Bandwidth (BAND) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue and profitability, with 27% Q4 revenue growth and 25% EBITDA growth, driven by strong enterprise adoption, AI-driven product innovation, and robust Voice and Messaging performance.

• Maintained high customer loyalty with >99% name retention, 122% net retention rate, and a median top 20 customer tenure of 11 years.

• Secured major customer wins, including a Fortune 25 healthcare provider and a global hospitality brand, leveraging AI and cloud migration.

• Positioned as a leader in enterprise communications cloud and CPaaS, combining automation, AI, and premium support, and recognized as a Leader in IDC MarketScape CPaaS 2025.

• Hundreds of enterprises use the Maestro platform, with AI Bridge enabling rapid integration of voice AI capabilities.

Financial highlights

• FY 2024 revenue reached $748M (+25% YoY); cloud communications revenue $540M (+13% YoY); Q4 2024 revenue was $210M (+27% YoY).

• Adjusted EBITDA for 2024 was $82M (+70% YoY, 15% margin); Q4 EBITDA grew 25% to $23M.

• Free cash flow for 2024 was $59M (+206% YoY); Q4 free cash flow was $30M.

• Non-GAAP gross margin improved to 58% in Q4 and 57% for FY 2024.

• Q4 net loss narrowed to $(2)M; full year net loss improved to $(7)M.

Outlook and guidance

• 2025 revenue guidance: $740M–$760M, reflecting 8–11% normalized growth; Adjusted EBITDA guidance: $82M–$90M.

• Q1 2025 guidance: $168M–$170M revenue, $16M–$18M Adjusted EBITDA.

• On track for 2026 target of 20% adjusted EBITDA margin.