NASDAQ$BAND

Bandwidth Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Bandwidth's first quarter performance for 2024 exceeded expectations, driven by strong growth in the direct-to-enterprise business and profitable growth across all market offerings.

Bandwidth Inc. reported strong first-quarter results for 2024, exceeding both revenue and profitability guidance. The direct-to-enterprise business experienced robust growth, and the company raised its full-year guidance for revenue and Adjusted EBITDA. Bandwidth also enhanced its capital structure by upsizing its revolving credit facility and repurchasing convertible notes.

  • Revenue and profitability exceeded initial forecasts, leading to raised projections for the remainder of the year.
  • Direct-to-enterprise business demonstrated robust growth with a 20% increase in the first quarter.
  • Revolving credit facility was upsized to $100 million with a 5-year term, enhancing the capital structure.
  • Approximately $140 million of 2026 convertible notes were repurchased at a discount, strengthening the balance sheet and improving operating flexibility.

Headline financials

Total Revenue

$171M

Previous: $138M+24.1%
EPS

-$0.35

Previous: $0.05-800.0%
Gross Margin

38.0%

Previous: 40.0%-5.0%
Non-GAAP Gross Margin

57.0%

Previous: 54.0%+5.6%
Adjusted EBITDA

$15.9M

Previous: $5M+218.5%
Capital Expenditures

-$3.32M

Previous: -$2.89M-14.8%
Free Cash Flow

-$12.5M

Previous: $722K-1838.1%
Net Income

-$9.23M

Previous: $3.61M-355.7%
Operating Income

-$10.4M

Previous: -$11.8M+11.4%
Gross Profit

$65.5M

Previous: $55.7M+17.7%
Cash & Equivalents

$105M

Previous: $85.3M+23.6%
Total Assets

$1.09B

Previous: $861M+26.1%
R&D Expense

$28.9M

No prior period
Stock-Based Comp

$12.3M

Previous: $7.38M+67.2%

Revenue & EPS history

Bandwidth · Revenue · Quarterly

$171M

Q1 2024+24.1%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

Bandwidth is providing guidance for its second quarter and full year 2024. Revenue for Q2 2024 is expected to be between $171 million and $175 million, with Adjusted EBITDA between $15 million and $17 million. For the full year 2024, revenue is projected to be between $710 million and $720 million, and Adjusted EBITDA between $72 million and $76 million.

Tailwinds

  • Revenue for Q2 2024 is expected to be between $171 million and $175 million.
  • Adjusted EBITDA for Q2 2024 is expected to be between $15 million and $17 million.
  • Full year 2024 revenue is projected to be between $710 million and $720 million.
  • Full year 2024 Adjusted EBITDA is projected to be between $72 million and $76 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+2.6%

Avg return

Earnings day

+4.2%

Avg return

5 days after

+8.9%

Avg return

30 days after

51%

19 / 37 earnings

Positive

+69.1%

Q4 2023

Best reaction

-37.8%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%+95.6%+168.5%
Q4 2025+11.7%+6.2%+19.0%
Q3 2025-3.9%-13.7%-15.1%
Q1 2025+12.1%+17.1%+21.7%
Q4 2024-4.4%-8.3%-17.4%
Q3 2024-0.7%+3.8%+11.6%
Q2 2024-33.3%-30.8%-24.8%
Q1 2024+3.1%+5.4%+2.3%
Q4 2023+69.1%+58.4%+50.3%
Q3 2023+20.9%+22.4%+12.0%
Q2 2023+5.6%+1.9%-3.6%
Q1 2023-3.8%-5.7%-1.1%
Q4 2022-35.6%-33.3%-39.7%
Q3 2022+46.8%+44.8%+91.4%
Q2 2022-0.7%-6.2%-20.5%
Q1 2022+16.2%-8.6%-9.2%
Q4 2021-37.8%-39.8%-40.2%
Q3 2021+1.0%-5.5%-12.0%
Q2 2021-5.8%-8.5%-16.2%
Q1 2021+0.6%-3.5%-5.4%
Q4 2020-7.1%-13.1%-32.6%
Q3 2020-4.3%-6.1%-10.4%
Q2 2020-1.6%+4.2%+4.4%
Q1 2020+13.5%+24.0%+41.0%
Q4 2019+0.9%-9.6%-15.7%
Q3 2019-13.7%-8.8%-2.5%
Q2 2019+1.3%+0.1%+11.7%
Q1 2019-7.6%-4.1%-3.6%
Q4 2018-0.3%+7.7%+42.3%
Q3 2018+9.2%+9.7%-8.6%
Q2 2018+12.3%+11.4%+28.8%
Q1 2018+9.2%+10.1%+22.7%
Q4 2015+2.4%+0.7%+19.7%
Q4 2017+12.9%+15.1%+33.5%
Q3 2016-0.3%+5.0%+6.8%
Q4 2016-0.3%+5.0%+6.8%
Q3 2017+9.2%+12.9%+13.6%
Q2 2017
Q1 2017
Q2 2016
Q1 2016

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