RALEIGH — Despite reporting a second-quarter loss of $20.6 million, Bandwidth‘s CEO David Morken remains buoyed by the company’s revenue gains — largely spurred by “unprecedented” demand for its 911, voice mails and text messaging services during the pandemic.
The Raleigh-based communications software company, which recently announced plans for new $103 million headquarters, posted revenue of $76.8 million in the same period.
“We achieved our best year-over-year revenue growth performance ever,” Morken boasted on an earnings call on Friday.
That growth was driven by a 40 percent year-over-year increase in revenue from its Communication Platform as a Service (CPaas), which totaled $67.1 million, as more and more remote workers dial in.
“If you dial into most video conferences these days, and use your phone for audio, you’re likely using a Bandwidth number, and the call is likely delivered on our network,” Morken said.
As companies transitioned to working remotely in the last few months, that usage only surged, he said.
Chief financial officer Jeff Hoffman estimated COVID-19 revenue impact to be in the range of $4.5-$5 million.
It’s unclear if these changes in consumer behavior will remain post-pandemic, but he remained steadfast: “I don’t think there’s going back to a normal or what there was pre-pandemic. Work-from-home, working remotely, to some degree, is around for I think, the foreseeable future. And that’s, I think, multiple years, if not permanent. I think we’re trying to find where that new level is, but I think we’re confident it’s higher than what the sort of old normal level would be.”
In addition, Morken said it had scored some big clients to boost its bottom line. That included 5-year multimillion-dollar agreement to provide CPaaS services to a Fortune 100 company that is “one of the nation’s 10 largest banks,” he said.
“This customer will exclusively utilize Bandwidth’s voice services and phone numbers to power their migration to a cloud contact center to support their card services,” he said.
Despite shift to remote working, Bandwidth’s CEO remains committed to new $103M HQ
