied strong net neutrality rules to wired broadband Internet service providers and limited rules to wireless broadband Internet service providers. On January 14, 2014, the D.C. Circuit Court of Appeals vacated a significant portion of the 2010 rules. On May 15, 2014, the FCC issued a Notice of Proposed Rulemaking, or NPRM, proposing new net neutrality rules. After public response to the NPRM, the FCC adopted new neutrality rules on February 26, 2015. These rules prohibit broadband Internet service providers from: (1) blocking or throttling lawful content applications, or services; (2) imposing paid prioritization arrangements; and (3) unreasonably interfering or unreasonably disadvantaging consumers or edge providers. In addition, broadband Internet service providers are required to make certain disclosures regarding their network management practices, network performance, and commercial terms. These net neutrality rules apply the same requirements to wired and wireless broadband Internet service providers. In December 2017, the FCC issued a decision reversing its prior position on net neutrality. The decision allows for paid prioritization. Numerous public interest groups and some companies are currently or expected to challenge the order in court. It is also anticipated that Congress may introduce legislation to overrule the FCC's decision and reinstate net neutrality. Nonetheless, on June 4, 2018, the old Net Neutrality rules were repealed. Various states are enacting their own laws to require net neutrality within their state. Federal - Rural Call Completion Issues On February 7, 2013, the FCC released a NPRM on rural call completion issues. The NPRM proposed new detailed reporting requirements to gauge rural call completion performance. Rural carriers have argued that VoIP provider call completion performance to rural areas is generally poor. On October 28, 2013, the FCC adopted an order on rural call completion imposing new reporting obligations and restricting certain call signaling practices. The call signaling rules went into effect on January 31, 2014. We filed for extensions of the rules, which the FCC granted, and as of April 17, 2014, we were compliant with the FCC call signaling rules. The effective date for the reporting requirements was April 1, 2015. We could be subject to an FCC enforcement action in the future in the event the FCC took the position that our rural call completion performance is inadequate or we were not compliant with the FCC’s order. On June 22, 2017, the FCC issued a Second Further Notice of Proposed Rulemaking. The FCC has proposed changes to the FCC's rules that allegedly would more effectively address rural call completion problems while reducing burdens on covered providers. Vonage reviewed and evaluated the FCC's proposed changes and provided input to The Voice on the Net, or VON, Coalition, an organization that works to advance regulatory policies for IP-enabled communications. Comments to the Rural Call Completion Second Report and Order and Third Further Notice of Proposed Rulemaking were adopted by the FCC on April 17, 2018. Comments were due on June 4, 2018 and replies were due on June 19, 2018. On April 24, the FCC Wireline Competition Bureau granted a waiver of the rural call completion reporting requirements, including a temporary waiver with respect to the report on May 1, 2018. On August 15, 2018 the FCC established a registry for intermediate providers to register before offering to transmit voice calls. The intermediate providers have to register within 30 days from publication in the Federal Register. Vonage can use contractual restrictions to flow down requirements for the call paths. On August 1, 2018, the NTCA filed a petition for reconsideration, which the VON Coalition opposed. Federal - NPRM - Number Slamming On July 13, 2017, the FCC adopted a NPRM regarding ways to protect consumers from number "slamming" and "cramming" without impeding competition or impairing the ability of consumers to switch providers. Vonage is monitoring this NPRM. On June 7, 2018, the FCC adopted new consumer protections against slamming and cramming. The amended rules reinforce the FCC's ability to take action against slammers and crammers and to deter carriers from slamming and cramming. Specifically, the FCC codified a ban on material misrepresentations on sales calls and unauthorized charges on telephone bills, and improved the effectiveness of the existing third-party verification process. At the same time, the FCC declined to adopt additional measures that may unduly hinder consumers' ability to switch providers. Federal - NPRM Toll Free Assignment Modernization On September 26, 2017, the FCC issued a NPRM regarding the modernization of toll free number assignment. The FCC proposes amending its rules to allow for the use of an auction to assign certain toll free numbers - such as vanity and repeater numbers - in order to better promote the equitable and efficient use of numbers (especially as afforded by the opening of the 833 toll free code). The FCC issued a Report and Order on September 27, 2018 providing for (a) a public auction for rights to use numbers in the new 833 toll free code, (b) an experiment on using competitive bidding to most effectively determine how to effectively assign toll free numbers, (c) assigning SOMOS as the Administrator/Auctioneer for the 833 code, (d) finding use of competitive bidding orderly and efficient (as opposed to prior FIFO approach), (e) eliminating requirement that only responsible organizations can participate, and (f) use of a Vickery single round auction, whereby the winner only has to pay the second highest bid. Vonage continues to monitor activity with respect to this NPRM. Federal - NOI - Enterprise Communications Systems Access to 911/Kari’s Law/Ray Baum’s Law On September 26, 2017, the FCC adopted a Notice of Inquiry, or NOI, with respect to 911 access, routing and location in Enterprise Communication Systems. Vonage continues to monitor activity related to this NOI. On September 26, 2018 the FCC issued a Notice of Proposed Rulemaking to address issues around 911 Emergency Calling. Kari’s Law will require multi-line telephone systems to allow users to dial 911 directly without a “9” or other prefix, and configure multi-line telephone systems to provide a notification that (a) a 911 call has been placed, (b) a valid call back number has been provided, and (c) identifies the callers’ location. Ray Baum’s law requires the FCC to consider adopting rules that require a dispatchable location. The NPRM requests interested parties to comment on the technical feasibility and other issues related to these two laws. Federal - Access to Telecommunication Equipment and Services by Persons with Disabilities At its open meeting on for October 24, 2017, the FCC applied its wireline hearing aid compatibility rules/standards to handsets that provide advanced communication services, which includes interconnected and non-interconnected VoIP. The rules include certain coupling and volume control requirements that would allow the handsets to work better for persons with hearing aids. There are also testing and certification requirements, which typically apply to the handset manufacturer. The FCC also adopted a requirement for volume control in wireless handsets. The new rules have a two-year phase in for new phones and do not require the modification to existing handsets. On April 5, 2018 the FCC’s Consumer and Governmental Affairs Bureau issued a public notice seeking comment on the accessibility of communications technologies for the 2018 Biennial Report required by the Twenty First Century Communications and Video Accessibility Act. The report must be filed with Congress on or before October 8, 2018. The Bureau sought comments by April 26, 2018. On August 5. 2018, the FCC invited comments (a) on level of accessibility and usability of covered products and services, (b) barriers to accessibility, and (c) impact of record keeping requirements and enforcement measures have had on development and deployment of new technologies. On August 9, 2018, the FCC issued a notice seeking public comments, which were due August 23, 2018. Vonage will continue to monitor activity. Federal - Rules and Policies Regarding Caller ID Services At its open meeting on October 24, 2017, the FCC issued a report and order regarding amendments to the FCC's rules to exempt threatening calls from current Caller ID blocking roles so that, among other changes, law enforcement and security personnel have timely access to information they need to aid their investigations. The order exempts threatening calls from the CPN privacy rules. Federal - Number Portability NPRM and NOI At its open meeting on October 24, 2017, the FCC released a NPRM that would allow carriers flexibility in conducting number portability database queries to promote nationwide number portability and eliminate the dialing party requirement as it applies to interexchange service. The NOI seeks comments on industry number portability models and how number administration might be improved for more efficient technical, operational, administrative and legal processes. In early July 2018 the FCC adopted a report and order that made technical rule changes to lay the groundwork for nationwide number portability. The Report and Order expands existing forbearance from dialing parity requirements beyond incumbent LECS such that the forbearance is widely applicable. It further revises the N-1 call routing requirements by allowing upstream carriers to query the number portability database rather than only permitting the N-1, or second to last carrier, to do so. This may positively impact Vonage when it goes into effect in September 2019, as it essentially changes N-1 rule to be a default in the absence of other agreements. Vonage is working with the VON Coalition and is monitoring this NPRM and NOI. Federal - Second Further Notice of Proposed Rulemaking - Unwanted calls to reassigned telephone numbers On March 23, 2018, the FCC issued its Second NPRM seeking comments on ways to address unwanted calls to reassigned telephone numbers. The FCC is seeking comment on, among other issues, (1) the specific information that callers need from a reassigned numbers database, and (2) the best way to make that information available to callers that want it. The rules are intended to benefit consumers by reducing unwanted calls intended for another consumer while helping callers avoid the costs of calling the wrong consumer, including potential violations of the TCPA. Vonage will continue to monitor this rulemaking through the VON Coalition. State Telecommunications Regulation In general, the focus of interconnected VoIP telecommunications regulation is at the federal level. On November 12, 2004, the FCC issued a declaratory ruling providing that our service is subject to federal regulation and preempted the Minnesota Public Utilities Commission, or MPUC, from imposing certain of its regulations on us. The FCC's decision was based on its conclusion that our service is interstate in nature and cannot be separated into interstate and intrastate components. On March 21, 2007, the United States Court of Appeals for the 8th Circuit affirmed the FCC's declaratory ruling preempting state regulation of our service. While this ruling does not exempt us from all state oversight of our service, it effectively prevents state telecommunications regulators from imposing certain burdensome and inconsistent market entry requirements and certain other state utility rules and regulations on our service. State regulators continue to probe the limits of federal preemption in their attempts to apply state telecommunications regulation to interconnected VoIP service. On July 16, 2009, the Nebraska Public Service Commission and the Kansas Corporation Commission filed a petition with the FCC seeking a declaratory ruling or, alternatively, adoption of a rule declaring that state authorities may apply universal service funding requirements to nomadic VoIP providers. We participated in the FCC proceedings on the petition. On November 5, 2010, the FCC issued a declaratory ruling that allowed states to assess state USF on nomadic VoIP providers on a going forward basis provided that the states comply with certain conditions to ensure that imposing state USF does not conflict with federal law or policy. On July 28, 2015, the MPUC found that it has authority to regulate Charter’s fixed, interconnected VoIP service. Charter challenged the MPUC’s order at the U.S. District Court for Minnesota. This challenge is currently pending. In September 2017 amicus briefs were filed in support of the Minnesota PUC's appeal of the Charter decision by AARP, the AARP Foundation, Professor Barbara Cherry, the National Association of Regulatory Utility Commissioners and the national Association of State Consumer Advocates and the Mid-Minnesota Legal Aid. In September 2018, an appeal was filed from the US District Court- Minneapolis’ decision that VoIP is an “Information Service “ under the Telecommunications Act and that therefore state regulation of Charter’s VoIP services was preempted by federal law. NARUC and others have argued that the decision (a) undermines the Federal USF subsidy program which can be accessed only by providers of “telecom services”, which a 2014 10th circuit decision equates with interconnected VoIP service, (b) classified “information services” in a way that directly undermines the local telephone competition that was the central thrust of the 1996 Telecommunication Act by treating carriers competing to provide local telephone service differently, and (c) the information services classification is illogical and inconsistent with the plain text of the statute. Vonage will continue to monitor this action. On August 14, 2017, the Arizona Corporation Commission issued an opinion and order with respect to amendments to the Arizona Universal Services Fund. The rulemaking allows for, among other things, the collection of additional USF surcharges in Arizona to fund the E-rate Broadband Special Construction Project Matching Fund Program. The Arizona Corporation Commission held hearings on September 12 and 13, 2017. Vonage will continue to monitor this rulemaking to determine its effect upon its business activities within Arizona. We expect that state public utility commissions and state legislators will continue their attempts to apply state telecommunications regulations to nomadic VoIP service. State and Municipal Taxes In accordance with generally accepted accounting principles, we make a provision for a liability for taxes when it is both probable that a liability has been incurred and the amount of the liability or range of liability can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. For a period of time, we did not collect or remit state or municipal taxes (such as sales, excise, utility, use, and ad valorem taxes), fees or surcharges (“Taxes”) on the charges to our customers for our services, except that we historically complied with the New Jersey sales tax. We have received inquiries or demands from a number of state and municipal taxing and 911 agencies seeking payment of Taxes that are applied to or collected from customers of providers of traditional public switched telephone network services. Although we have consistently maintained that these Taxes do not apply to our service for a variety of reasons depending on the statute or rule that establishes such obligations, we are now collecting and remitting sales taxes in certain of those states including a number of states that have changed their statutes to expressly include VoIP. In addition, many states address how VoIP providers should contribute to support public safety agencies, and in those states we remit fees to the appropriate state agencies. We could also be contacted by state or municipal taxing and 911 agencies regarding Taxes that do explicitly apply to VoIP and these agencies could seek retroactive payment of Taxes. As such, we have established reserves of $1,868 and $1,147 as of September 30, 2018 and December 31, 2017 , respectively, as our best estimate of the potential tax exposure for any retroactive assessment. UK OFCOM Investigation On April 3, 2018, the UK Office of Communications ("OFCOM") launched an investigation to determine Vonage Limited’s compliance with General Condition 3.1 and Section 105A of the Communications Act 2003, which cover obligations of communication providers to take necessary measures to, among other things, maintain network availability and access to emergency services. In cases where violations are found, OFCOM has the authority to issue monetary penalties in accordance with its Guidelines and limitations imposed by statute. In April 2018, Vonage submitted its responses to OFCOM’s first request for information, and in May 2018, Vonage submitted its responses to OFCOM’s second request for information. On October 18, 2018, representatives from Vonage met with OFCOM for the purpose of receiving an update from the OFCOM case team on the status of the case. Vonage was informed that the fact-gathering phase was coming to a close, and that a final information request would be forthcoming. Subsequently, on October 19, 2018, that request was received from OFCOM, and Vonage submitted its response shortly thereafter. OFCOM is reviewing the submitted information.

