Slide 1: 4Q24 and 2024 Earnings Results
4Q24 and 2024 Earnings Results February 20, 2025
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 March 31, 2025 and year ending December 31,
Slide 3: We develop and deliver the power to communicate
We develop and deliver the power to communicate Voice Messaging Emergency Services 3
Slide 4: Bandwidth powers global communications at scale
Bandwidth powers global communications at scale Powering 100% of Trusted for the most Bandwidth is the #1 the UCaaS1 and CCaaS2 mission-critical sender in toll-free Leaders enterprise comms messaging 1 UCaaS - Unified Communications as a Service. 2 CCaaS - Contact Center as a Service. 4
Slide 5: Lasting customer loyalty
Lasting customer loyalty >99% 122% 11 years Name Retention Net Revenue Top 20 Customer Rate Retention Median Tenure Note: Customer metrics as of December 31, 2024. See Appendix for definitions of metrics presented on this slide. 5
Slide 6: 2024 Financial Highlights
2024 Financial Highlights $748m $540m $82m $59m Total revenue Cloud communications Adjusted EBITDA2 Free cash flow2 revenue1 25% 13% 70% 206% Total revenue Cloud communications Adjusted EBITDA2 Free cash flow2 y/y growth revenue1 y/y growth y/y growth y/y growth 1 Cloud communications revenue is tot
Slide 7: Annual Revenue Performance
Annual Revenue Performance 25% 2024 total revenue growth y/y 13% 2024 cloud communications revenue1 growth y/y (USD Millions) Cloud communications revenue1 Messaging surcharges2 1 Cloud communications revenue is total revenue less pass-through messaging surcharge revenue. 2 Messaging surcharges is d
Slide 8: Quarterly Revenue Performance
Quarterly Revenue Performance 27% 4Q24 total revenue growth y/y 15% 4Q24 cloud communications revenue1 growth y/y (USD Millions) Cloud communications revenue1 Messaging surcharges2 1 Cloud communications revenue is total revenue less pass-through messaging surcharge revenue. 2 Messaging surcharges i
Slide 9: Providing global comms at scale across three customer categories
Providing global comms at scale across three customer categories Powering employees communicating with each other and their customers Global Voice through Unified Communications and Contact Center platforms Plans Powering innovative customer experiences for the Global 2000 Enterprise with composable
Slide 10: 2024 Cloud Communications Revenue by Customer Category
2024 Cloud Communications Revenue by Customer Category % of revenue Global Voice Plans 3% y/y 8% 69% Enterprise Voice 29% y/y $540m1 23% Programmable 46% y/y Messaging 1 Represents Cloud communications revenue, which is total revenue less pass-through messaging surcharge revenue, for the year ended
Slide 11: Annual Customer Metrics
Annual Customer Metrics Net Retention Average Annual (“NRR”) Customer Revenue 122% Net retention rate 27% Increase in average annual customer revenue y/y (USD Thousands) Note: Information regarding NRR and average annual customer revenue including definitions and how they are calculated is included
Slide 12: Non-GAAP Gross Margin Performance
Non-GAAP Gross Margin Performance Fueling gross margin expansion Quarterly Annual 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 total revenue less
Slide 13: Adjusted EBITDA Performance
Adjusted EBITDA Performance Quarterly Annual 70% 2024 Adjusted EBITDA growth y/y 15% 2024 Adjusted EBITDA margin1 (USD Millions) 1 Calculated by dividing Adjusted EBITDA by Cloud communications revenue, which is total revenue less pass-through messaging surcharge revenue. See appendix for GAAP to no
Slide 14: Free Cash Flow Performance
Free Cash Flow Performance Quarterly Annual 206% $30 $59 2024 Free cash flow growth y/y $13 $19 11% 2024 Free cash flow margin1 $(11) 4Q23 4Q24 2022 2023 2024 (USD Millions)) 1 Calculated by dividing Free cash flow by Cloud communications revenue, which is total revenue less pass-through messaging s
Slide 15: 1Q25 and Full Year 2025 Outlook
1Q25 and Full Year 2025 Outlook 1Q 2025 FY 2025 $168m - $170m $740m - $760m 8-11% 1 Revenue Total revenue Adjusted EBITDA2 $16m - $18m $82m - $90m growth y/y 2025 guidance For the full year 2025, Bandwidth’s revenue guidance projects 8 percent to 11 percent year-over-year growth when adjusting for t
Slide 16: 4Q24 and 2024 Earnings Results Key Takeaways
4Q24 and 2024 Earnings Results Key Takeaways Strong 2024 Significant revenue, Adjusted EBITDA, and free cash flow growth. Performance Growth Strong performance in Voice and Messaging across all customer categories, primarily in Drivers Enterprise Voice and Programmable Messaging. Bandwidth focused o
Slide 17: Thank you!
Thank you! (& bandwidth
Slide 18: Appendix
Appendix (& bandwidth
Slide 19: Historical Metrics
Historical Metrics USD millions, except for Average Annual Customer Revenue in USD thousands 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Total Revenue 131.4 136.5 148.3 157.0 573.2 137.8 145.9 152.0 165.4 601.1 171.0 173.6 193.9 210.0 748.5 Cloud communications 113.9 1
Slide 20: GAAP to Non-GAAP Reconciliation - Net Income
GAAP to Non-GAAP Reconciliation - Net Income USD millions, except per share amounts 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Net (loss) income (6.8) (6.2) (0.8) 33.4 19.6 3.6 (3.9) (5.1) (10.9) (16.3) (9.2) 4.1 0.4 (1.8) (6.5) Stock-based compensation 5.3 4.8 4.9 5.
Slide 21: GAAP to Non-GAAP Reconciliation - Earnings per share
GAAP to Non-GAAP Reconciliation - Earnings per share USD millions, except per share amounts 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Net (loss) income per share Basic (0.27) (0.25) (0.03) 1.32 0.77 0.14 (0.15) (0.20) (0.42) (0.64) (0.35) 0.15 0.02 (0.06) (0.24) Dilu
Slide 22: 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 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Gross Profit 55.4 55.4 63.5 64.1 238.4 55.7 59.0 59.5 62.1 236.2 65.5 64.8 73.1 76.5 280.0 Gross Margin %
Slide 23: 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,