FX.co ★ Bandwidth Slips To Q1 Loss, Adj. EPS Beats View; Lifts FY24 Outlook; Stock Up In Pre-market

Bandwidth Inc., a leading enterprise cloud communications firm, announced on Tuesday that their first-quarter net saw a loss of $9.23 million, as opposed to the profit of $3.61 million that was reported for the same time the previous year. The loss per share expanded from the prior year's loss of $0.28 to $0.35.

Meanwhile, the company’s adjusted earnings per share were reported as $0.27, compared to $0.05 last year. This surpasses analysts' average prediction of $0.20 per share according to data collected by Thomson Reuters. Note that these projections typically exclude special items.

Moving onto their adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), Bandwidth reported recognizable growth. The figures rose to $16 million from last year's $5 million. Furthermore, the firm's revenue grew to $171.03 million, witnessing an increase from the previous year's $137.84 million.

Looking ahead, the enterprise has projected its revenue for the second quarter to sit between $171 million and $175 million, and the adjusted EBITDA for the same period to be between $15 million and $17 million.

As for their financial forecast for fiscal 2024, they now expect revenue to be between $710 million and $720 million, and an adjusted EBITDA within the range of $72 million to $76 million.

David Morken, the CEO of Bandwidth, confidently stated that the firm has had an impressive start to the 2024 fiscal. He noted that delivering on their promise of profitable growth was a primary focus this year, and as such, they are raising their full-year guidance. He expects the company's revenue to grow by approximately 19 percent and the Adjusted EBITDA to increase by 54 percent. He also highlighted a robust growth in their direct-to-enterprise business, clocking a 20 percent increase in the first quarter alone.

The company also informed that Chief Operating Officer, Anthony Bartolo, will be stepping down from his role later this year.

On a final note, in pre-market activity on the Nasdaq, shares for Bandwidth were reported to be gaining around 7.8 percent, trading at $22.11.