RALEIGH, N.C., Feb. 25,
2021 /PRNewswire/ -- Bandwidth Inc. (NASDAQ: BAND), a leading
enterprise cloud communications company, today announced financial
results for the fourth quarter and full year ended December 31, 2020.
"The fourth quarter was a strong finish to a monumental year for
Bandwidth. We fulfilled our mission to develop and deliver the
power to communicate when America needed it most, and our team is
grateful for the privilege to have served our customers through
this difficult season. We're proud of the results, including record
annual CPaaS revenue growth and dollar-based net retention and an
accelerated return to positive Non-GAAP net income," stated
David Morken, Chief Executive
Officer of Bandwidth. "Today's businesses demand sophisticated
communications solutions provided as part of a dynamic platform,
allowing for integration with adjacent applications, exponential
scale, and unfettered creativity and flexibility. On the heels of
our successful acquisition of Voxbone, I believe Bandwidth is
uniquely positioned to meet those demands on a global scale.
Our opportunities have never been greater."
Fourth Quarter 2020 Financial Highlights
- Revenue: Total revenue for the fourth quarter of 2020
was $113.0 million, up 82% compared
to $62.0 million in the fourth
quarter of 2019. Within total revenue, CPaaS revenue was
$98.1 million, up 84% compared to
$53.4 million for the fourth quarter
of 2019. Other revenue contributed the remaining $14.9 million for the fourth quarter of 2020.
Other revenue was $8.6 million in the
same period last year. Total, CPaaS and Other Revenue include
$17.5 million, $16.6 million and $0.9
million respectively from Voxbone starting on November 1, 2020 (the date of acquisition).
- Gross Profit: Gross profit for the fourth quarter of
2020 was $51.7 million, compared to
$29.0 million for the fourth quarter
of 2019. Gross margin for the fourth quarter of 2020 was 46%,
compared to 47% for the fourth quarter of 2019. Non-GAAP gross
profit for the fourth quarter of 2020 was $55.8 million, compared to $31.1 million for the fourth quarter of 2019.
Non-GAAP gross margin was 49% for the fourth quarter of 2020,
compared to 50% for the fourth quarter of 2019.
- Net (Loss): Net loss for the fourth quarter of 2020
was $(19.9) million, or $(0.81) per share, based on 24.7 million weighted
average shares outstanding. During the fourth quarter of 2019, net
loss was $(2.0) million, or
$(0.08) per share, based on 23.5
million weighted average shares outstanding.
- Non-GAAP Net Income (Loss): Non-GAAP net income for
the fourth quarter of 2020 was $3.5
million, or $0.13 per share,
based on 27.2 million weighted average diluted shares outstanding.
This compares to a Non-GAAP net loss of $(0.5) million, or $(0.02) per share, based on 23.5 million weighted
average shares outstanding for the fourth quarter of 2019.
- Adjusted EBITDA: Adjusted EBITDA was $8.3 million for the fourth quarter of 2020,
compared to $1.2 million for the
fourth quarter of 2019.
Full Year 2020 Financial Highlights
- Revenue: Total revenue for the full year of 2020 was
$343.1 million, up 48% compared to
$232.6 million in 2019. Within total
revenue, CPaaS revenue was $298.1
million, up 51% compared to $197.9
million in 2019. Other revenue contributed the remaining
$45.0 million for the full year of
2020, compared to $34.7 million for
the full year of 2019. Total, CPaaS and Other Revenue include
$17.5 million, $16.6 million and $0.9
million respectively from Voxbone starting on November 1, 2020 (the date of acquisition).
- Gross Profit: Gross profit for the full year of 2020 was
$157.9 million, compared to
$107.6 million in 2019. Gross margin
for the full year of 2020 and 2019 was 46.0%. Non-GAAP gross profit
for the full year of 2020 was $169.1
million, compared to $114.4
million in 2019. Non-GAAP gross margin was 49% for the full
year of 2020 and 2019.
- Net Income: Net income for the full year of 2020
was $(44.0) million, or $(1.83) per share, based on 24.1 million weighted
average diluted shares outstanding. This compares to net income of
$2.5 million, or $0.10 per share, based on 23.9 million weighted
average diluted shares outstanding in 2019.
