#United States #Raleigh #Voice AI #CPaaS #Bandwidth Inc.

Bandwidth Inc. Reports Stellar 2024 Financial Year

In an impressive display of financial performance, Bandwidth Inc. (NASDAQ: BAND), a pioneering cloud communications provider, shared its financial results for both the fourth quarter and the complete year ending December 31, 2024. The company not only achieved record revenues but also saw substantial improvements in profitability metrics for the year.

Overview of Financial Performance

According to Bandwidth's CEO, David Morken, 2024 was a transformative year marked by organizational growth and groundbreaking product innovations. Key highlights of the report include:

• - Fourth Quarter Revenue: $210 million, a notable increase from $165 million in 2023.
• - Full Year Revenue: $748 million, climbing from $601 million the previous year.
• - Adjusted EBITDA: $82 million, showcasing a 70% growth from 2023.
• - Free Cash Flow: Reached a record high of $59 million, indicating strong operational cash flow.

Morken emphasized how Bandwidth’s capabilities in Voice AI and enterprise-grade solutions have resonated with clients, enhancing the adoption of their cloud communications platform in a competitive market.

Financial Insights

A detailed look at the financial metrics reveals:

• - Gross Margin: 37% for the year, slightly down from 39% in 2023, reflecting heightened operational costs.
• - Non-GAAP Gross Margin: Improved to 57%, indicating increased operational efficiency in its core business.
• - Net Loss: Reduced to $6.5 million from $16.3 million year-over-year, showing meaningful progress in controlling expenses while delivering revenue growth.

As Bandwidth moves into 2025, it anticipates a revenue growth in the range of 8% to 11%, despite facing potential cyclical downturns in political campaign messaging which previously boosted revenues.

Operating Highlights and Customer Engagement

Noteworthy operational achievements included securing a major contract with a Fortune 25 healthcare company for voice services in their cloud contact center, utilizing the Maestro integration to ensure a seamless transition between platforms. Additionally, a prominent global cruise line partnered with Bandwidth for its first cloud contact center deployment, highlighting the flexibility and capability that Bandwidth’s services provide to various sectors.

Furthermore, Bandwidth has been recognized as a Leader in the IDC MarketScape Worldwide CPaaS Vendor Assessment for the fourth consecutive year, underlining its influential position in the cloud communications market.

Looking Forward

As the company gears up for 2025, Bandwidth is set to participate in notable investor conferences, such as the JMP Technology Conference and the Morgan Stanley Technology Conference, allowing executive leadership to share insights on their continued growth strategy.

In conclusion, with two years of strong financial results under its belt and a strategic focus on advanced communication solutions, Bandwidth is poised to leverage its innovative capabilities in the evolving landscape of cloud communications. The company's strategic investments in AI and enterprise solutions are expected to further drive customer engagement and expand their market leadership as they head into a new year of growth and opportunity.