The earnings call highlights Bandwidth's strong financial performance in 2024, with significant growth in revenue, EBITDA, and gross margins. The company is capitalizing on AI and innovation initiatives, positioning itself well for future growth. However, the non-recurrence of political campaign revenue presents a challenge for 2025, along with expected flat revenue growth in Q1. The positive aspects outweigh the challenges, leading to an overall positive sentiment.

Company Guidance

During the Bandwidth Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided robust financial guidance for 2025, highlighting expected total revenue between $740 million and $760 million, reflecting an 8% to 11% growth when normalized for 2024 political campaign revenue. The fourth quarter of 2024 showed a 27% increase in total revenue to $210 million, with 15% year-over-year growth in cloud communications revenue. The company achieved a record annual non-GAAP gross margin of 57% and a net retention rate of 122%. Bandwidth's enterprise voice revenue grew by 29% year-over-year, driven by the adoption of its Maestro platform and strong demand in key verticals. For 2025, the company anticipates continued EBITDA growth, projecting it to reach $86 million at the midpoint, with a focus on strategic investments in AI and maintaining a strong capital structure.

Strong Financial Performance

Bandwidth reported a 27% increase in Q4 2024 revenue to $210 million and a 25% increase in EBITDA to $23 million. For the full year, total revenue reached $748 million, a 25% increase year-over-year, with a significant 70% increase in EBITDA to $82 million.

Record Non-GAAP Gross Margins

The company achieved record annual non-GAAP gross margins, improving to 58% in Q4, which is a three-percentage point increase.

Growth in Enterprise Revenue

Enterprise revenue grew by 29% year-over-year, driven by strong demand within key verticals.

AI and Innovation Initiatives

Bandwidth's Maestro platform and AIBridge software are driving new opportunities in voice AI, with hundreds of enterprises utilizing these platforms.

Successful Global Rollout

The company successfully rolled out its universal platform globally, supporting enterprise communications transformation.

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Bandwidth (BAND) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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BAND Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 30, 2025	2025 (Q1)	0.25 / -	0.27	―	―	―
Feb 20, 2025	2024 (Q4)	0.39 / 0.37	0.38	-2.63% (-0.01)
Oct 31, 2024	2024 (Q3)	0.32 / 0.43	0.23	86.96% (+0.20)
Aug 01, 2024	2024 (Q2)	0.26 / 0.29	0.16	81.25% (+0.13)
May 07, 2024	2024 (Q1)	0.20 / 0.27	0.05	440.00% (+0.22)
Feb 28, 2024	2023 (Q4)	0.23 / 0.38	0.19	100.00% (+0.19)
Nov 02, 2023	2023 (Q3)	0.20 / 0.23	0.27	-14.81% (-0.04)
Aug 02, 2023	2023 (Q2)	0.04 / 0.16	-0.04	500.00% (+0.20)
May 02, 2023	2023 (Q1)	<0.01 / 0.05	0.09	-44.44% (-0.04)
Feb 23, 2023	2022 (Q4)	0.04 / 0.19	0.09	111.11% (+0.10)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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BAND Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 20, 2025	$18.27	$17.46	-4.43%
Oct 31, 2024	$18.84	$19.50	+3.50%
Aug 01, 2024	$22.82	$15.97	-30.02%
May 07, 2024	$20.51	$22.54	+9.90%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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