We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bandwidth (BAND) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Bandwidth Inc. (BAND - Free Report) reported healthy second-quarter 2021 results, wherein both the bottom line and the top line surpassed their respective Zacks Consensus Estimate. New customer additions, robust cross-selling momentum, differentiated global platform and reinforced customer relationships favored the Raleigh, NC-based company’s quarterly performance.
Bottom Line
On a GAAP basis, net loss in the June quarter was $6.9 million or loss of 28 cents per share compared with a net loss of $20.6 million or loss of 86 cents per share in the prior-year quarter. The narrower loss was primarily attributable to lower income tax provision and operating income to the tune of $0.9 million in the reported quarter.
Adjusted net income came in at $8.6 million or 32 cents per share compared with $3.1 million or 13 cents per share in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate by 23 cents, delivering a surprise of 255.6%.
Quarterly total revenues were $120.7 million compared with $76.8 million in the prior-year quarter. The 57.1% growth was primarily driven by higher Communications Platform-as-a-Service (CPaaS) revenues. The growth was further bolstered by augmented global footprint and broad-based demand across all services. Also, the top line surpassed the consensus estimate of $115 million.
Segment-wise, CPaaS revenues increased 56.6% year over year to $105 million and accounted for 87.1% of total revenues. The rise was primarily driven by sustained broad-based growth as enterprise customers are increasingly migrating toward Bandwidth’s global platform to fulfill their communication requirements.
Bandwidth had 3,051 active CPaaS customers as of Jun 30, 2021, up 61% year over year. This includes the contribution from Voxbone. The dollar-based net retention rate was 114% compared with 133% in the prior-year quarter. Adjusted CPaaS gross profit jumped to $54.1 million from $32.1 million with respective margins of 52% and 48%.
Other revenues increased to $15.6 million from $9.7 million in the year-ago quarter.
Other Details
Total operating expenses were $53.7 million compared with $35 million in the prior-year quarter. Operating income came in at $0.9 million against operating loss of $0.3 million in the year-ago quarter.
Adjusted gross profit in the quarter improved to $59.8 million from $37.1 million with margins of 50% and 48%, respectively. Adjusted EBITDA totaled $13.8 million compared with $5.5 million in the year-ago quarter.
Cash Flow & Liquidity
In the first six months of 2021, Bandwidth generated $8.8 million of net cash from operating activities against cash utilization of $0.3 million in the year-ago quarter.
As of Jun 30, 2021, this enterprise software developer had $309.6 million in cash and cash equivalents with $92.3 million of total current liabilities.
Q3 & 2021 Guidance
Bandwidth has provided guidance for the third quarter and full-year 2021. For the ongoing quarter, total revenues are expected in the range of $123.6-$124.6 million. CPaaS revenues are estimated in the band of $106.1-$107.1 million. Adjusted earnings are anticipated to be 7-9 cents per share.
For 2021, total revenues are anticipated in the range of $484.8-$486.8 million. CPaaS revenues are projected in the band of $418.4-$420.4 million. Adjusted earnings are estimated in the range of 71-75 cents per share.
Image: Bigstock
Bandwidth (BAND) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Bandwidth Inc. (BAND - Free Report) reported healthy second-quarter 2021 results, wherein both the bottom line and the top line surpassed their respective Zacks Consensus Estimate. New customer additions, robust cross-selling momentum, differentiated global platform and reinforced customer relationships favored the Raleigh, NC-based company’s quarterly performance.
Bottom Line
On a GAAP basis, net loss in the June quarter was $6.9 million or loss of 28 cents per share compared with a net loss of $20.6 million or loss of 86 cents per share in the prior-year quarter. The narrower loss was primarily attributable to lower income tax provision and operating income to the tune of $0.9 million in the reported quarter.
Adjusted net income came in at $8.6 million or 32 cents per share compared with $3.1 million or 13 cents per share in the year-ago quarter. The bottom line also beat the Zacks Consensus Estimate by 23 cents, delivering a surprise of 255.6%.
Bandwidth Inc. Price, Consensus and EPS Surprise
Bandwidth Inc. price-consensus-eps-surprise-chart | Bandwidth Inc. Quote
Revenues
Quarterly total revenues were $120.7 million compared with $76.8 million in the prior-year quarter. The 57.1% growth was primarily driven by higher Communications Platform-as-a-Service (CPaaS) revenues. The growth was further bolstered by augmented global footprint and broad-based demand across all services. Also, the top line surpassed the consensus estimate of $115 million.
Segment-wise, CPaaS revenues increased 56.6% year over year to $105 million and accounted for 87.1% of total revenues. The rise was primarily driven by sustained broad-based growth as enterprise customers are increasingly migrating toward Bandwidth’s global platform to fulfill their communication requirements.
Bandwidth had 3,051 active CPaaS customers as of Jun 30, 2021, up 61% year over year. This includes the contribution from Voxbone. The dollar-based net retention rate was 114% compared with 133% in the prior-year quarter. Adjusted CPaaS gross profit jumped to $54.1 million from $32.1 million with respective margins of 52% and 48%.
Other revenues increased to $15.6 million from $9.7 million in the year-ago quarter.
Other Details
Total operating expenses were $53.7 million compared with $35 million in the prior-year quarter. Operating income came in at $0.9 million against operating loss of $0.3 million in the year-ago quarter.
Adjusted gross profit in the quarter improved to $59.8 million from $37.1 million with margins of 50% and 48%, respectively. Adjusted EBITDA totaled $13.8 million compared with $5.5 million in the year-ago quarter.
Cash Flow & Liquidity
In the first six months of 2021, Bandwidth generated $8.8 million of net cash from operating activities against cash utilization of $0.3 million in the year-ago quarter.
As of Jun 30, 2021, this enterprise software developer had $309.6 million in cash and cash equivalents with $92.3 million of total current liabilities.
Q3 & 2021 Guidance
Bandwidth has provided guidance for the third quarter and full-year 2021. For the ongoing quarter, total revenues are expected in the range of $123.6-$124.6 million. CPaaS revenues are estimated in the band of $106.1-$107.1 million. Adjusted earnings are anticipated to be 7-9 cents per share.
For 2021, total revenues are anticipated in the range of $484.8-$486.8 million. CPaaS revenues are projected in the band of $418.4-$420.4 million. Adjusted earnings are estimated in the range of 71-75 cents per share.
Zacks Rank & Stocks to Consider
Bandwidth currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader industry are Iridium Communications Inc. (IRDM - Free Report) , SeaChange International, Inc. (SEAC - Free Report) and Knowles Corporation (KN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Iridium delivered a trailing four-quarter earnings surprise of 64.4%, on average.
SeaChange International delivered a trailing four-quarter earnings surprise of 12.2%, on average.
Knowles delivered a trailing four-quarter earnings surprise of 10.8%, on average.