Workflow
Bandwidth Announces Second Quarter 2024 Financial Results
BANDBandwidth(BAND) Prnewswire·2024-08-01 10:29

Core Insights - Bandwidth Inc. reported a revenue of 174millionforQ22024,representinga19174 million for Q2 2024, representing a 19% increase year-over-year, alongside significant progress in profitability and cash flow generation [1][2][3] - The company achieved an Adjusted EBITDA of 19 million, up 77% from the previous year, indicating strong operational performance [2][3] - Bandwidth's strategic investments and disciplined financial management have led to impressive free cash flow and operational efficiency, positioning the company for continued growth [2][3] Financial Highlights - Revenue for Q2 2024 was 174millioncomparedto174 million compared to 146 million in Q2 2023 [2] - Gross margin decreased to 37% from 40% year-over-year, while Non-GAAP gross margin improved to 56% from 55% [2][19] - Free cash flow for the quarter was 18million,reflectingstrongcashgenerationcapabilities[2][10]CustomerandOperationalHighlights−Bandwidthsecuredexclusivevoicecallingcontractswithanationwidemedicalclaimsmanagementprovider,highlightingtheeffectivenessofitsMaestroproduct[3]−AprominenthealthcareproviderselectedBandwidthforitscloudcontactcenter,valuingthereliabilityofitscommunicationscloudandCallAssureproduct[3]−AbusinessinsuranceprovidertransitionedtoBandwidthforvoicecalling,appreciatingtheAdvancedCallRoutingsolutionforitsresiliency[3]FinancialOutlook−BandwidthprovidedguidanceforQ32024revenuebetween18 million, reflecting strong cash generation capabilities [2][10] Customer and Operational Highlights - Bandwidth secured exclusive voice calling contracts with a nationwide medical claims management provider, highlighting the effectiveness of its Maestro product [3] - A prominent healthcare provider selected Bandwidth for its cloud contact center, valuing the reliability of its communications cloud and Call Assure product [3] - A business insurance provider transitioned to Bandwidth for voice calling, appreciating the Advanced Call Routing solution for its resiliency [3] Financial Outlook - Bandwidth provided guidance for Q3 2024 revenue between 180 million and 184million,andfull−yearrevenueguidanceof184 million, and full-year revenue guidance of 710 million to 720million[4]−AdjustedEBITDAguidanceforQ32024issetbetween720 million [4] - Adjusted EBITDA guidance for Q3 2024 is set between 18 million and 20million,withfull−yearguidanceof20 million, with full-year guidance of 72 million to $76 million [4] Company Overview - Bandwidth Inc. is a global cloud communications software company, providing solutions for voice calling, text messaging, and emergency services across 65+ countries [5] - The company serves major clients including Amazon Web Services, Cisco, Google, and Microsoft, emphasizing its role in the cloud communications revolution [5]