Latest news with #BAND
Yahoo
4 days ago
- Business
- Yahoo
BAND Q1 Earnings Call: Enterprise Voice and AI Drive Platform Expansion
Communications platform-as-a-service company Bandwidth (NASDAQ: BAND) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 1.9% year on year to $174.2 million. Guidance for next quarter's revenue was better than expected at $179 million at the midpoint, 1% above analysts' estimates. Its non-GAAP profit of $0.36 per share was 33.3% above analysts' consensus estimates. Is now the time to buy BAND? Find out in our full research report (it's free). Revenue: $174.2 million vs analyst estimates of $168.9 million (1.9% year-on-year growth, 3.1% beat) Adjusted EPS: $0.36 vs analyst estimates of $0.27 (33.3% beat) Adjusted Operating Income: $15.46 million vs analyst estimates of $11.96 million (8.9% margin, 29.3% beat) The company slightly lifted its revenue guidance for the full year to $752.5 million at the midpoint from $750 million EBITDA guidance for the full year is $87.5 million at the midpoint, above analyst estimates of $86.38 million Operating Margin: -2.7%, up from -6.1% in the same quarter last year Market Capitalization: $451.2 million Bandwidth's first quarter results were buoyed by strong demand for its cloud communications services, particularly in the enterprise voice segment. CEO David Morken highlighted that over half of enterprise customers now use the Maestro or AI Bridge platforms, underscoring their growing adoption to address complex communication needs in sectors like healthcare and financial services. Noteworthy customer wins included a major Midwest healthcare provider and a group of hospitals integrating Bandwidth's solutions for enhanced reliability and AI-powered voice agents. Management also attributed growth to new and expanded partnerships with managed service providers and system integrators, which accelerated large-scale deployments. These factors, along with increased cross-sell and up-sell activity, contributed to a rise in average annual revenue per customer and higher net retention rates. Looking ahead, Bandwidth's guidance is shaped by expectations of continued double-digit growth in its core platform offerings, driven by the increasing adoption of AI voice agents and further expansion of its channel partnerships. CFO Daryl Raiford noted that, while macroeconomic uncertainty persists, the company's diversified base—particularly its essential enterprise voice services—provides resilience. Raiford added, 'We are expecting our global voice plans to double their growth this year, and programmable messaging to maintain low double-digit growth.' Management remains focused on margin expansion and disciplined financial management, with an eye on achieving 60% gross margins in the medium term. The team also emphasized ongoing investments in platform innovation and regulatory expertise as key differentiators supporting future growth. Management attributed the quarter's performance to strong enterprise voice uptake, AI integration, and channel partner momentum, while also noting resilience in essential communications services amid macro volatility. Enterprise voice momentum: Over half of enterprise customers now use Maestro or AI Bridge, reflecting Bandwidth's ability to modernize complex communication infrastructures and enable AI-powered voice agents, especially in regulated industries like healthcare and financial services. Channel partnerships expanding: The company highlighted strengthened relationships with managed service providers and system integrators, which not only accelerated sales cycles but also enabled Bandwidth to tackle larger, more complex enterprise projects, such as new deployments for a major regional auto club. AI integration as a differentiator: Management pointed to Maestro's orchestration and AI Bridge's flexibility as key factors in recent customer wins, allowing enterprises to integrate AI voice agents for operational efficiency and improved customer experiences without overhauling legacy systems. Global voice plans growth: The company's largest voice offering continued to secure new business and upsell long-standing customers, benefiting from Bandwidth's global network reliability and regulatory expertise, particularly for clients launching advanced AI use cases like real-time multilingual voice translation. Programmable messaging stability: While more exposed to macroeconomic shifts, programmable messaging grew through diversified customer use cases and compliance capabilities, with new wins in consumer engagement and anticipated expansion into the wellness sector. Enhanced deliverability, campaign registration tools, and support for protected health information contributed to ongoing demand. Management expects continued expansion in enterprise voice and global voice plans, supported by AI adoption and partner channels, while monitoring macroeconomic conditions and messaging segment volatility. AI voice adoption accelerates: Management believes the shift toward AI voice agents in enterprise communication workflows will drive usage and wallet share across Bandwidth's product lines. The flexibility to integrate multiple AI solutions through Maestro and AI Bridge is viewed as a competitive advantage in addressing evolving customer needs. Channel and vertical diversification: Strategic expansion of partnerships with managed service providers and entry into new verticals—such as hospitality and manufacturing—are expected to support revenue growth and deal size, especially as large integrators facilitate more complex deployments for global enterprises. Messaging and macro sensitivity: Programmable messaging growth is projected in the low double digits, but management acknowledged greater exposure to macroeconomic headwinds in retail and digital marketing. The company is investing in enhanced deliverability and compliance tools to retain and grow this segment despite potential market volatility. In coming quarters, the StockStory team will be watching (1) further enterprise adoption of Maestro and AI Bridge, especially in new verticals; (2) continued momentum and revenue contribution from managed service provider and system integrator partnerships; and (3) the resilience of programmable messaging growth amid macroeconomic shifts. We will also track progress toward Bandwidth's medium-term gross margin targets and execution on additional AI-driven product enhancements. Bandwidth currently trades at a forward price-to-sales ratio of 0.6×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
