Bandwidth(BAND)2025-02-20 12:02Financial Performance - Bandwidth reported record revenue of $210 million for Q4 2024, a 27% increase from $165 million in Q4 2023, and full-year revenue of $748 million, up 24% from $601 million in 2023[6]. - Adjusted EBITDA for Q4 2024 was $23 million, a 21% increase from $19 million in Q4 2023, and for the full year, it rose to $82 million, a 70% increase from $48 million[6]. - Revenue for Q4 2024 was $209.97 million, a 27% increase from $165.39 million in Q4 2023[26]. - Gross profit for the year ended December 31, 2024, reached $279.96 million, up from $236.16 million in 2023, reflecting a gross profit margin of 37%[26][32]. - Operating loss for Q4 2024 was $2.67 million, significantly improved from a loss of $10.04 million in Q4 2023[26]. - Net loss for the year ended December 31, 2024, was $6.52 million, compared to a net loss of $16.34 million in 2023[26]. - Non-GAAP net income for Q4 2024 was $11.564 million, compared to $10.824 million in Q4 2023, representing an increase of 6.8%[33]. - The net loss for the year ended December 31, 2024, was $6.524 million, an improvement from a net loss of $16.343 million in 2023[33]. Cash Flow and Assets - The company achieved a net operating cash flow of $84 million for the full year 2024, compared to $39 million in 2023, and recorded free cash flow of $59 million, up from $19 million[6]. - Cash and cash equivalents decreased to $81.81 million as of December 31, 2024, down from $131.99 million in 2023[28]. - Total assets decreased to $989.17 million in 2024 from $1.10 billion in 2023[28]. - The company reported a net cash provided by operating activities of $83.88 million for the year 2024, a significant increase from $39.00 million in 2023[31]. - Net cash provided by operating activities for the year ended December 31, 2024, was $83.883 million, up from $39.001 million in 2023[35]. Margins and Expenses - Non-GAAP gross margin for Q4 2024 was 58%, compared to 55% in Q4 2023, and for the full year, it was 57%, up from 55% in 2023[6]. - Research and development expenses increased to $118.63 million for the year 2024, up from $104.19 million in 2023[26]. - The company recognized total stock-based compensation expense of $48.36 million for the year ended December 31, 2024, compared to $36.99 million in 2023[26]. - Stock-based compensation for the year ended December 31, 2024, totaled $48.362 million, compared to $36.992 million in 2023, indicating a rise of 30.7%[33]. - The total depreciation expense for the year ended December 31, 2024, was $31.739 million, compared to $24.443 million in 2023, reflecting an increase of 29.9%[34]. Future Outlook - Bandwidth provided revenue guidance for 2025, projecting an 8% to 11% year-over-year growth, with expected revenue of $740 million to $760 million[8]. - The company noted that political campaign messaging activity contributed approximately $8 million in Q1 2024 and $62 million for the full year 2024, which may impact future revenue growth[8]. - Bandwidth's CEO highlighted the strong customer adoption of Voice AI and enterprise-grade solutions, indicating a positive outlook for market leadership in 2025[4]. - The company is focused on AI-driven product innovation and expanding its market presence to unlock new value for customers[4]. Recognition and Contracts - Bandwidth was recognized as a Leader in the IDC MarketScape: Worldwide CPaaS 2025 Vendor Assessment for the fourth consecutive time[12]. - The company secured significant contracts, including a Fortune 25 healthcare company and a global cruise line, for cloud contact center services[12]. Shareholder Information - The weighted average number of shares outstanding for basic and diluted shares increased to 27,882,092 in Q4 2024 from 25,829,587 in Q4 2023[33]. - The Non-GAAP effective income tax rate for the year ended December 31, 2024, was 18.1%, compared to 10.1% in 2023[33]. - The company reported a net gain on extinguishment of debt of $10.267 million for the year ended December 31, 2024[34].