頻寬宣布2024年第三季度財務結果
營業收入和盈利指引範圍超出
提高2024年全年營業收入和盈利指引
2024年10月31日 收益網絡廣播 Bandwidth將於2024年10月31日舉行網絡廣播，討論截至2024年9月30日第三季度的財務結果。詳細信息可在下方找到，也可在其網站的投資者部分找到 https://investors.bandwidth.com 在活動結束後不久，可在其網站上的投資者部分提供重播。 | 北卡羅來納州萊利 - Bandwidth Inc. (NASDAQ: BAND)，一家領先的全球企業雲通信公司，今天宣布了截至2024年9月30日第三季度的財務結果。 “我們很高興地報告承載我們進入年底的堅實勢頭，實現了創紀錄的營業收入和盈利能力表現，自由現金流轉換強勁，並持續遵循經營紀律。” Bandwidth的CEO David Morken說。“這些成果得益於顧客對我們提供其業務關鍵服務的信任。我們對我們的新一代通用平台感到興奮，它作為我們強大創新路線圖的基礎，展示出明確專注於全球最大企業的需求。” 2024年第三季度財務亮點 以下表格總結了截至2024年和2023年9月30日的三個月和九個月的精簡合併財務亮點（以百萬美元計算）。 | ||||||||||||||||||||||||||||
網路直播詳情 2024年10月31日 美東時間上午8:00 要查看直播活動和重播，投資者和分析師可以在investors.bandwidth.com註冊 investors.bandwidth.com 投資者聯繫 Sarah Walas Bandwidth 919-504-6585 ir@bandwidth.com | 三個月結束 九月三十日， | 九個月結束了 九月三十日， | |||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
| 營業收入 | $ | 194 | $ | 152 | $ | 539 | $ | 436 | |||||||||||||||||||||
| 毛利率 | 38 | % | 39 | % | 38 | % | 40 | % | |||||||||||||||||||||
非通用會計原則毛利率 (1) | 58 | % | 55 | % | 57 | % | 54 | % | |||||||||||||||||||||
調整後的EBITDA (1) | $ | 24 | $ | 14 | $ | 59 | $ | 29 | |||||||||||||||||||||
自由現金流 (1) | $ | 14 | $ | 18 | $ | 28 | $ | 6 | |||||||||||||||||||||
(1) 本公告中討論的非GAAP財務指標的相關資訊，包括對這些指標的解釋以及每個指標的計算方法，均在下面標題為“非GAAP財務指標”的部分中提供。財務表格中還提供了從GAAP轉換為非GAAP財務指標的對比。 | |||||||||||||||||||||||||||||
“Bandwidth在第三季度創下了歷史新高，所有產品和客戶類別均實現了增長。總收入達到19400萬美元，增長了28％，調整後EBITDA增至2400萬美元，同比增長74％。這兩個指標均超出了我們預期的上限範圍，使我們提高了整年的預期表現，包括收入和利潤。”Bandwidth的臨時財務長Daryl Raiford表示，“我們的重點始終如一：為客戶提供服務和愉快體驗，精確執行並堅定承諾長期且有利可圖的成長。” | |||||||||||||||||||||||||||||
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第三季度客戶和運營亮點
•引入下一代的通用平台，將Bandwidth的強大功能統一呈現在全球貨幣體驗中，以滿足所有實時通信需求，並通過新功能、升級能力和現代化的全球網絡支持平台，使其更容易整合並擴展至全球各地市場。
•Bandwidth宣布，現在在Maestro通信平台中提供全球最大的自帶運營商（BYOC）整合生態系統，為企業提供更多解決複雜通信挑戰的方式。
•bandwidth已向Google註冊為RBm（RCS業務消息）合作夥伴，開設了在所有主要市場啟用RCS（豐富通訊服務）的通道。
•Bandwidth宣布Number Reputation Management即將推出，作為一個解決方案，用來糾正虛假的“垃圾郵件”標籤，確保企業的緊急和重要電話能夠正確顯示，以便能夠被及時回應。
