Financial Data and Key Metrics Changes - Revenue for the second quarter of 2025 was $180 million, representing a 9% year-over-year increase, with adjusted EBITDA of $22 million, exceeding expectations [4][17] - Over the last twelve months, revenue grew by 15%, EBITDA by 36%, and free cash flow by 26% [5] - Non-GAAP gross profit reached $79 million, marking an 11% year-over-year increase, with non-GAAP gross margin improving to 58% [17][18] - Free cash flow was reported at $26 million, representing a 19% margin [18] Business Line Data and Key Metrics Changes - Cloud communications revenue was $136 million, an 8% year-over-year increase on a normalized basis [17] - Enterprise voice revenue grew by 29% year-over-year, driven by demand from existing customers and new migrations to the cloud [18] - Global voice plans, the largest customer category, saw a 7% revenue growth year-over-year, the highest growth rate since 2021 [18] - Programmable messaging achieved a normalized 7% year-over-year growth [18] Market Data and Key Metrics Changes - The net retention rate for the first quarter was 112%, with customer name retention above 99% [19] - Average annual revenue per customer reached a record of $230,000, or $216,000 when excluding political campaign revenue [19] Company Strategy and Development Direction - The company is focused on executing a clear strategy that prioritizes business execution, scaling global enterprise business, and accelerating AI voice innovation [15][21] - Bandwidth aims to be the essential platform for the AI voice revolution, integrating AI into customer experience call flows [6][12] - The company is expanding its customer base in regulated sectors, emphasizing compliance, security, and performance [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of 2025, projecting continued acceleration in growth and reaffirming full-year guidance [20][21] - The demand for mission-critical enterprise communications is described as durable, with AI integration expected to enhance customer experiences [5][16] - Management highlighted the importance of the Maestro platform in driving higher revenue per customer and deeper integration [12][16] Other Important Information - The company reported a strong performance in the first half of 2025, with record high non-GAAP gross margins, EBITDA, and operating cash flows [20][21] - The AI strategy is seen as a significant growth driver, with potential revenue generation from AI-powered calls expected to be three to four times that of standard voice calls [11][41] Q&A Session Summary Question: Outlook on AI use cases for customer support - Management affirmed that the AI use case thesis is manifesting, with Maestro being critical to enterprise wins, and expects second-half acceleration in growth [24][26] Question: Average revenue per customer growth drivers - Management noted that the adoption of Maestro services is contributing to the uptick in average revenue per customer [29][30] Question: Pace of integrations into the Maestro platform - Management indicated a standard adoption pattern, with customers starting with fixed platforms and gradually adding more services [36] Question: AI potential per call and realization - Management clarified that the potential for AI interactions to generate three to four times the revenue is being realized in real-time, driven by increased usage [40][41] Question: Messaging business performance and competitive differentiation - Management reported 7% growth in commercial messaging, focusing on large enterprises and profitability, while targeting messaging formats like RCS and RBM [47] Question: Global Voice Plan segment growth drivers - Management highlighted that the growth in Global Voice Plans was driven by new use cases and AI voice, with a significant increase in customer demand [52][54]