Core Insights - Vonage has been recognized as a Customers' Choice in Gartner Peer Insights for its Communications Platform as a Service (CPaaS) and named a Visionary in the 2025 Gartner Magic Quadrant for CPaaS [1][4] - The company’s innovative network-powered Communications APIs enable businesses to create personalized customer experiences, including real-time video consultations and secure online transactions [2][8] - Vonage's commitment to advanced technologies and AI-driven solutions aims to enhance customer experiences and operational efficiencies, reflecting a customer-centric approach [3][7] Recognition and Performance - Vonage achieved a 93% Willingness to Recommend score in the Gartner Peer Insights report based on 41 reviews, making it one of only two vendors to receive the Customers' Choice designation [4] - The company was recognized in all areas of the Gartner 2025 Critical Capabilities report, further validating its capabilities in the CPaaS market [4] Strategic Focus - Continued investments in innovation, particularly in AI and anti-fraud capabilities, are part of Vonage's strategy to support high-margin growth objectives [3] - The company is refining its geographic focus and prioritizing R&D investments to enhance its portfolio and create greater business impact for customers [3][9]

Industry Overview - The Internet-Software & Services industry is closely tied to the economy, with estimates declining due to tariffs, inflation, and interest rate uncertainties [1][7] - Companies are focusing on cost-saving measures, reducing operating expenses to maintain profitability despite revenue challenges [1][7] - Capital investments are being limited, with only a few companies making significant investments [1] Key Industry Themes - Companies like Criteo (CRTO) and RingCentral (RNG) are performing well by leveraging AI for revenue growth and client retention through subscription models [2][18] - The industry is characterized by a diverse range of players, leading to varied performance outcomes [2] - The Zacks Industry Rank for the Internet-Software & Services sector is 203, placing it in the bottom 17% of nearly 250 classified industries, indicating limited growth prospects [6][8] Economic Impact - The level of technology adoption by businesses is crucial for growth, with some companies advancing in AI while others lag behind [7] - Economic slowdowns lead to reduced expenditures on software and services, impacting industry performance [7] - Geopolitical tensions and tariff changes contribute to market volatility and uncertainty, complicating the operating environment [7] Financial Performance - The industry has shown strong stock market performance, returning 20.5% over the past year, outperforming the broader sector and S&P 500 [11] - The industry is currently trading at a forward 12-month P/E ratio of 24.96X, which is a 15.2% premium to the S&P 500 [14] Company Highlights Criteo S.A. (CRTO) - Criteo's AI-driven platform connects advertisers with retailers, helping to drive commerce despite macroeconomic challenges [18][20] - The company has maintained a client retention rate close to 90% and reported an 18% growth in Retail Media contributions [21][22] - Despite a projected decline in earnings due to the loss of a major customer, Criteo's existing customer spending has increased significantly [21][23] RingCentral Inc. (RNG) - RingCentral's AI-powered solutions have led to an average recurring revenue (ARR) exceeding $2.5 billion [26] - The company has successfully integrated its services into the Salesforce CRM ecosystem and secured significant customer wins [26] - RingCentral's shares have decreased by 26.5% over the past year, with analysts projecting revenue growth of 4.6% in 2025 [27]