•一個高成交量的病人參與平台轉換到Bandwidth用於短信通信。他們需要確保訊息傳遞能力和訊息效能洞察，以確保及時與病人溝通。
•一家大型、多元化的信用合作社選擇了Bandwidth為其全新、現代化的場內聯繫中心提供語音服務。Bandwidth的全IP網路和Maestro平台讓客戶輕鬆與現代技術堆疊整合，並且讓他們在未來增加新服務變得容易。
財務展望
帶寬的前景是基於其業務目前的情況，但情況可能會發生變化。帶寬提供了其2024年第四季度和全年的指引如下（以百萬計）：
2024年第四季度指引 | 2024年全年指引 | ||||||||||
| 營業收入 | $198 - $208 | $737 - $747 | |||||||||
| 調整後的稅前利潤減除折舊及攤銷後的費用 | $19 - $21 | $78 - $80 | |||||||||
Bandwidth尚未將其2024年第四季度和全年調整後的EBITDA指引與GAAP淨利潤或損失進行調和，因為此時無法合理計算或預測基於股票的補償。因此，沒有可用的調和資料而不需付出不合理的努力。
即將來臨的投資者會議時間表
•巴克萊銀行全球貨幣科技大會 於2024年12月11日星期三在舊金山舉行，與John Bell，首席產品官和Shiv Hira，財務執行副總裁會面。
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關於bandwidth公司。
bandwidth（納斯達克：BAND）是一家全球云通信軟體公司，幫助企業通過語音呼叫、短信和應急服務提供卓越的體驗。我們的解決方案和我們的通訊雲涵蓋65多個國家和全球GDP的90％以上，被所有統一通信和雲聯繫中心領導者信任--包括亞馬遜網絡服務（AWS）、思科、谷歌、微軟、RingCentral、Zoom、Genesys和Five9--以及全球2000企業和Docusign、Uber和Yosi Health等saas-云计算構建者。作為雲通信革命的創始人，我們是第一家也是唯一一家提供獨特組合的可組合API、人工智能功能、自營網絡和豐富監管經驗的全球通信平台即服務（CPaaS）。我們屢獲殊榮的支持團隊幫助世界各地的企業解決複雜的通信挑戰，以便與任何人、任何地方聯繫。如需更多信息，請訪問 www.bandwidth.com.
前瞻性陳述
本新聞稿包含前瞻性聲明。所有在本新聞稿中的聲明，除了歷史事實陳述外，包括但不限於截至2024年12月31日的本季度和全年未來財務和業務表現、我們產品供應和平台的成功，以及我們產品的價值主張，均屬前瞻性聲明。詞語“預期”、“假定”、“認為”、“持續”、“估計”、“預期”、“打算”、“指導”、“可能”、“將”及其他類似表達及其否定均用於識別前瞻性聲明。我們大多基於我們對可能影響我們財務狀況、營運業績、業務策略、短期和長期業務運作和目標以及財務需求的未來事件和財務趨勢的當前期望和預測而作出這些前瞻性聲明。這些前瞻性聲明受到許多風險和不確定性的影響，包括但不限於與我們迅速增長和維持收入增長率的能力相關的風險，在我們運營的市場中的競爭、市場增長、我們創新和管理增長的能力、我們有效擴展到新市場的能力、美國和全球的宏觀經濟狀況、可能產生的法律、聲譽和財務風險隨著網絡安全概念不斷更新，我們能夠遵守適用法律的運營能力，以及我們在最新的《10-k表格》和我們向證券交易委員會（SEC）提交的任何隨後報告中提出的其他風險和不確定性。此外，我們在極具競爭性和快速變化的環境中運作。新風險不時浮現。我們的管理無法預測所有風險，我們也無法評估所有因素對我們業務的影響，也無法評估任何因素或多個因素在何種程度上可能使實際結果與我們所作的任何前瞻性聲明有實質不同。鑒於這些風險、不確定性和假設，我們無法保證未來結果、活動水平、業績、成就或在前瞻性聲明中反映的事件和情況的出現。在本新聞稿日期之後，我們無義務更新任何這些前瞻性聲明以符合實際結果或修訂的期望，除非法律有要求。因此，您不應依賴這些前瞻性聲明作為代表我們在本新聞稿日期後任何日期觀點的依據。
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with certain Non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these Non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these Non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.
