Bandwidth Announces Third Quarter 2024 Financial Results
Bandwidth (BAND) reported strong Q3 2024 results, exceeding guidance with record revenue of $194 million, up 28% year-over-year. The company achieved an Adjusted EBITDA of $24 million, representing a 74% increase. Non-GAAP Gross Margin improved to 58% from 55% in Q3 2023. Free Cash Flow was $14 million. Based on these results, Bandwidth raised its full-year 2024 guidance, projecting revenue between $737-747 million and Adjusted EBITDA of $78-80 million. The company also introduced its next-generation Universal Platform and expanded its bring-your-own-carrier integrations ecosystem.
Bandwidth (BAND) ha riportato risultati solidi per il terzo trimestre del 2024, superando le previsioni con un fatturato record di 194 milioni di dollari, in crescita del 28% rispetto all'anno precedente. L'azienda ha ottenuto un EBITDA Adjusted di 24 milioni di dollari, con un incremento del 74%. Il Margine Lordo Non-GAAP è migliorato al 58%, rispetto al 55% del terzo trimestre 2023. Il Flusso di Cassa Libero è stato di 14 milioni di dollari. Sulla base di questi risultati, Bandwidth ha aggiornato le sue previsioni per l'intero anno 2024, prevedendo un fatturato tra 737 e 747 milioni di dollari e un EBITDA Adjusted di 78-80 milioni di dollari. L'azienda ha anche presentato la sua piattaforma universale di nuova generazione e ampliato il suo ecosistema di integrazioni per il
Bandwidth (BAND) reportó resultados sólidos en el tercer trimestre de 2024, superando las expectativas con ingresos récord de 194 millones de dólares, lo que representa un aumento del 28% interanual. La compañía logró un EBITDA Ajustado de 24 millones de dólares, lo que representa un aumento del 74%. El Margen Bruto No-GAAP mejoró al 58%, en comparación con el 55% en el tercer trimestre de 2023. El Flujo de Caja Libre fue de 14 millones de dólares. Con base en estos resultados, Bandwidth elevó su orientación para todo el año 2024, proyectando ingresos entre 737 y 747 millones de dólares y un EBITDA Ajustado de 78-80 millones de dólares. La empresa también presentó su Plataforma Universal de próxima generación y amplió su ecosistema de integraciones de traer su propio operador.
Bandwidth (BAND)는 2024년 3분기 실적이 강력하며 가이던스를 초과하여 1억 9천 4백만 달러의 기록적인 수익을 보고했습니다. 이는 전년 대비 28% 증가한 수치입니다. 이 회사는 조정 EBITDA가 2천 4백만 달러로 74% 증가했음을 나타냈습니다. 비-GAAP 총 마진은 2023년 3분기 55%에서 58%로 개선되었습니다. 자유 현금 흐름은 1천 4백만 달러였습니다. 이러한 결과를 바탕으로 Bandwidth는 2024년 연간 가이던스를 상향 조정하였으며, 7억 3천만에서 7억 4천 7백만 달러의 수익과 7천 8백만에서 8천만 달러의 조정 EBITDA를 예상하고 있습니다. 또한 회사는 차세대 유니버설 플랫폼을 소개하고 사용자 자원 내 사업자 통합 생태계를 확장했습니다.
Bandwidth (BAND) a annoncé de solides résultats pour le troisième trimestre 2024, dépassant les prévisions avec un chiffre d'affaires record de 194 millions de dollars, soit une augmentation de 28 % par rapport à l'année précédente. L'entreprise a réalisé un EBITDA ajusté de 24 millions de dollars, représentant une augmentation de 74 %. La marge brute non-GAAP a progressé à 58 %, contre 55 % au troisième trimestre 2023. Le flux de trésorerie libre s'est élevé à 14 millions de dollars. Sur la base de ces résultats, Bandwidth a relevé ses prévisions pour l'année entière 2024, prévoyant un chiffre d'affaires compris entre 737 et 747 millions de dollars et un EBITDA ajusté de 78 à 80 millions de dollars. L'entreprise a également présenté sa plateforme universelle de nouvelle génération et élargi son écosystème d'intégrations de bring-your-own-carrier.
