What To Expect From Bandwidth’s (BAND) Q4 Earnings
Communications platform as a service company Bandwidth (NASDAQ: BAND) will be announcing earnings results tomorrow morning. Here's what to expect.
Last quarter Bandwidth reported revenues of $152 million, up 2.5% year on year, beating analyst revenue expectations by 2%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.
Is Bandwidth buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Bandwidth's revenue to decline 1.9% year on year to $154.1 million, a further deceleration on the 24.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.3%.
Looking at Bandwidth's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Twilio delivered top-line growth of 5% year on year, beating analyst estimates by 3.2% and JFrog reported revenues up 27.1% year on year, exceeding estimates by 4.7%. Twilio traded down 10.1% on the results, JFrog was up 11.8%.
Read our full analysis of Twilio's results here and JFrog's results here.
Investors in the software development segment have had steady hands going into the earnings, with the stocks down on average 1.5% over the last month. Bandwidth is down 18.6% during the same time, and is heading into the earnings with analyst price target of $20.6, compared to share price of $11.9.
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