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RALEIGH, N.C.—David A. Morken, Chairman and CEO of Bandwidth Inc. (NASDAQ:BAND), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. The stock, which InvestingPro data shows has been notably volatile, currently trades at $17.47 with analysts setting price targets between $18 and $36. On January 3 and January 6, Morken sold a total of 3,998 shares of Class A Common Stock, generating proceeds of approximately $69,013. The shares were sold at prices ranging from $16.9682 to $17.3913.
These transactions were part of a pre-arranged trading plan to cover tax obligations related to the vesting of Restricted Stock Units. Following these sales, Morken retains direct ownership of 109,783 shares of Bandwidth Inc.
Bandwidth Inc., headquartered in Raleigh, North Carolina, is a communications software company that provides voice, messaging, and emergency services. The company has demonstrated strong revenue growth of 18.76% over the last twelve months, with total revenue reaching $703.9 million. While currently unprofitable, analysts tracked by InvestingPro expect the company to return to profitability this year, with several additional insights available through their comprehensive Pro Research Report.
In other recent news, Bandwidth Inc. has reported a strong financial performance with record revenue and a significant increase in adjusted EBITDA. The company's Q3 2024 earnings showed a 28% increase in revenue, reaching $194 million, and a 74% rise in adjusted EBITDA to $24 million. The company has also raised its full-year revenue outlook to $742 million, signifying a 23% growth forecast. These recent developments have been attributed to growth in direct enterprise customers and a rise in programmable communications services.
Bandwidth has also announced the appointment of Devesh Agarwal as its new Chief Operating Officer. Agarwal, who previously held the position on an interim basis, brings a wealth of experience from his time at Oracle (NYSE:ORCL) and other large organizations. His responsibilities will include leading Bandwidth's strategic execution, engaging with global customers, driving innovation, and achieving operational excellence.
Despite a 7% increase in operating expenses, mainly due to investments in research and development, Bandwidth's commercial messaging revenue grew by 32%. The company's net retention rate also improved to 117%, reflecting effective customer acquisition and market share expansion. Bandwidth anticipates continued profit growth into the next year and expects political campaign revenue to contribute significantly to cloud communications revenue, with $25 million anticipated in Q4.
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