- Non-GAAP Net Income (Loss): Non-GAAP net income for
the full year of 2020 was $14.2
million, or $0.55 per share,
based on 25.9 million weighted average shares outstanding. This
compares to a Non-GAAP net loss of $(5.3)
million, or $(0.23) per share,
based on 22.6 million weighted average diluted shares outstanding
in 2019.
- Adjusted EBITDA: Adjusted EBITDA was $26.2 million for the full year of 2020, compared
to $(1.1) million in 2019.
Additional information regarding the non-GAAP financial measures
discussed in this release, including an explanation of these
measures and how each is calculated, is included below under the
heading "Non-GAAP Financial Measures." A reconciliation of GAAP to
non-GAAP financial measures has also been provided in the financial
tables included below.
Fourth Quarter 2020 Key Metrics
- The number of active CPaaS customers was 2,848 as of
December 31, 2020, an increase of 65%
from 1,728 as of December 31, 2019.
Active CPaaS customers in the current period include the
contribution from Voxbone.
- The dollar-based net retention rate was 133% during the fourth
quarter of 2020, compared to 113% during the fourth quarter of
2019. Voxbone results do not impact the calculation of this metric
in the current period.
Additional information regarding our active CPaaS customers and
dollar-based net retention rate and how each are calculated are
included below.
Financial Outlook
Bandwidth's outlook assumes current business conditions, current
foreign currency exchange rates and includes the impact of the
Voxbone acquisition. Bandwidth is providing guidance for its
first quarter and full year 2021 as follows:
- First Quarter 2021 Guidance: CPaaS revenue is expected
to be in the range of $96.6 million
to $97.6 million. Total revenue is
expected to be in the range of $108.0
million to $109.0 million.
Non-GAAP earnings per share is expected to be in the range of
$0.00 to $0.02 per share, using 27.5 million weighted
average diluted shares outstanding.
- Full Year 2021 Guidance: CPaaS revenue is expected to be
in the range of $413.3 million to
$417.3 million. Total revenue is
expected to be in the range of $460.4
million to $464.4 million.
Non-GAAP earnings per share is expected to be in the range of
$0.02 to $0.12 per share, using 27.5 million weighted
average diluted shares outstanding.
Bandwidth has not reconciled its first quarter and full-year
guidance related to non-GAAP net earnings or loss to GAAP net
earnings or loss and non-GAAP earnings or loss per share to GAAP
earnings or loss, because stock-based compensation cannot be
reasonably calculated or predicted at this time. Accordingly, a
reconciliation is not available without unreasonable effort.
Quarterly Conference Call
Bandwidth will host a conference call today at 5:00 p.m. Eastern Time to review the Company's
financial results for the fourth quarter ended December 31, 2020. To access this call, dial
(855) 327-6837 for the U.S. or Canada, or (631) 891-4304 for callers outside
the U.S. or Canada. A live webcast
of the conference call will be accessible from the Investors
section of Bandwidth's website at https://investors.bandwidth.com,
and a recording will be archived and accessible at
https://investors.bandwidth.com. An audio replay of this conference
call will also be available through March 4,
2021, by dialing (844) 512-2921 for the U.S. or Canada, or (412) 317-6671 for callers outside
the U.S. or Canada, and entering
passcode 10012966.
About Bandwidth Inc.
Bandwidth (NASDAQ: BAND) is a leading enterprise cloud
communications company. Companies like Cisco, Google, Microsoft,
RingCentral, Uber, and Zoom use Bandwidth's APIs to easily embed
voice, messaging and emergency services into software and
applications. Bandwidth is the first and only CPaaS provider
offering a robust selection of communications APIs built around
their own IP voice network. More information available at
www.bandwidth.com.
Forward-Looking Statements
This press release includes forward-looking statements. All
statements contained in this press release other than statements of
historical facts, including, without limitation, future financial
and business performance for the first quarter 2021 and full-year
2021, attractiveness of our product offerings and platform and the
value proposition of our products, are forward-looking statements.
