Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $174 million, a 7% year-over-year increase, normalized for 2024 cyclical political campaign revenue of $8 million [19] - Cloud communications revenue reached $133 million, reflecting a 6% year-over-year increase, also normalized for 2024 political campaign revenue [19] - Non-GAAP gross profit was $79 million, an 8% year-over-year increase, with a non-GAAP gross margin improvement to 59%, a two percentage point increase [20] - EBITDA grew by 40% to $22 million, exceeding expectations due to higher revenue and stronger margins [20] - Free cash flow performance was as expected, influenced by capital expenditures and working capital timing [20] Business Line Data and Key Metrics Changes - Enterprise Voice revenue grew 26% year-over-year, driven by strong demand from financial services and healthcare customers [21] - Global Voice Plans revenue increased by 4% year-over-year, supported by long-term customer expansions and new business from channel partnerships [21] - Programmable messaging accounted for 19% of cloud communications revenue, with a 9% year-over-year increase, driven by demand in key verticals [21] Market Data and Key Metrics Changes - The net retention rate for Q1 was 116%, with customer name retention above 99% [22] - Average annual revenue per customer reached a record $228,000, or $211,000 when excluding the political campaign benefit in 2024 [23] Company Strategy and Development Direction - The company is focused on disciplined execution, innovation, and delivering essential communications, with a strong emphasis on core platform growth [16] - The strategy includes expanding partnerships with managed service providers (MSPs) and system integrators to enhance market reach [30] - The company aims for double-digit core platform growth, profit expansion, and strengthening its capital structure for the full year 2025 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic volatility, with no anticipated material impact from current tariff environments [19] - The company raised its full-year revenue outlook to a range of $745 million to $760 million, reflecting increased organic growth expectations [24] - Management highlighted the importance of AI integration in driving growth across all product categories, emphasizing the effectiveness of AI voice solutions [70] Other Important Information - The company received two Gold Stevie Awards for innovation in customer service and customer engagement initiatives [16] - Capital expenditures for the quarter were $10 million, focused on network expansion activities [23] Q&A Session Summary Question: Insights on enterprise voice growth and pipeline - Management noted a strong pipeline for enterprise voice customers, with more million-dollar deals signed in the quarter than ever before, indicating robust growth potential [29][30] Question: Confidence in back half of the year amidst uncertainty - Management expressed confidence in continued growth driven by enterprise voice traction and a resilient voice business, while acknowledging potential risks in programmable messaging [35][36] Question: Drivers behind increased average revenue per customer - The increase is attributed to more enterprise voice customers utilizing the Maestro platform and expanding their business, along with cross-selling opportunities [39][40] Question: Future of the partner ecosystem - Management highlighted the growing contribution from partnerships with large MSPs, which are expected to enhance deal cycle efficiency and complexity management [45][46] Question: AI's role in growth across product categories - AI is seen as a significant growth driver, enhancing customer experiences and operational efficiencies across global voice, enterprise voice, and programmable messaging [66][70]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $174 million, a 7% year-over-year increase, normalized for 2024 cyclical political campaign revenue of $8 million [20] - Cloud communications revenue reached $133 million, reflecting a 6% year-over-year increase, also normalized for 2024 political campaign revenue [20] - Non-GAAP gross profit increased to $79 million, marking an 8% year-over-year growth, with a non-GAAP gross margin improvement to 59%, a two percentage point increase [21] - EBITDA grew by 40% to $22 million, exceeding expectations due to higher revenue and stronger margins [21] - Free cash flow performance was as expected, influenced by capital expenditures and working capital timing [21] Business Line Data and Key Metrics Changes - Enterprise Voice revenue grew 26% year-over-year, driven by strong demand from financial services and healthcare customers [22] - Global Voice Plans revenue increased by 4% year-over-year, supported by long-term customer expansions and new business from channel partnerships [22] - Programmable messaging accounted for 19% of cloud communications revenue, with a 9% year-over-year increase, driven by demand in key verticals including e-commerce and financial services [22] Market Data and Key Metrics Changes - The net retention rate for Q1 was 116%, with customer name retention above 99% [22] - Average annual revenue per customer reached a record $228,000, or $211,000 when excluding the political campaign benefit in 2024 [22] Company Strategy and Development Direction - The company is focused on disciplined execution, innovation, and delivering essential communications, with a strong emphasis on the Maestro platform for enterprise voice and AI integration [6][10] - The strategy includes expanding partnerships with managed service providers (MSPs) and system integrators to enhance market reach and customer engagement [11][31] - The company aims for double-digit core platform growth, profit expansion, and strengthening its capital structure in 2025 [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite macroeconomic volatility, raising the full-year revenue outlook to $745 million to $760 million [20][25] - The company anticipates continued growth in enterprise voice and global voice plans, with a focus on maintaining strong customer relationships and expanding service offerings [34][36] - Management acknowledged potential risks in programmable messaging due to its exposure to retail and digital engagement markets, but emphasized the essential nature of voice communications [36] Other Important Information - The company received two Gold Stevie Awards for innovation in customer service and customer engagement initiatives, reflecting its commitment to customer satisfaction [17] - The company ended the quarter with a cash and securities balance of $42 million and no borrowings under its credit line [23] Q&A Session Summary Question: Insights on enterprise voice growth and pipeline - Management reported a strong pipeline for enterprise voice customers, with more million-dollar deals signed than ever before, indicating robust growth potential [30] Question: Confidence in back half of the year amidst market uncertainty - Management raised the second half outlook, expecting double-digit organic growth driven by enterprise voice and global voice plans, while monitoring risks in programmable messaging [34][36] Question: Drivers behind increased average revenue per customer - The increase is attributed to more enterprise voice customers utilizing the Maestro platform and expanding their business, along with cross-selling opportunities [39] Question: Durability of gross margin performance - Management expects margins to remain stable throughout the year, with confidence in achieving medium-term targets [41] Question: Future of the partner ecosystem and its contribution - Management highlighted the growing importance of partnerships with MSPs and the potential for increased sales through these channels [45][49] Question: Strategies to regain share in the messaging business - The focus will be on driving deliverability and expanding channels, including RCS and RBM, to enhance customer engagement and grow the messaging business [51][54] Question: Success factors in the healthcare vertical - The Maestro platform's ability to integrate innovation into complex healthcare environments is a key differentiator, with opportunities for expansion into other verticals like hospitality and manufacturing [58][60] Question: Key drivers for Global Voice business growth - Management expects Global Voice plans to double its growth rate, driven by onboarding new customers and leveraging channel partnerships [63]

