Business
Bandwidth Announces Fourth Quarter and Full Year 2022 Financial Results
Quarterly and full year revenue exceeded mid-point of guidance ranges by $10 million Guiding to 30% increase in Adjusted EBITDA for full year 2023 Hosting
About this update from Bandwidth Inc.
[{"type":"text","content":"Quarterly and full year revenue exceeded mid-point of guidance ranges by $10 million\nGuiding to 30% increase in Adjusted EBITDA for full year 2023\nHosting inaugural Investor Day\nRALEIGH, N.C., Feb. 23, 2023 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced financial results for the fourth quarter and full year ended December 31, 2022.\n\"We are pleased with our solid fourth quarter performance despite the broader macro-market uncertainties,\" said David Morken, Bandwidth's Chief Executive Officer. \"Our success highlights the resilience and increasing diversification of our revenue streams, and our expanding direct-to-enterprise strategy. Enterprises can upgrade their brand experience, lower operational costs, take advantage of AI technologies, reduce regulatory burdens and streamline digital transformation by migrating voice, text messages and emergency calling to the cloud — all with Bandwidth.\"\n\"Our fourth quarter results surpassed both our top and bottom line guidance, driven by customer demand for our communications cloud. Revenue further benefited by $23 million and $37 million in our fourth quarter and full year from strong campaign messaging demand,\" said Daryl Raiford, Bandwidth's Chief Financial Officer. \"Looking ahead to 2023, we expect revenue growth to be constrained in the current macroeconomic environment and also impacted by campaign messaging cyclicality. We have a disciplined operating team and expect to grow Adjusted EBITDA by 30%, driving profitability through operating leverage. We remain confident in the potential of enterprise cloud migration and the capabilities of our business model to drive profitable growth.\"\nFourth Quarter and Full Year 2022 Financial Highlights The following table summarizes the consolidated financial highlights for the three and twelve months ended December 31, 2022 and 2021 (in millions, except per share amounts).(1)\nThree months endedDecember 31,\nYear ended\nDecember 31,\n2022\n2021\n2022\n2021\nTotal Revenue\n$ 157\n$ 126\n$ 573\n$ 491\nGross Margin (1)\n41 %\n41 %\n42 %\n44 %\nNon-GAAP Gross Margin (1)\n56 %\n53 %\n55 %\n52 %\nNet Income (Loss)\n$ 33\n$ (8)\n$ 20\n$ (27)\nNon-GAAP Net Income\n$ 5\n$ 2\n$ 15\n$ 26\nNet income (loss) per share:\nBasic\n$ 1.32\n$ (0.33)\n$ 0.77\n$ (1.09)\nDiluted\n$ ...