Bandwidth(BAND) ZACKS·2024-11-01 16:00Core Insights - Bandwidth Inc. reported strong third-quarter 2024 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate [1][4][5] Financial Performance - The company achieved a GAAP net income of $0.41 million, a significant improvement from a net loss of $5.13 million in the prior-year quarter [3] - Non-GAAP net income was $13 million or 43 cents per share, compared to $6.66 million or 23 cents per share in the prior-year quarter, beating the consensus estimate by 9 cents [4] - Quarterly revenues increased to $194 million from $152 million in the prior-year quarter, driven by high demand for digital engagement and strong messaging services [5] Operational Metrics - Non-GAAP gross margin improved to 58%, up from 55% a year ago, due to a favorable product mix and operational efficiency [6] - Adjusted EBITDA reached $24 million, significantly above guidance and up from $13.8 million in the prior-year period [6] Cash Flow and Liquidity - In the first nine months of 2024, Bandwidth generated $47.4 million in cash from operations, compared to a cash utilization of $19.7 million in the prior-year period [7] - As of September 30, 2024, cash and cash equivalents stood at $74.9 million, with convertible senior notes totaling $281 million [7] Future Guidance - For the fourth quarter, revenues are expected to be between $198 million and $208 million, with adjusted EBITDA anticipated in the range of $19 million to $21 million [8] - For the full year 2024, revenues are projected to be between $737 million and $747 million, with adjusted EBITDA expected to be in the range of $78 million to $80 million [8]