The words "anticipate," "believe," "continue," "estimate,"
"expect," "intend," "guide," "may," "will" and similar expressions
and their negatives are intended to identify forward-looking
statements. We have based these forward-looking statements largely
on our current expectations and projections about future events and
financial trends that we believe may affect our financial
condition, results of operations, business strategy, short-term and
long-term business operations and objectives and financial needs.
These forward-looking statements are subject to a number of risks
and uncertainties, including, without limitation, risks
related to our rapid growth and ability to sustain our revenue
growth rate, competition in the markets in which we operate, market
growth, our ability to innovate and manage our growth, our ability
to expand effectively into new markets, risks that the anticipated
benefits of the acquisition of Voxbone may not be fully realized or
may take longer to realize than expected, our ability to operate in
compliance with applicable laws, as well as other risks and
uncertainties set forth in the "Risk Factors" section of our latest
Form 10-K filed with the Securities and Exchange Commission and any
subsequent reports that we file with the Securities and Exchange
Commission. Moreover, we operate in a very competitive and rapidly
changing environment. New risks emerge from time to time. It is not
possible for our management to predict all risks, nor can we assess
the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements we may make. In light of these risks, uncertainties and
assumptions, we cannot guarantee future results, levels of
activity, performance, achievements or events and circumstances
reflected in the forward-looking statements will occur. We are
under no obligation to update any of these forward-looking
statements after the date of this press release to conform these
statements to actual results or revised expectations, except as
required by law. You should, therefore, not rely on these
forward-looking statements as representing our views as of any date
subsequent to the date of this press release.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with Generally Accepted
Accounting Principles in the United
States, or GAAP, we provide investors with certain non-GAAP
financial measures and other business metrics, which we believe are
helpful to our investors. We use these Non-GAAP financial measures
and other business metrics for financial and operational
decision-making purposes and as a means to evaluate
period-to-period comparisons. We believe that these Non-GAAP
financial measures and other business metrics provide useful
information about our operating results, enhance the overall
understanding of past financial performance and future prospects
and allow for greater transparency with respect to metrics used by
our management in its financial and operational
decision-making.
The presentation of Non-GAAP financial information and other
business metrics is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures prepared
in accordance with GAAP. While our Non-GAAP financial measures and
other business metrics are an important tool for financial and
operational decision-making and for evaluating our own operating
results over different periods of time, we urge investors to review
the reconciliation of these financial measures to the comparable
GAAP financial measures included above, and not to rely on any
single financial measure to evaluate our business.
We define Non-GAAP gross profit as gross profit after adding
back depreciation and amortization and stock-based compensation. We
add back depreciation and amortization and stock-based compensation
because they are non-cash items. We eliminate the impact of these
non-cash items, because we do not consider them indicative of our
core operating performance. Their exclusion facilitates comparisons
of our operating performance on a period-to-period basis.
Therefore, we believe that showing gross margin, as adjusted to
remove the impact of these non-cash expenses, such as depreciation,
amortization and stock-based compensation, is helpful to investors
in assessing our gross profit and gross margin performance in a way
that is similar to how management assesses our performance. We
calculate Non-GAAP gross margin by dividing adjusted gross profit
by revenue, expressed as a percentage of revenue.
We define Non-GAAP net (loss) income as net (loss) income
adjusted for certain items affecting period to period
comparability. Non-GAAP net (loss) income excludes stock-based
compensation, amortization of acquired intangible assets related to
the Dash acquisition, amortization of debt discount and issuance
costs for convertible debt, acquisition related expenses,
impairment charges of intangibles assets, loss (gain) on disposal
of property and equipment, estimated tax impact of above
adjustments, income tax (benefit) provision resulting from excess
tax benefits associated with the exercise of stock options, vesting
of restricted stock units and equity compensation, and expense
resulting from recording the valuation allowance on our deferred
tax assets ("DTA").