The presentation of Non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our Non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
We define Non-GAAP gross profit as gross profit after adding back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation. We add back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation because they are non-cash items. We eliminate the impact of these non-cash items, because we do not consider them indicative of our core operating performance. Their exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we believe that showing gross margin, as adjusted to remove the impact of these non-cash expenses, is helpful to investors in assessing our gross profit and gross margin
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performance in a way that is similar to how management assesses our performance. We calculate Non-GAAP gross margin by dividing Non-GAAP gross profit by cloud communications revenue, which is revenue less pass-through messaging surcharges.
We define Non-GAAP net income (loss) as net income or loss adjusted for certain items affecting period to period comparability. Non-GAAP net income (loss) excludes stock-based compensation, amortization of acquired intangible assets related to acquisitions, amortization of debt discount and issuance costs for convertible debt, acquisition related expenses, impairment charges of intangibles assets, net cost associated with early lease terminations and leases without economic benefit, (gain) loss on sale of business, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, non-recurring items not indicative of ongoing operations and other, and estimated tax impact of above adjustments, net of valuation allowances.
We define Adjusted EBITDA as net income or losses from continuing operations, adjusted to reflect the addition or elimination of certain statement of operations items including, but not limited to: income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense, acquisition related expenses, stock-based compensation expense, impairment of intangible assets, (gain) loss on sale of business, net cost associated with early lease terminations and leases without economic benefit, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, and non-recurring items not indicative of ongoing operations and other. We have presented Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business.
We define free cash flow as net cash provided by or used in operating activities less net cash used in the acquisition of property, plant and equipment and capitalized development costs for software for internal use. We believe free cash flow is a useful indicator of liquidity and provides information to management and investors about the amount of cash generated from our core operations that can be used for investing in our business. Free cash flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, it does not take into consideration investment in long-term securities, nor does it represent the residual cash flows available for discretionary expenditures. Therefore, it is important to evaluate free cash flow along with our condensed consolidated statements of cash flows.
We believe that these Non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making. While a reconciliation of Non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis as a result of the uncertainty regarding, and the potential variability of, many of these costs and expenses that we may incur in the future, we have provided a reconciliation of Non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release.
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BANDWIDTH INC.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenue | $ | 193,883 | $ | 152,013 | $ | 538,518 | $ | 435,731 | |||||||||||||||
| Cost of revenue | 120,749 | 92,514 | 335,071 | 261,624 | |||||||||||||||||||
| Gross profit | 73,134 | 59,499 | 203,447 | 174,107 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Research and development | 30,171 | 24,792 | 87,215 | 75,305 | |||||||||||||||||||
| Sales and marketing | 26,285 | 25,011 | 81,490 | 75,794 | |||||||||||||||||||
| General and administrative | 17,576 | 15,843 | 52,130 | 48,430 | |||||||||||||||||||
| Total operating expenses | 74,032 | 65,646 | 220,835 | 199,529 | |||||||||||||||||||
| Operating loss | (898) | (6,147) | (17,388) | (25,422) | |||||||||||||||||||
| Other income, net | 577 | 798 | 11,358 | 16,819 | |||||||||||||||||||
| Loss before income taxes | (321) | (5,349) | (6,030) | (8,603) | |||||||||||||||||||
| Income tax benefit | 734 | 219 | 1,265 | 3,194 | |||||||||||||||||||
| Net income (loss) | $ | 413 | $ | (5,130) | $ | (4,765) | $ | (5,409) | |||||||||||||||
| Net income (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 0.02 | $ | (0.20) | $ | (0.18) | $ | (0.21) | |||||||||||||||