19-05-2025
- Business
- Yahoo
1 Growth Stock for Long-Term Investors and 2 to Ignore
Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market's punishment can be swift and severe when trajectories fall. Luckily for you, our job at StockStory is to help you avoid short-term fads by pointing you toward high-quality businesses that can generate sustainable long-term growth. Keeping that in mind, here is one growth stock expanding its competitive advantage and two that could be down big. One-Year Revenue Growth: +18.5% Started in 1999 by David Morken who was later joined by Henry Kaestner as co-founder in 2001, Bandwidth (NASDAQ:BAND) provides thousands of customers with a software platform that uses its own global network to provide phone numbers, voice, and text connectivity. Why Are We Out on BAND? Revenue increased by 13.9% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds Estimated sales growth of 2.8% for the next 12 months implies demand will slow from its three-year trend Gross margin of 38% reflects its high servicing costs Bandwidth is trading at $14.10 per share, or 0.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BAND. One-Year Revenue Growth: +17.3% Spun out from Netflix, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services. Why Are We Hesitant About ROKU? Preference for prioritizing user growth over monetization has led to 1.4% annual drops in its average revenue per user Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 7.1 percentage points Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 34.6% annually At $70.04 per share, Roku trades at 28.6x forward EV/EBITDA. Read our free research report to see why you should think twice about including ROKU in your portfolio, it's free. One-Year Revenue Growth: +88.8% Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products. Why Is QNST a Good Business? Impressive 31.4% annual revenue growth over the last two years indicates it's winning market share this cycle Estimated revenue growth of 9.5% for the next 12 months implies its momentum over the last two years will continue Earnings growth has trumped its peers over the last two years as its EPS has compounded at 106% annually QuinStreet's stock price of $15.05 implies a valuation ratio of 14x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Bandwidth (BAND) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended March 2025, Bandwidth (BAND) reported revenue of $174.24 million, up 1.9% over the same period last year. EPS came in at $0.36, compared to $0.27 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $168.87 million, representing a surprise of +3.18%. The company delivered an EPS surprise of +24.14%, with the consensus EPS estimate being $0.29. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Bandwidth performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net retention rate : 116% versus 115.3% estimated by three analysts on average. Geographic Revenue- International : $22.45 million compared to the $14.79 million average estimate based on two analysts. The reported number represents a change of +4.1% year over year. Geographic Revenue- North America : $151.79 million compared to the $154.45 million average estimate based on two analysts. The reported number represents a change of +1.6% year over year. Revenue- Messaging surcharges : $40.78 million versus the four-analyst average estimate of $37.29 million. Revenue- Cloud communications: $133.46 million versus the four-analyst average estimate of $131.64 million. View all Key Company Metrics for Bandwidth here>>> Shares of Bandwidth have returned +5.3% over the past month versus the Zacks S&P 500 composite's +10.6% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bandwidth Inc. (BAND) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
07-05-2025
- Business
- Yahoo
Why Bandwidth (BAND) Stock Is Trading Up Today
What Happened? Shares of communications platform-as-a-service company Bandwidth (NASDAQ: BAND) jumped 9.5% in the afternoon session after the company reported mixed first quarter 2025 results which beat analysts' revenue and earnings expectations and included a lift in full-year revenue guidance. Sales grew 2% over the same time last year, thanks to demand for voice and messaging tools and big wins with hospitals and government groups. On the other hand, its EBITDA missed. Still, this print had some key positives. Is now the time to buy Bandwidth? Access our full analysis report here, it's free. What The Market Is Telling Us Bandwidth's shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 11 months ago when the stock dropped 15.5% on the news that Morgan Stanley analyst Meta Marshall downgraded the stock's rating from Equal-weight (Hold) to Underweight (Sell) and lowered the price target from $18 to $15. The analyst cited some of the reasons for the downgrade, noting, "BAND's exposure to domestic election cycles has typically resulted in decelerating growth the following year." Marshall added, 'We still expect headline revenue upside in '24 on the election cycle, but the majority of growth attributable to pass-through surcharges is captured in 25%+ YTD run in shares.' Marshall is largely negative on communications software as a whole and expressed this through additional downgrades of TWLO and EGHT. Bandwidth is down 19.8% since the beginning of the year, and at $13.40 per share, it is trading 41.3% below its 52-week high of $22.82 from July 2024. Investors who bought $1,000 worth of Bandwidth's shares 5 years ago would now be looking at an investment worth $125.18. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