We define adjusted EBITDA as net (loss) income adjusted to
reflect the addition or elimination of certain statement of
operations items including, but not limited to: income tax
(benefit) provision, interest (income) expense, net, depreciation
and amortization expense, acquisition related expenses, stock-based
compensation expense, impairment of intangible assets, and loss
(gain) from disposal of property and equipment. We have presented
Adjusted EBITDA because it is a key measure used by our management
and board of directors to understand and evaluate our core
operating performance and trends, generate future operating plans,
and make strategic decisions regarding the allocation of capital.
In particular, we believe that the exclusion of certain items in
calculating Adjusted EBITDA can produce a useful measure for
period-to-period comparisons of our business.
We define free cash flow as net cash provided by or used in
operating activities less net cash used in the acquisition of
property, plant and equipment activities and capitalized
development costs for software for internal use. We believe free
cash flow is a useful indicator of liquidity and provides
information to management and investors about the amount of cash
generated from our core operations that can be used for investing
in our business. Free cash flow has certain limitations in that it
does not represent the total increase or decrease in the cash
balance for the period, it does not take into consideration
investment in long-term securities, nor does it represent the
residual cash flows available for discretionary expenditures.
Therefore, it is important to evaluate free cash flow along with
our consolidated statements of cash flows.
We believe that these Non-GAAP financial measures provide useful
information about our operating results, enhance the overall
understanding of past financial performance and future prospects
and allow for greater transparency with respect to metrics used by
our management in its financial and operational
decision-making.
While a reconciliation of Non-GAAP guidance measures to
corresponding GAAP measures is not available on a forward-looking
basis as a result of the uncertainty regarding, and the potential
variability of, many of these costs and expenses that we may incur
in the future, we have provided a reconciliation of Non-GAAP
financial measures and other business metrics to the nearest
comparable GAAP measures in the accompanying financial statement
tables included in this press release.
We define an active CPaaS customer account at the end of any
period as an individual account, as identified by a unique account
identifier, for which we have recognized at least $100 of revenue in the last month of the period.
We believe that the use of our platform by active CPaaS customer
accounts at or above the $100 per
month threshold is a stronger indicator of potential future
engagement than trial usage of our platform at levels below
$100 per month. A single organization
may constitute multiple unique active CPaaS customer accounts if it
has multiple unique account identifiers, each of which is treated
as a separate active CPaaS customer account.
Our dollar-based net retention rate compares the CPaaS revenue
from customers in a quarter to the same quarter in the prior year.
To calculate the dollar-based net retention rate, we first identify
the cohort of customers that generate CPaaS revenue and that were
customers in the same quarter of the prior year. The dollar-based
net retention rate is obtained by dividing the CPaaS revenue
generated from that cohort in a quarter, by the CPaaS revenue
