Bandwidth stock hits 52-week low at $13.51 amid market challenges

Published 28/03/2025, 17:58
Bandwidth stock hits 52-week low at $13.51 amid market challenges

Bandwidth Inc. (NASDAQ:BAND), a leading enterprise cloud communications company with annual revenue of $748.5 million and impressive growth of 24.5%, has seen its stock price touch a 52-week low, dipping to $13.51. According to InvestingPro analysis, the company appears undervalued at current levels. This latest price level reflects a significant downturn from the company’s performance over the past year, with Bandwidth’s shares experiencing a 1-year change of -25.85%. Investors are closely monitoring the stock as it navigates through a challenging market environment, which has seen many tech stocks retreat from their previous highs. While InvestingPro data shows the stock’s movements are quite volatile, with a beta of 1.57, analysts expect net income growth this year. The company’s current trajectory underscores the broader industry trend of recalibration in valuations, as market participants reassess growth prospects amidst economic headwinds. For deeper insights and additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Bandwidth Inc. reported mixed results for the fourth quarter of 2024. The company posted non-GAAP earnings per share of $0.37, slightly below the anticipated $0.39, but exceeded revenue expectations with $210 million, marking a 27% year-over-year increase. This revenue performance surpassed the forecast of $204 million, though it represented a minor slowdown from the previous quarter’s 28% growth. Analysts at Citizens JMP maintained a Market Outperform rating for Bandwidth, keeping a price target of $36, despite the earnings per share shortfall. Bandwidth also reported a strong adjusted EBITDA of $23 million, beating the consensus of $20 million, and a robust free cash flow of $30 million, which was higher than the $25 million consensus.

However, Bandwidth’s first-quarter revenue guidance disappointed, with projections of $168-170 million falling short of the $182.7 million expected by analysts. For the full year 2025, the company guided revenue between $740-760 million, below the $761.5 million consensus estimate. Despite the strong fourth-quarter results, including a record non-GAAP gross margin of 58%, investor focus on the soft guidance led to a significant decline in Bandwidth shares. CFO Daryl Raiford mentioned a "normalized revenue growth" of 8-11% for 2025, accounting for a predicted reduction in political campaign messaging activity.

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