Core Viewpoint - Bandwidth (BAND) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.27 per share a year ago, indicating a 24.14% earnings surprise [1] Financial Performance - Bandwidth achieved revenues of $174.24 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.18% and reflecting a year-over-year increase from $171.03 million [2] - The company has exceeded consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Stock Performance and Outlook - Bandwidth shares have declined approximately 27.9% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.31 for the upcoming quarter and $1.51 for the current fiscal year [7] Industry Context - The Communication - Infrastructure industry, to which Bandwidth belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Bandwidth's stock performance [5]

Financial Performance - Total revenue for 1Q25 was $752 million[15] - Cloud communications revenue for 1Q25 reached $545 million[15] - Adjusted EBITDA for 1Q25 grew by 50% year-over-year to $88 million[15] - Free cash flow for 1Q25 increased by 94% year-over-year to $50 million[15] - The company is raising full year 2025 total revenue growth guidance to 9-11% when normalized for 2024 cyclical political campaign revenue[36, 37] Revenue Growth - Total revenue grew by 7% year-over-year in 1Q25[18] - Cloud communications revenue grew by 6% year-over-year in 1Q25[18] - Enterprise Voice revenue grew by 26% year-over-year[19] Customer Metrics - Net Retention Rate (NRR) was 116%[12, 23] - Average annual customer revenue increased by 20% year-over-year[23] Gross Margin - Non-GAAP gross margin increased to 59%[44]

Financial Performance - First quarter 2025 revenue reached $174 million, exceeding guidance and showing a year-over-year increase from $171 million[1][4] - Adjusted EBITDA for Q1 2025 was $22 million, representing a 40% increase compared to $16 million in Q1 2024[4] - Bandwidth raised its full-year revenue guidance to a range of $745 million to $760 million, reflecting 9% to 11% year-over-year growth[9][10] - The company anticipates $178 million to $180 million in revenue for Q2 2025[10] - Revenue for the three months ended March 31, 2025, was $174,241 thousand, an increase of 1.3% from $171,033 thousand in the same period of 2024[25] - Gross profit increased to $71,512 thousand, representing a gross profit margin of 41%, up from 38% in the prior year[30] - Non-GAAP net income for the three months ended March 31, 2025, was $11,130 thousand, compared to $7,820 thousand in the same period of 2024[32] - Adjusted EBITDA for the quarter was $22,213 thousand, an increase from $15,923 thousand in the prior year[34] Loss and Cash Flow - Bandwidth reported a net loss of $4 million in Q1 2025, an improvement from a net loss of $9 million in Q1 2024[4] - Free cash flow for Q1 2025 was $(13) million, compared to $(4) million in Q1 2024[4] - Net loss for the quarter was $3,740 thousand, significantly improved from a net loss of $9,233 thousand in the same quarter of 2024[29] - Free cash flow for the quarter was $(13,295) thousand, compared to $(4,407) thousand in the same period of 2024[35] - Cash and cash equivalents at the end of the period were $36,155 thousand, down from $105,565 thousand at the end of the same quarter in 2024[29] Operational Highlights - The company is focusing on AI-powered communications through its Maestro platform, enhancing integration and infrastructure modernization for enterprises[2] - Bandwidth secured several new customer engagements, including a prominent healthcare provider and a publicly traded hospital group, highlighting its capabilities in cloud voice services and AI integration[13] - The company is actively participating in market expansion and strategic initiatives, as evidenced by its upcoming investor conference and updated investor presentation[11][12] Balance Sheet - Total current assets decreased to $151,412 thousand from $187,812 thousand as of December 31, 2024[27] - Total liabilities decreased to $618,968 thousand from $676,633 thousand as of December 31, 2024[27] - Stock-based compensation expense totaled $13,575 thousand, up from $12,339 thousand in the prior year[29] Gross Margin - Gross margin improved to 41% in Q1 2025, up from 38% in Q1 2024, while non-GAAP gross margin increased to 59% from 57%[4]

