NASDAQ$BAND

Bandwidth Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Announced third quarter 2020 financial results

Bandwidth reported a strong third quarter with total revenue of $84.8 million, up 40% year-over-year, and CPaaS revenue of $73.8 million, up 43% year-over-year. The company also raised its annual revenue outlook.

  • Total third quarter revenue was $84.8 million, a 40% increase year-over-year.
  • CPaaS third quarter revenue reached $73.8 million, a 43% increase year-over-year.
  • Active CPaaS customers totaled 2,015, a 25% increase year-over-year.
  • Dollar-based net retention rate was 131%.

Headline financials

Total Revenue

$84.8M

Previous: $60.5M+40.1%
EPS (adj)

$0.24

Previous: -$0.06+500.0%
Capital Expenditures

-$9.54M

Previous: -$13.1M+27.1%
Free Cash Flow

-$11.9M

Previous: -$14.1M+15.7%
Net Income

-$2.35M

Previous: -$1.01M-132.0%
Operating Income

$1.86M

Previous: -$4.61M+140.5%
Gross Profit

$39.2M

Previous: $27.4M+43.2%
Cash & Equivalents

$300M

Previous: $192M+56.0%
Total Assets

$670M

Previous: $321M+108.9%
Stock-Based Comp

$2.38M

Previous: $1.65M+44.0%

Revenue & EPS history

Bandwidth · Revenue · Quarterly

$84.8M

Q3 2020+40.1%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Bandwidth provided guidance for its fourth quarter and full year 2020, which includes the outlook for Voxbone from November 1, 2020.

Tailwinds

  • CPaaS revenue is expected to be in the range of $84.3 million to $84.8 million for Q4 2020.
  • Total revenue is expected to be in the range of $96.5 million to $97.0 million for Q4 2020.
  • Non-GAAP earnings per share is expected to be in the range of $0.03 to $0.05 per share for Q4 2020, using 27.5 million weighted average diluted shares outstanding.
  • CPaaS revenue is expected to be in the range of $284.3 million to $284.8 million for full year 2020.
  • Total revenue is expected to be in the range of $326.6 million to $327.1 million for full year 2020.

Headwinds

  • Bandwidth has not reconciled its fourth 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, because stock-based compensation cannot be reasonably calculated or predicted at this time.
  • A reconciliation is not available without unreasonable effort.
  • Bandwidth's outlook assumes current business conditions.
  • Bandwidth's outlook assumes current foreign currency exchange rates and the impact of the anticipated acquisition of Voxbone expected to close on October 31, 2020.

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 Q3 2020

Historical avgQ3 2020

+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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