RALEIGH — Its stock down 50% so far this year, Bandwidth on Tuesday disclosed financials that could give investors reasons to grab shares. In pre-market sales Wednesday morning shares did indeed climb 4%.
Bandwidth reported first-quarter net income of $3.6 million, after reporting a loss in the same period a year earlier.
On a per-share basis, the Raleigh-based telecommunications services company (Nasdaq: BAND) said it had net income of 28 cents. Earnings, adjusted for one-time gains and costs, were 5 cents per share.
The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 2 cents per share.
The enterprise software developer posted revenue of $137.8 million in the period, also topping Street forecasts. Five analysts surveyed by Zacks expected $133 million.
“Our results for the quarter demonstrate solid progress adding enterprise customers, developing innovative award-winning products, and advancing our strategic initiatives with a focus on profitability,” said David Morken, Bandwidth’s CEO, in a statement.. “Looking ahead, we remain focused on maximizing our direct-to-enterprise momentum, capitalizing on new innovations like Maestro and emerging AI technologies, increasing product penetration across our three key customer categories, and exploiting the competitive advantage of being the only CPaaS [communications platform as a service] provider with our own global network.”
Helping boost first quarter performance were several significant deals, as reported by Bandwidth:
- The leading online bank in the U.S. chose Bandwidth to power its Genesys cloud contact center. The resiliency and redundancy of Bandwidth’s network and integrations with third-party fraud detection applications provided the assurance and control needed to move to the cloud.
- The largest issuer of Visa and Mastercard credit cards in the U.S. expanded its contact center partnership with Bandwidth in a new line of business, while adding international calling, due to Bandwidth’s ability to add additional geographic coverage seamlessly in our global cloud.
- A large mutual life insurance and investment services company selected Bandwidth to migrate its complex contact center to the cloud, using Bandwidth’s platform approach and Pindrop voice biometrics integration to power two different CCaaS deployments.
- Launched Bandwidth Maestro, which integrates best-in-class platforms and capabilities that CIOs need across UCaaS, CCaaS, and AI, while, delivering faster time to value, lowering their operating costs and providing a better customer and employee experience.
For the current quarter ending in June, Bandwidth said it expects revenue in the range of $140 million to $142 million.
The company expects full-year revenue in the range of $576 million to $584 million.
“We are pleased with our start to the year delivering first quarter revenue of $138 million, exceeding our expectations, and adjusted EBITDA of $5 million. Those results position us to deliver our full year outlook growing profitability 30 percent,” said Daryl Raiford, Bandwidth’s
chief financial officer. “Our guidance for the remainder of the year remains unchanged – with continued growth amid a challenging economic backdrop and driving profitability through operating leverage. We will remain focused on what we can control, serving and delighting our customers every day, being disciplined with our costs and growing profitability for the longer term.”
Bandwidth shares have decreased 49% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $11.68, a decline of 50% in the last 12 months.
Read the full earnings report online: https://investors.bandwidth.com/static-files/03c44fee-3bda-48e5-8362-3775f0860377
The Associated Press contributed to this report.