generated from that same cohort in the corresponding quarter in the
prior year. When we calculate dollar-based net retention rate for
periods longer than one quarter, we use the average of the
quarterly dollar-based net retention rates for the quarters in such
period.
BANDWIDTH
INC. Condensed Consolidated Statements of
Operations (In thousands, except share and per share
amounts) (Unaudited)
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
Revenue
|
$
|
62,003
|
|
|
$
|
113,047
|
|
|
$
|
232,594
|
|
|
$
|
343,113
|
|
Cost of
revenue
|
32,979
|
|
|
61,357
|
|
|
124,959
|
|
|
185,252
|
|
Gross
profit
|
29,024
|
|
|
51,690
|
|
|
107,635
|
|
|
157,861
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
8,149
|
|
|
12,743
|
|
|
31,461
|
|
|
42,059
|
|
Sales and
marketing
|
9,373
|
|
|
13,479
|
|
|
35,020
|
|
|
40,552
|
|
General and
administrative
|
14,963
|
|
|
37,685
|
|
|
58,847
|
|
|
88,755
|
|
Total operating
expenses
|
32,485
|
|
|
63,907
|
|
|
125,328
|
|
|
171,366
|
|
Operating (loss)
income
|
(3,461)
|
|
|
(12,217)
|
|
|
(17,693)
|
|
|
(13,505)
|
|
Other income
(expense), net
|
758
|
|
|
(6,487)
|
|
|
2,469
|
|
|
(15,467)
|
|
Loss before income
taxes
|
(2,703)
|
|
|
(18,704)
|
|
|
(15,224)
|
|
|
(28,972)
|
|
Income tax benefit
(provision)
|
747
|
|
|
(1,222)
|
|
|
17,718
|
|
|
(15,005)
|
|
Net (loss)
income
|
$
|
(1,956)
|
|
|
$
|
(19,926)
|
|
|
$
|
2,494
|
|
|
$
|
(43,977)
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Net (loss) income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.08)
|
|
|
$
|
(0.81)
|
|
|
$
|
0.11
|
|
|
$
|
(1.83)
|
|
Diluted
|
$
|
(0.08)
|
|
|
$
|
(0.81)
|
|
|
$
|
0.10
|
|
|
$
|
(1.83)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
23,493,181
|
|
|
24,650,258
|
|
|
22,640,461
|
|
|
24,092,574
|
|
Diluted
|
23,493,181
|
|
|
24,650,258
|
|
|
23,923,777
|
|
|
24,092,574
|
|
The Company recognized total stock-based compensation expense as
follows:
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
Cost of
revenue
|
$
|
53
|
|
|
$
|
47
|
|
|
$
|
211
|
|
|
$
|
208
|
|
Research and
development
|
360
|
|
|
537
|
|
|
1,461
|
|
|
2,118
|
|
Sales and
marketing
|
307
|
|
|
385
|
|
|
1,199
|
|
|
1,525
|
|
General and
administrative
|
946
|
|
|
1,606
|
|
|
3,755
|
|
|
6,030
|
|
Total
|
$
|
1,666
|
|
|
$
|
2,575
|
|
|
$
|
6,626
|
|
|
$
|
9,881
|
|
BANDWIDTH INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
|
|
|
As of December
31,
|
|
As of December
31,
|
|
2019
|
|
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
184,414
|
|
|
$
|
72,163
|
|
Restricted
cash
|
590
|
|
|
9,274
|
|
Other
investments
|
—
|
|
|
40,000
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
30,187
|
|
|
55,243
|
|
Prepaid expenses and
other current assets
|
9,260
|
|
|
14,508
|
|
Deferred
costs
|
2,498
|
|
|
2,411
|
|
Total current
assets
|
226,949
|
|
|
193,599
|
|
Property and
equipment, net
|
41,654
|
|
|
51,645
|
|
Operating
right-of-use asset
|
21,031
|
|
|
19,491
|
|
Intangible assets,
net
|
6,569
|
|
|
248,055
|
|
Deferred costs,
non-current
|
1,952
|
|
|
3,604
|
|
Other long-term
assets
|
1,533
|
|
|
1,975
|
|
Goodwill
|
6,867
|
|
|
372,239
|
|
Deferred tax
asset
|
34,861
|
|
|
—
|
|
Total
assets
|
$
|
341,416
|
|
|
$
|
890,608
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
4,190
|
|
|
$
|
11,665
|
|
Accrued expenses and
other current liabilities
|
27,328
|
|
|
63,065
|
|
Current portion of
deferred revenue
|
5,177
|
|
|
6,515
|
|
Advanced
billings
|
4,167
|
|
|
5,429
|
|
Operating lease
liability, current
|
4,876
|
|
|
5,515
|
|
Total current
liabilities
|
45,738
|
|
|
92,189
|
|
Other liabilities,
net of current portion
|
