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RALEIGH, N.C. -On Thursday, Bandwidth Inc. (NASDAQ:BAND) reported fourth quarter earnings that narrowly missed estimates, while its first quarter revenue guidance came in well below expectations.
Bandwidth shares went down sharply by -8.65% in pre-market trading.
The cloud communications company posted adjusted earnings per share of $0.37, missing analyst estimates by $0.01. Revenue for the quarter was $210 million, beating the consensus forecast of $189.32 million and representing 27% YoY growth.
However, Bandwidth’s outlook for the current quarter fell short of Wall Street projections. The company expects Q1 revenue between $168-170 million, below analyst expectations of $182.7 million. For the full year 2025, Bandwidth guided for revenue of $740-760 million, also below the $761.5 million consensus estimate.
"2024 was a transformative year for Bandwidth, delivering record financial results and groundbreaking product innovation," said CEO David Morken. "Our capabilities in Voice AI and enterprise-grade solutions are resonating strongly with customers, driving deeper adoption of our cloud communications platform."
The company reported record non-GAAP gross margin of 58% for Q4, up from 55% a year ago. Adjusted EBITDA rose to $23.4 million from $18.8 million in the prior year quarter.
CFO Daryl Raiford noted the company is guiding for "normalized revenue growth" of 8-11% in 2025 when adjusting for an expected cyclical reduction in political campaign messaging activity.
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