Bandwidth Pronounces 3rd Quarter 2024 Monetary Effects

Exceeded income and profitability steering levels

Elevating complete future 2024 steering for income and profitability

RALEIGH, N.C., Oct. 31, 2024 /PRNewswire/ — Bandwidth Inc. (NASDAQ: BAND), a important international undertaking cloud communications corporate, nowadays introduced monetary effects for the 3rd quarter ended September 30, 2024.

“We’re pleased to report solid momentum carrying us into the end of the year, with record revenue and profitability performance, strong conversion to free cash flow and continued operating discipline,” mentioned David Morken, CEO of Bandwidth. “These results are driven by the trust our customers place in us to deliver their business-critical services. We are excited by our new, next-generation Universal Platform as the foundation of our strong innovation roadmap, demonstrating a clear focus on the needs of the world’s largest enterprises.”

3rd Quarter 2024 Monetary Highlights

Refer to desk summarizes the condensed consolidated monetary highlights for the 3 and 9 months ended September 30, 2024 and 2023 ($ in tens of millions).

“Bandwidth delivered a record third quarter, with growth across all our products and customer categories. Total revenue reached $194 million, marking a 28 percent increase, and Adjusted EBITDA grew to $24 million, representing a 74 percent increase year-over-year. Both metrics surpassed the upper range of our guidance, leading us to raise our full-year outlook on both the top and bottom lines” mentioned Daryl Raiford, Bandwidth’s Leading Monetary Officer. “Our priorities remain consistent: to serve and delight our customers, execute with precision and stay committed to long-term, profitable growth.”

3rd Quarter Buyer and Operational Highlights

• Presented the next-generation Common Platform bringing the ability of Bandwidth in a single constant international enjoy for all real-time communications wishes, with pristine options, upgraded features, and a modernized international community foot the platform to construct it more straightforward to consolidate and make bigger into pristine markets world wide.
• Bandwidth introduced it now offer the biggest ecosystem of bring-your-own-carrier (BYOC) integrations of any supplier on the earth inside the Maestro communications platform – giving enterprises extra tactics to unravel advanced communications demanding situations.
• Bandwidth has registered as an RBM (RCS Trade Messaging) spouse with Google, atmosphere itself as much as permit RCS (Affluent prosperous Conversation Services and products) throughout all key markets.
• Bandwidth introduced Quantity Popularity Control is coming quickly as a option to right kind fake “spam” labels and construct certain undertaking’s pressing and noteceable cries are displayed as it should be so they are able to be responded.
• A high-volume affected person engagement platform switched to Bandwidth for textual content messaging. They wanted message deliverability contract and message efficiency insights to assure well timed affected person communications.
• A immense, varied credit score union selected Bandwidth to serve tone services and products for its pristine, modernized on-premise touch middle. Bandwidth’s all-IP community and Maestro platform made it simple for the buyer to combine with a contemporary tech stack and permits them so as to add pristine services and products going forward.

Monetary Outlook

Bandwidth’s outlook is according to latest indications for its trade, which can be topic to switch. Bandwidth is offering steering for its fourth quarter and whole future 2024 as follows (in tens of millions):

Bandwidth has no longer reconciled its fourth quarter and whole future 2024 steering alike to Adjusted EBITDA to GAAP web source of revenue or loss, as a result of stock-based reimbursement can’t be relatively calculated or predicted at this date. Accordingly, a reconciliation isn’t to be had with out unreasonable aim.

After Investor Convention Time table

• Barclays International Era Convention in San Francisco, CA. Conferences with John Bell, Leading Product Officer and Shiv Hira, EVP Finance on Wednesday, December eleventh, 2024.

About Bandwidth Inc.

