Business
Bandwidth Announces Preliminary Third Quarter 2021 Revenue Results Exceeding Guidance and Estimated Full Year Revenue Impact of DDoS Attack
RALEIGH, N.C., Oct. 26, 2021 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced
About this update from Bandwidth Inc.
[{"type":"text","content":"RALEIGH, N.C., Oct. 26, 2021 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced preliminary third quarter 2021 revenue results and provided full year 2021 estimated revenue impact of the distributed denial of service (\"DDoS\") attack previously disclosed by the company. \nThe company currently expects third quarter 2021 consolidated revenue to be approximately $131 million, or 54% higher than the prior year period, and third quarter 2021 CPaaS revenue to be approximately $107.4 million, or 46% higher than the prior year period. This exceeds third quarter guidance for consolidated revenue of $123.6 to $124.6 million and CPaaS revenue of $106.1 to 107.1 million. These results include a decrease of approximately $0.7 million in third quarter 2021 revenue from lost transaction volume and customer credits due to the DDoS attack. The DDoS-related decrease in third quarter 2021 revenue is in-line with the company's disclosure contained in the Form 8-K filed on October 6, 2021. The company's preliminary revenue results for the third quarter of 2021 remain subject to ongoing quarterly close procedures.\n\"I am proud of our team's performance to combat a series of sophisticated DDoS attacks aimed at Bandwidth and our industry. Despite the impact from the DDoS attack at the end of September, our revenue results for the third quarter exceeded our guidance,\" said David Morken, Bandwidth's CEO. \"Consistent with our ethos to do the right thing for our customers, we helped some of our customers divert traffic from our platform during the attack to mitigate impacts to their businesses. While that traffic is beginning to come back, we believe we will see a top-line impact of that lost volume primarily in the fourth quarter. We believe we are now stronger than ever, and are focused on serving our customers.\"\nBased on preliminary usage data and currently known information, the company estimates that the impact of the DDoS attack may reduce CPaaS revenue for the full year 2021 by an amount between $9 million and $12 million, inclusive of the aforementioned $0.7 million revenue impact in the third quarter. Accordingly, Bandwidth will adjust its full year 2021 financial outlook commensurate with its reduced revenue expectations.\nThe company will discuss more about its response...