RALEIGH – Communications provider Bandwidth (BAND) on Thursday reported a loss of $5.1 million in its third quarter but the news was better than expected. And a Street financial analysis gives the international company a “good performance” on its Financial Health score.

The analysis came from InvestingPro.

Bandwidth, firmly emplaced at its new Raleigh headquarters, reported a loss of 20 cents per share. Earnings, adjusted for one-time gains and costs, came to 23 cents per share. The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 20 cents per share.

It also reported revenue of $152 million in the period, beating Street forecasts. Five analysts surveyed by Zacks expected $149.1 million.

Over the past three years, Bandwidth has improved third quarter revenues each time.

“We are pleased to announce that we have exceeded both our revenue and profitability guidance for the third quarter and made strong progress towards our goal of growing profitability by 30% for the full year. We look forward to finishing 2023 with strong momentum,” said David Morken, Bandwidth’s CEO, in a statement. “With 2024 on the horizon, I’m very encouraged by this momentum, our track record of success, our strong financial position, and our commitment to innovation.”

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In its earnings report, Bandwidth listed what it considers key indicators about a growing array of products:

• A European-based cloud contact center provider chose Bandwidth as their primary provider across several regions for
call quality and reliability, award-winning support, and the ease of use of the API-driven portal.
• A leader in customer engagement in the automotive industry selected Bandwidth to help them meet the demand of
their rapidly growing conversational marketing messaging needs. Bandwidth’s enterprise-grade support experience
and scalability are key to the customer speeding up their time to market.
• A Global 2000 manufacturing conglomerate chose Bandwidth to enable their migration to the cloud, starting with their
internal communications and dynamic 911. Bandwidth’s expertise and ability to support physical infrastructure
throughout the transition is key to the customer.
• Launched AIBridge with partners Google and Cognigy. AIBridge, the newest pre-built integration with [Bandwidth’s] Maestro, enables enterprises to resolve customer issues faster by first routing incoming contact center calls to an AI-driven virtual agent, freeing up live agents’ time to resolve more complex issues.

CFO’s view

“Accelerating profitable growth is a core principle for Bandwidth and our results this quarter reflect that as we benefited from our growing market position in commercial messaging and strong operating discipline,” said Daryl Raiford, Bandwidth’s CFO. “We believe that our third quarter financial results, along with momentum from commercial
messaging and enterprise customers, position us for a solid fourth quarter and full year of profitable growth against a macro backdrop that remains constrained.”

For the current quarter ending in December, Bandwidth said it expects revenue in the range of $153 million to $155 million.

The company expects full-year revenue in the range of $589 million to $591 million.

Bandwidth shares have dropped 53% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $10.78, a fall of 38% in the last 12 months.