| Diluted | $ | 0.01 | $ | (0.20) | $ | (0.18) | $ | (0.21) | |||||||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||||||
| Basic | 27,374,367 | 25,613,441 | 26,983,931 | 25,539,642 | |||||||||||||||||||
| Diluted | 28,615,520 | 25,613,441 | 26,983,931 | 25,539,642 | |||||||||||||||||||
The Company recognized total stock-based compensation expense as follows:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Cost of revenue | $ | 352 | $ | 182 | $ | 1,123 | $ | 578 | |||||||||||||||
| Research and development | 4,606 | 2,822 | 14,606 | 9,278 | |||||||||||||||||||
| Sales and marketing | 1,744 | 1,160 | 6,014 | 3,825 | |||||||||||||||||||
| General and administrative | 4,747 | 2,778 | 13,405 | 8,644 | |||||||||||||||||||
| Total | $ | 11,449 | $ | 6,942 | $ | 35,148 | $ | 22,325 | |||||||||||||||
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BANDWIDTH INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| As of September 30, | As of December 31, | ||||||||||
| 2024 | 2023 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 74,940 | $ | 131,987 | |||||||
| Marketable securities | 4,967 | 21,488 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts | 99,616 | 78,155 | |||||||||
| Deferred costs | 3,806 | 4,155 | |||||||||
| Prepaid expenses and other current assets | 15,333 | 16,990 | |||||||||
| Total current assets | 198,662 | 252,775 | |||||||||
| Property, plant and equipment, net | 170,131 | 177,864 | |||||||||
| Operating right-of-use asset, net | 152,559 | 157,507 | |||||||||
| Intangible assets, net | 159,254 | 166,914 | |||||||||
| Deferred costs, non-current | 4,511 | 4,586 | |||||||||
| Other long-term assets | 4,244 | 5,530 | |||||||||
| Goodwill | 340,387 | 335,872 | |||||||||
| Total assets | $ | 1,029,748 | $ | 1,101,048 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 20,557 | $ | 34,208 | |||||||
| Accrued expenses and other current liabilities | 94,414 | 69,014 | |||||||||
| Current portion of deferred revenue | 7,020 | 8,059 | |||||||||
| Advanced billings | 3,304 | 6,027 | |||||||||
| Operating lease liability, current | 3,360 | 5,463 | |||||||||
| Line of credit, current portion | 25,000 | — | |||||||||
| Total current liabilities | 153,655 | 122,771 | |||||||||
| Other liabilities | 360 | 386 | |||||||||
| Operating lease liability, net of current portion | 219,705 | 220,548 | |||||||||
| Deferred revenue, net of current portion | 8,133 | 8,406 | |||||||||
| Deferred tax liability | 30,348 | 33,021 | |||||||||
| Convertible senior notes | 280,972 | 418,526 | |||||||||
| Total liabilities | 693,173 | 803,658 | |||||||||
| Stockholders’ equity: | |||||||||||
| Class A and Class B common stock | 28 | 26 | |||||||||
| Additional paid-in capital | 426,757 | 391,048 | |||||||||
| Accumulated deficit | (69,655) | (64,890) | |||||||||
| Accumulated other comprehensive loss | (20,555) | (28,794) | |||||||||
| Total stockholders’ equity | 336,575 | 297,390 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,029,748 | $ | 1,101,048 | |||||||
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BANDWIDTH INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Nine months ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | (4,765) | $ | (5,409) | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||
| Depreciation and amortization | 37,138 | 29,687 | |||||||||
| Non-cash reduction to the right-of-use asset | 2,759 | 5,227 | |||||||||
| Amortization of debt discount and issuance costs | 1,332 | 1,995 | |||||||||
| Stock-based compensation | 35,148 | 22,325 | |||||||||
| Deferred taxes and other | (4,249) | (5,902) | |||||||||
| Gain on sale of intangible asset | (1,000) | — | |||||||||
| Net gain on extinguishment of debt | (10,267) | (12,767) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net of allowances | (21,318) | (654) | |||||||||
| Prepaid expenses and other assets | 2,482 | 2,102 | |||||||||
| Accounts payable | (11,940) | 4,164 | |||||||||
| Accrued expenses and other liabilities | 24,991 | (13,031) | |||||||||
| Operating right-of-use liability | (2,946) | (8,004) | |||||||||
| Net cash provided by operating activities | 47,365 | 19,733 | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property, plant and equipment | (10,636) | (5,287) | |||||||||
| Refund of deposits for construction in progress | 2,707 | — | |||||||||
| Capitalized software development costs | (8,571) | (8,384) | |||||||||
| Purchase of marketable securities | (32,081) | (60,625) | |||||||||
| Proceeds from sales and maturities of marketable securities | 48,649 | 100,109 | |||||||||
| Proceeds from sale of business | 624 | 1,070 | |||||||||
| Proceeds from sale of intangible assets | 1,000 | — | |||||||||
| Net cash provided by investing activities | 1,692 | 26,883 | |||||||||
| Cash flows from financing activities | |||||||||||
| Borrowings on line of credit | 165,500 | — | |||||||||
| Repayments on line of credit | (140,500) | — | |||||||||
| Payments on finance leases | (68) | (124) | |||||||||
