Slide 1: 1Q25 Earnings Results
1Q25 Earnings Results May 7, 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 June 30, 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: 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 5: Lasting customer loyalty
Lasting customer loyalty >99% 116% 12 years Name Retention Net Retention Top 20 Customer Rate Rate Median Tenure Note: Customer metrics as of March 31, 2025. See Appendix for definitions of metrics presented on this slide. 5
Slide 6: 1Q25 TTM Financial Highlights
1Q25 TTM Financial Highlights $752m $545m $88m $50m Total revenue Cloud communications Adjusted EBITDA2 Free cash flow2 revenue1 19% 11% 50% 94% 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
Slide 7: Revenue Performance
Revenue Performance Quarterly Customer Category Revenue Revenue Growth 7% 1 Global Voice Plans 4% y/y 1Q25 total revenue growth y/y Enterprise Voice 26% y/y Programmable Messaging 9%1 y/y 6%1 1Q25 cloud communications revenue1 growth y/y (USD Millions) Cloud communications revenue2 Messaging surchar
Slide 8: Customer Metrics
Customer Metrics Net Retention Average Annual (“NRR”) Customer Revenue 116% Net retention rate 20% 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 in the
Slide 9: 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 10: Adjusted EBITDA Performance
Adjusted EBITDA Performance Quarterly Annual 40% 1Q25 Adjusted EBITDA growth y/y 17% 1Q25 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 11: 2Q25 and Full Year 2025 Outlook
2Q25 and Full Year 2025 Outlook 2Q 2025 FY 2025 Raising full year 2025 guidance Revenue $178m - $180m $745m - $760m Adjusted EBITDA2 $18m - $20m $84m - $91m 9-11% 1 Total revenue For the full year 2025, Bandwidth’s revenue guidance projects 9 percent to 11 percent year-over-year growth when adjustin
Slide 12: 1Q25 Earnings Results Key Takeaways
1Q25 Earnings Results Key Takeaways Strong 1Q25 Revenue and Adjusted EBITDA exceeded expectations, driven by healthy demand and Performance disciplined execution. Growth All three customer categories grew, with strong traction in Enterprise Voice and steady Drivers growth in Global Voice Plans. Band
Slide 13: Thank you!
Thank you! (& bandwidth
Slide 14: Appendix
Appendix (& bandwidth
Slide 15: Historical Metrics
Historical Metrics USD millions, except for Average Annual Customer Revenue in USD thousands FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Total Revenue 573.2 137.8 145.9 152.0 165.4 601.1 171.0 173.6 193.9 210.0 748.5 174.2 Cloud communications 474.6 114.4 118.4 120.2 125.8 478.9 128.
Slide 16: GAAP to Non-GAAP Reconciliation - Net Income
GAAP to Non-GAAP Reconciliation - Net Income USD millions, except per share amounts FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Net income (loss) 19.6 3.6 (3.9) (5.1) (10.9) (16.3) (9.2) 4.1 0.4 (1.8) (6.5) (3.7) Stock-based compensation 20.7 7.4 8.0 6.9 14.7 37.0 12.3 11.4 11.4 13.2
Slide 17: GAAP to Non-GAAP Reconciliation - Earnings per share
GAAP to Non-GAAP Reconciliation - Earnings per share USD millions, except per share amounts FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Net income (loss) per share Basic 0.77 0.14 (0.15) (0.20) (0.42) (0.64) (0.35) 0.15 0.02 (0.06) (0.24) (0.13) Diluted (0.48) (0.28) (0.15) (0.20) (0
Slide 18: 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 FY22 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Gross Profit 238.4 55.7 59.0 59.5 62.1 236.2 65.5 64.8 73.1 76.5 280.0 71.5 Gross Margin % 42% 40% 40% 39% 38% 39% 38% 37
Slide 19: 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,