Bandwidth (BAND) meldete für das dritte Quartal 2024 starke Ergebnisse, die die Prognosen übertrafen, mit einem Rekordumsatz von 194 Millionen US-Dollar, was einem Anstieg von 28% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein bereinigtes EBITDA von 24 Millionen US-Dollar, was einem Anstieg von 74% entspricht. Die Non-GAAP Bruttomarge verbesserte sich von 55% im dritten Quartal 2023 auf 58%. Der freie Cashflow betrug 14 Millionen US-Dollar. Auf Basis dieser Ergebnisse hat Bandwidth seine Jahresprognose für 2024 angehoben und erwartet einen Umsatz zwischen 737 und 747 Millionen US-Dollar sowie ein bereinigtes EBITDA von 78-80 Millionen US-Dollar. Darüber hinaus stellte das Unternehmen seine nächste Generation der Universellen Plattform vor und erweiterte sein Ökosystem für „Bring Your Own Carrier“-Integrationen.
- Revenue grew 28% YoY to $194 million in Q3 2024
- Adjusted EBITDA increased 74% YoY to $24 million
- Non-GAAP Gross Margin improved to 58% from 55% YoY
- Raised full-year 2024 guidance for both revenue and profitability
- Strong free cash flow generation of $14 million
- GAAP Gross Margin declined to 38% from 39% YoY
- Free Cash Flow decreased from $18M in Q3 2023 to $14M in Q3 2024
Insights
The Q3 results showcase remarkable financial performance with
The raised full-year guidance indicates strong business momentum, with revenue now projected between
The expansion into RCS messaging and enhanced BYOC capabilities positions Bandwidth well for future growth in the enterprise communications market. The new Universal Platform launch could drive increased customer adoption and revenue expansion opportunities.
The launch of the next-generation Universal Platform represents a significant technological advancement, consolidating Bandwidth's services into a unified global experience. The platform's modernized global network infrastructure enhances the company's competitive position in the enterprise communications market.
The expansion of BYOC integrations through the Maestro platform and the upcoming Number Reputation Management solution address critical enterprise needs. The RCS partnership with Google is particularly strategic, positioning Bandwidth to capitalize on the evolution of business messaging. These technological initiatives demonstrate strong product innovation and market responsiveness.
Exceeded revenue and profitability guidance ranges
Raising full year 2024 guidance for revenue and profitability
"We're pleased to report solid momentum carrying us into the end of the year, with record revenue and profitability performance, strong conversion to free cash flow and continued operating discipline," said David Morken, CEO of Bandwidth. "These results are driven by the trust our customers place in us to deliver their business-critical services. We are excited by our new, next-generation Universal Platform as the foundation of our strong innovation roadmap, demonstrating a clear focus on the needs of the world's largest enterprises."
Third Quarter 2024 Financial Highlights
The following table summarizes the condensed consolidated financial highlights for the three and nine months ended September 30, 2024 and 2023 ($ in millions).
Three months ended | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 194 | $ 152 | $ 539 | $ 436 | |||
Gross Margin | 38 % | 39 % | 38 % | 40 % | |||
Non-GAAP Gross Margin (1) | 58 % | 55 % | 57 % | 54 % | |||
Adjusted EBITDA (1) | $ 24 | $ 14 | $ 59 | $ 29 | |||
Free Cash Flow (1) | $ 14 | $ 18 | $ 28 | $ 6 |
(1) Additional information regarding the Non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of GAAP to Non-GAAP financial measures has also been provided in the financial tables included below. |
"Bandwidth delivered a record third quarter, with growth across all our products and customer categories. Total revenue reached
Third Quarter Customer and Operational Highlights
- Introduced the next-generation Universal Platform bringing the power of Bandwidth in one consistent global experience for all real-time communications needs, with new features, upgraded capabilities, and a modernized global network underpinning the platform to make it easier to consolidate and expand into new markets around the world.
- Bandwidth announced it now offers the largest ecosystem of bring-your-own-carrier (BYOC) integrations of any provider in the world within the Maestro communications platform – giving enterprises more ways to solve complex communications challenges.
- Bandwidth has registered as an RBM (RCS Business Messaging) partner with Google, setting itself up to enable RCS (Rich Communication Services) across all key markets.
