What happened Shares of Vonage (NYSE: VG) are soaring today, up by 12.5% as of 2:05 p.m. EST, after the communications specialist reported third-quarter earnings. The results topped consensus estimates and the company is making progress on its efforts to sell its consumer business. So what Revenue in the third quarter was $317 million, topping the consensus analyst estimate of $308.3 million. That resulted in adjusted net income of $17 million, or $0.07 per share, compared to the $0.03 per share in adjusted profits that Wall Street was expecting. The communications company announced a new initiative to review its operations in an effort to improve efficiency and drive profitability. Image source: Getty Images. "We executed well in the third quarter and delivered solid results," CEO Rory Read said in a statement. "The Vonage Communications Platform, our single global cloud technology platform, delivers our wide range of powerful services and solutions that enable our customers to transform the way they communicate and operate as the world undergoes a secular shift in how business gets done." Now what As a result of the operational review, Vonage has implemented various cost cuts that should reduce operating expenses by $8 million to $10 million in the fourth quarter. The company had previously announced in February that it was initiating a strategic review of its consumer segment to evaluate a potential sale, allowing it to focus on its enterprise business. Vonage says it is nearing completion of that process and has tapped advisors to proceed with a sale, with the marketing process kicking off this month. In terms of guidance, revenue in the fourth quarter is expected to be in the range of $314 million to $317 million. Analysts are currently modeling for $309.4 million in sales. 10 stocks we like better than Vonage HoldingsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Vonage Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source