Bandwidth(BAND) ZACKS·2025-05-07 18:25Core Insights - Bandwidth Inc. reported strong first-quarter 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [1][4] - The company's growth is driven by increasing reliance on its cloud-based communications platform by enterprises, with a strategic focus on large enterprises and becoming a leading global CPaaS provider [2] Financial Performance - On a GAAP basis, Bandwidth's net loss for the quarter was $3.74 million, or a loss of 13 cents per share, an improvement from a net loss of $9.2 million, or 35 cents per share, in the prior-year quarter [3] - Non-GAAP net income was $11.4 million, or 36 cents per share, compared to $8.1 million, or 27 cents per share, in the prior-year quarter, beating the Zacks Consensus Estimate of 29 cents [4] - Quarterly revenues increased to $174 million from $171 million in the prior-year quarter, surpassing the consensus estimate of $169 million, driven by high demand for digital engagement and messaging services [4] Operating Metrics - Non-GAAP gross margin improved to 59%, up from 57% a year ago, due to a favorable product mix and operational efficiency [5] - Adjusted EBITDA was $22.2 million, significantly above guidance and up from $15.9 million in the prior-year period [5] Cash Flow and Liquidity - In the March quarter, net cash used in operating activities was $3.1 million, compared to cash generation of $2.5 million in the prior year [6] - As of March 31, 2025, cash and cash equivalents were $35.9 million, with convertible senior notes totaling $246.8 million [6] Future Guidance - Bandwidth anticipates continued growth, projecting revenues for 2025 to be between $745 million and $760 million, reflecting a year-over-year growth of 9-11% [7] - Adjusted EBITDA is forecasted to be in the range of $84 million to $91 million, an increase from the previous estimate of $82 million to $90 million [7] - For the second quarter, revenues are expected to be between $178 million and $180 million, with adjusted EBITDA anticipated in the range of $18 million to $20 million [8]