The earnings call presented a positive outlook with record-breaking financial performance and innovative advancements. However, the company's reliance on political campaign revenue and uncertainties in new messaging technologies were noted as potential concerns.

Company Guidance

During Bandwidth's Third Quarter 2024 Earnings Call, the company shared an optimistic outlook for the upcoming year, thanks to their record performance in Q3. Total revenue reached $194 million, marking a 28% increase year-over-year, while adjusted EBITDA rose to $24 million, representing a 74% increase. The company raised its full-year revenue guidance to $742 million, reflecting a $27 million increase, driven by a 23% year-over-year revenue growth. Cloud communications revenue grew by 15%, with a significant contribution from the direct enterprise and programmable services categories, which increased by 30% and 55%, respectively. The net retention rate stood at 117%, and average revenue per user (ARPU) climbed to $212,000. Bandwidth anticipates generating over $50 million in free cash flow for 2024. Key product innovations announced at their user conference, Reverb24, are expected to continue driving revenue growth and margin expansion.

Record Revenue and Profitability

Bandwidth reported record revenue of $194 million for Q3 2024, a 28% increase year-over-year, and record adjusted EBITDA of $24 million, a 74% increase year-over-year.

Increased Full-Year Outlook

Due to overperformance in Q3, Bandwidth raised its full-year revenue guidance to $742 million, reflecting a $27 million increase from previous guidance.

Successful User Conference

Bandwidth hosted its first-ever user conference, Reverb24, engaging over 100 customers in person and 1,400 more globally, showcasing new innovations.

Growth in Cloud Communications

Cloud communications revenue reached $139 million, marking a 15% year-over-year increase, with significant growth in programmable services (55%) and direct enterprise customers (30%).

Strong Net Retention Rate

Net retention rate increased to 117%, with a 6 percentage point rise from the previous quarter.

Innovations Announced

Announced innovations include a nomadic emergency services solution, number reputation management, and a centralized message registration center.

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Bandwidth (BAND) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

BAND Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 20, 2025	2024 (Q4)	0.39 / -	0.38	―	―	―
Oct 31, 2024	2024 (Q3)	0.32 / 0.43	0.23	86.96% (+0.20)
Aug 01, 2024	2024 (Q2)	0.26 / 0.29	0.16	81.25% (+0.13)
May 07, 2024	2024 (Q1)	0.20 / 0.27	0.05	440.00% (+0.22)
Feb 28, 2024	2023 (Q4)	0.23 / 0.38	0.19	100.00% (+0.19)
Nov 02, 2023	2023 (Q3)	0.20 / 0.23	0.27	-14.81% (-0.04)
Aug 02, 2023	2023 (Q2)	0.04 / 0.16	-0.04	500.00% (+0.20)
May 02, 2023	2023 (Q1)	<0.01 / 0.05	0.09	-44.44% (-0.04)
Feb 23, 2023	2022 (Q4)	0.04 / 0.19	0.09	111.11% (+0.10)
Nov 01, 2022	2022 (Q3)	0.03 / 0.27	0.25	8.00% (+0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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BAND Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 31, 2024	$18.84	$19.50	+3.50%
Aug 01, 2024	$22.82	$15.97	-30.02%
May 07, 2024	$20.51	$22.54	+9.90%
Feb 28, 2024	$12.15	$18.44	+51.77%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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