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Invest in VoIP

Voice Over Internet Protocol, or VoIP, is a method of communicating via the internet. With VoIP, you can place phone calls by way of an internet connection and therefore completely bypass the need for the traditional phone company.

The success and mass adaption of VoIP has led to many service providers to offer Unified Communications, which is a term coined for bundled communications services that include VoIP, instant messaging, unified messaging (the combination of voicemail, email, SMS, and fax in a single platform), cloud communications, and audio, web, and video conferencing.

For several years, small businesses and major corporations across the globe have been adopting this technology due to lower costs as well as the ability to integrate numerous communications platforms through Unified Communications technologies.

VoIP and Unified Communications

The landscape in which we communicate with one another has evolved with the advancement of internet-based technologies. Social media companies have incorporated creative ways so their customers can message and communicate with one another. Companies are implementing BYOD, or bring-your-own-device, policies that allow employees to bring their own computers to work to access company information and networks. With the number of devices and communication platforms rising, there is an increasing need to have single, unified platforms in which to handle the numerous ways we communicate with one another. And as with any network-based technology, the foundation of VoIP and Unified Communications is reliant on the use of the internet.

Over the years, the cost of VoIP and Unified Communications services and products has decreased while the number of consumers and companies adopting the technology has increased. A more convenient and cheaper alternative to the traditional way of communicating, VoIP and Unified Communications has been growing for the last several years, leading to many large corporations to take notice and seek exposure to VoIP and Unified Communications technologies.

Major Developments

  • Arguably the most hyped acquisition of 2011, VoIP company Skype was purchased by Microsoft (NASDAQ: MSFT) for $8.5 billion in cash, only days after both Google (NASDAQ: GOOG) and Facebook (NASDAQ: FB) expressed interest. This was a much talked about event not only because it was Microsoft’s first major acquisition since 2008, but the purchase of Skype was the largest buyout in the company’s history. This also marked a major stepping stone for Microsoft to further penetrate the VoIP/communications market.
  • In April 2014, Facebook integrated VoIP with its Facebook Messenger app as well as adding VoIP services to WhatsApp, a Facebook company, in 2015.
  • One of the most talked about events of 2017, Cisco (NASDAQ: CSCO) purchased BroadSoft for a cool $2 billion in a push to increase its communications holdings. With the purchase, Cisco integrates Broadsoft’s portfolio of VoIP, unified communications, and call centers.
  • Announced in April of 2018, private equity firm Searchlight Capital agreed to buy enterprise communications company, Mitel Networks Corporation. The all-cash offer of $2 billion or $11.15 a share, represents a 24% premium paid over its 3 month volume weighted average price.

The Future

2017 marked an acquisition frenzy in the unified communications space as more companies sought to solidify their footprints in the industry. With the launch and subsequent expansion of 5G infrastructure into the 2020’s, the VoIP and unified communications industry will only prosper. The faster speeds and reduced latency that 5G networks will provide, consumers and corporations’ appetite for less expensive alternatives, and the capability of unified communications to allow for multiple communication platforms will benefit companies in the VoIP industry immensely.

Research firm, Gartner, predicts that the VoIP and unified communications market will reach $44 billion by the year 2021. Gartner also states that as cloud telephone applications grow 15.8% year-over-year from 2016 to 2021, the traditional premises-based telephony industry will decline 9.5% annually during the same period. In addition, small businesses will be adapting cloud and voice conferencing faster than enterprise corporations. It is anticipated that between 2016 and 2021, the amount of small businesses employing the technology will double to 45%.

As companies and consumers continue to demand services that bundle various communications platforms, the battlefield to dominate the VoIP and unified communications market will continue to be fierce. Traditional phone companies like Verizon (NYSE: VZ) and AT&T (NYSE: T) have initiated their own VoIP plans while smaller, niche-focused companies look to take their fair share of the market.

VoIP Stocks

Industry: Communication Equipment

Sector: Technology

Website: http://www.audiocodes.com

Description: AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers. The company’s products include IP phones, session border controllers (SBC), media gateways, multi-service business routers, managed IP phones, residential gateways, media servers, mobile communications solutions, value added applications, life cycle management solutions, professional services, and survivable branch appliances; device manager; CloudBond 365, an adaptable solution for the data center, customer premises or the branch; CloudBond 365 CCE appliances; User Management Pack 365, a software management application; and VoIP management and routing, a suite of lifecycle applications for large scale cloud or premises-based unified communications deployments. It also provides VocaNOM call routing products; SmartTAP call recording products; Auto Attendant, a tool for managing inbound calls and delivery services; signal processor chips; communications boards; and voice and data logging hardware integration board products. In addition, the company offers planning, implementation, operations, and support services, as well as consulting and training services. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, system integrators and distributors, and network equipment providers in the telecommunication and networking industries. The company operates in the Americas, Europe, the Far East, and Israel. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.

Fundamentals
Market cap$965.02M
P/E ratio35.54
Earnings per share$0.83
Return on equity18.02%
Profit margin12.34%
Total revenue$220.77M
Debt / Equity14.21
Price / Book4.63
52 week high$44.94
52 week low$21.33
Shares outstanding$33.02M
Previous close$28.44
Dividend Analysis
Dividend yield1.13%
Payout ratio32.53%
Trailing Annual Dividend Rate$0.30
Five Year Avg Dividend Yield0.00%
Ex-Dividend dateFebruary 16, 2021 6:00 PM

Industry: Telecom Services

Sector: Communication Services

Website: http://www.vonage.com

Description: Vonage Holdings Corp. provides cloud communications services for businesses and consumers. It operates through two segments, Business and Consumer. The Business segment offers cloud-based applications comprising integrated voice, text, video, data, collaboration, and mobile applications over SIP based VoIP network; API solutions designed to enhance the way businesses communicate with their customers by embedding communications into apps, websites, and business processes; and Vonage Business Cloud and Vonage Enterprise services. The Consumer segment provides home telephone services through various service plans with basic features, including voicemail, call waiting, call forwarding, simulring, visual voicemail, and extensions, as well as area code selection, virtual phone number, and Web-enabled voicemail. It also offers Vonage World and Vonage North America consumer plans. In addition, the company provides Vonage-enabled devices, which allow customers to use the Internet connection for their computer and telephones at the same time; and high-speed broadband Internet service that allows calls over the Internet either from a telephone through a Vonage-enabled device, or through soft phone software, or mobile client applications. Vonage Holdings Corp. sells its products through its sales agents, Websites, and toll free numbers for consumers and businesses in the United States, Canada, the United Kingdom, the European Union, and Asia. Vonage Holdings Corp. was incorporated in 2000 and is headquartered in Holmdel, New Jersey.

Fundamentals
Market cap$3.05B
P/E ratio
Earnings per share$ -0.15
Return on equity-6.19%
Profit margin-3.06%
Total revenue$1.19B
Debt / Equity91.06
Price / Book5.06
52 week high$15.72
52 week low$7.46
Shares outstanding$249.13M
Previous close$12.47
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

Industry: Telecom Services

Sector: Communication Services

Website: http://www.ribboncommunications.com

Description: Ribbon Communications Inc. provides networked software solutions in the United States, Europe, the Middle East, Africa, Japan, other Asia Pacific, and internationally. The company offers service provider solutions, such as fixed network transformation, mobile network evolution, secure network interconnects, managed intelligent edge, cloud communications as a service, and communications analytics and security solutions. Its enterprise solutions include secure communications, real-time communications, session border controller, intelligent edge, and Microsoft Skype for Business and Teams software solutions, as well as analytics solutions that allows enterprises to connect securely to SIP trunks and modernize communications networks. The company also offers solution and business consulting, system integration, deployment, and managed care services; and support services, such as managing software updates, appliance maintenance, appliance spare services and managed spares programs, and emergency assistance during disaster recovery. It serves telecommunications, wireless and cable service providers, and enterprises through direct sales and indirect channels. The company was formerly known as Sonus Networks, Inc. and changed its name to Ribbon Communications Inc. in November 2017. Ribbon Communications Inc. was founded in 1997 and is headquartered in Westford, Massachusetts.

Fundamentals
Market cap$1.20B
P/E ratio13.43
Earnings per share$0.61
Return on equity15.14%
Profit margin10.50%
Total revenue$843.80M
Debt / Equity70.85
Price / Book1.73
52 week high$11.25
52 week low$2.71
Shares outstanding$145.56M
Previous close$8.25
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

Industry: SoftwareApplication

Sector: Technology

Website: http://www.8×8.com

Description: 8×8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small and mid-size businesses, mid-market and larger enterprises, government agencies, and other organizations worldwide. It offers unified communications, team collaboration, video conferencing, contact center, data and analytics, communication APIs, and other services. The company provides 8×8 Virtual Office, a self-contained and end-to-end solution that delivers high quality voice and unified communications-as-a-service; 8×8 Contact Center, a multi-channel cloud-based contact center solution; and 8×8 Meetings, a cloud-based video conferencing and collaboration solution that enables secure and continuous collaboration with borderless high definition video and audio communications from mobile and desktop devices. It also offers 8×8 Team Messaging, an integrated open team messaging platform, which facilitate modern modes of communication with support for direct messages, public and private team messaging rooms, short messaging service, presence, emojis, and @’ mentions; 8×8 API, a set of global communications Platform-as-a-Service; and 8×8 Callstats Service, an analytics offering designed for real-time analytical responsiveness at scale. The company integrates its services with third-party applications and platforms, including enterprise resource planning, customer relations management, human capital management, and other proprietary application suites. It markets its services to end users through search engine marketing and optimization, third-party lead generation sources, industry conferences, trade shows, Webinars, and digital advertising channels, as well as direct sales organization. 8×8, Inc. was founded in 1987 and is headquartered in Campbell, California.