Acquisitions and Dispositions -

Acquisitions and Dispositions - Acquisition of Business	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Acquisitions and Dispositions	Acquisitions and Dispositions Acquisition of TokBox On August 1, 2018, the Company announced that it had acquired 100% of the issued and outstanding shares of Telefonica Digital, Inc. (“TDI”), a subsidiary of Telefonica, S.A., and TDI’s subsidiaries, TokBox, Inc. (“TokBox”) and TokBox Australia Pty Limited, for a purchase price of $32,906 paid in cash. San Francisco-based TokBox develops and operates the OpenTok Platform and is the industry leader in the WebRTC programmable video segment of the cloud communications market which will compliment the Company's existing portfolio of programmable communications. The acquisition was recorded as a business combination under ASC 805, with identifiable assets acquired and liabilities assumed provisionally recorded at their estimated fair value on the acquisition date. The initial accounting for the business combination is not complete because the evaluation necessary to assess the fair value of certain net assets acquired is still in process. The provisional amounts are subject to revision until the evaluations are completed to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date. The allocation of the purchase price may be modified up to one year from the date of the acquisition as more information is obtained about the fair value of assets acquired and liabilities assumed. The purchase price of $32,906 was provisionally allocated as follows: August 1, 2018 Assets Cash and cash equivalents $ 557 Current assets 2,205 Property, plant and equipment 124 Goodwill 20,499 Intangible assets 15,602 Restricted cash 50 Total assets acquired 39,037 Liabilities Accounts payable 371 Accrued expenses 5,760 Total liabilities assumed 6,131 Net assets acquired $ 32,906 The Company recorded goodwill of $20,499 which is attributable to the Business segment and is deductible for tax purposes. The factors that resulted in goodwill arising from the acquisition include the revenues expected to be achieved by incorporating a video feature in the Company's API platform along with a skilled workforce proficient in API development. The Company also recorded intangible assets of $15,602 comprised of customer relationships of $5,020 and developed technology of $10,582 with weighted average remaining amortization period of 7 years and 5 years, respectively. In addition, the Company incurred and expensed acquisition related transaction costs included in general and administrative expense related to the acquisition of TokBox of $4,672 and $4,954 for the three and nine months ended September 30, 2018. Supplemental Pro Forma Information Since the acquisition date, TokBox contributed $1,626 in revenue and $3,620 in net losses. The following supplemental pro forma information represents the results of operations as if Vonage had acquired TokBox on January 1, 2017. Nine Months Ended September 30, 2018 2017 Revenue $ 780,846 $ 758,245 Net income 27,601 5,524 Net income per share - basic $ 0.12 $ 0.02 Net income per share - diluted $ 0.11 $ 0.02 The pro forma information has been adjusted to include the pro-forma impact of amortization of intangible assets based on the preliminary purchase price allocations. The pro forma data has also been adjusted to eliminate non-recurring transaction costs as well as the related tax impact of pro forma adjustments. There were no transactions between Vonage and TokBox. The pro forma results are presented for illustrative purposes only and do not reflect the realization of potential cost savings or any related integration costs. Goodwill The following table provides a summary of the changes in the carrying amounts of goodwill which is attributable to our business segment: Balance at December 31, 2017 $ 373,764 Increase in goodwill related to acquisition of TokBox 20,499 Foreign currency translation adjustment (4,773 ) Balance at September 30, 2018 $ 389,490 Sale of Hosted Infrastructure Product Line On May 31, 2017, we completed the sale of our Hosted Infrastructure product line for up to $4.0 million consideration comprised of $1.0 million received upon closing, an additional $0.5 million of contingent consideration received during the third quarter of 2017 and the potential for up to $2.5 million further consideration based on the achievement of financial objectives for net sales during the 18 months following closing. The results of our Hosted Infrastructure product line have historically been included within the Business segment. As a result of the sale, we recorded a gain $1,377 for the nine months ended September 30, 2017, within other income. This disposal did not represent a strategic shift in operations and, therefore, did not qualify for presentation as discontinued operations.

