NEW YORK (TheStreet) -- Vonage Holdings (VG - Get Report) has "a great brand, great team, and great technology," according to its new CEO, Alan Masarek. The company is forging its way into the small enterprise business, which continues to grow at a rapid pace.

In the most recent quarter, 20% of the company's revenues came from enterprise, which is substantially higher than the 3% of revenues it represented in the same quarter last year.

"The focus is on enterprise," Massarek said, but "the consumer space will still be very, very important to us as well."

Shares of Vonage are essentially flat over the past twelve months, rising just 1.1%. The stock climbed as high $4.95 in January, but has fizzled since. 

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Vonage Holdings VG data by YCharts

Vonage's current enterprise business, called Vonage Business Solutions, typically handles small- to medium-sized businesses with fewer than 50 phone lines. However, with the company's most recent acquisition of Telesphere, Vonage can look to expand its enterprise business.

Masarek explained that Telesphere, the cloud-based communications platform, can handle anywhere from 50 phone lines to 1,000 phone lines, which vastly expands Vonage's opportunities and ability to provide service for larger companies. This should help drive revenues higher as well.

The solutions don't stop there, he said. The company is constantly coming up with new applications and products in order to benefit the customer experience.

People don't just talk on phones anymore, Masarek reasoned, they also use text and video as a means for communication. For that reason, the company plans on unveiling several new innovative products in 2015, he concluded.

-- Written by Bret Kenwell

Follow @BretKenwell

TheStreet Ratings team rates VONAGE HOLDINGS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate VONAGE HOLDINGS CORP (VG) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."

You can view the full analysis from the report here: VG Ratings Report