- Bandwidth announced Number Reputation Management is coming soon as a solution to correct false "spam" labels and make sure enterprise's urgent and important calls are displayed correctly so they can be answered.
- A high-volume patient engagement platform switched to Bandwidth for text messaging. They needed message deliverability assurance and message performance insights to ensure timely patient communications.
- A large, diversified credit union chose Bandwidth to provide voice services for its new, modernized on-premise contact center. Bandwidth's all-IP network and Maestro platform made it easy for the customer to integrate with a modern tech stack and enables them to add new services in the future.
Financial Outlook
Bandwidth's outlook is based on current indications for its business, which are subject to change. Bandwidth is providing guidance for its fourth quarter and full year 2024 as follows (in millions):
4Q 2024 | Full Year 2024 | ||
Revenue | |||
Adjusted EBITDA |
Bandwidth has not reconciled its fourth quarter and full year 2024 guidance related to Adjusted EBITDA to GAAP net income or loss, because stock-based compensation cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.
Upcoming Investor Conference Schedule
- Barclays Global Technology Conference in
San Francisco, CA. Meetings with John Bell, Chief Product Officer and Shiv Hira, EVP Finance on Wednesday, December 11th, 2024.
About Bandwidth Inc.
Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 percent of global GDP, are trusted by all the leaders in unified communications and cloud contact centers–including Amazon Web Services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–as well as Global 2000 enterprises and SaaS builders like Docusign, Uber and Yosi Health. As a founder of the cloud communications revolution, we are the first and only global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, owner-operated network and broad regulatory experience. Our award-winning support teams help businesses around the world solve complex communications challenges to reach anyone, anywhere. For more information, visit www.bandwidth.com.
Earnings webcast
Bandwidth will host a webcast to discuss financial results for the third quarter ended September 30, 2024 on October 31, 2024. Details can be found below and on the investor section of its website at https://investors.bandwidth.com where a replay will also be available shortly following the event.
Webcast Details
October 31, 2024
8:00 am ET
To view live event and replay investors and analysts can register at investors.bandwidth.com
Forward-Looking Statements
This press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including, without limitation, future financial and business performance for the quarter and year ending December 31, 2024, the success of our product offerings and our platform, and the value proposition of our products, are forward-looking statements. The words "anticipate," "assume," "believe," "continue," "estimate," "expect," "intend," "guide," "may," "will" and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, risks related to our rapid growth and ability to sustain our revenue growth rate, competition in the markets in which we operate, market growth, our ability to innovate and manage our growth, our ability to expand effectively into new markets, macroeconomic conditions both in the
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in
The presentation of Non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our Non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
We define Non-GAAP gross profit as gross profit after adding back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation. We add back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation because they are non-cash items. We eliminate the impact of these non-cash items, because we do not consider them indicative of our core operating performance. Their exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we believe that showing gross margin, as adjusted to remove the impact of these non-cash expenses, is helpful to investors in assessing our gross profit and gross margin performance in a way that is similar to how management assesses our performance. We calculate Non-GAAP gross margin by dividing Non-GAAP gross profit by cloud communications revenue, which is revenue less pass-through messaging surcharges.
We define Non-GAAP net income (loss) as net income or loss adjusted for certain items affecting period to period comparability. Non-GAAP net income (loss) excludes stock-based compensation, amortization of acquired intangible assets related to acquisitions, amortization of debt discount and issuance costs for convertible debt, acquisition related expenses, impairment charges of intangibles assets, net cost associated with early lease terminations and leases without economic benefit, (gain) loss on sale of business, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, non-recurring items not indicative of ongoing operations and other, and estimated tax impact of above adjustments, net of valuation allowances.
We define Adjusted EBITDA as net income or losses from continuing operations, adjusted to reflect the addition or elimination of certain statement of operations items including, but not limited to: income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense, acquisition related expenses, stock-based compensation expense, impairment of intangible assets, (gain) loss on sale of business, net cost associated with early lease terminations and leases without economic benefit, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, and non-recurring items not indicative of ongoing operations and other. We have presented Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business.