Fundamentals
Market cap$3.53B
P/E ratio
Earnings per share$ -1.63
Return on equity-88.22%
Profit margin-33.52%
Total revenue$509.10M
Debt / Equity240.25
Price / Book21.01
52 week high$39.17
52 week low$13.51
Shares outstanding$107.49M
Previous close$32.96
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

Industry: Telecom Services

Sector: Communication Services

Website: http://www.ooma.com

Description: Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company’s smart cloud-based software-as-a-service and unified-communications-as-a-service (UCaaS) platforms serve as a communications hub, which offers cloud-based communications solutions, smart security, and other connected services. Its business and residential solutions deliver PureVoice high-definition voice quality, advanced functionality, and integration with mobile devices; and platform helps to create smart workplace and homes by offering communications, monitoring, security, automation, productivity, and networking infrastructure applications. The company’s products and services include Ooma Office, a multi-user communications system for small and medium-sized businesses; Ooma Office Mobile HD app to make, receive, and transfer phone calls; Ooma Office Pro that offers services, including call recording, enhanced call blocking, voicemail transcription, and support for overhead paging systems for businesses; and Ooma Enterprise, an UCaaS offering. It also provides Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo 4G. a solution that provides home phone and internet service; Ooma Telo Air, a solution that connects to the Internet wirelessly using the home’s Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from any phone in the home; and Ooma HD3 cordless handset. In addition, the company offers Ooma Premier Service, a suite of advanced calling features to enhance the capabilities of Ooma Telo; and Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection. Further, it provides Ooma Smart Security, a security and monitoring platform; and Talkatone mobile app. The company offers its products through direct sales, distributors, retailers, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

Fundamentals
Market cap$368.88M
P/E ratio
Earnings per share$ -0.11
Return on equity-7.18%
Profit margin-1.45%
Total revenue$168.95M
Debt / Equity7.12
Price / Book9.36
52 week high$19.18
52 week low$10.51
Shares outstanding$22.70M
Previous close$16.76
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

Industry: SoftwareApplication

Sector: Technology

Website: http://www.ringcentral.com

Description: RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company’s products include RingCentral Office that provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Professional, a cloud based virtual telephone service that provides inbound call answering and management services for professionals; and RingCentral Fax that provides online fax capabilities. Its products also comprise RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; RingCentral Glip, a team messaging and collaboration solution that allows a range of teams to stay connected through various modes of communication through an integration with RingCentral Office; and RingCentral Meetings, a collaborative meetings solution that offers web meetings, video conferencing, and screen sharing. In addition, the company offers RingCentral Engage Digital, a digital customer engagement platform that allows enterprises to interact with their customers; RingCentral Engage Voice, a cloud-based outbound/blended customer engagement platform for midsize and enterprise companies; and RingCentral Live Reports, an add-on for RingCentral Office customers to gather real-time information. The company serves a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. It sells its products through a network of direct sales representatives, as well as sales agents, resellers, and channel partners. RingCentral, Inc. has strategic partnerships with Alcatel-Lucent Enterprise; and Vodafone Business. The company was incorporated in 1999 and is headquartered in Belmont, California.

Fundamentals
Market cap$27.69B
P/E ratio
Earnings per share$ -0.94
Return on equity-15.75%
Profit margin-7.01%
Total revenue$1.18B
Debt / Equity473.79
Price / Book89.71
52 week high$449.00
52 week low$200.30
Shares outstanding$79.33M
Previous close$306.10
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

Industry: SoftwareInfrastructure

Sector: Technology

Website: http://www.bandwidth.com

Description: Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates in two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and operate voice or text communications services across mobile application or connected device. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, small and medium-sized businesses, technology companies, and other business. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.

Fundamentals
Market cap$3.09B
P/E ratio
Earnings per share$ -1.83
Return on equity-12.56%
Profit margin-12.82%
Total revenue$343.11M
Debt / Equity71.03
Price / Book7.13
52 week high$198.61
52 week low$71.08
Shares outstanding$22.86M
Previous close$124.29
Dividend Analysis
Dividend yield0.00%
Payout ratio0.00%
Trailing Annual Dividend Rate$
Five Year Avg Dividend Yield0.00%
Ex-Dividend date0

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