| Net cash paid for debt extinguishment | (128,534) | (51,259) | |||||||||
| Payment of debt issuance costs | (379) | (696) | |||||||||
| Proceeds from exercises of stock options | 128 | 413 | |||||||||
| Value of equity awards withheld for tax liabilities | (2,291) | (1,056) | |||||||||
| Net cash used in financing activities | (106,144) | (52,722) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 41 | (887) | |||||||||
| Net decrease in cash, cash equivalents, and restricted cash | (57,046) | (6,993) | |||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 132,307 | 114,622 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 75,261 | $ | 107,629 | |||||||
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BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Gross Profit | $ | 73,134 | $ | 59,499 | $ | 203,447 | $ | 174,107 | |||||||||||||||
| Gross Profit Margin % | 38 | % | 39 | % | 38 | % | 40 | % | |||||||||||||||
| Depreciation | 4,679 | 4,056 | 14,135 | 11,790 | |||||||||||||||||||
| Amortization of acquired intangible assets | 1,977 | 1,959 | 5,877 | 5,863 | |||||||||||||||||||
| Stock-based compensation | 352 | 182 | 1,123 | 578 | |||||||||||||||||||
| Non-GAAP Gross Profit | $ | 80,142 | $ | 65,696 | $ | 224,582 | $ | 192,338 | |||||||||||||||
Non-GAAP Gross Margin % (1) | 58 | % | 55 | % | 57 | % | 54 | % | |||||||||||||||
________________________
(1) Calculated by dividing Non-GAAP gross profit by cloud communications revenue of $139 million and $396 million in the three and nine months ended September 30, 2024, respectively, and $120 million and $353 million for the three and nine months ended September 30, 2023, respectively.
8
BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
Non-GAAP Net Income
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net income (loss) | $ | 413 | $ | (5,130) | $ | (4,765) | $ | (5,409) | |||||||||||||||
| Stock-based compensation | 11,449 | 6,942 | 35,148 | 22,325 | |||||||||||||||||||
| Amortization of acquired intangibles | 4,436 | 4,348 | 13,133 | 12,960 | |||||||||||||||||||
| Amortization of debt discount and issuance costs for convertible debt | 311 | 484 | 1,180 | 1,520 | |||||||||||||||||||
Net cost associated with early lease terminations and leases without economic benefit | 350 | 1,175 | 2,383 | 1,175 | |||||||||||||||||||
| Net gain on extinguishment of debt | — | — | (10,267) | (12,767) | |||||||||||||||||||
| Gain on business interruption insurance recoveries | — | — | — | (4,000) | |||||||||||||||||||
Non-recurring items not indicative of ongoing operations and other (1) | (957) | 54 | (828) | 793 | |||||||||||||||||||
Estimated tax effects of adjustments (2) | (3,211) | (1,526) | (6,654) | (4,661) | |||||||||||||||||||
| Non-GAAP net income | $ | 12,791 | $ | 6,347 | $ | 29,330 | $ | 11,936 | |||||||||||||||
Interest expense on Convertible Notes (3) | 251 | 317 | 868 | 971 | |||||||||||||||||||
| Numerator used to compute Non-GAAP diluted net income per share | $ | 13,042 | $ | 6,664 | $ | 30,198 | $ | 12,907 | |||||||||||||||
| Net income (loss) per share | |||||||||||||||||||||||
| Basic | $ | 0.02 | $ | (0.20) | $ | (0.18) | $ | (0.21) | |||||||||||||||
| Diluted | $ | 0.01 | $ | (0.20) | $ | (0.18) | $ | (0.21) | |||||||||||||||
| Non-GAAP net income per Non-GAAP share | |||||||||||||||||||||||
| Basic | $ | 0.47 | $ | 0.25 | $ | 1.09 | $ | 0.47 | |||||||||||||||
| Diluted | $ | 0.43 | $ | 0.23 | $ | 0.98 | $ | 0.44 | |||||||||||||||
| Weighted average number of shares outstanding | |||||||||||||||||||||||
| Basic | 27,374,367 | 25,613,441 | 26,983,931 | 25,539,642 | |||||||||||||||||||
| Diluted | 28,615,520 | 25,613,441 | 26,983,931 | 25,539,642 | |||||||||||||||||||
| Non-GAAP basic shares | 27,374,367 | 25,613,441 | 26,983,931 | 25,539,642 | |||||||||||||||||||
| Convertible debt conversion | 1,779,025 | 3,317,023 | 2,503,118 | 3,484,424 | |||||||||||||||||||
| Stock options issued and outstanding | 25,021 | 20,360 | 28,785 | 47,345 | |||||||||||||||||||
| Nonvested RSUs outstanding | 1,216,132 | — | 1,430,317 | — | |||||||||||||||||||
| Non-GAAP diluted shares | 30,394,545 | 28,950,824 | 30,946,151 | 29,071,411 | |||||||||||||||||||
________________________
(1) Non-recurring items not indicative of ongoing operations and other include (i) $1.0 million gain on the sale of an intangible asset and less than $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2024, (ii) $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2023, (iii) $1.0 million gain on the sale of an intangible asset and $0.2 million of losses on disposals of property, plant and equipment during the nine months ended September 30, 2024, and (iv) $0.4 million of expense resulting from the early termination of our undrawn SVB credit facility and $0.4 million of losses on disposals of property, plant and equipment during the nine months ended September 30, 2023.
