NASDAQ$BAND

Bandwidth Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Bandwidth reported a strong second quarter, driven by robust CPaaS revenue growth and expanded global presence.

Bandwidth Inc. announced strong financial results for the second quarter ended June 30, 2021, with total revenue up 57% year-over-year to $120.7 million and CPaaS revenue also up 57% year-over-year to $105.0 million. The company's growth was fueled by broad-based demand and an expanded global footprint.

  • Total revenue for the second quarter of 2021 was $120.7 million, a 57% increase compared to the second quarter of 2020.
  • CPaaS revenue for the second quarter of 2021 was $105.0 million, also a 57% increase compared to the second quarter of 2020.
  • The number of active CPaaS customers reached 3,051 as of June 30, 2021, a 61% increase from 1,900 on June 30, 2020.
  • The dollar-based net retention rate was 114% during the second quarter of 2021.

Headline financials

Total Revenue

$121M

Previous: $76.8M+57.1%
EPS (adj)

$0.32

Previous: $0.13+146.2%
Capital Expenditures

-$40.7M

Previous: -$7.55M-439.3%
Free Cash Flow

-$47.6M

Previous: -$28.2M-69.0%
Net Income

-$6.93M

Previous: -$20.6M+66.4%
Operating Income

$934K

Previous: -$268K+448.5%
Gross Profit

$54.6M

Previous: $34.8M+57.0%
Cash & Equivalents

$310M

Previous: $291M+6.4%
Total Assets

$1.09B

Previous: $658M+66.3%
Stock-Based Comp

$3.38M

Previous: $2.43M+39.3%

Revenue & EPS history

Bandwidth · Revenue · Quarterly

$121M

Q2 2021+57.1%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Bandwidth provided guidance for its third quarter and full year 2021, incorporating current business conditions and foreign currency exchange rates, as well as the impact of the Voxbone acquisition.

Tailwinds

  • Third Quarter 2021 Guidance: CPaaS revenue is expected to be in the range of $106.1 million to $107.1 million.
  • Third Quarter 2021 Guidance: Total revenue is expected to be in the range of $123.6 million to $124.6 million.
  • Third Quarter 2021 Guidance: Non-GAAP earnings per share is expected to be in the range of $0.07 to $0.09 per share, using 26.9 million weighted average diluted shares outstanding.
  • Full Year 2021 Guidance: CPaaS revenue is expected to be in the range of $418.4 million to $420.4 million.
  • Full Year 2021 Guidance: Total revenue is expected to be in the range of $484.8 million to $486.8 million.

Headwinds

  • Full Year 2021 Guidance: Non-GAAP earnings per share is expected to be in the range of $0.71 to $0.75 per share, using 27.0 million weighted average diluted shares outstanding.
  • Bandwidth has not reconciled its third quarter and full-year guidance related to non-GAAP net earnings or loss to GAAP net earnings or loss.
  • Bandwidth has not reconciled non-GAAP earnings or loss per share to GAAP earnings or loss.
  • Stock-based compensation cannot be reasonably calculated or predicted at this time.
  • A reconciliation is not available without unreasonable effort.

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 Q2 2021

Historical avgQ2 2021

+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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