Reported quarterly and entire yr file income and file profitability

Completed web working coins stream of $84 million and file sovereign coins stream in 2024 

RALEIGH, N.C., Feb. 20, 2025 /PRNewswire/ — Bandwidth Inc. (NASDAQ: BAND), a world undertaking cloud communications corporate, lately introduced monetary effects for the fourth quarter and entire yr ended December 31, 2024.

“2024 was a transformative year for Bandwidth, delivering record financial results and groundbreaking product innovation,” mentioned David Morken, CEO of Bandwidth. “Our capabilities in Voice AI and enterprise-grade solutions are resonating strongly with customers, driving deeper adoption of our cloud communications platform. As we enter 2025, we believe we are well-positioned to capitalize on our momentum, expand our market leadership, and help our customers unlock new value through innovative AI-powered communications solutions.”

Fourth Quarter and Complete Pace 2024 Monetary Highlights

Please see desk summarizes the consolidated monetary highlights for the 3 months and years ended December 31, 2024 and 2023 ($ in thousands and thousands).

“Bandwidth delivered outstanding financial results in 2024, with 25 percent revenue growth, record non-GAAP gross margin, and a 70 percent increase in Adjusted EBITDA,” mentioned Daryl Raiford, Bandwidth’s Leading Monetary Officer. “Our business momentum remains strong, driven by enterprise adoption, AI-driven product innovation, and disciplined execution. Looking forward to 2025, we are guiding normalized revenue growth in the range of 8 to 11 percent, accompanied by continued growth in profitability and related free cash flow.”

Fourth Quarter Buyer and Operational Highlights

• A Fortune 25 healthcare corporate selected Bandwidth to handover expression services and products for his or her cloud touch middle, using Maestro’s integration to seamlessly transition between CCaaS platforms.
• A leading world cruise series decided on Bandwidth for his or her first-ever cloud touch middle deployment, in the hunt for capacity and versatility for modern and while verbal exchange wishes. Maestro’s integration ensured a clean migration to the cloud, date Bandwidth’s owner-operated community equipped mission-critical reliability.
• Bandwidth used to be named a Chief for the fourth consecutive era within the IDC MarketScape: International CPaaS 2025 Supplier Evaluation (document #US52039625, Feb. 2025).

Monetary Outlook

Bandwidth is offering steerage for its first quarter and entire yr 2025 as follows (in thousands and thousands) in accordance with modern indications for its industry.

For the entire yr 2025, Bandwidth’s income steerage initiatives 8 p.c to 11 p.c year-over-year enlargement when adjusting for the anticipated cyclical relief in political marketing campaign messaging process, which led to income within the first quarter and entire yr 2024 of roughly $8 million and $62 million, respectively.

Bandwidth has no longer reconciled its first quarter and entire yr 2025 steerage alike to Adjusted EBITDA to GAAP web source of revenue or loss, as a result of stock-based repayment can’t be relatively calculated or predicted at this era. Accordingly, a reconciliation isn’t to be had with out unreasonable aim.

After Investor Convention Time table

• Electorate JMP Era Convention in San Francisco, CA. Fireplace chat with David Morken, CEO on Tuesday, March 4th at 9:30AM Pacific Hour.
• Morgan Stanley Era, Media, & Telecom Convention in San Francisco, CA. Fireplace chat with David Morken, CEO on Tuesday, March 4th at 1:50PM Pacific Hour.

About Bandwidth Inc.

Bandwidth (NASDAQ: BAND) is an international cloud communications device corporate that is helping enterprises ship remarkable reports via expression calling, textual content messaging and situation services and products. Our answers and our Communications Cloud, protecting 65+ international locations and over 90 p.c of worldwide GDP, are relied on through the entire leaders in unified communications and cloud touch facilities–together with Amazon Internet Products and services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–in addition to World 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 world Communications Platform-as-a-Carrier (CPaaS) to deal a singular mixture of composable APIs, AI features, owner-operated community and huge regulatory revel in. Our award-winning backup groups aid companies world wide remedy complicated communications demanding situations to achieve someone, anyplace. For more info, talk over with www.bandwidth.com.

Convention Name

Bandwidth will host a convention name to speak about monetary effects for the fourth quarter and entire yr ended December 31, 2024 on February 20, 2025. Main points will also be discovered underneath and at the investor category of its web site at https://investors.bandwidth.com the place a replay may also be to be had in a while following the decision.

Convention Name Main points

February 20, 2025
8:00 am ET
Home dial-in:
844-481-2707
Global dial-in:
412-317-0663

Replay knowledge

An audio replay of this convention name will likely be to be had via February 27, 2025 through dialing 877-344-7529 or 412-317-0088 for world callers, and getting into passcode 9463646.

