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Bandwidth (BAND) Reports Narrower Q2 Loss, Beats on Revenues

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Bandwidth Inc. (BAND - Free Report) reported relatively healthy second-quarter 2022 results, beating both the top-line and bottom-line estimates. The strong performance during the quarter was backed by enterprises increasing their reliability on Bandwidth’s platform for communications in the cloud. In order to drive growth, the company plans to focus on winning new large enterprises and becoming the best global CPaaS platform for scaling digital engagement.

Quarter Details

Revenues in the reported quarter were $136.5 million compared with $120.7 million in the prior-year quarter. Revenues beat the Zacks Consensus Estimate of $133 million. The growth was backed by high demand for digital engagement and strong contributions from monthly recurring charges for phone numbers and emergency services.

On a GAAP basis, the net loss during the quarter was $6.2 million or a loss of 25 cents per share compared with a loss of $6.9 million or a loss of 28 cents per share in the prior-year quarter. Non-GAAP net loss during the reported quarter was $0.9 million or a loss of 4 cents per share against net income of $8.6 million or 32 cents per share in the prior-year quarter. Non-GAAP loss was narrower than the Zacks Consensus Estimate of a loss of 7 cents per share.

Bandwidth Inc. Price, Consensus and EPS Surprise Bandwidth Inc. Price, Consensus and EPS Surprise

Bandwidth Inc. price-consensus-eps-surprise-chart | Bandwidth Inc. Quote

Operating Details

Non-GAAP gross margin during the quarter was 53%, reflecting growth of 2 percentage points, primarily due to efficient pricing and product mix and continued excellent execution within the cloud operations and service groups. Adjusted EBIDTA was $5.1 million compared with $13.8 million a year ago.

Cash Flow & Liquidity

In the first six months of 2022, net cash from operating activities was $0.3 million compared with $8.8 million in the prior-year quarter. Cash and cash equivalents at the end of the quarter were $165.3 million, with accrued expenses and other current liabilities of $62.3 million.

Guidance

The company has reiterated its outlook for 2022 and expects revenues in the band of $551 million to $557 million and non-GAAP earnings per share in the band of 10 cents to 14 cents per share.

For the third quarter, revenues are expected to be in the band of $140 million and $142 million. Non-GAAP earnings are expected to be in the band of 2 cents to 4 cents per share.

Zacks Rank & Stocks to Consider

Bandwidth currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TESSCO Technologies Incorporated , sporting a Zacks Rank #1, delivered an earnings surprise of 61.9%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 49.4% since August 2021.

TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry.

Ooma Inc. (OOMA - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 34.7%, on average, in the trailing four quarters. Earnings estimates for Ooma for the current year have moved up 5.4% since March 2022.

Ooma offers communications services and related technologies for businesses and consumers in the United States and Canada. It helps to create powerful connected experiences for businesses and consumers through its smart cloud-based SaaS platform.

Harmonic Inc. (HLIT - Free Report) , carrying a Zacks Rank #2, delivered an earnings surprise of 79.8%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 17.1% since February 2022.

Harmonic provides video delivery software, products, system solutions, and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit internet service to consumers' homes and mobile devices.


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