Q1 2024 Bandwidth Inc Earnings Call Transcript
Key Points
- Exceeded first-quarter guidance with record quarterly revenue and highest ever adjusted EBITDA for a first quarter.
- Raised full-year outlook on top and bottom lines due to overperformance.
- Strengthened capital structure by expanding existing undrawn revolving credit facility to $100 million and repurchasing $140 million of convertible notes at a discount.
- Reported a 24% year-over-year growth in first-quarter revenue, with cloud communications revenue growing 12% year over year.
- Messaging revenue grew 50% year over year, with commercial messaging up 34%, indicating strong demand across multiple sectors.
- Political campaign messaging revenue is difficult to predict and differentiate from ongoing commercial civic engagement, adding uncertainty to revenue projections.
- Despite overall growth, the global communications plans revenue growth was modest at 4% year over year.
- Free cash flow in the first quarter reflected a $4 million use of cash due to seasonal timing of working capital.
- Chief Operating Officer Anthony Bartolo is leaving the company, which could lead to transitional challenges.
- While gross margin improved, the company maintains a conservative outlook on expected improvements, suggesting potential unseen costs or challenges.
Good day, and welcome to the Bandwidth Inc.'s first-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
And now I would like to turn the conference over to Sarah Wallace, Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, and welcome to Bandwidth's first-quarter 2024 earnings call. Today, we'll discuss the results announced in our press release issued earlier this morning. The press release and an earnings presentation with historical financial highlights can be found on the Investor Relations page at investors.bandwidth.com.
With me on the call this morning is David Morgan, our CEO; and Daryl Raiford, our CFO. They will begin with prepared remarks, and then we will open up the call for Q&A.
During the call, we will make statements related to our business that may be considered forward looking, including statements concerning our financial guidance for the second quarter and full year of 2024. We caution you not
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