We define free cash flow as net cash provided by or used in operating activities less net cash used in the acquisition of property, plant and equipment and capitalized development costs for software for internal use. We believe free cash flow is a useful indicator of liquidity and provides information to management and investors about the amount of cash generated from our core operations that can be used for investing in our business. Free cash flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, it does not take into consideration investment in long-term securities, nor does it represent the residual cash flows available for discretionary expenditures. Therefore, it is important to evaluate free cash flow along with our condensed consolidated statements of cash flows.
We believe that these Non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making. While a reconciliation of Non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis as a result of the uncertainty regarding, and the potential variability of, many of these costs and expenses that we may incur in the future, we have provided a reconciliation of Non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release.
BANDWIDTH INC. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 193,883 | $ 152,013 | $ 538,518 | $ 435,731 | |||
Cost of revenue | 120,749 | 92,514 | 335,071 | 261,624 | |||
Gross profit | 73,134 | 59,499 | 203,447 | 174,107 | |||
Operating expenses | |||||||
Research and development | 30,171 | 24,792 | 87,215 | 75,305 | |||
Sales and marketing | 26,285 | 25,011 | 81,490 | 75,794 | |||
General and administrative | 17,576 | 15,843 | 52,130 | 48,430 | |||
Total operating expenses | 74,032 | 65,646 | 220,835 | 199,529 | |||
Operating loss | (898) | (6,147) | (17,388) | (25,422) | |||
Other income, net | 577 | 798 | 11,358 | 16,819 | |||
Loss before income taxes | (321) | (5,349) | (6,030) | (8,603) | |||
Income tax benefit | 734 | 219 | 1,265 | 3,194 | |||
Net income (loss) | $ 413 | $ (5,130) | $ (4,765) | $ (5,409) | |||
Net income (loss) per share: | |||||||
Basic | $ 0.02 | $ (0.20) | $ (0.18) | $ (0.21) | |||
Diluted | $ 0.01 | $ (0.20) | $ (0.18) | $ (0.21) | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 27,374,367 | 25,613,441 | 26,983,931 | 25,539,642 | |||
Diluted | 28,615,520 | 25,613,441 | 26,983,931 | 25,539,642 | |||
The Company recognized total stock-based compensation expense as follows: | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cost of revenue | $ 352 | $ 182 | $ 1,123 | $ 578 | |||
Research and development | 4,606 | 2,822 | 14,606 | 9,278 | |||
Sales and marketing | 1,744 | 1,160 | 6,014 | 3,825 | |||
General and administrative | 4,747 | 2,778 | 13,405 | 8,644 | |||
Total | $ 11,449 | $ 6,942 | $ 35,148 | $ 22,325 |
BANDWIDTH INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited)
| |||
As of September 30, | As of December 31, | ||
2024 | 2023 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 74,940 | $ 131,987 | |
Marketable securities | 4,967 | 21,488 | |
Accounts receivable, net of allowance for doubtful accounts | 99,616 | 78,155 | |
Deferred costs | 3,806 | 4,155 | |
Prepaid expenses and other current assets | 15,333 | 16,990 | |
Total current assets | 198,662 | 252,775 | |
Property, plant and equipment, net | 170,131 | 177,864 | |
Operating right-of-use asset, net | 152,559 | 157,507 | |
Intangible assets, net | 159,254 | 166,914 | |
Deferred costs, non-current | 4,511 | 4,586 | |
Other long-term assets | 4,244 | 5,530 | |
Goodwill | 340,387 | 335,872 | |
Total assets | $ 1,029,748 | $ 1,101,048 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Accounts payable | $ 20,557 | $ 34,208 | |
Accrued expenses and other current liabilities | 94,414 | 69,014 | |
Current portion of deferred revenue | 7,020 | 8,059 | |
Advanced billings | 3,304 | 6,027 | |
Operating lease liability, current | 3,360 | 5,463 | |
Line of credit, current portion | 25,000 | — | |