—
|
|
|
1,707
|
|
Operating lease
liability, net of current portion
|
19,868
|
|
|
17,202
|
|
Deferred revenue, net
of current portion
|
5,720
|
|
|
6,386
|
|
Deferred tax
liability
|
—
|
|
|
61,005
|
|
Convertible senior
notes
|
—
|
|
|
282,196
|
|
Total
liabilities
|
71,326
|
|
|
460,685
|
|
Stockholders'
equity:
|
|
|
|
Class A and Class B
common stock
|
24
|
|
|
24
|
|
Additional paid-in
capital
|
275,553
|
|
|
451,463
|
|
Accumulated
deficit
|
(5,528)
|
|
|
(49,505)
|
|
Accumulated other
comprehensive income
|
41
|
|
|
27,941
|
|
Total stockholders'
equity
|
270,090
|
|
|
429,923
|
|
Total liabilities and
stockholders' equity
|
$
|
341,416
|
|
|
$
|
890,608
|
|
BANDWIDTH INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
|
Year ended
December 31,
|
|
2019
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
2,494
|
|
|
$
|
(43,977)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
Depreciation and
amortization
|
9,538
|
|
|
16,803
|
|
Right-of-use asset
amortization
|
4,269
|
|
|
4,812
|
|
Accretion of bond
discount
|
(700)
|
|
|
—
|
|
Gain on sale of
marketable securities
|
(4)
|
|
|
—
|
|
Amortization of debt
discount and issuance costs
|
177
|
|
|
15,647
|
|
Stock-based
compensation
|
6,626
|
|
|
9,881
|
|
Deferred
taxes
|
(17,502)
|
|
|
14,266
|
|
Loss on disposal of
property and equipment
|
456
|
|
|
334
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(6,178)
|
|
|
(18,832)
|
|
Prepaid expenses and
other assets
|
(4,176)
|
|
|
(2,258)
|
|
Deferred
costs
|
(69)
|
|
|
(1,565)
|
|
Accounts
payable
|
1,145
|
|
|
315
|
|
Accrued expenses and
other liabilities
|
5,474
|
|
|
11,548
|
|
Deferred revenue and
advanced billings
|
554
|
|
|
2,845
|
|
Operating right-of-use
liability
|
(3,357)
|
|
|
(5,301)
|
|
Net cash (used in) provided by
operating activities
|
(1,253)
|
|
|
4,518
|
|
Cash flows from
investing activities
|
|
|
|
Purchase of property
and equipment
|
(22,215)
|
|
|
(12,273)
|
|
Capitalized software
development costs
|
(3,544)
|
|
|
(2,319)
|
|
Purchase of
marketable securities
|
(68,361)
|
|
|
—
|
|
Proceeds from sales
and maturities of marketable securities
|
86,467
|
|
|
—
|
|
Purchase of other
investments
|
—
|
|
|
(230,780)
|
|
Proceeds from sales
and maturities of other investments
|
—
|
|
|
190,780
|
|
Acquisition, net of
cash acquired
|
—
|
|
|
(400,493)
|
|
Net cash used in
investing activities
|
(7,653)
|
|
|
(455,085)
|
|
Cash flows from
financing activities
|
|
|
|
Payments on finance
leases
|
—
|
|
|
(28)
|
|
Proceeds from the
follow-on public offering, net of underwriting discounts
|
147,391
|
|
|
—
|
|
Payment of costs
related to the follow-on public offering
|
(757)
|
|
|
—
|
|
Proceeds from
issuance of convertible senior notes
|
—
|
|
|
400,000
|
|
Payment of debt
issuance costs
|
(167)
|
|
|
(11,990)
|
|
Purchase of capped
call
|
—
|
|
|
(43,320)
|
|
Proceeds from
exercises of stock options
|
7,357
|
|
|
4,073
|
|
Value of equity
awards withheld for tax liabilities
|
(1,406)
|
|
|
(1,844)
|
|
Net cash provided by
financing activities
|
152,418
|
|
|
346,891
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(9)
|
|
|
109
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
143,503
|
|
|
(103,567)
|
|
Cash, cash
equivalents, and restricted cash, beginning of period
|
41,501
|
|
|
185,004
|
|
Cash, cash
equivalents, and restricted cash, end of period
|
$
|
185,004
|
|
|
$
|
81,437
|
|
|
|
|
|
BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
|
|
Non-GAAP Gross
Profit and Non-GAAP Gross Margin
|
|
Consolidated
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
|
|
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
|