Industry Segment and Geographic

Industry Segment and Geographic Information	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Industry Segment and Geographic Information	Industry Segment and Geographic Information ASC 280 "Segment Reporting" establishes reporting standards for an enterprise's business segments and related disclosures about its products, services, geographic areas and major customers. Under ASC 280, the method for determining what information to report is based upon the way management organizes the operating segments within the Company for making operating decisions and assessing financial performance. Our chief operating decision-maker reviews revenue and gross margin information for each of our reportable segments, but does not review operating expenses on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments. Business For our Business customers, we provide innovative, cloud-based UCaaS solutions, comprised of integrated voice, text, video, data, collaboration, and mobile applications over our flexible, scalable SIP based VoIP network. Through Nexmo, the Vonage API Platform, we also offer CPaaS solutions designed to enhance the way businesses communicate with their customers embedding communications into apps, websites and business processes. Together we have a robust set of product families tailored to serve the full range of the business value chain, from the SMB, market, through mid-market and enterprise markets. We provide customers with multiple deployment options, designed to provide the reliability and quality of service they demand. We provide customers the ability to integrate our cloud communications platform with many cloud-based productivity and CRM solutions, including Google’s G Suite, Zendesk, Salesforce’s Sales Cloud, Oracle, Clio, and other CRM solutions. In combination, our products and services permit our business customers to communicate with their customers and employees through any cloud-connected device, in any place, at any time without the often costly investment required with on-site equipment. Consumer For our Consumer customers, we enable users to access and utilize our UCaaS services and features, via a single “identity,” either a number or user name, regardless of how they are connected to the Internet, including over 3G/4G, LTE, Cable, or DSL broadband networks. This technology enables us to offer our Consumer customers attractively priced voice and messaging services and other features around the world on a variety of devices. For our segments we categorize revenues as follows: Services revenues . Services revenues consists primarily of revenue attributable to our communication services for Consumer and Software Defined Wide Area Network, or SD-WAN, UCaaS and CPaaS services for Business, Access and product revenues. Product revenues include equipment sold to customers, shipping and handling, professional services, and broadband access. Beginning January 1, 2018, we also included revenues associated with providing access services to Business customers. We have adjusted the three and nine months ended September 30, 2017 to include these revenues in access and product revenues which were previously included in service revenues. USF revenues. USF revenues represent fees passed on to customers to offset required contributions to the USF. For our segments we categorize cost of revenues as follows: Services cost of revenues. Services cost of revenues consists of costs associated with network operations and technical support personnel, communication origination, and termination services provided by third party carriers and excludes depreciation and amortization. Access and product cost of revenues . Product cost of revenues includes equipment sold to customers, shipping and handling, professional services, cost of certain products including equipment or services that we give customers as promotions, and broadband access. As noted above, beginning January 1, 2018, we also included costs associated with providing access services to Business customers. We have adjusted the three and nine months ended September 30, 2017 to include these costs in access and product revenues which were previously included in service cost of revenues. USF cost of revenues. USF cost of revenues represents contributions to the Federal USF and related fees. Information about our segment results for the three and nine months ended September 30, 2018 were as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Business Consumer Total Business Consumer Total Revenues Service revenues $ 133,709 $ 97,093 $ 230,802 $ 377,703 $ 301,954 $ 679,657 Access and product revenues (1) 12,427 92 12,519 37,674 472 38,146 Service, access and product revenues 146,136 97,185 243,321 415,377 302,426 717,803 USF revenues 7,499 10,711 18,210 22,768 34,408 57,176 Total revenues 153,635 107,896 261,531 438,145 336,834 774,979 Cost of revenues Service cost of revenues (2) 59,600 10,661 70,261 172,917 37,050 209,967 Access and product cost of revenues (1) 14,887 993 15,880 43,291 4,657 47,948 Service, access and product cost of revenues 74,487 11,654 86,141 216,208 41,707 257,915 USF cost of revenues 7,499 10,711 18,210 22,773 34,434 57,207 Total cost of revenues 81,986 22,365 104,351 238,981 76,141 315,122 Segment gross margin Service margin 74,109 86,432 160,541 204,786 264,904 469,690 Access and product margin (2,460 ) (901 ) (3,361 ) (5,617 ) (4,185 ) (9,802 ) Gross margin ex-USF (Service, access and product margin) 71,649 85,531 157,180 199,169 260,719 459,888 USF margin — — — (5 ) (26 ) (31 ) Segment gross margin $ 71,649 $ 85,531 $ 157,180 $ 199,164 $ 260,693 $ 459,857 Segment gross margin % Service margin % 55.4 % 89.0 % 69.6 % 54.2 % 87.7 % 69.1 % Gross margin ex-USF (Service, access and product margin %) 49.0 % 88.0 % 64.6 % 47.9 % 86.2 % 64.1 % Segment gross margin % 46.6 % 79.3 % 60.1 % 45.5 % 77.4 % 59.3 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $5,141 and $1,245 for the three months ended September 30, 2018 and $15,092 and $3,954 for the nine months ended September 30, 2018 , respectively. Information about our segment results for the three and nine months ended September 30, 2017 were as follows: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Business Consumer Total Business Consumer Total Revenues Service revenues $ 108,819 $ 111,913 $ 220,732 $ 303,814 $ 346,666 $ 650,480 Access and product revenues (1) 13,749 94 13,843 41,622 498 42,120 Service, access and product revenues 122,568 112,007 234,575 345,436 347,164 692,600 USF revenues 6,738 11,770 18,508 19,386 36,280 55,666 Total revenues 129,306 123,777 253,083 364,822 383,444 748,266 Cost of revenues Service cost of revenues (2) 49,078 19,434 68,512 134,041 62,969 197,010 Access and product cost of revenues (1) 14,401 1,517 15,918 43,537 5,475 49,012 Service, access and product cost of revenues 63,479 20,951 84,430 177,578 68,444 246,022 USF cost of revenues 6,738 11,770 18,508 19,386 36,280 55,666 Total cost of revenues 70,217 32,721 102,938 196,964 104,724 301,688 Segment gross margin Service margin 59,741 92,479 152,220 169,773 283,697 453,470 Access and product margin (652 ) (1,423 ) (2,075 ) (1,915 ) (4,977 ) (6,892 ) Gross margin ex-USF (Service, access and product margin) 59,089 91,056 150,145 167,858 278,720 446,578 USF margin — — — — — — Segment gross margin $ 59,089 $ 91,056 $ 150,145 $ 167,858 $ 278,720 $ 446,578 Segment gross margin % Service margin % 54.9 % 82.6 % 69.0 % 55.9 % 81.8 % 69.7 % Gross margin ex-USF (Service, access and product margin %) 48.2 % 81.3 % 64.0 % 48.6 % 80.3 % 64.5 % Segment gross margin % 45.7 % 73.6 % 59.3 % 46.0 % 72.7 % 59.7 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $5,053 and $1,799 for the three months ended September 30, 2017 and $14,931 and $5,566 for the nine months ended September 30, 2017 , respectively. A reconciliation of the total of the reportable segments' gross margin to consolidated income before income taxes is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Total reportable gross margin $ 157,180 $ 150,145 $ 459,857 $ 446,578 Sales and marketing 74,380 73,576 229,201 235,245 Engineering and development 14,309 6,956 35,504 21,996 General and administrative 37,620 26,811 97,376 98,411 Depreciation and amortization 16,024 18,179 51,886 54,520 Income from operations 14,847 24,623 45,890 36,406 Interest expense (3,036 ) (3,821 ) (9,294 ) (11,385 ) Other income (expense), net 347 468 431 943 Income before income taxes $ 12,158 $ 21,270 $ 37,027 $ 25,964 Information about our operations by geographic location is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues: United States $ 206,507 $ 212,346 $ 620,618 $ 639,852 Canada 6,700 6,877 20,568 23,324 United Kingdom 9,559 7,175 29,818 19,446 Other Countries (1) 38,765 26,685 103,975 65,644 $ 261,531 $ 253,083 $ 774,979 $ 748,266 (1) No individual other international country represented greater than 10% of total revenue during the periods presented. September 30, 2018 December 31, 2017 Long-lived assets: United States $ 607,618 $ 615,432 United Kingdom 265 365 Israel 1,128 243 $ 609,011 $ 616,040

