Business
Bandwidth Announces Second Quarter 2023 Financial Results
Second quarter revenue and profitability exceeded guidance ranges Messaging revenue up 11% year-over-year RALEIGH, N.C., Aug. 2, 2023 /PRNewswire/ --
About this update from Bandwidth Inc.
[{"type":"text","content":"Second quarter revenue and profitability exceeded guidance ranges\nMessaging revenue up 11% year-over-year\nRALEIGH, N.C., Aug. 2, 2023 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced financial results for the second quarter ended June 30, 2023.\n\"I am pleased with our business performance and financial results in the second quarter of 2023 demonstrating solid execution and a focus on serving our customers through a challenging economic environment,\" said David Morken, Bandwidth's Chief Executive Officer. \"Looking to the remainder of the year, we will maintain our strong focus on disciplined execution and expanded profitability while leveraging our global reach, regulatory experience, enterprise-grade APIs, and breakthrough innovations like Maestro for the benefit of our customers.\"\nSecond Quarter 2023 Financial Highlights \nThe following table summarizes the consolidated financial highlights for the three months ended June 30, 2023 and 2022 (in millions, except per share amounts).(1)\nThree months endedJune 30,\n2023\n2022\nRevenue\n$ 146\n$ 136\nGross Margin\n40 %\n41 %\nNon-GAAP Gross Margin (1)\n55 %\n53 %\nAdjusted EBITDA(1)\n$ 11\n$ 5\nDollar-based net retention rate (2)\n106 %\n112 %\n(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.\n(2) Additional information regarding our dollar-based net retention rate and how it is calculated is included below.\n\"We achieved second quarter revenue of $146 million and Adjusted EBITDA of $11 million, both of which exceeded their respective guidance ranges,\" said Daryl Raiford, Bandwidth's Chief Financial Officer. \"Against a backdrop of a choppy economic environment, these results demonstrate our value proposition is strong and core business model is resilient. Accordingly, we are increasing our full year revenue guidance to reflect our first half revenue over achievement and continue to target year-over-year profitability growth of 30 percent.\"\nSecond Quarter Customer and Operational Highlights \nA cloud ...