Bandwidth (NASDAQ: BAND) is an international cloud communications device corporate that is helping enterprises ship outstanding studies by way of tone calling, textual content messaging and crisis services and products. Our answers and our Communications Cloud, protecting 65+ nations and over 90 % of worldwide GDP, are depended on by way of the entire leaders in unified communications and cloud touch facilities–together with Amazon Internet Services and products (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–in addition to International 2000 enterprises and SaaS developers like Docusign, Uber and Yosi Fitness. As a founding father of the cloud communications revolution, we’re the first and simplest international Communications Platform-as-a-Carrier (CPaaS) to deal a novel mixture of composable APIs, AI features, owner-operated community and extensive regulatory enjoy. Our award-winning assistance groups backup companies world wide remedy advanced communications demanding situations to achieve somebody, anyplace. For more info, discuss with www.bandwidth.com.

Income webcast
Bandwidth will host a webcast to speak about monetary effects for the 3rd quarter ended September 30, 2024 on October 31, 2024. Main points can also be discovered under and at the investor category of its web site at https://investors.bandwidth.com the place a replay can also be to be had in a while following the development.

Webcast Main points
October 31, 2024
8:00 am ET

To view are living tournament and replay traders and analysts can check in at investors.bandwidth.com

Ahead-Having a look Statements

This press leave contains forward-looking statements. All statements contained on this press leave alternative than statements of ancient information, together with, with out limitation, while monetary and trade efficiency for the quarter and future finishing December 31, 2024, the good fortune of our product choices and our platform, and the worth proposition of our merchandise, are forward-looking statements. The phrases “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “intend,” “guide,” “may,” “will” and related expressions and their negatives are supposed to spot forward-looking statements. We have now founded those forward-looking statements in large part on our latest expectancies and projections about while occasions and monetary developments that we consider would possibly impact our monetary status, result of operations, trade technique, temporary and long-term trade operations and targets and monetary wishes. Those forward-looking statements are topic to plenty of dangers and uncertainties, together with, with out limitation, dangers alike to our speedy enlargement and skill to maintain our income enlargement fee, festival within the markets by which we function, marketplace enlargement, our talent to innovate and supremacy our enlargement, our talent to make bigger successfully into pristine markets, macroeconomic statuses each within the U.S. and globally, felony, reputational and monetary dangers which would possibly end result from ever-evolving cybersecurity warnings, our talent to function in compliance with acceptable regulations, in addition to alternative dangers and uncertainties poised forth within the “Risk Factors” category of our unedited Method 10-Okay filed with the Securities and Trade Fee (the “SEC”) and any next stories that we document with the SEC. Additionally, we function in an excessively aggressive and hastily converting situation. Untouched dangers emerge from date to date. It’s not conceivable for our control to expect all dangers, nor are we able to assess the affect of all components on our trade or the level to which any issue, or mixture of things, would possibly motive latest effects to vary materially from the ones contained in any forward-looking statements we would possibly construct. In sunny of those dangers, uncertainties and suppositions, we can not contract while effects, ranges of process, efficiency, achievements or occasions and cases mirrored within the forward-looking statements will happen. We’re beneath negative legal responsibility to replace any of those forward-looking statements nearest the life of this press leave to evolve those statements to latest effects or revised expectancies, except for as required by way of regulation. You will have to, subsequently, no longer depend on those forward-looking statements as representing our perspectives as of any life next to the life of this press leave.

Non-GAAP Monetary Measures

To complement our condensed consolidated monetary statements, which can be ready and offered in response to normally permitted accounting ideas in the USA, or GAAP, we serve traders with sure Non-GAAP monetary measures and alternative trade metrics, which we consider are useful to our traders. We importance those Non-GAAP monetary measures and alternative trade metrics for monetary and operational decision-making functions and as a method to guage period-to-period comparisons. We consider that those Non-GAAP monetary measures and alternative trade metrics serve helpful details about our working effects, support the total working out of life monetary efficiency and while potentialities and make allowance for larger transparency with admire to metrics impaired by way of our control in its monetary and operational decision-making.

The presentation of Non-GAAP monetary knowledge and alternative trade metrics isn’t supposed to be regarded as in isolation or as an alternative to the immediately similar monetary measures ready in response to GAAP. Generation our Non-GAAP monetary measures and alternative trade metrics are an noteceable software for monetary and operational decision-making and for comparing our personal working effects over other sessions of date, we urge traders to check the reconciliation of those monetary measures to the similar GAAP monetary measures integrated under, and to not depend on any unmarried monetary measure to guage our trade.

