频宽宣布2024年第三季度财务结果
营业收入和盈利指引范围超出
提高2024年全年营业收入和盈利指引
2024年10月31日 收益网络广播 Bandwidth将于2024年10月31日举行网络广播，讨论截至2024年9月30日第三季度的财务结果。详细信息可在下方找到，也可在其网站的投资者部分找到 https://investors.bandwidth.com 在活动结束后不久，可在其网站上的投资者部分提供重播。 | 北卡罗来纳州莱利 - Bandwidth Inc. (NASDAQ: BAND)，一家领先的全球企业云通信公司，今天宣布了截至2024年9月30日第三季度的财务结果。 “我们很高兴地报告承载我们进入年底的坚实势头，实现了创纪录的营业收入和盈利能力表现，自由现金流转换强劲，并持续遵循经营纪律。” Bandwidth的CEO David Morken说。“这些成果得益于顾客对我们提供其业务关键服务的信任。我们对我们的新一代通用平台感到兴奋，它作为我们强大创新路线图的基础，展示出明确专注于全球最大企业的需求。” 2024年第三季度财务亮点 以下表格总结了截至2024年和2023年9月30日的三个月和九个月的精简合并财务亮点（以百万美元计算）。 | ||||||||||||||||||||||||||||
网路直播详情 2024年10月31日 美东时间上午8:00 要查看直播活动和重播，投资者和分析师可以在investors.bandwidth.com注册 investors.bandwidth.com 投资者联系 Sarah Walas Bandwidth 919-504-6585 ir@bandwidth.com | 三个月结束 九月三十日， | 九个月结束了 九月三十日， | |||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||
| 营业收入 | $ | 194 | $ | 152 | $ | 539 | $ | 436 | |||||||||||||||||||||
| 毛利率 | 38 | % | 39 | % | 38 | % | 40 | % | |||||||||||||||||||||
非通用会计原则毛利率 (1) | 58 | % | 55 | % | 57 | % | 54 | % | |||||||||||||||||||||
调整后的EBITDA (1) | $ | 24 | $ | 14 | $ | 59 | $ | 29 | |||||||||||||||||||||
自由现金流 (1) | $ | 14 | $ | 18 | $ | 28 | $ | 6 | |||||||||||||||||||||
(1) 本公告中讨论的非GAAP财务指标的相关资讯，包括对这些指标的解释以及每个指标的计算方法，均在下面标题为“非GAAP财务指标”的部分中提供。财务表格中还提供了从GAAP转换为非GAAP财务指标的对比。 | |||||||||||||||||||||||||||||
“Bandwidth在第三季度创下了历史新高，所有产品和客户类别均实现了增长。总收入达到19400万美元，增长了28％，调整后EBITDA增至2400万美元，同比增长74％。这两个指标均超出了我们预期的上限范围，使我们提高了整年的预期表现，包括收入和利润。”Bandwidth的临时财务长Daryl Raiford表示，“我们的重点始终如一：为客户提供服务和愉快体验，精确执行并坚定承诺长期且有利可图的成长。” | |||||||||||||||||||||||||||||
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第三季度客户和运营亮点
•引入下一代的通用平台，将Bandwidth的强大功能统一呈现在全球货币体验中，以满足所有实时通信需求，并通过新功能、升级能力和现代化的全球网络支持平台，使其更容易整合并扩展至全球各地市场。
•Bandwidth宣布，现在在Maestro通信平台中提供全球最大的自带运营商（BYOC）整合生态系统，为企业提供更多解决复杂通信挑战的方式。
•bandwidth已向Google注册为RBm（RCS业务消息）合作伙伴，开设了在所有主要市场启用RCS（丰富通讯服务）的通道。
•Bandwidth宣布Number Reputation Management即将推出，作为一个解决方案，用来纠正虚假的“垃圾邮件”标签，确保企业的紧急和重要电话能够正确显示，以便能够被及时回应。
