Bandwidth(BAND)2024-05-07 11:02Financial Performance - Bandwidth reported Q1 2024 revenue of $171 million, a 24% increase from $138 million in Q1 2023[4] - Adjusted EBITDA for Q1 2024 was $16 million, significantly up from $5 million in Q1 2023, indicating strong operational performance[4] - Revenue for the three months ended March 31, 2024, was $171,033,000, an increase of 24% compared to $137,844,000 for the same period in 2023[29] - Operating loss for the three months ended March 31, 2024, was $(10,416,000), an improvement from $(11,756,000) in the same period of 2023[29] - Net loss for the three months ended March 31, 2024, was $(9,233,000), compared to a net income of $3,611,000 for the same period in 2023[29] - Non-GAAP net income for the three months ended March 31, 2024, was $7.820 million, significantly up from $1.190 million in the prior year[40] - Adjusted EBITDA for the three months ended March 31, 2024, reached $15.923 million, compared to $5.059 million in the same period of 2023[43] - Free cash flow for the three months ended March 31, 2024, was $(4.407) million, an improvement from $(10.900) million in the prior year[44] Guidance and Projections - The company raised its full-year 2024 revenue guidance to a range of $710 million to $720 million, reflecting an expected growth of approximately 19%[5] - Adjusted EBITDA for the full year 2024 is projected to increase by 54%, with guidance set at $72 million to $76 million[10] Margins and Expenses - Gross margin for Q1 2024 was 38%, down from 40% in Q1 2023, while Non-GAAP gross margin improved to 57% from 54%[4] - Gross profit for the same period was $65,484,000, resulting in a gross margin of 38%, down from 40% in the prior year[29][37] - Research and development expenses increased to $28,912,000, up from $25,661,000 in the prior year, reflecting a focus on innovation[29] - Stock-based compensation increased to $12.339 million for the three months ended March 31, 2024, up from $7.378 million in the same period of 2023[40] Financial Position - Cash and cash equivalents at the end of the period were $105,390,000, down from $131,987,000 at the end of March 2023[31] - Total assets decreased to $1,085,531,000 from $1,101,048,000 year-over-year[31] - Total liabilities decreased to $787,332,000 from $803,658,000 in the previous year[31] Business Growth and Contracts - Bandwidth's direct-to-enterprise business grew by 20% in Q1 2024, showcasing robust demand for its services[2] - The company secured significant contracts, including a healthcare engagement provider and a major U.S. airline, highlighting its market expansion efforts[7] Awards and Recognition - Bandwidth won two Stevie Awards for Customer Service Innovation, underscoring its commitment to customer satisfaction[8] Shareholder Information - The weighted average number of common shares outstanding was 26,493,802 for the three months ended March 31, 2024, compared to 25,448,452 in the prior year[29] - The company reported a basic net loss per share of $(0.35) for the three months ended March 31, 2024, compared to a profit of $0.14 in the same period of 2023[40] Other Financial Metrics - The estimated Non-GAAP effective income tax rate for the three months ended March 31, 2024, was 13.0%, compared to (143.4)% for the same period in 2023[40] - The company incurred a net cost of $1.156 million associated with early lease terminations and leases without economic benefit during the three months ended March 31, 2024[40] - The company had no valuation allowance against remaining deferred tax assets for Non-GAAP purposes as of March 31, 2024[40]