Total current liabilities | 153,655 | 122,771 | |
Other liabilities | 360 | 386 | |
Operating lease liability, net of current portion | 219,705 | 220,548 | |
Deferred revenue, net of current portion | 8,133 | 8,406 | |
Deferred tax liability | 30,348 | 33,021 | |
Convertible senior notes | 280,972 | 418,526 | |
Total liabilities | 693,173 | 803,658 | |
Stockholders' equity: | |||
Class A and Class B common stock | 28 | 26 | |
Additional paid-in capital | 426,757 | 391,048 | |
Accumulated deficit | (69,655) | (64,890) | |
Accumulated other comprehensive loss | (20,555) | (28,794) | |
Total stockholders' equity | 336,575 | 297,390 | |
Total liabilities and stockholders' equity | $ 1,029,748 | $ 1,101,048 |
BANDWIDTH INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
| |||
Nine months ended September 30, | |||
2024 | 2023 | ||
Cash flows from operating activities | |||
Net loss | $ (4,765) | $ (5,409) | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Depreciation and amortization | 37,138 | 29,687 | |
Non-cash reduction to the right-of-use asset | 2,759 | 5,227 | |
Amortization of debt discount and issuance costs | 1,332 | 1,995 | |
Stock-based compensation | 35,148 | 22,325 | |
Deferred taxes and other | (4,249) | (5,902) | |
Gain on sale of intangible asset | (1,000) | — | |
Net gain on extinguishment of debt | (10,267) | (12,767) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net of allowances | (21,318) | (654) | |
Prepaid expenses and other assets | 2,482 | 2,102 | |
Accounts payable | (11,940) | 4,164 | |
Accrued expenses and other liabilities | 24,991 | (13,031) | |
Operating right-of-use liability | (2,946) | (8,004) | |
Net cash provided by operating activities | 47,365 | 19,733 | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (10,636) | (5,287) | |
Refund of deposits for construction in progress | 2,707 | — | |
Capitalized software development costs | (8,571) | (8,384) | |
Purchase of marketable securities | (32,081) | (60,625) | |
Proceeds from sales and maturities of marketable securities | 48,649 | 100,109 | |
Proceeds from sale of business | 624 | 1,070 | |
Proceeds from sale of intangible assets | 1,000 | — | |
Net cash provided by investing activities | 1,692 | 26,883 | |
Cash flows from financing activities | |||
Borrowings on line of credit | 165,500 | — | |
Repayments on line of credit | (140,500) | — | |
Payments on finance leases | (68) | (124) | |
Net cash paid for debt extinguishment | (128,534) | (51,259) | |
Payment of debt issuance costs | (379) | (696) | |
Proceeds from exercises of stock options | 128 | 413 | |
Value of equity awards withheld for tax liabilities | (2,291) | (1,056) | |
Net cash used in financing activities | (106,144) | (52,722) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 41 | (887) | |
Net decrease in cash, cash equivalents, and restricted cash | (57,046) | (6,993) | |
Cash, cash equivalents, and restricted cash, beginning of period | 132,307 | 114,622 | |
Cash, cash equivalents, and restricted cash, end of period | $ 75,261 | $ 107,629 |
BANDWIDTH INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except share and per share amounts) (Unaudited)
| |||||||
Non-GAAP Gross Profit and Non-GAAP Gross Margin
| |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Gross Profit | $ 73,134 | $ 59,499 | $ 203,447 | $ 174,107 | |||
Gross Profit Margin % | 38 % | 39 % | 38 % | 40 % | |||
Depreciation | 4,679 | 4,056 | 14,135 | 11,790 | |||
Amortization of acquired intangible assets | 1,977 | 1,959 | 5,877 | 5,863 | |||
Stock-based compensation | 352 | 182 | 1,123 | 578 | |||
Non-GAAP Gross Profit | $ 80,142 | $ 65,696 | $ 224,582 | $ 192,338 | |||
Non-GAAP Gross Margin % (1) | 58 % | 55 % | 57 % | 54 % |
________________________ |
(1) Calculated by dividing Non-GAAP gross profit by cloud communications revenue of |
BANDWIDTH INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except share and per share amounts) (Unaudited)
