Investment Thesis - Bandwidth has faced challenges post-pandemic, including a DDoS attack, leading to a decline in platform usage and a drop in share price below its 2017 IPO price of 20,despiterevenuegrowthtripling[1]−Thecompanyisexpectedtoachievedouble−digitrevenuegrowththisyearandimproveitsdebtsituationthroughstrongfreecashflowgeneration[1]CompanyOverview−BandwidthoperatesaB2BCommunicationsPlatformasaService(CPaaS)onitsownIPvoicenetwork,providingAPIsforvoicecalling,textmessaging,andemergencyservices[2]−ThecompanyservesmajorclientslikeMicrosoft,Google,Uber,andZoom,andhasaglobalpresenceinover65countriesfollowingtheacquisitionofVoxbone[2]−Bandwidthhasagrossretentionrateof9918 million of adjusted EBITDA in Q1 2024, with a margin of 12%, and forecasts a full-year adjusted EBITDA of 74million,implyingamargincloseto14400 million and 250millioninconvertiblenotesduein2028,withapreviousnetdebttoadjustedEBITDAratiopeakingat8[6]−RecentimprovementsinEBITDAprofitabilityanddebtrepaymenthavereducedtheremainingdebtdueby2026to35 million [6] - The company expects to generate over 50millioninfreecashflow,leadingtoahealthierbalancesheetbyyear−endwithaprojectednetdebtofaround230 million [7] Growth Prospects and Valuation - Management's medium-term targets suggest revenue growth rates of 15-20%, driven by segments like Programmable messaging and Direct Enterprises, which are expected to grow at CAGRs of 21% and 14% respectively until 2026 [8] - Bandwidth's current valuation at an EV to adjusted EBITDA of 10.8 and a Price to FCF ratio of 11.3 is considered attractive compared to competitors like Twilio, which has lower growth rates [8]