Bandwidth Announces Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Bandwidth Inc. reported record financial results for the fourth quarter and full year 2024, achieving a revenue of $748 million, a 25% increase from 2023, and a record free cash flow of $59 million [1][5][37] - The company emphasized its strong performance in Voice AI and enterprise-grade solutions, which are driving customer adoption of its cloud communications platform [2][5] - Bandwidth's guidance for 2025 projects revenue growth of 8% to 11%, despite expected cyclical reductions in political campaign messaging activity [7][8] Financial Highlights - Fourth Quarter 2024: - Revenue: $210 million, up from $165 million in Q4 2023 - Gross Margin: 36%, down from 38% in Q4 2023 - Non-GAAP Gross Margin: 58%, up from 55% in Q4 2023 - Net Loss: $1.8 million, improved from a loss of $10.9 million in Q4 2023 - Adjusted EBITDA: $23 million, up from $19 million in Q4 2023 [3][4][5][25] - Full Year 2024: - Revenue: $748 million, up from $601 million in 2023 - Gross Margin: 37%, down from 39% in 2023 - Non-GAAP Gross Margin: 57%, up from 55% in 2023 - Net Loss: $6.5 million, improved from a loss of $16.3 million in 2023 - Adjusted EBITDA: $82 million, up from $48 million in 2023 [4][5][25] Cash Flow and Liquidity - The company achieved net cash flows from operating activities of $84 million for the full year 2024, compared to $39 million in 2023 [4][28] - Free Cash Flow for 2024 was $59 million, significantly higher than $19 million in 2023 [4][37] Customer and Operational Highlights - Bandwidth secured significant contracts, including a Fortune 25 healthcare company and a global cruise line, enhancing its market presence [11] - The company was recognized as a Leader in the IDC MarketScape: Worldwide CPaaS 2025 Vendor Assessment for the fourth consecutive time [11] Future Outlook - Bandwidth's guidance for Q1 2025 projects revenue between $168 million and $170 million, and for the full year 2025, revenue is expected to be between $740 million and $760 million [7][8] - The company anticipates continued growth in profitability and free cash flow alongside normalized revenue growth [5][7]