Bandwidth (BAND) Reports Fourth Quarter And Full Year 2024 Financial Earnings Results

Bandwidth Inc. (BAND) today announced its financial results for the latest quarter, revealing a mixed performance. The company reported a quarterly revenue of $209.97 million, surpassing expectations and marking a revenue beat by $6.29 million. However, Bandwidth Inc. faced a setback on the earnings front, posting a quarterly diluted earnings per share of -$0.06, which fell short of the estimated $0.39, resulting in an earnings miss.

Key Highlights:

• Bandwidth Inc. reported record revenue and profitability for the fourth quarter and full year 2024, with a 25% increase in revenue and a 70% increase in Adjusted EBITDA.
• The company achieved a net operating cash flow of $84 million and record free cash flow in 2024.
• Bandwidth’s Voice AI and enterprise-grade solutions have driven deeper adoption of its cloud communications platform.
• The company was named a Leader in the IDC MarketScape: Worldwide CPaaS 2025 Vendor Assessment.
• Bandwidth’s financial outlook for 2025 includes projected revenue growth of 8% to 11% and continued growth in profitability and free cash flow.

Summary:

Bandwidth Inc. experienced a transformative year in 2024, achieving record financial results and significant product innovation. The company’s revenue grew by 25% to $748 million, and Adjusted EBITDA increased by 70% to $82 million. CEO David Morken highlighted the strong customer adoption of Bandwidth’s Voice AI and enterprise-grade solutions, which have been key drivers of growth. As the company enters 2025, it aims to capitalize on its momentum and expand its market leadership by offering innovative AI-powered communications solutions. Bandwidth’s financial performance was further bolstered by a net operating cash flow of $84 million and record free cash flow, demonstrating its strong business momentum and disciplined execution.

Looking ahead, Bandwidth’s financial outlook for 2025 is optimistic, with projected revenue growth of 8% to 11% and continued growth in profitability and free cash flow. CFO Daryl Raiford emphasized the company’s strong business momentum, driven by enterprise adoption and AI-driven product innovation. Bandwidth’s strategic focus on expanding its market leadership and helping customers unlock new value through its cloud communications platform positions it well for future growth. The company also received recognition as a Leader in the IDC MarketScape: Worldwide CPaaS 2025 Vendor Assessment, further solidifying its position in the industry.

Bandwidth Inc. (BAND) has experienced a rollercoaster ride in its stock price over the past year, with a notable 33.85% increase, despite a recent one-week dip of 5.24%. The company’s one-month surge of 16.52% suggests a strong recovery or positive market sentiment, which is further supported by a modest 1.78% rise over three months and a 5.61% increase over six months. However, the fundamental metrics paint a more complex picture. With a negative price-to-earnings ratio of -28.87, Bandwidth Inc. is currently unprofitable, as reflected in its negative net profit margin of -2.37%. The company’s return on invested capital is also in the red at -3.26%, indicating inefficiencies in generating returns from its investments. Despite these challenges, the impressive earnings per share (EPS) two-year compound annual growth rate (CAGR) of 82.80% and a revenue CAGR of 13.93% suggest potential for future growth. Investors may be cautiously optimistic, weighing the company’s growth prospects against its current financial struggles.

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service (CPaaS) provider in the United States. The company operates in two segments, CPaaS and Other. Its platform enables enterprises to create, scale, and operate voice or messaging communications services across various mobile applications or connected devices. The company also provides SIP trunking, data resale, and hosted voice over Internet protocol services. It serves large enterprises, communications service providers, conferencing providers, contact centers, small and medium-sized businesses, emerging technology companies, and many other businesses. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina.