Bandwidth Announces Third Quarter 2024 Financial Results

Core Insights - Bandwidth Inc. reported record revenue and profitability for Q3 2024, exceeding guidance ranges and raising full-year 2024 guidance for both revenue and profitability [1][3][5] - Total revenue for Q3 2024 reached $194 million, a 28$24 million, representing a 74% increase [3][4] - The company introduced a next-generation Universal Platform and expanded its ecosystem of bring-your-own-carrier (BYOC) integrations, enhancing its service offerings [4][5] Financial Highlights - Q3 2024 revenue: $194 million compared to$152 million in Q3 2023 [3] - Gross margin for Q3 2024 was 38%, down from 39% in Q3 2023, while Non-GAAP gross margin improved to 58% from 55% [3][15] - Adjusted EBITDA for Q3 2024 was $24 million, up from$14 million in Q3 2023 [3][17] - Free cash flow for Q3 2024 was $14 million, compared to$18 million in Q3 2023 [3][18] Customer and Operational Highlights - The new Universal Platform aims to provide a consistent global experience for real-time communications, featuring upgraded capabilities and a modernized global network [4] - Bandwidth has become an RCS Business Messaging partner with Google, enabling Rich Communication Services across key markets [4] - A high-volume patient engagement platform and a large credit union have recently adopted Bandwidth's services for text messaging and voice services, respectively [4] Financial Outlook - Bandwidth's Q4 2024 revenue guidance is set between $198 million and$208 million, with full-year 2024 revenue guidance between $737 million and$747 million [5] - Adjusted EBITDA guidance for Q4 2024 is between $19 million and$21 million, with full-year 2024 guidance between $78 million and$80 million [5]