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Bandwidth (BAND) Tops Q4 Earnings Estimates on Solid Revenues
BANDBandwidth(BAND) Zacks Investment Research·2024-02-29 12:16

Core Viewpoint - Bandwidth Inc. (BAND) reported strong fourth-quarter 2023 results, surpassing both top-line and bottom-line estimates, driven by increased enterprise reliance on its cloud communications platform [1] Financial Performance - The company experienced a GAAP net loss of 10.9millionor42centspershare,comparedtoalossof10.9 million or 42 cents per share, compared to a loss of 4.9 million or 16 cents per share in the prior-year quarter, attributed to higher costs of revenues [2] - Non-GAAP net income for the quarter was 11.1millionor38centspershare,upfrom11.1 million or 38 cents per share, up from 5.8 million or 19 cents per share year-over-year, beating the Zacks Consensus Estimate by 14 cents [2] - For 2023, GAAP net loss was 16.3millionor64centspershare,comparedtoalossof16.3 million or 64 cents per share, compared to a loss of 14.9 million or 48 cents per share in 2022; non-GAAP net income was 24millionor83centspershare,upfrom24 million or 83 cents per share, up from 16.7 million or 54 cents per share in 2022 [2] Revenue Growth - Quarterly revenues increased to 165.4millionfrom165.4 million from 157 million in the prior-year quarter, exceeding the consensus estimate of 154million,drivenbyhighdemandfordigitalengagementandstrongmessagingservicecontributionsacrossvarioussectors[3]−For2023,totalrevenuesroseto154 million, driven by high demand for digital engagement and strong messaging service contributions across various sectors [3] - For 2023, total revenues rose to 601.1 million from 573.2millionin2022[3]OperatingMetrics−Non−GAAPgrossmarginforthequarterwas55573.2 million in 2022 [3] Operating Metrics - Non-GAAP gross margin for the quarter was 55%, down from 56% a year ago, primarily due to increased costs of revenues; however, the company achieved record profitability of 39% for the quarter [4] - Adjusted EBITDA was 18.8 million, significantly above guidance and up from 8.3millionintheprior−yearperiod[4]CashFlowandLiquidity−In2023,netcashfromoperatingactivitieswas8.3 million in the prior-year period [4] Cash Flow and Liquidity - In 2023, net cash from operating activities was 39 million, compared to 34.9millioninthepreviousyear;cashandcashequivalentsasofDecember31,2023,were34.9 million in the previous year; cash and cash equivalents as of December 31, 2023, were 132 million, with convertible senior notes totaling 418.5million[5]FutureGuidance−For2024,Bandwidthexpectsrevenuesbetween418.5 million [5] Future Guidance - For 2024, Bandwidth expects revenues between 695 million and 705million,withadjustedEBITDAprojectedintherangeof705 million, with adjusted EBITDA projected in the range of 70 million to 74million[6]−Forthefirstquarterof2024,revenuesareanticipatedtobebetween74 million [6] - For the first quarter of 2024, revenues are anticipated to be between 164 million and 166million,withadjustedEBITDAexpectedtobebetween166 million, with adjusted EBITDA expected to be between 11 million and $13 million [6]