Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the impact of political campaign messaging on your Q4 2024 results and how it affects your 2025 plans? A: Daryl Raiford, CFO, explained that for the full year 2024, cloud communications grew 13%, and when adjusted for political campaign revenue, it grew 8%. In Q4, cloud communications revenue grew 15%, and excluding campaign revenue, it was around 7%. The 2025 guidance reflects an 8-11% growth when normalized for the $62 million political campaign revenue from 2024.
Q: How is Bandwidth positioned for the voice AI opportunity, and what is the current demand from customers? A: David Morgan, CEO, highlighted that Bandwidth is well-positioned for the voice AI opportunity, with customers like a leading global hospitality brand already using AI agents. The demand is present now, with enterprises making decisions to migrate between cloud contact centers or to give AI agents a voice, as seen with a Fortune 25 healthcare provider.
Q: What are the growth expectations for Bandwidth's core segments in 2025? A: Daryl Raiford, CFO, stated that they expect growth across all customer categories: global voice plans, enterprise voice, and programmable messaging. Global voice plans are expected to grow more in 2025 than in 2024, driven by stabilization and momentum in AI initiatives. Enterprise voice continues to be a strong driver, and programmable messaging is expected to remain steady, excluding political campaign effects.
Q: Can you provide more details on the Maestro platform's traction and its impact on existing and new customers? A: David Morgan, CEO, mentioned that hundreds of enterprise customers are using the Maestro platform, which is significant given their average customer spend. The platform supports AI agent use cases and allows customers to integrate their preferred AI solutions, positioning Bandwidth as a vital part of their future communications strategy.
Q: How does Bandwidth plan to manage its debt and leverage in the long term? A: Daryl Raiford, CFO, explained that they recently repurchased nearly $30 million of the 2026 notes, reducing leverage. With a net debt balance running at just under 2.0 times the last 12 months' EBITDA, they consider their leverage to be very manageable and are focused on growth prospects and AI investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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