| |||||||
Non-GAAP Net Income
| |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) | $ 413 | $ (5,130) | $ (4,765) | $ (5,409) | |||
Stock-based compensation | 11,449 | 6,942 | 35,148 | 22,325 | |||
Amortization of acquired intangibles | 4,436 | 4,348 | 13,133 | 12,960 | |||
Amortization of debt discount and issuance costs for convertible debt | 311 | 484 | 1,180 | 1,520 | |||
Net cost associated with early lease terminations and leases without economic benefit | 350 | 1,175 | 2,383 | 1,175 | |||
Net gain on extinguishment of debt | — | — | (10,267) | (12,767) | |||
Gain on business interruption insurance recoveries | — | — | — | (4,000) | |||
Non-recurring items not indicative of ongoing operations and other (1) | (957) | 54 | (828) | 793 | |||
Estimated tax effects of adjustments (2) | (3,211) | (1,526) | (6,654) | (4,661) | |||
Non-GAAP net income | $ 12,791 | $ 6,347 | $ 29,330 | $ 11,936 | |||
Interest expense on Convertible Notes (3) | 251 | 317 | 868 | 971 | |||
Numerator used to compute Non-GAAP diluted net income per share | $ 13,042 | $ 6,664 | $ 30,198 | $ 12,907 | |||
Net income (loss) per share | |||||||
Basic | $ 0.02 | $ (0.20) | $ (0.18) | $ (0.21) | |||
Diluted | $ 0.01 | $ (0.20) | $ (0.18) | $ (0.21) | |||
Non-GAAP net income per Non-GAAP share | |||||||
Basic | $ 0.47 | $ 0.25 | $ 1.09 | $ 0.47 | |||
Diluted | $ 0.43 | $ 0.23 | $ 0.98 | $ 0.44 | |||
Weighted average number of shares outstanding | |||||||
Basic | 27,374,367 | 25,613,441 | 26,983,931 | 25,539,642 | |||
Diluted | 28,615,520 | 25,613,441 | 26,983,931 | 25,539,642 | |||
Non-GAAP basic shares | 27,374,367 | 25,613,441 | 26,983,931 | 25,539,642 | |||
Convertible debt conversion | 1,779,025 | 3,317,023 | 2,503,118 | 3,484,424 | |||
Stock options issued and outstanding | 25,021 | 20,360 | 28,785 | 47,345 | |||
Nonvested RSUs outstanding | 1,216,132 | — | 1,430,317 | — | |||
Non-GAAP diluted shares | 30,394,545 | 28,950,824 | 30,946,151 | 29,071,411 |
________________________ |
(1) Non-recurring items not indicative of ongoing operations and other include (i) |
(2) The estimated tax-effect of adjustments is determined by recalculating the tax provision on a Non-GAAP basis. The Non-GAAP effective income tax rate was |
(3) Non-GAAP net income is increased for interest expense as part of the calculation for diluted Non-GAAP earnings per share. |
Adjusted EBITDA | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net income (loss) | $ 413 | $ (5,130) | $ (4,765) | $ (5,409) | |||
Income tax benefit | (734) | (219) | (1,265) | (3,194) | |||
Interest expense (income), net | 1,025 | (59) | 1,090 | 1,177 | |||
Depreciation | 7,989 | 6,647 | 24,005 | 16,727 | |||
Amortization | 4,436 | 4,348 | 13,133 | 12,960 | |||
Stock-based compensation | 11,449 | 6,942 | 35,148 | 22,325 | |||
Net cost associated with early lease terminations and leases without economic benefit | 350 | 1,175 | 2,383 | 1,175 | |||
Net gain on extinguishment of debt | — | — | (10,267) | (12,767) | |||
Gain on business interruption insurance recoveries | — | — | — | (4,000) | |||
Non-recurring items not indicative of ongoing operations and other (1) | (957) | 54 | (828) | 391 | |||
Adjusted EBITDA | $ 23,971 | $ 13,758 | $ 58,634 | $ 29,385 |
________________________ |
(1) Non-recurring items not indicative of ongoing operations and other include (i) |
Free Cash Flow | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net cash provided by operating activities | $ 20,464 | $ 23,001 | $ 47,365 | $ 19,733 | |||
Net cash used in investing in capital assets (1) | (6,219) | (4,811) | (19,207) | (13,671) | |||
Free cash flow | $ 14,245 | $ 18,190 | $ 28,158 | $ 6,062 |
________________________ |
(1) Represents the acquisition cost of property, plant and equipment and capitalized development costs for software for internal use. |
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SOURCE Bandwidth Inc.
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