Core Viewpoint - Bandwidth Inc. announced its financial results for the first quarter ended March 31, 2025, highlighting its position as a leading global enterprise cloud communications company [1]. Company Overview - Bandwidth Inc. is a global cloud communications software company that provides voice calling, text messaging, and emergency services to enterprises [4]. - The company operates in over 65 countries and covers more than 90 percent of global GDP, serving major clients such as Amazon Web Services, Cisco, Google, Microsoft, and others [4]. - Bandwidth is recognized as the first and only global Communications Platform-as-a-Service (CPaaS) provider, offering a unique combination of composable APIs, AI capabilities, and a proprietary network [4]. Conference Call Details - A live webcast to discuss the financial results was scheduled for May 7, 2025, at 8:00 AM Eastern Time, with access available on the investor relations website [2]. - Dial-in numbers for the conference call were provided for both domestic and international participants [3]. - A replay of the conference call will be available until May 14, 2025, with specific dial-in information for accessing the replay [3].

Core Insights - Bandwidth Inc. is hosting The Texties, an award series recognizing excellence in business text messaging, with nominations open until May 21, 2025 [1][4] - The awards aim to highlight innovative messaging solutions that create significant business outcomes and transform industries [3][4] - Last year's winners demonstrated the effectiveness of messaging in various sectors, and this year’s awards seek to elevate the recognition of impactful messaging strategies [3] Company Overview - Bandwidth Inc. is a global cloud communications software company that provides voice calling, text messaging, and emergency services across 65+ countries, covering over 90% of global GDP [5] - The company serves a wide range of clients, including major tech firms like Amazon Web Services, Cisco, Google, and Microsoft, as well as Global 2000 enterprises and SaaS companies [5] - Bandwidth is recognized as a pioneer in the cloud communications sector, offering a unique combination of APIs, AI capabilities, and a robust owner-operated network [5] Award Criteria - The Texties will evaluate nominations based on measurable business impact, market differentiation, strategic adaptability, technological innovation, and contributions to social good and accessibility [7]

RALEIGH, N.C., April 15, 2025 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced it will report its financial results for the first quarter ended March 31, 2025 before market open on Wednesday, May 7, 2025. Bandwidth will offer a live webcast of the conference call on the Investor Relations section of the company's website at https://investors.bandwidth.com, where a replay will also be available shortly following the completion of the eve ...

Core Insights - Bandwidth Inc. is showcasing AI-ready, software-driven cloud communications at the Enterprise Connect Conference & Expo, emphasizing the empowerment of enterprise IT leaders to simplify complexity and enhance customer and employee experiences [1][2]. Company Overview - Bandwidth is a global cloud communications software company that provides solutions for voice calling, text messaging, and emergency services, covering over 65 countries and more than 90% of global GDP [8]. - The company is recognized as a leader in unified communications and cloud contact centers, partnering with major players like Amazon Web Services, Cisco, Google, Microsoft, and others [8]. Innovations and Solutions - Bandwidth Maestro™ is highlighted as an AI-ready enterprise communications platform, known for its extensive bring-your-own-carrier (BYOC) integrations, providing IT leaders with flexibility in building their communications tech stack [5]. - AIBridge is introduced as a voice AI enabler that facilitates the integration of AI-driven customer experiences, accelerating voice AI adoption for enterprises [5]. - The Universal Platform enhances customer experience through faster onboarding, automated workflow management, and compliance assistance, all managed via software APIs [5]. - Visual Builder via Maestro allows enterprises to create and deploy complex call routing with a no-code approach [5]. - Voice Authentication and Call Verification tools utilize AI and machine learning for automated fraud detection, ensuring secure customer interactions [5]. - Bandwidth Voice & Messaging Insights & Alerts provide real-time performance analytics to optimize call quality and message deliverability [5]. Conference Participation - Bandwidth executives are participating in multiple panels and sessions at the Enterprise Connect conference, addressing key industry challenges and opportunities [4]. - Specific sessions include discussions on UC/contact center strategies, spam call labeling, and modernizing enterprise communications [4][6]. Engagement Opportunities - Attendees at the Enterprise Connect can visit Bandwidth's booth 1411 for live demonstrations and to meet with experts [2][7].

Core Viewpoint - Bandwidth (BAND) shares have recently declined by 9.4% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, with reduced selling pressure, which could lead to a bullish trend for the stock [2][4]. - A hammer pattern forms when there is a small difference between opening and closing prices, with a long lower wick, suggesting that buying interest has emerged after a downtrend [3][4]. - This pattern is significant when it appears at the end of a downtrend, indicating that bears may have lost control and that bulls are gaining strength [4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for Bandwidth, which is a bullish indicator suggesting potential price appreciation [6]. - The consensus EPS estimate for the current year has increased by 4.8% over the last 30 days, indicating strong agreement among analysts regarding the company's improved earnings potential [7]. - Bandwidth currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].