Bandwidth, Inc. (BAND) Tops Q3 EPS by 6c, Beats on Revenues

Bandwidth, Inc. (NASDAQ: BAND) reported Q3 EPS of $0.15, $0.06 better than the analyst estimate of $0.09. Revenue for the quarter came in at $41.3 million versus the consensus estimate of $40.79 million.

Third Quarter 2017 Financial Highlights

• Revenue: Total revenue for the third quarter of 2017 was $41.3 million, compared to $38.6 million for the third quarter of 2016. Within total revenue, CPaaS revenue was $33.4 million, up 10% compared to $30.2 million for the third quarter of 2016. Other revenue contributed the remaining $7.9 million for the third quarter of 2017, compared to $8.4 million last year.
• Gross Profit: Gross profit for the third quarter of 2017 was $18.8 million, compared to $17.1 million for the third quarter of 2016. Non-GAAP gross profit for the third quarter of 2017 was $19.9 million, compared to $18.3 million for the third quarter of 2016. Gross margin for the third quarter of 2017 was 45%, compared to 44% for the third quarter of 2016. Non-GAAP gross margin was 48% for the third quarter of 2017, compared to 47% for the third quarter of 2016.
• Net Income: Net income from continuing operations attributable to common stockholders for the third quarter of 2017 was $1.4 million, or $0.11 per share, based on 13.3 million weighted average diluted shares outstanding. This compares to net income from continuing operations attributable to common stockholders of $3.5 million, or $0.27 per share, based on 12.8 million weighted average diluted shares outstanding for the third quarter of 2016. Non-GAAP net income for the third quarter of 2017 was $2.2 million, or $0.15 per share, based on 15.0 million weighted average diluted shares outstanding. This compares to a non-GAAPnet income of $3.7 million, or $0.25 per share, based on 14.6 million weighted average diluted shares outstanding for the third quarter of 2016.
• Adjusted EBITDA: Adjusted EBITDA was $5.2 million for the third quarter of 2017, compared to $6.2 million for the third quarter of 2016.
• Cash and Cash Flow: As of September 30, 2017, Bandwidth had cash and cash equivalents of $5.4 million and $38.5 million in debt. Subsequent to the end of the third quarter, Bandwidth closed its initial public offering of Class A common stock on November 14, 2017, which generated proceeds, net of underwriting discounts and commissions, to the Company of approximately $74.4 million, a portion of which was used to pay down all amounts outstanding under our term loan facility. The Company generated $4.8 million in net cash provided by operating activities from continuing operations for the third quarter of 2017, compared to $2.2 million during the third quarter of 2016. The Company generated $2.7 million in free cash flow for the quarter, compared to $1.3 million for the third quarter of 2016.

For earnings history and earnings-related data on Bandwidth, Inc. (BAND) click here.

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