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Bandwidth Q1 2025 Earnings Report
Bandwidth reported a solid start to 2025, exceeding top- and bottom-line expectations, driven by healthy demand for cloud communications services and disciplined operating execution.
Key Takeaways
Bandwidth Inc. announced strong financial results for the first quarter ended March 31, 2025, with revenue of $174.241 million and a net loss of $3.740 million. The company exceeded its guidance for both revenue and profitability, leading to an increased full-year outlook.
First quarter revenue reached $174.241 million, surpassing guidance.
Adjusted EBITDA increased by approximately 40% year-over-year to $22.213 million.
Non-GAAP gross margin expanded by two points year-over-year to 59%.
The company raised its full-year revenue and profitability outlook for 2025.
Forward Guidance
Bandwidth provided guidance for the second quarter and full year 2025, projecting continued growth and increased profitability, with full-year revenue expected to reflect 10% organic growth at the midpoint.
Positive Outlook
- Second quarter 2025 revenue guidance is between $178 million and $180 million.
- Full year 2025 revenue guidance is between $745 million and $760 million.
- Second quarter 2025 Adjusted EBITDA guidance is between $18 million and $20 million.
- Full year 2025 Adjusted EBITDA guidance is between $84 million and $91 million.
- Full year 2025 revenue outlook reflects 10% organic growth at the midpoint, adjusting for political campaign messaging activity.
Challenges Ahead
- The guidance is subject to change based on current business indications.
- Reconciliation of Adjusted EBITDA to GAAP net income or loss is not available due to the inability to reasonably calculate stock-based compensation.
- Expected cyclical reduction in political campaign messaging activity impacts revenue comparison.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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