•一个高成交量的病人参与平台转换到Bandwidth用于短信通信。他们需要确保讯息传递能力和讯息效能洞察，以确保及时与病人沟通。
•一家大型、多元化的信用合作社选择了Bandwidth为其全新、现代化的场内联系中心提供语音服务。Bandwidth的全IP网路和Maestro平台让客户轻松与现代技术堆叠整合，并且让他们在未来增加新服务变得容易。
财务展望
带宽的前景是基于其业务目前的情况，但情况可能会发生变化。带宽提供了其2024年第四季度和全年的指引如下（以百万计）：
2024年第四季度指引 | 2024年全年指引 | ||||||||||
| 营业收入 | $198 - $208 | $737 - $747 | |||||||||
| 调整后的税前利润减除折旧及摊销后的费用 | $19 - $21 | $78 - $80 | |||||||||
Bandwidth尚未将其2024年第四季度和全年调整后的EBITDA指引与GAAP净利润或损失进行调和，因为此时无法合理计算或预测基于股票的补偿。因此，没有可用的调和资料而不需付出不合理的努力。
即将来临的投资者会议时间表
•巴克莱银行全球货币科技大会 于2024年12月11日星期三在旧金山举行，与John Bell，首席产品官和Shiv Hira，财务执行副总裁会面。
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关于bandwidth公司。
bandwidth（纳斯达克：BAND）是一家全球云通信软体公司，帮助企业通过语音呼叫、短信和应急服务提供卓越的体验。我们的解决方案和我们的通讯云涵盖65多个国家和全球GDP的90％以上，被所有统一通信和云联系中心领导者信任--包括亚马逊网络服务（AWS）、思科、谷歌、微软、RingCentral、Zoom、Genesys和Five9--以及全球2000企业和Docusign、Uber和Yosi Health等saas-云计算构建者。作为云通信革命的创始人，我们是第一家也是唯一一家提供独特组合的可组合API、人工智能功能、自营网络和丰富监管经验的全球通信平台即服务（CPaaS）。我们屡获殊荣的支持团队帮助世界各地的企业解决复杂的通信挑战，以便与任何人、任何地方联系。如需更多信息，请访问 www.bandwidth.com.
前瞻性陈述
本新闻稿包含前瞻性声明。所有在本新闻稿中的声明，除了历史事实陈述外，包括但不限于截至2024年12月31日的本季度和全年未来财务和业务表现、我们产品供应和平台的成功，以及我们产品的价值主张，均属前瞻性声明。词语“预期”、“假定”、“认为”、“持续”、“估计”、“预期”、“打算”、“指导”、“可能”、“将”及其他类似表达及其否定均用于识别前瞻性声明。我们大多基于我们对可能影响我们财务状况、营运业绩、业务策略、短期和长期业务运作和目标以及财务需求的未来事件和财务趋势的当前期望和预测而作出这些前瞻性声明。这些前瞻性声明受到许多风险和不确定性的影响，包括但不限于与我们迅速增长和维持收入增长率的能力相关的风险，在我们运营的市场中的竞争、市场增长、我们创新和管理增长的能力、我们有效扩展到新市场的能力、美国和全球的宏观经济状况、可能产生的法律、声誉和财务风险随著网络安全概念不断更新，我们能够遵守适用法律的运营能力，以及我们在最新的《10-k表格》和我们向证券交易委员会（SEC）提交的任何随后报告中提出的其他风险和不确定性。此外，我们在极具竞争性和快速变化的环境中运作。新风险不时浮现。我们的管理无法预测所有风险，我们也无法评估所有因素对我们业务的影响，也无法评估任何因素或多个因素在何种程度上可能使实际结果与我们所作的任何前瞻性声明有实质不同。鉴于这些风险、不确定性和假设，我们无法保证未来结果、活动水平、业绩、成就或在前瞻性声明中反映的事件和情况的出现。在本新闻稿日期之后，我们无义务更新任何这些前瞻性声明以符合实际结果或修订的期望，除非法律有要求。因此，您不应依赖这些前瞻性声明作为代表我们在本新闻稿日期后任何日期观点的依据。
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.
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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.
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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