Consolidated Gross
Profit
|
$
|
29,024
|
|
|
$
|
51,690
|
|
|
$
|
107,635
|
|
|
$
|
157,861
|
|
|
|
|
|
Consolidated Gross
Profit Margin %
|
47
|
%
|
|
46
|
%
|
|
46
|
%
|
|
46
|
%
|
|
|
|
|
Depreciation
|
2,060
|
|
|
2,578
|
|
|
6,583
|
|
|
9,536
|
|
|
|
|
|
Amortization of
acquired intangible assets
|
—
|
|
|
1,445
|
|
|
—
|
|
|
1,445
|
|
|
|
|
|
Stock-based
compensation
|
53
|
|
|
47
|
|
|
211
|
|
|
208
|
|
|
|
|
|
Non-GAAP Gross
Profit
|
$
|
31,137
|
|
|
$
|
55,760
|
|
|
$
|
114,429
|
|
|
$
|
169,050
|
|
|
|
|
|
Non-GAAP Gross
Margin %
|
50
|
%
|
|
49
|
%
|
|
49
|
%
|
|
49
|
%
|
|
|
|
|
By
Segment
|
|
CPaaS
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
CPaaS Gross
Profit
|
$
|
24,170
|
|
|
$
|
45,892
|
|
|
$
|
87,601
|
|
|
$
|
137,384
|
|
CPaaS Gross Profit
Margin %
|
45
|
%
|
|
47
|
%
|
|
44
|
%
|
|
46
|
%
|
Depreciation
|
2,060
|
|
|
2,578
|
|
|
6,583
|
|
|
9,536
|
|
Amortization of
acquired intangible assets
|
—
|
|
|
1,445
|
|
|
—
|
|
|
1,445
|
|
Stock-based
compensation
|
53
|
|
|
47
|
|
|
211
|
|
|
208
|
|
Non-GAAP CPaaS
Gross Profit
|
$
|
26,283
|
|
|
$
|
49,962
|
|
|
$
|
94,395
|
|
|
$
|
148,573
|
|
Non-GAAP CPaaS
Gross Margin %
|
49
|
%
|
|
51
|
%
|
|
48
|
%
|
|
50
|
%
|
Other
There are no non-GAAP adjustments to gross profit for the Other
segment.
BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
|
|
Non-GAAP Net
(Loss) Income
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(1,956)
|
|
|
$
|
(19,926)
|
|
|
$
|
2,494
|
|
|
$
|
(43,977)
|
|
Stock-based
compensation
|
1,666
|
|
|
2,575
|
|
|
6,626
|
|
|
9,881
|
|
Amortization of
acquired intangibles
|
130
|
|
|
3,276
|
|
|
520
|
|
|
3,666
|
|
Amortization of debt
discount and issuance costs for convertible debt
|
—
|
|
|
4,713
|
|
|
—
|
|
|
15,565
|
|
Acquisition-related
expenses
|
—
|
|
|
12,713
|
|
|
—
|
|
|
14,458
|
|
Loss on disposal of
property and equipment
|
102
|
|
|
71
|
|
|
456
|
|
|
334
|
|
Estimated tax effects
of adjustments (1)
|
(459)
|
|
|
(758)
|
|
|
(1,914)
|
|
|
(758)
|
|
Valuation allowance
(2)
|
—
|
|
|
851
|
|
|
—
|
|
|
15,024
|
|
Income tax benefit of
equity compensation
|
4
|
|
|
—
|
|
|
(13,484)
|
|
|
—
|
|
Non-GAAP net
(loss) income
|
$
|
(513)
|
|
|
$
|
3,515
|
|
|
$
|
(5,302)
|
|
|
$
|
14,193
|
|
|
|
|
|
|
|
|
|
Net (loss) income
per share
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.08)
|
|
|
$
|
(0.81)
|
|
|
$
|
0.11
|
|
|
$
|
(1.83)
|
|
Diluted
|
$
|
(0.08)
|
|
|
$
|
(0.81)
|
|
|
$
|
0.10
|
|
|
$
|
(1.83)
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
(loss) income per Non-GAAP share
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.02)
|
|
|
$
|
0.14
|
|
|
$
|
(0.23)
|
|
|
$
|
0.59
|
|
Diluted
|
$
|
(0.02)
|
|
|
$
|
0.13
|
|
|
$
|
(0.23)
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
Non-GAAP weighted
average number of shares outstanding
|
|
|
|
|
|
|
|
Non-GAAP basic
shares
|
23,493,181
|
|
|
24,650,258
|
|
|
22,640,461
|
|
|
24,092,574
|
|
Convertible debt
conversion
|
—
|
|
|
1,967,546
|
|
|
—
|
|
|
1,022,941
|
|
Stock options issued
and outstanding
|
—
|
|
|
243,936
|
|
|
—
|
|
|
443,738
|
|
Nonvested RSUs
outstanding
|
—
|
|
|
353,367
|
|
|
—
|
|
|
352,854
|
|
Non-GAAP diluted
shares
|
23,493,181
|
|
|
27,215,107
|
|
|
22,640,461
|
|
|
25,912,107
|
|
________________________
|
(1)
|
The Non-GAAP tax-effect is
determined using a blended rate of statutory tax rates in the
jurisdictions where the Company has tax
filings. When the Company has a valuation allowance recorded and no
tax benefits will be recognized, the rate is considered to be
zero. The rate was 25.2% and 1.8% for the years ended December 31,
2019 and 2020, respectively.