9
BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
(2) The estimated tax-effect of adjustments is determined by recalculating the tax provision on a Non-GAAP basis. The Non-GAAP effective income tax rate was 15.5% and 11.0% for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 30, 2024, the Non-GAAP effective income tax rate differed from the federal statutory tax rate of 21% in the U.S. primarily due to the research and development tax credits generated in 2024. We analyze the Non-GAAP valuation allowance position on a quarterly basis. In the fourth quarter of 2022, we removed the valuation allowance against all U.S. deferred tax assets for Non-GAAP purposes as a result of cumulative Non-GAAP U.S. income over the past three years and a significant depletion of net operating loss and tax credit carryforwards on a Non-GAAP basis. As of September 30, 2024, we have no valuation allowance against our remaining deferred tax assets for Non-GAAP purposes.
(3) Non-GAAP net income is increased for interest expense as part of the calculation for diluted Non-GAAP earnings per share.
Adjusted EBITDA
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net income (loss) | $ | 413 | $ | (5,130) | $ | (4,765) | $ | (5,409) | |||||||||||||||
| Income tax benefit | (734) | (219) | (1,265) | (3,194) | |||||||||||||||||||
| Interest expense (income), net | 1,025 | (59) | 1,090 | 1,177 | |||||||||||||||||||
| Depreciation | 7,989 | 6,647 | 24,005 | 16,727 | |||||||||||||||||||
| Amortization | 4,436 | 4,348 | 13,133 | 12,960 | |||||||||||||||||||
| Stock-based compensation | 11,449 | 6,942 | 35,148 | 22,325 | |||||||||||||||||||
| Net cost associated with early lease terminations and leases without economic benefit | 350 | 1,175 | 2,383 | 1,175 | |||||||||||||||||||
| Net gain on extinguishment of debt | — | — | (10,267) | (12,767) | |||||||||||||||||||
| Gain on business interruption insurance recoveries | — | — | — | (4,000) | |||||||||||||||||||
Non-recurring items not indicative of ongoing operations and other (1) | (957) | 54 | (828) | 391 | |||||||||||||||||||
| Adjusted EBITDA | $ | 23,971 | $ | 13,758 | $ | 58,634 | $ | 29,385 | |||||||||||||||
________________________
(1) Non-recurring items not indicative of ongoing operations and other include (i) $1.0 million gain on the sale of an intangible asset and less than $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2024, (ii) $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2023, (iii) $1.0 million gain on the sale of an intangible asset and $0.2 million of losses on disposals of property, plant and equipment during the nine months ended September 30, 2024, and (iv) $0.4 million of losses on disposals of property, plant and equipment during the nine months ended September 30, 2023.
Free Cash Flow
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net cash provided by operating activities | $ | 20,464 | $ | 23,001 | $ | 47,365 | $ | 19,733 | |||||||||||||||
Net cash used in investing in capital assets (1) | (6,219) | (4,811) | (19,207) | (13,671) | |||||||||||||||||||
| Free cash flow | $ | 14,245 | $ | 18,190 | $ | 28,158 | $ | 6,062 | |||||||||||||||
________________________
(1) Represents the acquisition cost of property, plant and equipment and capitalized development costs for software for internal use.
10