NASDAQ$BAND

Bandwidth Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported strong results with significant revenue growth and a return to positive Non-GAAP net income.

Bandwidth reported strong Q4 2020 financial results, with total revenue up 82% year-over-year to $113.0 million and CPaaS revenue up 84% year-over-year to $98.1 million. The company's dollar-based net retention rate was 133%. Net loss for the quarter was $(19.9) million, or $(0.81) per share, while Non-GAAP net income was $3.5 million, or $0.13 per share.

  • Total revenue for the fourth quarter of 2020 was $113.0 million, up 82% year-over-year.
  • CPaaS revenue was $98.1 million, up 84% year-over-year.
  • Dollar-based net retention rate was 133% during the fourth quarter of 2020.
  • Non-GAAP net income for the fourth quarter of 2020 was $3.5 million, or $0.13 per share.

Headline financials

Total Revenue

$113M

Previous: $62M+82.3%
EPS (adj)

$0.13

Previous: -$0.02+750.0%
Capital Expenditures

$2.74M

Previous: $9.13M-70.0%
Free Cash Flow

-$9.55M

Previous: -$6.9M-38.4%
Net Income

-$19.9M

Previous: -$1.96M-918.7%
Operating Income

-$12.2M

Previous: -$3.46M-253.0%
Gross Profit

$51.7M

Previous: $29M+78.1%
Cash & Equivalents

$72.2M

Previous: $185M-61.0%
Total Assets

$891M

Previous: $341M+160.9%
Stock-Based Comp

$2.58M

Previous: $1.67M+54.6%

Revenue & EPS history

Bandwidth · Revenue · Quarterly

$113M

Q4 2020+82.3%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Bandwidth provided guidance for its first quarter and full year 2021, assuming current business conditions and foreign currency exchange rates, and including the impact of the Voxbone acquisition.

Tailwinds

  • CPaaS revenue is expected to be in the range of $96.6 million to $97.6 million for Q1 2021.
  • Total revenue is expected to be in the range of $108.0 million to $109.0 million for Q1 2021.
  • Non-GAAP earnings per share is expected to be in the range of $0.00 to $0.02 per share for Q1 2021.
  • CPaaS revenue is expected to be in the range of $413.3 million to $417.3 million for FY 2021.
  • Total revenue is expected to be in the range of $460.4 million to $464.4 million for FY 2021.

Headwinds

  • Stock-based compensation cannot be reasonably calculated or predicted at this time.
  • Reconciliation is not available without unreasonable effort.
  • Guidance assumes current business conditions.
  • Guidance assumes current foreign currency exchange rates.
  • Guidance includes the impact of the Voxbone acquisition.

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 Q4 2020

Historical avgQ4 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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