We outline Non-GAAP rude benefit as rude benefit nearest including again depreciation, amortization of got intangible belongings alike to acquisitions and stock-based reimbursement. We upload again depreciation, amortization of got intangible belongings alike to acquisitions and stock-based reimbursement as a result of they’re non-cash pieces. We get rid of the affect of those non-cash pieces, as a result of we don’t imagine them indicative of our core working efficiency. Their exclusion facilitates comparisons of our working efficiency on a period-to-period foundation. Due to this fact, we consider that appearing rude margin, as adjusted to take away the affect of those non-cash bills, is useful to traders in assessing our rude benefit and rude margin efficiency in some way this is related to how control assesses our efficiency. We calculate Non-GAAP rude margin by way of dividing Non-GAAP rude benefit by way of cloud communications income, which is income much less pass-through messaging surcharges.

We outline Non-GAAP web source of revenue (loss) as web source of revenue or loss adjusted for sure pieces affecting era to era comparison. Non-GAAP web source of revenue (loss) excludes stock-based reimbursement, amortization of got intangible belongings alike to acquisitions, amortization of debt bargain and issuance prices for convertible debt, acquisition alike bills, impairment fees of intangibles belongings, web price related to early hire terminations and rentals with out financial receive advantages, (acquire) loss on sale of commercial, web (acquire) loss on extinguishment of debt, acquire on trade interruption insurance coverage cures, non-recurring pieces no longer indicative of ongoing operations and alternative, and estimated tax affect of above changes, web of valuation allowances.

We outline Adjusted EBITDA as web source of revenue or losses from proceeding operations, adjusted to replicate the addition or removing of sure commentary of operations pieces together with, however no longer restricted to: source of revenue tax (receive advantages) provision, pastime (source of revenue) expense, web, depreciation and amortization expense, acquisition alike bills, stock-based reimbursement expense, impairment of intangible belongings, (acquire) loss on sale of commercial, web price related to early hire terminations and rentals with out financial receive advantages, web (acquire) loss on extinguishment of debt, acquire on trade interruption insurance coverage cures, and non-recurring pieces no longer indicative of ongoing operations and alternative. We have now offered Adjusted EBITDA as a result of this can be a key measure impaired by way of our control and board of administrators to know and overview our core working efficiency and developments, generate while working plans, and construct strategic selections in regards to the allocation of capital. Specifically, we consider that the exclusion of sure pieces in calculating Adjusted EBITDA can construct an invaluable measure for period-to-period comparisons of our trade.

We outline sovereign coins tide as web coins supplied by way of or impaired in working actions much less web coins impaired within the acquisition of attribute, plant and kit and capitalized building prices for device for interior importance. We consider sovereign coins tide is an invaluable indicator of liquidity and gives knowledge to control and traders about the amount of money generated from our core operations that may be impaired for making an investment in our trade. Distant coins tide has sure barriers in that it does no longer constitute the full building up or trim within the coins stability for the era, it does no longer take into accounts funding in long-term securities, nor does it constitute the residual coins flows to be had for discretionary expenditures. Due to this fact, it’s noteceable to guage sovereign coins tide together with our condensed consolidated statements of money flows.

We consider that those Non-GAAP monetary measures serve helpful details about our working effects, support the total working out of life monetary efficiency and while potentialities and make allowance for larger transparency with admire to metrics impaired by way of our control in its monetary and operational decision-making. Generation a reconciliation of Non-GAAP steering measures to corresponding GAAP measures isn’t to be had on a forward-looking foundation because of the hesitation referring to, and the possible variability of, many of those prices and bills that we would possibly incur going forward, we’ve got supplied a reconciliation of Non-GAAP monetary measures and alternative trade metrics to the after similar GAAP measures within the accompanying monetary commentary tables integrated on this press leave.

SOURCE Bandwidth Inc.

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