Incomes Taxes

Incomes Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax (expense) benefit consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Income before income taxes $ 12,158 $ 21,270 $ 37,027 $ 25,964 Income tax (expense) benefit (2,570 ) (10,668 ) 5,644 (4,624 ) Effective tax rate 21.1 % 50.2 % (15.2 )% 17.8 % We recognize income tax equal to pre-tax income multiplied by our annual effective income tax rate. In addition, adjustments are recorded for discrete period items and changes to our state effective tax rate which can cause the rate to fluctuate from quarter to quarter. For the three and nine months ended September 30, 2018 , our effective tax rate was different than the statutory rate due to a forecasted permanent adjustment of $5,312 as a result of the officer compensation limitation under IRC §162(m) and $5,597 for both periods related to the new Global Intangible Low-Taxed Income ("GILTI") tax rules that were enacted as part of tax reform in December 2017. In addition, the Company recorded a discrete period tax benefit of $1,912 and $19,228 , respectively, which were recognized related to excess tax benefits on equity compensation for the three and nine months ended September 30, 2018 . For the three and nine months ended September 30, 2017 , our effective tax rate was different than the statutory rate due to a discrete period tax benefits of $9,539 and $1,433 , respectively which were recognized related to excess tax benefits on equity compensation recognized primarily in the first quarter of 2017 as well as an adjustment to our deferred asset related to stock compensation. On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act ("TCJA") which reformed tax policy in the United States with the primary impact resulting in reducing the corporate tax rate from 35% to 21% beginning January 1, 2018. This resulted in an expense of $69,378 recognized by the Company during the year ended December 31, 2017 attributable to the re-measurement of the Company's deferred tax assets as of December 31, 2017. Due to the timing of the enactment and the complexity involved in applying the provisions of the TCJA, the Company has made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of December 31, 2017. During the nine months ended September 30, 2018 , we reviewed further information and interpreted the TCJA utilizing additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and other regulatory bodies. We have made no adjustments to the provisional amounts recorded related to the re-measurement of the deferred tax asset as well as the conclusion regarding the applicability of repatriation tax. The Company will continue to analyze the effects of the TCJA on the Company’s operations and will record any adjustments associated with the enactment of the legislature during the measurement period as provided by SAB 118. Uncertain Tax Positions The Company had an uncertain tax position of $1,086 as of December 31, 2017 . As a result of acceptance by the Internal Revenue Service of requested accounting method change relating to the reporting of tenant incentive allowance income, this uncertain tax position has been removed. As of September 30, 2018, the Company has recorded an uncertain tax position in the amount of $272 due to the uncertainty regarding the rate used by TokBox when calculating its transfer pricing costs to its affiliated entities. The Company recognizes interest and penalties related to uncertain tax positions in income taxes. The Company did not have any interest or penalties related to this uncertain tax position during the three and nine months ended September 30, 2018 and September 30, 2017 . Net Operating Loss Carry Forwards ("NOLs") As of September 30, 2018 , we had cumulative domestic Federal NOLs of $565,730 and cumulative state NOLs of approximately $146,254 , expiring at various times through 2037. In addition, we had NOLs for United Kingdom tax purposes of $50,142 with no expiration date.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 31, 2018, the Company acquired 100% of the issued and outstanding shares of NewVoiceMedia Limited (“NewVoiceMedia”), a cloud Contact Center-as-a-Service (CCaaS) provider, for a purchase price of $350 million paid in cash. NewVoiceMedia is a private limited company organized under the laws of England & Wales. Due to the closing of the acquisition subsequent to the period end, the Company is currently in the process of determining the fair value of assets acquired and liabilities assumed necessary to develop the purchase price allocation. As such, disclosure of the purchase price allocation and supplemental pro forma information is not practicable. As of September 30, 2018, the Company has incurred and expensed acquisition related transaction costs included in general and administrative expense related to the acquisition of NewVoiceMedia of approximately $4,832 .

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements and information have been prepared in accordance with accounting principles generally accepted in the United States and in accordance with the SEC's regulations for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, these financial statements contain all normal and recurring adjustments considered necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows, and stockholders’ equity for the periods presented. The results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission on February 27, 2018 .
Use of Estimates	Use of Estimates Our condensed consolidated financial statements and notes thereof are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates.
Reclassifications	Reclassifications Reclassifications have been made to our condensed consolidated financial statements for the prior year periods to conform to classifications used in the current year periods. The reclassifications did not affect results of operations or net assets.
Cost of Revenues	Cost of Revenues Cost of revenues excludes depreciation and amortization expense of $6,386 and $6,852 for the three months ended September 30, 2018 and 2017 and $19,046 and $20,497 for the nine months ended September 30, 2018 and 2017 , respectively. In addition, costs of goods sold included in cost of revenues during the three months ended September 30, 2018 and 2017 were $6,386 and $6,306 and during the nine months ended September 30, 2018 and 2017 were $18,854 and $19,786 , respectively.
Advertising Costs	Advertising Costs We incurred advertising costs which are included in sales and marketing of $12,883 and $11,423 for the three months ended September 30, 2018 and 2017 and $41,805 and $43,760 for the nine months ended September 30, 2018 and 2017 , respectively.
Engineering and Development Expenses	Engineering and Development Expenses Engineering and development expenses predominantly include personnel and related costs for developers responsible for research and development of new products.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company records certain of its financial assets at fair value on a recurring basis as described below. Certain of the Company's other financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate fair value because of their short-term maturities. The carrying amounts of our capital leases approximate fair value of these obligations based upon management’s best estimates of interest rates that would be available for similar debt obligations at September 30, 2018 and December 31, 2017 . We believe the fair value of our debt at September 30, 2018 and December 31, 2017 was approximately the same as its carrying amount as market conditions, including available interest rates, credit spread relative to our credit rating, and illiquidity, remain relatively unchanged from the issuance date of our debt obligations for a similar debt instrument and are classified as Level 3 within the fair value hierarchy. We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories: • Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2 - observable prices that are based on inputs not quoted on active markets but corroborated by market data; and • Level 3 - unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, "Intangibles - Goodwill and Other". The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. This ASU is effective for an annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 will not have a material impact on our condensed consolidated financial statements and related disclosures. In February 2016, FASB issued ASU 2016-02, "Leases". This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about their leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective transition method at the beginning of the earliest period presented in the financial statements. Early adoption is permitted for all entities. The adoption of this ASU will increase our assets and liabilities for real estate and equipment operating leases for which we are the lessee and increase our lease disclosures. In July 2018, FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” and ASU 2018-10, “Codification Improvements to Topic 842, Leases”, both of which affect narrow aspects of the guidance issued in ASU 2016-02. In addition, ASU 2018-11 provides an additional (and optional) transition method upon adoption of ASU 2016-02 to initially apply the new lease standard at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption in lieu of the comparative reporting initially required under ASU 2016-02. We have substantially completed our review of contracts in the scope of Topic 842 and are currently evaluating the financial impact of the guidance on our financial statements. While this review is still in the process, the Company expects the adoption of Topic 842 will have a material impact on its balance sheet. Additionally, the Company plans to utilize the transition method provided by ASU 2018-11 and will recognize the cumulative effect of the adoption in retained earnings as of January 1, 2019. The following standards were adopted by the Company during the current period: In August 2018, FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)”. Under this ASU, a customer in a cloud computing arrangement that is a service contract would look to existing guidance for internal-use software under ASC 350-40 to determine whether implementation costs incurred under such arrangement may be capitalized and subsequently amortized over the periods covered under any applicable renewal options that are reasonably certain to be exercised. In addition, the guidance in this ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the statement of financial position in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this ASU is permitted, including adoption in any interim period. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company early adopted this ASU on a retrospective basis and began capitalizing implementation costs associated with cloud computing arrangements entered into that are service contracts. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In October 2016, FASB issued ASU 2016-16, "Income Taxes". This ASU improves the accounting for income tax consequences of intra-entity transfers of assets other than inventory. This ASU is effective for fiscal years beginning after December 15, 2017 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this ASU on January 1, 2018 and the adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In August 2016, FASB issued ASU 2016-15, "Statement of Cash Flows". This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for fiscal years beginning after December 15, 2017 on a retrospective basis. Early adoption is permitted, including adoption in an interim period. We adopted this ASU on January 1, 2018 and the adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". This ASU, as amended, provided comprehensive guidance on the recognition of revenue from contracts with customers arising from the transfer of goods and services, guidance on accounting for certain contract costs and new disclosures. Topic 606 also amends the current guidance for the recognition of costs to obtain and fulfill contracts with customers requiring that all incremental costs of obtaining and direct costs of fulfilling contracts with customers such as commissions be deferred and recognized over the expected customer life. On January 1, 2018, we adopted this ASU. Refer to Note 3. Revenue Recognition for related disclosures required upon adoption. In August 2017, FASB issued ASU 2017-12, "Derivatives and Hedging". The ASU improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and simplifies the application of the hedge accounting guidance in current generally accepted accounting principles ("GAAP"). It also amends the disclosures requirements by requiring a tabular disclosure related to the effect on the incomes statement of fair value and cash flow hedges and eliminating the ineffective portion of the change in fair value of hedging instrument disclosures. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance and is applied to hedging relationships existing on the date of adoption. We adopted ASU 2017-12 during the third quarter of 2018 and the adoption did not have a material impact on our condensed consolidated financial statements and related disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies Fair Value, Assets Measured on Recurring Basis (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The following table presents the assets that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of September 30, 2018 and December 31, 2017: September 30, December 31, 2017 Level 2 Measurements Interest rate swaps (1) $ 2,805 $ 1,285 (1) Included in other assets on our condensed consolidated balance sheets.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2018
Cash and Cash Equivalents [Abstract]
Restrictions on Cash and Cash Equivalents	Cash, cash equivalents and restricted cash September 30, December 31, 2017 Cash and cash equivalents $ 25,735 $ 31,360 Cash collateralized letter of credit - lease deposits 1,513 1,563 Cash reserves 471 404 Restricted cash 1,984 1,967 Cash, cash equivalents, and restricted cash $ 27,719 $ 33,327

