Bandwidth(BAND)2024-10-31 10:32Financial Performance - Total revenue for Q3 2024 reached $194 million, a 28% increase year-over-year[6] - Adjusted EBITDA for Q3 2024 grew to $24 million, representing a 74% increase year-over-year[6] - Revenue for the three months ended September 30, 2024, was $193,883,000, representing a 27.6% increase from $152,013,000 in the same period last year[25] - Gross profit for the nine months ended September 30, 2024, was $203,447,000, up from $174,107,000, indicating a year-over-year increase of 16.9%[25] - The company reported a net income of $413,000 for the three months ended September 30, 2024, compared to a net loss of $5,130,000 in the same period last year[25] - Non-GAAP net income for Q3 2024 was $12,791,000, compared to $6,347,000 in Q3 2023, reflecting a 101.4% increase[34] - The company reported a net income (loss) of $413,000 for Q3 2024, a significant improvement from a loss of $5,130,000 in Q3 2023[34] Margins and Profitability - Gross margin for Q3 2024 was 38%, compared to 39% in Q3 2023[5] - Non-GAAP gross margin for Q3 2024 was 58%, up from 55% in Q3 2023[5] - Non-GAAP gross profit for Q3 2024 was $73,134,000, up from $59,499,000 in Q3 2023, representing a 22.9% increase[32] - Non-GAAP gross margin for Q3 2024 was 58%, compared to 55% in Q3 2023, indicating an improvement in profitability[32] - The company had a gross profit margin of 38% for the nine months ended September 30, 2024, down from 40% in the same period of 2023[32] Cash Flow and Expenses - Free cash flow for Q3 2024 was $14 million, compared to $18 million in Q3 2023[5] - Free cash flow for Q3 2024 was $14,245,000, down from $18,190,000 in Q3 2023, showing a decrease of 10.5%[38] - Research and development expenses for the three months ended September 30, 2024, were $30,171,000, a 21.5% increase compared to $24,792,000 in the prior year[25] - The company recognized total stock-based compensation expense of $35,148,000 for the nine months ended September 30, 2024, compared to $22,325,000 in the prior year[26] - Total stock-based compensation for Q3 2024 was $11,449,000, up from $6,942,000 in Q3 2023, indicating a 64.5% increase[37] Guidance and Future Outlook - Bandwidth raised its full-year 2024 revenue guidance to a range of $737 million to $747 million[11] - Fourth quarter 2024 revenue guidance is set between $198 million and $208 million[11] Assets and Liabilities - Total current assets decreased to $198,662,000 as of September 30, 2024, down from $252,775,000 as of December 31, 2023[28] - Total liabilities decreased to $693,173,000 as of September 30, 2024, compared to $803,658,000 as of December 31, 2023[28] - Cash and cash equivalents were $74,940,000 as of September 30, 2024, down from $131,987,000 at the end of 2023[28] Taxation - Non-GAAP effective income tax rate was 15.5% for the nine months ended September 30, 2024, compared to 11.0% for the same period in 2023[36] - The estimated tax effects of adjustments for the nine months ended September 30, 2024, were $(6,654,000), compared to $(4,661,000) for the same period in 2023[36] Strategic Initiatives - The company introduced a next-generation Universal Platform to enhance global communication capabilities[7] - Bandwidth registered as an RBM partner with Google to enable RCS across key markets[8] - A high-volume patient engagement platform switched to Bandwidth for improved text messaging services[9]