Bandwidth Inc (BAND) Exceeds Q3 2023 Revenue and Profitability Guidance, Achieves Record Free ...
Bandwidth Inc (NASDAQ:BAND) exceeded both revenue and profitability guidance for Q3 2023.
The company achieved record Free Cash Flow and is on track to achieve 30% annual growth in profitability.
Revenue for Q3 2023 was $152 million, a slight increase from $148 million in Q3 2022.
Adjusted EBITDA for Q3 2023 was $14 million, up from $13 million in Q3 2022.
Bandwidth Inc (NASDAQ:BAND), a leading global enterprise cloud communications company, announced its financial results for the third quarter ended September 30, 2023, on November 2, 2023. The company exceeded both its revenue and profitability guidance for the third quarter and is on track to achieve 30% annual growth in profitability.
Financial Performance
Bandwidth's revenue for Q3 2023 was $152 million, a slight increase from $148 million in Q3 2022. The company's Gross Margin was 39%, down from 43% in Q3 2022. However, the Non-GAAP Gross Margin was 55%, a slight decrease from 57% in Q3 2022. Adjusted EBITDA for the quarter was $14 million, up from $13 million in Q3 2022. The company also achieved a record Free Cash Flow of $18 million, a significant increase from $13 million in Q3 2022.
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 Chief Executive Officer.
Operational Highlights
Bandwidth's operational highlights for Q3 2023 include securing a European-based cloud contact center provider as their primary provider across several regions, a leader in customer engagement in the automotive industry selecting Bandwidth to meet their rapidly growing conversational marketing messaging needs, and a Global 2000 manufacturing conglomerate choosing Bandwidth to enable their migration to the cloud.
Financial Outlook
For Q4 2023, Bandwidth expects revenue to be between $153 million and $155 million, and Adjusted EBITDA to be between $15 million and $17 million. For the full year 2023, the company expects revenue to be between $589 million and $591 million, and Adjusted EBITDA to be between $44 million and $46 million.
About Bandwidth Inc
Bandwidth Inc (NASDAQ:BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging, and emergency services. The company's solutions are trusted by all the leaders in unified communications and cloud contact centers, as well as Global 2000 enterprises and SaaS builders.
Explore the complete 8-K earnings release (here) from Bandwidth Inc for further details.
This article first appeared on GuruFocus.
