Bandwidth Inc. Files Q3 2024 10-Q

TL;DR

Bandwidth Inc. Q3 2024 10-Q filed. Financials look solid.

AI Summary

Bandwidth Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial figures and business developments are presented within this report.

Why It Matters

This filing provides investors with a detailed look at Bandwidth Inc.'s financial health and operational performance for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 2024-10-31 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• Bandwidth Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-10-31 (date) — Filing date
• RALEIGH, NC (location) — Company headquarters

FAQ

Key Financial Figures

• $0.001 — stered Class A Common Stock, par value $0.001 per share BAND NASDAQ Global Select Mar

Filing Documents

• band-20240930.htm (10-Q) — 2277KB
• q32024ex101secondamendment.htm (EX-10.1) — 123KB
• q32024ex311ceocertification.htm (EX-31.1) — 11KB
• q32024ex312cfocertification.htm (EX-31.2) — 11KB
• q32024ex321ceoandcfocertif.htm (EX-32.1) — 7KB
• 0001514416-24-000173.txt ( ) — 9294KB
• band-20240930.xsd (EX-101.SCH) — 46KB
• band-20240930_cal.xml (EX-101.CAL) — 86KB
• band-20240930_def.xml (EX-101.DEF) — 294KB
• band-20240930_lab.xml (EX-101.LAB) — 670KB
• band-20240930_pre.xml (EX-101.PRE) — 511KB
• band-20240930_htm.xml (XML) — 1280KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 5 Item 1.

Financial Statements

Financial Statements 5 Unaudited Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 5 Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 6 Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 7 Unaudited Condensed Consolidated Statements of Changes in Stockholders ' Equity 8 Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 10 Notes to Unaudited Condensed Consolidated Financial Statements 12 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 50

- OTHER INFORMATION

PART II - OTHER INFORMATION 51 Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 51 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 91 Item 5. Other Information 91 Item 6. Exhibits 91

Signatures

Signatures 92 Table of Contents Special Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this Quarterly Report on Form 10-Q, other than statements of historical fact, are forward-looking statements. Forward-looking statements generally can be identified by the words "may," "will," "expect," "believe," "anticipate," "intend," "could," "would," "project," "plan," "estimate," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: our beliefs regarding the impact of macroeconomic conditions, including inflationary and/or recessionary pressures, on our business and financial condition; our ability to attract and retain customers, including large enterprises; our approach to identifying, attracting and keeping new and existing customers, as well as our expectations regarding customer turnover; our beliefs regarding network traffic growth and other trends related to the usage of our products and services; the impact of our customers' violation of applicable laws, our policies or other misuse of our platform; our ability to successfully defend our network, systems and data against ever-evolving cybersecurity threats, including denial-of-service and ransomware attacks; our expectations regarding revenue, costs, expenses, gross margin, net retention rate, adjusted EBITDA, non-generally accepted accounting principles in the United States of America ("GAAP") net income and capital expenditures; our beliefs regarding the growth of our business and how that impacts our liquidity

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements BANDWIDTH INC. Condensed Consolidated Balance Sheets (In thousands, except share and per share amounts) (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 Commitments and contingencies (Note 12) Stockholders' equity: Preferred stock: $ 0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding — — Class A voting common stock: $ 0.001 par value; 100,000,000 shares authorized; 25,549,670 and 24,206,140 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 26 24 Class B voting common stock: $ 0.001 par value; 20,000,000 shares authorized; 1,958,028 shares issued and outstanding as of September 30, 2024 and December 31, 2023 2 2 Additional paid-in c

View Full Filing

View this 10-Q filing on SEC EDGAR