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Finite-Lived Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets, net September 30, December 31, 2017 Customer relationships $ 108,224 $ 122,393 Developed technology 47,574 46,004 Patents and patent licenses 2,893 4,030 Trade names 25 352 Non-compete agreements 223 491 Intangible assets, net $ 158,939 $ 173,270

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
- Schedule of Accrued Liabilities [Abstract]
Schedule of Accrued Liabilities	Accrued expenses September 30, December 31, 2017 Compensation and related taxes and temporary labor $ 28,331 $ 30,059 Marketing 11,592 10,759 Taxes and fees 16,982 13,353 Acquisition related consideration accounted for as compensation — 2,534 Telecommunications 20,686 16,068 Other accruals 7,200 7,078 Customer credits 2,800 2,310 Professional fees 10,313 1,618 Inventory 1,328 1,927 Accrued expenses $ 99,232 $ 85,706

Revenue Recognition Revenue Rec

Revenue Recognition Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table details our revenue from customers disaggregated by primary geographical market, source of revenue, and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue for our Business and Consumer segments. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Business Consumer Total Business Consumer Total Primary geographical markets United States $ 107,446 $ 99,061 $ 206,507 $ 311,562 $ 309,056 $ 620,618 Canada 919 5,781 6,700 2,293 18,275 $ 20,568 United Kingdom 6,505 3,054 9,559 20,315 9,503 $ 29,818 Other Countries (1) 38,765 — 38,765 103,975 — $ 103,975 153,635 107,896 261,531 438,145 336,834 774,979 Major Sources of Revenue Service revenues $ 133,709 $ 97,093 $ 230,802 $ 377,703 $ 301,954 $ 679,657 Access and product revenues 12,427 92 12,519 37,674 472 38,146 USF revenues 7,499 10,711 18,210 22,768 34,408 57,176 153,635 107,896 261,531 438,145 336,834 774,979 (1) No individual other international country represented greater than 10% of total revenue during the periods presented.
Contract Assets and Liabilities	The following table provides information about receivables and contract liabilities from contracts with customers: September 30, 2018 Receivables (1) $ 57,060 Contract liabilities (2) 27,509 (1) Amounts included in accounts receivables on our condensed consolidated balance sheet. (2) Amounts included in deferred revenues and other liabilities on our condensed consolidated balance sheet.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation for basic and diluted earnings per share for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator Net income $ 9,588 $ 10,602 $ 42,671 $ 21,340 Denominator Basic weighted average common shares outstanding 239,303 227,943 236,775 223,956 Dilutive effect of stock options and restricted stock units 10,213 14,777 12,005 18,596 Diluted weighted average common shares outstanding 249,516 242,720 248,780 242,552 Basic earnings per share Basic earnings per share $ 0.04 $ 0.05 $ 0.18 $ 0.10 Diluted earnings per share Diluted earnings per share $ 0.04 $ 0.04 $ 0.17 $ 0.09
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	For the three and nine months ended September 30, 2018 and 2017 , the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Restricted stock units 3,368 4,938 2,200 2,458 Stock options 1,637 5,362 1,013 4,023 5,005 10,300 3,213 6,481

Long-Term Note and Revolving _2

Long-Term Note and Revolving Credit Facility (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	A schedule of long-term note and revolving credit facility at September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, 2.00-2.75 Term note - due 2023, net of debt related costs $ 86,672 $ — 2.00-2.75 Revolving credit facility - due 2023 114,000 — 2.50-3.25% Term note - due 2020, net of debt related costs — 72,765 2.50-3.25% Revolving credit facility - due 2020 — 141,000 Total Long-term note and revolving credit facility $ 200,672 $ 213,765
Accumulated OCI Balance Attributable to Cash Flow Derivatives	The following table summarizes the effects of ASC 815 on the Company's accumulated OCI balance attributable to cash flow derivatives: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Accumulated OCI beginning balance $ 1,973 $ — $ 965 $ — Reclassified from accumulated OCI to income: Due to reclassification of previously deferred gain (336 ) — (336 ) — Change in fair value of cash flow hedge accounting contracts, net of tax 866 197 1,874 197 Accumulated OCI ending balance, net of tax benefit of $34 and $0, respectively $ 2,503 $ 197 $ 2,503 $ 197 Gains expected to be reclassified from accumulated OCI during the next 12 months $ 531 $ — $ 531 $ —

Common Stock (Tables)

Common Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Common Stock Repurchases	We repurchased the following shares of common stock with cash resources under the 2014 $100.0 million repurchase program during the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 2017 Shares of common stock repurchased — 1,599 Value of common stock repurchased $ — $ 9,510

Acquisitions and Dispositions_2

Acquisitions and Dispositions - Business Combination, Asset Acquired and Liabilities Assumed (Tables)	9 Months Ended
	Sep. 30, 2018
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The purchase price of $32,906 was provisionally allocated as follows: August 1, 2018 Assets Cash and cash equivalents $ 557 Current assets 2,205 Property, plant and equipment 124 Goodwill 20,499 Intangible assets 15,602 Restricted cash 50 Total assets acquired 39,037 Liabilities Accounts payable 371 Accrued expenses 5,760 Total liabilities assumed 6,131 Net assets acquired $ 32,906

Acquisitions and Dispositions_3

Acquisitions and Dispositions - Pro Forma Information (Tables)	9 Months Ended
	Sep. 30, 2018
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro Forma Information	The following supplemental pro forma information represents the results of operations as if Vonage had acquired TokBox on January 1, 2017. Nine Months Ended September 30, 2018 2017 Revenue $ 780,846 $ 758,245 Net income 27,601 5,524 Net income per share - basic $ 0.12 $ 0.02 Net income per share - diluted $ 0.11 $ 0.02

Acquisitions and Dispositions_4

Acquisitions and Dispositions - Sschedule of Goodwill (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table provides a summary of the changes in the carrying amounts of goodwill which is attributable to our business segment: Balance at December 31, 2017 $ 373,764 Increase in goodwill related to acquisition of TokBox 20,499 Foreign currency translation adjustment (4,773 ) Balance at September 30, 2018 $ 389,490