|
(2)
|
The Company
recognized a tax expense of $0 and $15,024 to record a valuation
allowance on U.S. deferred tax assets in the
years ended December 31, 2019 and 2020, respectively.
|
BANDWIDTH
INC. Reconciliation of Non-GAAP Financial
Measures (In thousands, except share and per share
amounts) (Unaudited)
|
|
Adjusted
EBITDA
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
Net (loss)
income
|
$
|
(1,956)
|
|
|
$
|
(19,926)
|
|
|
$
|
2,494
|
|
|
$
|
(43,977)
|
|
Income tax (benefit)
provision (1) (2)
|
(747)
|
|
|
1,222
|
|
|
(17,718)
|
|
|
15,005
|
|
Interest (income)
expense, net
|
(748)
|
|
|
4,749
|
|
|
(2,446)
|
|
|
13,672
|
|
Depreciation
|
2,780
|
|
|
3,600
|
|
|
9,018
|
|
|
13,137
|
|
Amortization
|
130
|
|
|
3,276
|
|
|
520
|
|
|
3,666
|
|
Acquisition-related
expenses
|
—
|
|
|
12,713
|
|
|
—
|
|
|
14,458
|
|
Stock-based
compensation
|
1,666
|
|
|
2,575
|
|
|
6,626
|
|
|
9,881
|
|
Loss on disposal of
property and equipment
|
102
|
|
|
71
|
|
|
456
|
|
|
334
|
|
Adjusted
EBITDA
|
$
|
1,227
|
|
|
$
|
8,280
|
|
|
$
|
(1,050)
|
|
|
$
|
26,176
|
|
________________________
|
(1)
|
Includes excess tax
benefits associated with the exercise of stock options and vesting
of restricted stock units of $13,484 and $0
in the years ended December 31, 2019 and 2020,
respectively.
|
(2)
|
Includes $0 and
$15,024 of tax expense to record a valuation allowance on U.S.
deferred tax assets in the years ended
December 31, 2019 and 2020, respectively.
|
Free Cash
Flow
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
Net cash provided by
(used in) operating activities
|
$
|
2,227
|
|
|
$
|
(6,813)
|
|
|
$
|
(1,253)
|
|
|
$
|
4,518
|
|
Net cash used in
investing in capital assets (1)
|
(9,922)
|
|
|
(3,210)
|
|
|
(25,759)
|
|
|
(14,592)
|
|
Free cash
flow
|
$
|
(7,695)
|
|
|
$
|
(10,023)
|
|
|
$
|
(27,012)
|
|
|
$
|
(10,074)
|
|
________________________
|
(1)
|
Represents the
acquisition cost of property, equipment and capitalized development
costs for software for internal use.
|
View original
content:http://www.prnewswire.com/news-releases/bandwidth-announces-fourth-quarter-and-full-year-2020-financial-results-301235938.html
SOURCE Bandwidth Inc.