Bandwidth(BAND) - 2024 Q2 - Quarterly Results

Financial Performance - Bandwidth reported revenue of $174 million for Q2 2024, representing a 19$146 million in Q2 2023[1][6] - The company's Adjusted EBITDA reached $19 million, up 77$11 million in the prior year[6] - Free Cash Flow for Q2 2024 was $18 million, a significant improvement from a negative$1 million in Q2 2023[5][6] - Revenue for the three months ended June 30, 2024, was $173.6 million, a 19$145.9 million in the same period of 2023[24] - Gross profit for the six months ended June 30, 2024, was $130.3 million, compared to$114.6 million for the same period in 2023, reflecting a 13.6% increase[24] - Net income for the three months ended June 30, 2024, was $4.1 million, compared to a net loss of$(3.9) million in the same period of 2023[24] - Non-GAAP net income for Q2 2024 was $8,719,000, up from$4,399,000 in Q2 2023, reflecting a 97.5% increase[35] - Net income for Q2 2024 was $4,055,000, a turnaround from a net loss of$3,890,000 in Q2 2023[35] Guidance and Expectations - Bandwidth provided guidance for Q3 2024 revenue between $180 million and$184 million, and full-year 2024 revenue guidance of $710 million to$720 million[9] - The company expects Adjusted EBITDA for Q3 2024 to be between $18 million and$20 million, and for the full year 2024 between $72 million and$76 million[9] Operational Efficiency and Strategic Initiatives - Bandwidth's strategic investments and disciplined financial management have driven impressive operational efficiency and cash flow generation[6] - New product innovations like Maestro and AI Bridge are contributing to strong performance in a competitive market[3][6] - Bandwidth secured several key customers in the healthcare and insurance sectors, enhancing its market position and service offerings[7][8] - The company is focused on sustainable, profitable growth and is well-positioned to continue its momentum into the second half of the year[6] Cost and Expenses - Gross Margin for Q2 2024 was 37%, down from 40% in Q2 2023, while Non-GAAP Gross Margin improved to 56% from 55%[5][6] - Research and development expenses for the six months ended June 30, 2024, increased to $57.0 million from$50.5 million in the same period of 2023, a 12.9% rise[24] - Stock-based compensation expense of $23.7 million for the six months ended June 30, 2024, compared to$15.4 million in the same period of 2023[25] - Stock-based compensation for Q2 2024 was $11,360,000, up from$8,005,000 in Q2 2023[35] Cash Flow and Assets - The company recognized a net cash provided by operating activities of $26.9 million for the six months ended June 30, 2024, compared to$(3.3) million in the same period of 2023[29] - Total current assets decreased to $181.4 million as of June 30, 2024, from$252.8 million in 2023[26] - Cash and cash equivalents at the end of the period were $62.3 million, down from$92.0 million in the same period of 2023[29] Liabilities and Debt - Total liabilities decreased to $694.7 million as of June 30, 2024, from$803.7 million in 2023[26] - The company reported a net gain on extinguishment of debt of $(10,267,000) in Q2 2024, compared to no gain in Q2 2023[35] Shareholder Information - The weighted average number of diluted shares outstanding increased to 30,813,973 in Q2 2024 from 28,899,655 in Q2 2023[35]