NASDAQ$BAND

Bandwidth Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced financial results for the fourth quarter and full year, exceeding top and bottom-line guidance despite DDoS impact and focusing on global CPaaS market opportunity after successful Voxbone integration.

Bandwidth reported strong Q4 2021 financial results, exceeding both top and bottom-line guidance despite an approximate $10 million impact from DDoS attacks. The company's strategic achievements in 2021, including customer cloud enablement and strengthened global service capabilities, have positioned it as a leading global platform for cloud communications transformation.

  • Total Revenue reached $126 million for Q4 2021.
  • CPaaS Revenue was $101 million for Q4 2021.
  • Bandwidth announced Duet for Genesys, expanding BYOC solutions.
  • A game-changing CCaaS provider chose to expand with Bandwidth in the U.S. and Canada.

Headline financials

Total Revenue

$126M

Previous: $113M+11.6%
EPS (adj)

$0.09

Previous: $0.13-30.8%
Net Income

-$8.17M

Previous: -$19.9M+59.0%
Operating Income

-$4.07M

Previous: -$12.2M+66.7%
Gross Profit

$53.5M

Previous: $51.7M+3.6%
Cash & Equivalents

$331M

Previous: $72.2M+359.3%
Total Assets

$1.07B

Previous: $891M+19.6%
Stock-Based Comp

$2.95M

Previous: $2.58M+14.4%

Revenue & EPS history

Bandwidth · Revenue · Quarterly

$126M

Q4 2021+11.6%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Bandwidth provided guidance for Q1 2022 with total revenue between $125 million and $127 million and non-GAAP earnings per share between $(0.11) and $(0.07). Full year 2022 guidance includes total revenue between $547 million and $555 million and non-GAAP earnings per share between $0.03 and $0.09.

Tailwinds

  • Following a successful completion of its Voxbone integration efforts, a strategic organization of its go-to-market, operating and development functions in first quarter 2022
  • Bandwidth has aligned its operating segment during first quarter 2022 to focus exclusively on its global CPaaS market opportunity.
  • Bandwidth adopted ASU 2020-06 on January 1, 2022 using modified retrospective method
  • Bandwidth accounted for our convertible notes due 2026 and 2028 on a whole-instrument basis.
  • Upon adoption, diluted EPS is calculated using the "If-Converted Method" which results in an increase in weighted average diluted shares count of 4.8 million shares.

Headwinds

  • Bandwidth’s outlook assumes current business conditions, current foreign currency exchange rates including the effect of weakened US dollar rates, divestitures and an estimated impact of $16 million - $24 million in 2022 arising from the previously disclosed 2021 DDoS attacks.
  • Bandwidth has not reconciled its first quarter and full-year guidance related to non-GAAP net earnings or loss to GAAP net earnings or loss and 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.
  • DDoS event continues to affect some customer demand
  • Bandwidth assumes weakened US dollar rates

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 2021

Historical avgQ4 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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