Bandwidth Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $748.5 million, a 25% increase from $601.1 million in 2023. The company’s net loss narrowed to $7 million from a loss of $16 million in the previous year, while it had recorded a net income of $20 million in 2022. The growth in revenue was primarily driven by a 13% increase in cloud communications revenue, which totaled $539.8 million, and a substantial 71% rise in messaging surcharge revenue, which amounted to $208.7 million, largely attributed to heightened political messaging during the U.S. presidential election.
In terms of operational metrics, Bandwidth's net retention rate improved to 122% in 2024, up from 101% in 2023, indicating a strong ability to retain and expand existing customer relationships. The company also reported an increase in average annual customer revenue, which rose to $0.2 million, reflecting the impact of higher messaging volumes. Bandwidth's customer base remains diversified, with no single customer accounting for more than 10% of total revenue, which mitigates concentration risk.
Strategically, Bandwidth has made notable advancements, including the launch of its Maestro platform in 2023, designed to enhance enterprise cloud communications. The company also executed a series of repurchases of its 2026 Convertible Notes, totaling approximately $140 million, which resulted in a gain of $10 million recorded in its financial statements. Additionally, Bandwidth amended its credit agreement to increase its revolving credit commitments from $50 million to $150 million, enhancing its liquidity position.
As of December 31, 2024, Bandwidth employed approximately 1,100 individuals, a slight increase from the previous year. The company continues to expand its geographic footprint, with operations in over 65 countries, serving more than 90% of global GDP. The firm’s focus on product innovation and customer engagement is expected to drive future growth, as it aims to capitalize on ongoing trends in cloud communications and AI technologies.
Looking ahead, Bandwidth anticipates continued revenue growth, although it acknowledges potential challenges from macroeconomic conditions, including inflation and competitive pressures. The company remains committed to investing in its technology and expanding its service offerings to enhance customer experiences and drive long-term value.
About Bandwidth Inc.
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