Industry Segment and Geograph_2

Industry Segment and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	Information about our segment results for the three and nine months ended September 30, 2018 were as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 Business Consumer Total Business Consumer Total Revenues Service revenues $ 133,709 $ 97,093 $ 230,802 $ 377,703 $ 301,954 $ 679,657 Access and product revenues (1) 12,427 92 12,519 37,674 472 38,146 Service, access and product revenues 146,136 97,185 243,321 415,377 302,426 717,803 USF revenues 7,499 10,711 18,210 22,768 34,408 57,176 Total revenues 153,635 107,896 261,531 438,145 336,834 774,979 Cost of revenues Service cost of revenues (2) 59,600 10,661 70,261 172,917 37,050 209,967 Access and product cost of revenues (1) 14,887 993 15,880 43,291 4,657 47,948 Service, access and product cost of revenues 74,487 11,654 86,141 216,208 41,707 257,915 USF cost of revenues 7,499 10,711 18,210 22,773 34,434 57,207 Total cost of revenues 81,986 22,365 104,351 238,981 76,141 315,122 Segment gross margin Service margin 74,109 86,432 160,541 204,786 264,904 469,690 Access and product margin (2,460 ) (901 ) (3,361 ) (5,617 ) (4,185 ) (9,802 ) Gross margin ex-USF (Service, access and product margin) 71,649 85,531 157,180 199,169 260,719 459,888 USF margin — — — (5 ) (26 ) (31 ) Segment gross margin $ 71,649 $ 85,531 $ 157,180 $ 199,164 $ 260,693 $ 459,857 Segment gross margin % Service margin % 55.4 % 89.0 % 69.6 % 54.2 % 87.7 % 69.1 % Gross margin ex-USF (Service, access and product margin %) 49.0 % 88.0 % 64.6 % 47.9 % 86.2 % 64.1 % Segment gross margin % 46.6 % 79.3 % 60.1 % 45.5 % 77.4 % 59.3 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $5,141 and $1,245 for the three months ended September 30, 2018 and $15,092 and $3,954 for the nine months ended September 30, 2018 , respectively. Information about our segment results for the three and nine months ended September 30, 2017 were as follows: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Business Consumer Total Business Consumer Total Revenues Service revenues $ 108,819 $ 111,913 $ 220,732 $ 303,814 $ 346,666 $ 650,480 Access and product revenues (1) 13,749 94 13,843 41,622 498 42,120 Service, access and product revenues 122,568 112,007 234,575 345,436 347,164 692,600 USF revenues 6,738 11,770 18,508 19,386 36,280 55,666 Total revenues 129,306 123,777 253,083 364,822 383,444 748,266 Cost of revenues Service cost of revenues (2) 49,078 19,434 68,512 134,041 62,969 197,010 Access and product cost of revenues (1) 14,401 1,517 15,918 43,537 5,475 49,012 Service, access and product cost of revenues 63,479 20,951 84,430 177,578 68,444 246,022 USF cost of revenues 6,738 11,770 18,508 19,386 36,280 55,666 Total cost of revenues 70,217 32,721 102,938 196,964 104,724 301,688 Segment gross margin Service margin 59,741 92,479 152,220 169,773 283,697 453,470 Access and product margin (652 ) (1,423 ) (2,075 ) (1,915 ) (4,977 ) (6,892 ) Gross margin ex-USF (Service, access and product margin) 59,089 91,056 150,145 167,858 278,720 446,578 USF margin — — — — — — Segment gross margin $ 59,089 $ 91,056 $ 150,145 $ 167,858 $ 278,720 $ 446,578 Segment gross margin % Service margin % 54.9 % 82.6 % 69.0 % 55.9 % 81.8 % 69.7 % Gross margin ex-USF (Service, access and product margin %) 48.2 % 81.3 % 64.0 % 48.6 % 80.3 % 64.5 % Segment gross margin % 45.7 % 73.6 % 59.3 % 46.0 % 72.7 % 59.7 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $5,053 and $1,799 for the three months ended September 30, 2017 and $14,931 and $5,566 for the nine months ended September 30, 2017 , respectively. A reconciliation of the total of the reportable segments' gross margin to consolidated income before income taxes is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Total reportable gross margin $ 157,180 $ 150,145 $ 459,857 $ 446,578 Sales and marketing 74,380 73,576 229,201 235,245 Engineering and development 14,309 6,956 35,504 21,996 General and administrative 37,620 26,811 97,376 98,411 Depreciation and amortization 16,024 18,179 51,886 54,520 Income from operations 14,847 24,623 45,890 36,406 Interest expense (3,036 ) (3,821 ) (9,294 ) (11,385 ) Other income (expense), net 347 468 431 943 Income before income taxes $ 12,158 $ 21,270 $ 37,027 $ 25,964 Information about our operations by geographic location is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues: United States $ 206,507 $ 212,346 $ 620,618 $ 639,852 Canada 6,700 6,877 20,568 23,324 United Kingdom 9,559 7,175 29,818 19,446 Other Countries (1) 38,765 26,685 103,975 65,644 $ 261,531 $ 253,083 $ 774,979 $ 748,266 (1) No individual other international country represented greater than 10% of total revenue during the periods presented.
Long-lived Assets by Geographic Areas	September 30, 2018 December 31, 2017 Long-lived assets: United States $ 607,618 $ 615,432 United Kingdom 265 365 Israel 1,128 243 $ 609,011 $ 616,040

Incomes Taxes (Tables)

Incomes Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The income tax (expense) benefit consisted of the following: Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Income before income taxes $ 12,158 $ 21,270 $ 37,027 $ 25,964 Income tax (expense) benefit (2,570 ) (10,668 ) 5,644 (4,624 ) Effective tax rate 21.1 % 50.2 % (15.2 )% 17.8 %

Nature of Business (Details)

Nature of Business (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
United States
Concentration Risk [Line Items]
Customer representation of revenue, percentage	79.00%	84.00%	80.00%	86.00%

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Cost of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Depreciation and amortization	$ 6,386	$ 6,852	$ 19,046	$ 20,497
Cost of goods sold	$ 6,386	$ 6,306	$ 18,854	$ 19,786

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Advertising Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Advertising costs	$ 12,883	$ 11,423	$ 41,805	$ 43,760

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale securities | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	$ 2,805	$ 1,285

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Cash, Cash Equivalents, and Restricted Cash [Line Items]
Cash and cash equivalents	$ 25,735	$ 31,360
Restricted cash and cash equivalents	1,984	1,967
Cash, cash equivalents, and restricted cash	27,719	33,327	$ 31,696	$ 30,929
Cash reserve
Cash, Cash Equivalents, and Restricted Cash [Line Items]
Restricted cash and cash equivalents	471	404
Standby letters of credit
Cash, Cash Equivalents, and Restricted Cash [Line Items]
Restricted cash and cash equivalents	$ 1,513	$ 1,563

Summary of Significant Accou_11

Summary of Significant Accounting Policies - Intangible Assets, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 158,939	$ 173,270
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	108,224	122,393
Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	47,574	46,004
Patents and patent licenses
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	2,893	4,030
Trade names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	25	352
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 223	$ 491

Summary of Significant Accou_12

Summary of Significant Accounting Policies - Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Compensation and related taxes and temporary labor	$ 28,331	$ 30,059
Marketing	11,592	10,759
Taxes and fees	16,982	13,353
Acquisition related consideration accounted for as compensation	0	2,534
Telecommunications	20,686	16,068
Other accruals	7,200	7,078
Customer credits	2,800	2,310
Professional fees	10,313	1,618
Inventory	1,328	1,927
Accrued expenses	$ 99,232	$ 85,706

Revenue Recognition - Disaggret

Revenue Recognition - Disaggretation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 261,531	$ 253,083	$ 774,979	$ 748,266
Business
Disaggregation of Revenue [Line Items]
Total revenues	153,635	129,306	438,145	364,822
Consumer
Disaggregation of Revenue [Line Items]
Total revenues	107,896	123,777	336,834	383,444
Service revenues
Disaggregation of Revenue [Line Items]
Total revenues	230,802	220,732	679,657	650,480
Service revenues | Business
Disaggregation of Revenue [Line Items]
Total revenues	133,709	108,819	377,703	303,814
Service revenues | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	97,093	111,913	301,954	346,666
Product revenues
Disaggregation of Revenue [Line Items]
Total revenues	12,519	13,843	38,146	42,120
Product revenues | Business
Disaggregation of Revenue [Line Items]
Total revenues	12,427	13,749	37,674	41,622
Product revenues | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	92	94	472	498
USF revenues
Disaggregation of Revenue [Line Items]
Total revenues	18,210	18,508	57,176	55,666
USF revenues | Business
Disaggregation of Revenue [Line Items]
Total revenues	7,499	6,738	22,768	19,386
USF revenues | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	10,711	11,770	34,408	36,280
United States
Disaggregation of Revenue [Line Items]
Total revenues	206,507	212,346	620,618	639,852
United States | Business
Disaggregation of Revenue [Line Items]
Total revenues	107,446		311,562
United States | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	99,061		309,056
Canada
Disaggregation of Revenue [Line Items]
Total revenues	6,700	6,877	20,568	23,324
Canada | Business
Disaggregation of Revenue [Line Items]
Total revenues	919		2,293
Canada | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	5,781		18,275
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenues	9,559	7,175	29,818	19,446
United Kingdom | Business
Disaggregation of Revenue [Line Items]
Total revenues	6,505		20,315
United Kingdom | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	3,054		9,503
Other Countries
Disaggregation of Revenue [Line Items]
Total revenues	38,765	$ 26,685	103,975	$ 65,644
Other Countries | Business
Disaggregation of Revenue [Line Items]
Total revenues	38,765		103,975
Other Countries | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	$ 0		$ 0

Revenue Recognition - Contract

Revenue Recognition - Contract with Customer, Asset and Liability (Details) $ in Thousands	Sep. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Receivables	$ 57,060
Contract liabilities	$ 27,509

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2019	Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 261,531	$ 253,083	$ 774,979	$ 748,266
Contract with Customer, Liability, Revenue Recognized	105,494		332,480
Deferred tax liability established for the transition asset						$ 9,636
Amortization of deferred customer acquisition costs	2,579		7,002	0
Scenario, Forecast
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract with Customer, Liability, Revenue Recognized					$ 27,509
Subscription services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	149,091		452,257
Usage
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	63,857		175,764
USF and others
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	48,583		146,958
Current and Non-Current Portion
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred Customer Acquisition Cost, Gross	45,490		$ 45,490			34,484
Business
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Typical life of a customer			6 years
Total revenues	$ 153,635	$ 129,306	$ 438,145	$ 364,822
Restatement Adjustment | Accounting Standards Update 2014-09 | Accumulated Deficit
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net increase to opening retained earnings						$ 24,848

