Bandwidth Inc
NASDAQ:BAND
Bandwidth Inc
Bandwidth, Inc. provides cloud-based communications services. The company is headquartered in Raleigh, North Carolina and currently employs 1,100 full-time employees. The company went IPO on 2017-11-10. The firm operates through two operating and reportable segments, communications platform-as-a-service (CPaaS) and Other. Its software platform and Internet protocol (IP) voice network enables its enterprise customers to develop and real-time software-based communications solution. By operating its IP voice network, the Company offers advanced monitoring, reporting and analytics, customer service, operating teams, and personalized support. The company provides software application programming interface that are used to build voice calling within applications, call flows between users or machines, call recording, text-to-speech for interactive voice response, call detail records, and others. Its voice quality monitoring service provides tools and processes for network quality tests.
Bandwidth, Inc. provides cloud-based communications services. The company is headquartered in Raleigh, North Carolina and currently employs 1,100 full-time employees. The company went IPO on 2017-11-10. The firm operates through two operating and reportable segments, communications platform-as-a-service (CPaaS) and Other. Its software platform and Internet protocol (IP) voice network enables its enterprise customers to develop and real-time software-based communications solution. By operating its IP voice network, the Company offers advanced monitoring, reporting and analytics, customer service, operating teams, and personalized support. The company provides software application programming interface that are used to build voice calling within applications, call flows between users or machines, call recording, text-to-speech for interactive voice response, call detail records, and others. Its voice quality monitoring service provides tools and processes for network quality tests.
Revenue Outperformance: Bandwidth reported third quarter revenue of $192 million, up 11% year-over-year on a normalized basis, exceeding guidance.
Profitability Beat: Adjusted EBITDA reached $24 million, coming in above the high end of guidance.
Voice Growth: Core voice business saw accelerating growth, driven by enterprise demand and AI adoption, including a record number of million dollar-plus deals.
AI & Software Momentum: Management highlighted rapid progress in AI voice products, automation, and software-driven recurring revenue, particularly in financial services and health care.
Raised 2025 Guidance: Full year EBITDA outlook was raised to $91 million at the midpoint, with tightened revenue guidance and stronger cloud communications outlook.
Medium-Term Targets Reiterated: Management reaffirmed targets for above-market revenue growth, 60%+ gross margin, 20%+ EBITDA margin, and 15%+ free cash flow margin by 2026.
