Bandwidth Inc. (NASDAQ: BAND) has reported its financial results for the fourth quarter and full year ended December 31, 2024. The company achieved record revenue and profitability during this period. Here are the key financial highlights:
- In the fourth quarter of 2024, Bandwidth reported revenue of $210 million, representing an increase from $165 million in the same period in 2023.
- For the full year 2024, the company's revenue reached $748 million, up from $601 million in 2023.
- The gross margin for the fourth quarter of 2024 was 36%, slightly lower than the 38% gross margin reported in the same period in 2023. However, the full-year gross margin for 2024 was 37%, compared to 39% in 2023.
- The non-GAAP gross margin for the fourth quarter of 2024 stood at 58%, reflecting an improvement from 55% in the fourth quarter of 2023. Additionally, the full-year non-GAAP gross margin for 2024 increased to 57% from 55% in 2023.
- Bandwidth reported a net loss of $2 million in the fourth quarter of 2024, an improvement from the net loss of $11 million in the same period in 2023. For the full year 2024, the net loss was $7 million, compared to a net loss of $16 million in 2023.
- The company achieved net cash flows from operating activities of $37 million in the fourth quarter of 2024, up from $19 million in the fourth quarter of 2023. For the full year 2024, Bandwidth reported net cash flows from operating activities of $84 million, compared to $39 million in 2023.
- Bandwidth's free cash flow for the fourth quarter of 2024 was $30 million, a significant increase from $13 million in the fourth quarter of 2023. The full-year free cash flow for 2024 reached $59 million, up from $19 million in 2023.
Daryl Raiford, Bandwidth’s chief financial officer, highlighted the company's strong financial performance, emphasizing the 25% revenue growth, record non-GAAP gross margin, and a 70% increase in adjusted EBITDA in 2024. Looking ahead to 2025, Bandwidth is guiding normalized revenue growth in the range of 8 to 11%, accompanied by continued growth in profitability and related free cash flow.
In addition to its financial results, Bandwidth shared operational highlights, including key customer wins and its recognition as a leader in the IDC MarketScape: Worldwide CPaaS 2025 Vendor Assessment.
Bandwidth provided its financial outlook for the first quarter and full year 2025, projecting revenue guidance of $168 million to $170 million for the first quarter and $740 million to $760 million for the full year. The company also expects adjusted EBITDA of $16 million to $18 million for the first quarter and $82 million to $90 million for the full year.
As a result of these announcements, the company's shares have moved -9.3% on the market, and are now trading at a price of $16.58. For the full picture, make sure to review Bandwidth's 8-K report.