Ahead-Having a look Statements

This press let fall contains forward-looking statements. All statements contained on this press let fall alternative than statements of historic details, together with, with out limitation, while monetary and industry efficiency for the quarter finishing March 31, 2025 and yr finishing December 31, 2025, the luck of our product choices and our platform, and the price 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 meant to spot forward-looking statements. Now we have founded those forward-looking statements in large part on our modern expectancies and projections about while occasions and fiscal developments that we imagine would possibly impact our monetary status, result of operations, industry technique, momentary and long-term industry operations and targets and fiscal wishes. Those forward-looking statements are matter to numerous dangers and uncertainties, together with, with out limitation, dangers alike to our fast enlargement and talent to maintain our income enlargement price, pageant within the markets through which we perform, marketplace enlargement, our talent to innovate and top our enlargement, our talent to enlarge successfully into unused markets, macroeconomic situations each within the U.S. and globally, felony, reputational and fiscal dangers which would possibly end result from ever-evolving cybersecurity blackmails, our talent to perform in compliance with acceptable rules, in addition to alternative dangers and uncertainties eager forth within the “Risk Factors” category of our original Method 10-Okay filed with the Securities and Change Fee (the “SEC”) and any next experiences that we report with the SEC. Additionally, we perform in an excessively aggressive and unexpectedly converting atmosphere. Untouched dangers emerge from era to era. It isn’t conceivable for our control to expect all dangers, nor are we able to assess the have an effect on of all components on our industry or the level to which any issue, or mixture of things, would possibly purpose original effects to fluctuate materially from the ones contained in any forward-looking statements we would possibly manufacture. In brightness of those dangers, uncertainties and guesses, we can’t word while effects, ranges of process, efficiency, achievements or occasions and instances mirrored within the forward-looking statements will happen. We’re below refuse legal responsibility to replace any of those forward-looking statements later the generation of this press let fall to adapt those statements to original effects or revised expectancies, apart from as required through regulation. You must, subsequently, no longer depend on those forward-looking statements as representing our perspectives as of any generation next to the generation of this press let fall.

Non-GAAP Monetary Measures

To complement our condensed consolidated monetary statements, which might be ready and offered according to most often authorised accounting rules in the US, or GAAP, we handover traders with positive Non-GAAP monetary measures and alternative industry metrics, which we imagine are useful to our traders. We utility those Non-GAAP monetary measures and alternative industry metrics for monetary and operational decision-making functions and as a method to guage period-to-period comparisons. We imagine that those Non-GAAP monetary measures and alternative industry metrics handover helpful details about our working effects, make stronger the full working out of moment monetary efficiency and while possibilities and make allowance for higher transparency with recognize to metrics impaired through our control in its monetary and operational decision-making.

The presentation of Non-GAAP monetary knowledge and alternative industry metrics isn’t intended to be thought to be in isolation or as an alternative to the at once similar monetary measures ready according to GAAP. Presen our Non-GAAP monetary measures and alternative industry metrics are an noteceable software for monetary and operational decision-making and for comparing our personal working effects over other classes of era, we urge traders to study the reconciliation of those monetary measures to the similar GAAP monetary measures integrated underneath, and to not depend on any unmarried monetary measure to guage our industry.

We outline Non-GAAP improper benefit as improper benefit later including again depreciation, amortization of obtained intangible belongings alike to acquisitions and stock-based repayment. We upload again depreciation, amortization of obtained intangible belongings alike to acquisitions and stock-based repayment as a result of they’re non-cash pieces. We do away with the have an effect on of those non-cash pieces, as a result of we don’t believe them indicative of our core working efficiency. Their exclusion facilitates comparisons of our working efficiency on a period-to-period foundation. Subsequently, we imagine that appearing improper margin, as adjusted to take away the have an effect on of those non-cash bills, is useful to traders in assessing our improper benefit and improper margin efficiency in some way this is related to how control assesses our efficiency. We calculate Non-GAAP improper margin through dividing Non-GAAP improper benefit through 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 positive pieces affecting era to era comparison. Non-GAAP web source of revenue (loss) excludes stock-based repayment, amortization of obtained 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, (achieve) loss on sale of commercial, web (achieve) loss on extinguishment of debt, achieve on industry interruption insurance coverage healings, non-recurring pieces no longer indicative of ongoing operations and alternative, and estimated tax have an effect on 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 removal of positive remark 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 repayment expense, impairment of intangible belongings, (achieve) loss on sale of commercial, web price related to early hire terminations and rentals with out financial receive advantages, web (achieve) loss on extinguishment of debt, achieve on industry interruption insurance coverage healings, and non-recurring pieces no longer indicative of ongoing operations and alternative. Now we have offered Adjusted EBITDA as a result of this can be a key measure impaired through our control and board of administrators to know and overview our core working efficiency and developments, generate while working plans, and manufacture strategic selections in regards to the allocation of capital. Specifically, we imagine that the exclusion of positive pieces in calculating Adjusted EBITDA can build an invaluable measure for period-to-period comparisons of our industry.

We outline sovereign coins stream as web coins equipped through or impaired in working actions much less web coins impaired within the acquisition of constituent, plant and kit and capitalized building prices for device for interior utility. We imagine sovereign coins stream is an invaluable indicator of liquidity and offers 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 industry. Sovereign coins stream has positive boundaries in that it does no longer constitute the whole build up or scale down within the coins steadiness for the era, it does no longer think about funding in long-term securities, nor does it constitute the residual coins flows to be had for discretionary expenditures. Subsequently, it’s noteceable to guage sovereign coins stream at the side of our condensed consolidated statements of money flows.

We imagine that those Non-GAAP monetary measures handover helpful details about our working effects, make stronger the full working out of moment monetary efficiency and while possibilities and make allowance for higher transparency with recognize to metrics impaired through our control in its monetary and operational decision-making. Presen a reconciliation of Non-GAAP steerage measures to corresponding GAAP measures isn’t to be had on a forward-looking foundation on account of the suspicion referring to, and the prospective variability of, many of those prices and bills that we would possibly incur going forward, we have now equipped a reconciliation of Non-GAAP monetary measures and alternative industry metrics to the after similar GAAP measures within the accompanying monetary remark tables integrated on this press let fall.

The Corporate identified overall stock-based repayment expense as follows:

SOURCE Bandwidth Inc.