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator
Net income	$ 9,588	$ 10,602	$ 42,671	$ 21,340
Denominator
Basic weighted average common shares outstanding (in shares)	239,303	227,943	236,775	223,956
Dilutive effect of stock options and restricted stock (in shares)	10,213	14,777	12,005	18,596
Diluted weighted average common shares outstanding (in shares)	249,516	242,720	248,780	242,552
Basic earnings per share
Basic earnings per share (usd per share)	$ 0.04	$ 0.05	$ 0.18	$ 0.10
Diluted earnings per share
Diluted earnings per share (usd per share)	$ 0.04	$ 0.04	$ 0.17	$ 0.09

Earnings Per Share - Schedule_2

Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings per share, antidilutive securities:
Antidilutive securities excluded from earnings per common share (in shares)	5,005	10,300	3,213	6,481
Restricted stock units
Earnings per share, antidilutive securities:
Antidilutive securities excluded from earnings per common share (in shares)	3,368	4,938	2,200	2,458
Stock options
Earnings per share, antidilutive securities:
Antidilutive securities excluded from earnings per common share (in shares)	1,637	5,362	1,013	4,023

Long-Term Note and Revolving _3

Long-Term Note and Revolving Credit Facility - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term debt	$ 200,672	$ 213,765
Term note | Secured debt | 2018 Credit Facility
Debt Instrument [Line Items]
Long-term debt	86,672	0
Term note | Secured debt | 2016 Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 0	72,765
Term note | Minimum | Secured debt | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Term note | Minimum | Secured debt | 2016 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.50%
Term note | Maximum | Secured debt | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.75%
Term note | Maximum | Secured debt | 2016 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.25%
Revolving credit facility | Line of credit | 2018 Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 114,000	0
Revolving credit facility | Line of credit | 2016 Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 141,000
Revolving credit facility | Minimum | Line of credit | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Revolving credit facility | Minimum | Line of credit | 2016 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.50%
Revolving credit facility | Maximum | Line of credit | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.75%
Revolving credit facility | Maximum | Line of credit | 2016 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.25%

Long-Term Note and Revolving _4

Long-Term Note and Revolving Credit Facility - Interest Rate Swap (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net			$ 271
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated OCI beginning balance	$ 1,973	$ 0	965	$ 0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	(336)	0	(336)	0
Change in fair value of cash flow hedge accounting contracts, net of tax	866	197	1,874	197
Accumulated OCI ending balance, net of tax benefit of $34 and $0, respectively	2,503	197	2,503	197
Gains expected to be reclassified from accumulated OCI during the next 12 months	531	0	531	0
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI tax	$ 34	$ 0	$ 34	$ 0

Long-Term Note and Revolving _5

Long-Term Note and Revolving Credit Facility - Narrative (Details)	Aug. 01, 2018USD ($)	Jul. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	Jul. 31, 2017USD ($)	Jul. 14, 2017agreement	Jun. 03, 2016USD ($)
Debt Instrument [Line Items]
Principal payments on notes and revolving credit facility			$ 293,688,000	$ 56,063,000
Proceeds received from issuance of revolving credit facility and term note			272,000,000	15,000,000
Derivative, number of instruments held | agreement							3
Derivative, amount of hedged item						$ 150,000,000
Derivative, fixed interest rate						4.70%
Write off of Deferred Debt Issuance Cost			89,000
Gain (Loss) on Extinguishment of Debt			(14,000)	$ 0
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net			271,000
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent			2,654,000
2016 Credit Facility | Term note | Secured debt
Debt Instrument [Line Items]
Debt instrument, face amount								$ 125,000,000
Principal payments on notes and revolving credit facility			9,400,000
2016 Credit Facility | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity								$ 325,000,000
Principal payments on notes and revolving credit facility			35,000,000
Proceeds received from issuance of revolving credit facility and term note			$ 40,000,000
Payments To Acquire Business, Borrowing From Credit Facility	$ 32,900,000
2018 Credit Facility
Debt Instrument [Line Items]
Line of credit facility, interest rate at period end			4.50%
Repayments of Debt		$ 232,000,000
Debt Issuance Costs, Gross			$ 3,376,000
2018 Credit Facility | Term note | Secured debt
Debt Instrument [Line Items]
Debt instrument, face amount		100,000,000
Principal payments on notes and revolving credit facility			2,500,000
Debt Issuance Costs, Gross			474,000
Debt Instrument, Periodic Payment, Principal	$ 2,500,000
2018 Credit Facility | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity		$ 500,000,000
Principal payments on notes and revolving credit facility			18,000,000
Debt Issuance Costs, Gross			2,813,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.30%
Fair value, measurements, recurring | Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Fair market value of the swaps			$ 2,805,000		$ 1,285,000
Base Rate | Base Rate Option | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.00%
Base Rate | Base Rate Option | Leverage Ratio, Term One | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.00%
Base Rate | Base Rate Option | Leverage Ratio, Term Four | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.75%
London Interbank Offered Rate (LIBOR) | LIBOR Rate Option | Leverage Ratio, Term One | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.00%
London Interbank Offered Rate (LIBOR) | LIBOR Rate Option | Leverage Ratio, Term Four | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.75%
Federal Funds Effective Swap Rate | Base Rate Option | 2018 Credit Facility
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.50%

Common Stock - Schedule of Comm

Common Stock - Schedule of Common Stock Repurchases (Details) - 2014 repurchase program - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Common stock repurchases:
Shares of common stock repurchased (in shares)	0	0	0	1,599,000
Value of common stock repurchased			$ 0	$ 9,510

Common Stock - Narrative (Detai

Common Stock - Narrative (Details) - USD ($)	Dec. 09, 2014	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Common stock repurchases:
Common stock, shares authorized (in shares)		596,950,000		596,950,000		596,950,000
Shares available for grant (in shares)		8,386,000		8,386,000
2014 repurchase program
Common stock repurchases:
Authorized amount of stock repurchased	$ 100,000,000
Stock repurchase program, period in force	4 years
Remaining authorized amount of stock repurchased program		$ 42,533,000		$ 42,533,000
Shares of common stock repurchased (in shares)		0	0	0	1,599,000
Common Stock
Common stock repurchases:
Common stock, shares authorized (in shares)		596,950,000		596,950,000		596,950,000

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Thousands	Feb. 11, 2013Defendant	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Pending litigation | RPost Holdings, Inc. Vs. Vonage America Inc. | Patent claims
Loss Contingencies [Line Items]
Number of defendants | Defendant	27
Threatened litigation | Collection And Remittance Of State And Municipal Taxes
Loss Contingencies [Line Items]
Reserve for potential tax liability pending new requirements from state or municipal agencies | $		$ 1,868	$ 1,147

Acquisitions and Dispositions_5

Acquisitions and Dispositions - Business Combination, Assets Acquired and Liabilities Assumed (Details) - Telefonica Digital, Inc. and its subsidiaries $ in Thousands	Aug. 01, 2018USD ($)
Business Acquisition [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 557
Other Assets, Current	2,205
Property, Plant and Equipment, Net	124
Goodwill	20,499
Finite-Lived Intangible Assets, Net	15,602
Restricted Cash and Cash Equivalents, Noncurrent	50
Assets	39,037
Accounts Payable, Current	371
Accrued Liabilities, Current	5,760
Liabilities	6,131
Business Combination, Consideration Transferred	$ 32,906

Acquisitions and Dispositions_6

Acquisitions and Dispositions - Business Acquisition, Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Business Combinations [Abstract]
Business Acquisition, Pro Forma Revenue	$ 780,846	$ 758,245
Business Acquisition, Pro Forma Net Income (Loss)	$ 27,601	$ 5,524
Business Acquisition, Pro Forma Earnings Per Share, Basic	$ 0.12	$ 0.02
Business Acquisition, Pro Forma Earnings Per Share, Diluted	$ 0.11	$ 0.02

Acquisitions and Dispositions_7

Acquisitions and Dispositions - Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 373,764
Increase in goodwill related to acquisition of TokBox	20,499
Goodwill, Foreign Currency Translation Gain (Loss)	(4,773)
Goodwill, Ending Balance	$ 389,490

