Slide 1: Bandwidth 1Q24 Earnings Results
Bandwidth 1Q24 Earnings Results May 7, 2024
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including, without limitation, future financial and business performance for the quarter ending June 30, 2024 and year ending December 31,
Slide 3: Bandwidth by the numbers
Bandwidth by the numbers Bandwidth powers cloud communications at scale $17b 2023 market opportunity1 >65 countries Communications cloud global coverage $634m 18% CAGR 2 1Q24 TTM Total Revenue 10 years Median tenure of top 20 customers $59m up 88% y/y 1Q24 TTM Adjusted EBITDA3 >99% Customer name ret
Slide 4: Providing global comms at scale across three target markets
Providing global comms at scale across three target markets GLOBAL Powering employees talking to each other and their customers COMMUNICATIONS through Unified Communications and Contact Center platforms PLANS PROGRAMMABLE Powering digital engagements and notifications SERVICES with programmable voic
Slide 5: 1Q 2024 Customer Highlights
1Q 2024 Customer Highlights HEALTHCARE Our customer needed a reliable partner for their voice traffic ENGAGEMENT Bandwidth won for our support experience, industry expertise and network AND PAYMENT reliability SOLUTIONS FIRM AUTOMOTIVE Our customer needed a toll-free messaging solution with reliable
Slide 6: 1Q 2024 Financial Highlights
1Q 2024 Financial Highlights Total revenue of $171m, up 24% y/y Exceeded revenue and profitability Cloud communications revenue1 of $128m, up 12% y/y guidance Messaging grew 50% y/y to 21% of cloud communications revenue Raising full year outlook Commercial messaging2 grew 34% y/y Adjusted EBITDA of
Slide 7: Quarterly Revenue Performance
Quarterly Revenue Performance 24% 1Q24 total revenue growth y/y 12% 1Q24 cloud comms revenue growth y/y (USD Millions) Cloud communications revenue Messaging surcharges1 1 Messaging surcharges is defined as pass-through messaging surcharges levied by carriers on Application to Person (A2P) text mess
Slide 8: Customer Metrics Performance
Customer Metrics Performance Net Retention Average Annual (“NRR”) Customer Revenue 107% Net retention rate 10% Increase in average annual customer revenue y/y (USD Thousands) Note: Information regarding average annual customer revenue and NRR including definitions and how they are calculated is incl
Slide 9: Non-GAAP Gross Margin Performance
Non-GAAP Gross Margin Performance Quarterly Annual Fueling gross margin expansion Scale and platform ownership Product mix Global coverage Operational efficiencies Note: We calculate Non-GAAP gross margin by dividing non-GAAP gross profit by Cloud communications revenue, which is revenue less pass t
Slide 10: Adjusted EBITDA Performance
Adjusted EBITDA Performance Quarterly Annual +54% Longstanding 74 commitment to +215% profitability 16 48 35 54% Adjusted EBITDA 5 growth y/y 2024 guidance 1Q23 1Q24 2022 2023 2024E1 (USD Millions) 1 Represents midpoint of guidance provided in the Financial Outlook section of May 7, 2024 earnings pr
Slide 11: 2Q24 and Full Year 2024 Outlook
2Q24 and Full Year 2024 Outlook 2Q 2024 FY 2024 (midpoint) (midpoint) Raising full year outlook on Revenue $173m $715m strong performance Adjusted EBITDA1 $16m $74m 19% Total revenue growth y/y 2024 guidance 1 Bandwidth has not reconciled its second quarter and full year 2024 guidance related to adj
Slide 12: Thank you!
Thank you!
Slide 13: Appendix
Appendix
Slide 14: Historical Metrics
Historical Metrics USD millions, except for Average Annual Customer Revenue in USD thousands FY21 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 Total Revenue 490.9 131.4 136.5 148.3 157.0 573.2 137.8 145.9 152.0 165.4 601.1 171.0 Cloud communications 449.7 113.9 115.5 121.5 123.7 474.6 114.
Slide 15: GAAP to Non-GAAP Reconciliation - Net Income
GAAP to Non-GAAP Reconciliation - Net Income USD millions, except per share amounts FY21 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 Net (loss) income (27.4) (6.8) (6.2) (0.8) 33.4 19.6 3.6 (3.9) (5.1) (10.9) (16.3) (9.2) Stock-based compensation 14.5 5.3 4.8 4.9 5.6 20.7 7.4 8.0 6.9 14.7
Slide 16: GAAP to Non-GAAP Reconciliation - Earnings per share
GAAP to Non-GAAP Reconciliation - Earnings per share USD millions, except per share amounts FY21 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 Net (loss) income per share Basic (1.09) (0.27) (0.25) (0.03) 1.32 0.77 0.14 (0.15) (0.20) (0.42) (0.64) (0.35) Diluted (1.09) (0.27) (0.25) (0.03)
Slide 17: GAAP to Non-GAAP Reconciliation - Gross Profit, Adjusted EBITDA, Free Cash Flow
GAAP to Non-GAAP Reconciliation - Gross Profit, Adjusted EBITDA, Free Cash Flow USD millions, except per share amounts FY21 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 Gross Profit 213.8 55.4 55.4 63.5 64.1 238.4 55.7 59.0 59.5 62.1 236.2 65.5 Gross Margin % 44% 42% 41% 43% 41% 42% 40% 40
Slide 18: Definitions
Definitions Adjusted EBITDA: Net income or losses from continuing operations, adjusted to reflect the addition or elimination of certain statement of operations items including, but not limited to: income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense,