BAND Earnings Prediction
The chart below shows how BAND performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BAND sees a +0.96% change in stock price 10 days leading up to the earnings, and a +4.72% change 10 days following the report. On the earnings day itself, the stock moves by +1.06%. This data can give you a slight idea of what to expect for the next quarter's release.
BAND Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
209.97M
26.96%
8.30%
Gross Margin
36.44%
-2.88%
-3.39%
Operating Margin
-1.07%
-82.34%
37.18%
Net Margin
-0.84%
-87.29%
-500.00%
EPS
-0.06
-85.71%
-700.00%
No Data Available
BAND Earnings Analysis
Bandwidth Inc Corporation (BAND.O) Earnings Conference Call
Positive
Q4 Revenue Surge: 27% revenue growth in Q4 2024, reaching $210 million.
Non-GAAP Gross Margin Increase: Record annual non-GAAP gross margins of 57%, a two-percentage point increase year-over-year.
EBITDA Growth Achievement: 25% EBITDA growth in Q4 2024, totaling $23 million.
Customer Loyalty Indicator: 122% net retention rate, indicating strong customer loyalty and satisfaction.
Record Annual Revenue per Customer: Average annual recurring revenue per customer reached a record $226,000, showcasing the value provided to clients.
Enterprise Revenue Growth: 29% growth in enterprise revenue driven by strong CCaaS and UCaaS adoption.
Global Platform Rollout Success: Successful global rollout of the universal platform, enhancing operational capabilities.
Market Adoption of Maestro: Hundreds of enterprises utilizing the Maestro platform, indicating strong market adoption.
Voice AI Innovations: AI-driven innovations, such as the AIBridge software, enabling customers to develop new voice AI capabilities.
Free Cash Flow Surge: 130% increase in free cash flow, reaching $30 million in Q4 2024.
Campaign Messaging Revenue: Political campaign messaging contributed $62 million to total revenue, aligning with expectations.
Enterprise Voice Revenue Growth: Enterprise voice revenue grew 29% year-over-year, driven by demand in key verticals.
Programmable Messaging Revenue Growth: Programmable messaging accounted for 23% of cloud communications revenue, with a 46% year-over-year increase.
High Customer Retention Rate: Customer name retention remained above 99%, reflecting strong customer relationships.
Strategic R&D Investment: Operating expense growth was strategically invested in R&D and innovation, supporting future growth.
Negative
Earnings Miss Reported: Bandwidth Inc. misses on earnings expectations with reported EPS of $-0.14658, while expectations were $0.38.
Revenue Growth vs. Decline: Despite a 27% revenue growth, the company is facing challenges with a significant decline in political campaign messaging revenue, which contributed $62 million in 2024 but is not expected to recur in 2025.
2025 Revenue Guidance Slowdown: The guidance for 2025 total revenue is projected to be between $740 million to $760 million, reflecting only 8% to 11% growth when normalized for the previous year's political campaign revenue, indicating a slowdown in growth.
Voice Plans Revenue Stagnation: The global voice plans category only achieved 3% revenue growth year-over-year, which may signal stagnation in this key area of the business.
Revenue Impact from Campaigns: The company is anticipating an off year for political campaign messaging, which could negatively impact overall revenue and growth projections for 2025.
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BAND Earning Call Sentiment
Bandwidth Inc. (NASDAQ:BAND) Q4 2024 Earnings Call Transcript
BAND.O
-1.4%Positive
The earnings call summary indicates strong financial performance with a 27% YoY revenue increase, 130% free cash flow growth, and positive EBITDA growth. Despite longer sales cycles and competitive pressures, the company raised its revenue guidance and demonstrated strong customer retention. The Q&A highlighted excitement for AI and RCS developments, although management was unclear on some growth details. Overall, the positive financial results and guidance outweigh concerns, suggesting a likely 2% to 8% stock price increase over the next two weeks.