Acquisitions and Dispositions_8

Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Thousands	Aug. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	May 31, 2017
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%		100.00%
Cash consideration				$ 32,906
Telefonica Digital, Inc. and its subsidiaries
Business Acquisition [Line Items]
Goodwill	$ 20,499
Finite-Lived Intangible Assets, Net	15,602
Acquisition-related Costs
Business Acquisition [Line Items]
Business Combination, Acquisition Related Costs		$ 4,672		4,954
TokBox
Business Acquisition [Line Items]
Total revenues				1,626
Net income				$ 3,620
Customer relationships | Telefonica Digital, Inc. and its subsidiaries
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Net	$ 5,020
Finite-Lived Intangible Asset, Useful Life	7 years
Developed technology | Telefonica Digital, Inc. and its subsidiaries
Business Acquisition [Line Items]
Finite-Lived Intangible Assets, Net	$ 10,582
Finite-Lived Intangible Asset, Useful Life	5 years
Disposal Group, Not Discontinued Operations | Hosted Infrastructure Product Line
Business Acquisition [Line Items]
Disposal consideration					$ 4,000
Disposal consideration received at closing					1,000
Disposal consideration to be received six months from closing					500
Disposal consideration to be received based on achievement of financial objectives					$ 2,500
Disposal gain on sale			$ 1,377

Industry Segment and Geograph_3

Industry Segment and Geographic Information - Schedule of Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 261,531	$ 253,083	$ 774,979	$ 748,266
Cost of revenues	104,351	102,938	315,122	301,688
Segment gross margin	$ 157,180	$ 150,145	$ 459,857	$ 446,578
Segment gross margin %	60.10%	59.30%	59.30%	59.70%
Depreciation and amortization	$ 6,386	$ 6,852	$ 19,046	$ 20,497
Business
Segment Reporting Information [Line Items]
Total revenues	153,635	129,306	438,145	364,822
Cost of revenues	81,986	70,217	238,981	196,964
Segment gross margin	$ 71,649	$ 59,089	$ 199,164	$ 167,858
Segment gross margin %	46.60%	45.70%	45.50%	46.00%
Consumer
Segment Reporting Information [Line Items]
Total revenues	$ 107,896	$ 123,777	$ 336,834	$ 383,444
Cost of revenues	22,365	32,721	76,141	104,724
Segment gross margin	$ 85,531	$ 91,056	$ 260,693	$ 278,720
Segment gross margin %	79.30%	73.60%	77.40%	72.70%
Service revenues
Segment Reporting Information [Line Items]
Total revenues	$ 230,802	$ 220,732	$ 679,657	$ 650,480
Cost of revenues	70,261	68,512	209,967	197,010
Segment gross margin	$ 160,541	$ 152,220	$ 469,690	$ 453,470
Segment gross margin %	69.60%	69.00%	69.10%	69.70%
Service revenues | Business
Segment Reporting Information [Line Items]
Total revenues	$ 133,709	$ 108,819	$ 377,703	$ 303,814
Cost of revenues	59,600	49,078	172,917	134,041
Segment gross margin	$ 74,109	$ 59,741	$ 204,786	$ 169,773
Segment gross margin %	55.40%	54.90%	54.20%	55.90%
Depreciation and amortization	$ 5,141	$ 5,053	$ 15,092	$ 14,931
Service revenues | Consumer
Segment Reporting Information [Line Items]
Total revenues	97,093	111,913	301,954	346,666
Cost of revenues	10,661	19,434	37,050	62,969
Segment gross margin	$ 86,432	$ 92,479	$ 264,904	$ 283,697
Segment gross margin %	89.00%	82.60%	87.70%	81.80%
Depreciation and amortization	$ 1,245	$ 1,799	$ 3,954	$ 5,566
Product revenues
Segment Reporting Information [Line Items]
Total revenues	12,519	13,843	38,146	42,120
Cost of revenues	15,880	15,918	47,948	49,012
Segment gross margin	(3,361)	(2,075)	(9,802)	(6,892)
Product revenues | Business
Segment Reporting Information [Line Items]
Total revenues	12,427	13,749	37,674	41,622
Cost of revenues	14,887	14,401	43,291	43,537
Segment gross margin	(2,460)	(652)	(5,617)	(1,915)
Product revenues | Consumer
Segment Reporting Information [Line Items]
Total revenues	92	94	472	498
Cost of revenues	993	1,517	4,657	5,475
Segment gross margin	(901)	(1,423)	(4,185)	(4,977)
Service, access and product revenues
Segment Reporting Information [Line Items]
Total revenues	243,321	234,575	717,803	692,600
Cost of revenues	86,141	84,430	257,915	246,022
Segment gross margin	$ 157,180	$ 150,145	$ 459,888	$ 446,578
Segment gross margin %	64.60%	64.00%	64.10%	64.50%
Service, access and product revenues | Business
Segment Reporting Information [Line Items]
Total revenues	$ 146,136	$ 122,568	$ 415,377	$ 345,436
Cost of revenues	74,487	63,479	216,208	177,578
Segment gross margin	$ 71,649	$ 59,089	$ 199,169	$ 167,858
Segment gross margin %	49.00%	48.20%	47.90%	48.60%
Service, access and product revenues | Consumer
Segment Reporting Information [Line Items]
Total revenues	$ 97,185	$ 112,007	$ 302,426	$ 347,164
Cost of revenues	11,654	20,951	41,707	68,444
Segment gross margin	$ 85,531	$ 91,056	$ 260,719	$ 278,720
Segment gross margin %	88.00%	81.30%	86.20%	80.30%
USF revenues
Segment Reporting Information [Line Items]
Total revenues	$ 18,210	$ 18,508	$ 57,176	$ 55,666
Cost of revenues	18,210	18,508	57,207	55,666
Segment gross margin	0	0	(31)	0
USF revenues | Business
Segment Reporting Information [Line Items]
Total revenues	7,499	6,738	22,768	19,386
Cost of revenues	7,499	6,738	22,773	19,386
Segment gross margin	0	0	(5)	0
USF revenues | Consumer
Segment Reporting Information [Line Items]
Total revenues	10,711	11,770	34,408	36,280
Cost of revenues	10,711	11,770	34,434	36,280
Segment gross margin	$ 0	$ 0	$ (26)	$ 0

Industry Segment and Geograph_4

Industry Segment and Geographic Information - Reconciliation of the Reportable Segments' Gross Margin (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting [Abstract]
Segment gross margin	$ 157,180	$ 150,145	$ 459,857	$ 446,578
Sales and marketing	74,380	73,576	229,201	235,245
Engineering and development	14,309	6,956	35,504	21,996
General and administrative	37,620	26,811	97,376	98,411
Depreciation and amortization	16,024	18,179	51,886	54,520
Income from operations	14,847	24,623	45,890	36,406
Interest expense	(3,036)	(3,821)	(9,294)	(11,385)
Other income (expense), net	347	468	431	943
Income before income taxes	$ 12,158	$ 21,270	$ 37,027	$ 25,964

Industry Segment and Geograph_5

Industry Segment and Geographic Information - Schedule of Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 261,531	$ 253,083	$ 774,979	$ 748,266
United States
Segment Reporting Information [Line Items]
Total revenues	206,507	212,346	620,618	639,852
Canada
Segment Reporting Information [Line Items]
Total revenues	6,700	6,877	20,568	23,324
United Kingdom
Segment Reporting Information [Line Items]
Total revenues	9,559	7,175	29,818	19,446
Other Countries
Segment Reporting Information [Line Items]
Total revenues	$ 38,765	$ 26,685	$ 103,975	$ 65,644

Industry Segment and Geograph_6

Industry Segment and Geographic Information - Schedule of Long Lived Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Long-lived assets	$ 609,011	$ 616,040
United States
Segment Reporting Information [Line Items]
Long-lived assets	607,618	615,432
United Kingdom
Segment Reporting Information [Line Items]
Long-lived assets	265	365
Israel
Segment Reporting Information [Line Items]
Long-lived assets	$ 1,128	$ 243

Income Taxes - Effective Tax Ra

Income Taxes - Effective Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income before income taxes	$ 12,158	$ 21,270	$ 37,027	$ 25,964
Income tax (expense) benefit	$ (2,570)	$ (10,668)	$ 5,644	$ (4,624)
Effective tax rate	21.10%	50.20%	(15.20%)	17.80%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount			$ 5,312
Effective income tax rate reconciliation, change in enacted tax rate, amount					$ 69,378
Effective tax rate	$ 1,912	$ 9,539	19,228	$ 1,433
Uncertain tax position	272		272		$ 1,086
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	565,730		565,730
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	146,254		146,254
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC)
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	50,142		50,142
GILTI
Operating Loss Carryforwards [Line Items]
Effective income tax rate reconciliation, change in enacted tax rate, amount	$ 5,597		$ 6,702

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - USD ($) $ in Thousands	Oct. 31, 2018	Sep. 30, 2018
Subsequent Event [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Cash consideration		$ 32,906
New Voice Media
Subsequent Event [Line Items]
Business Combination, Acquisition Related Costs		$ 4,832
New Voice Media | Subsequent event
Subsequent Event [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Cash consideration	$ 350,000