Bandwidth Inc.

Technology
Computer Software: Prepackaged Software
www.bandwidth.com

Earnings Score
Moat Score
Safety Score

Market Cap $545.88M
PE -35
Debt $280.97M
Cash $75.26M
EV $751.60M
FCF $52.03M

Earnings

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Sales & Net Margins

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Earnings	-$15.70M
EBIT	-$13.49M
ROE	-5%
ROA	-1%
FCF	$52.03M
Equity	$336.58M
Growth Stability	-512%
PE	-34.77
PEG	-4.87
PB	1.62
P/FCF	10.49
P/S	0.78
Price/Cash	0.14
Debt/Equity	0.83
Debt/FCF	5.4
Net Margins	-1%
Gross Margins	38%
Op. Margins	-2%
Earnings CAGR	2%
Sales Growth YoY	28%
Sales Growth QoQ	12%
Sales CAGR	28%
FCF CAGR	4%
Equity CAGR	15%
Earnings Stability	-0.14
Earnings Growth YoY	-108%
Earnings Growth QoQ	-90%

Earnings CAGR 5Y	7%
Sales CAGR 5Y	25%
FCF CAGR 5Y	35%
Equity CAGR 5Y	-4%
Earnings CAGR 3Y	12%
Sales CAGR 3Y	12%
FCF CAGR 3Y	64%
Equity CAGR 3Y	6%
Market Cap	$545.88M
Revenue	$703.90M
Assets	$1.03B
Total Debt	$280.97M
Cash	$75.26M
Shares Outstanding	26.98M
EV	751.6M
Earnings Score	6%
Moat Score	16%
Safety Score	52%
Final Score	25%
Working Capital	45.01M
Current Ratio	1.29
Gross Profit	$265.50M
Shares Growth 3y	3%
Equity Growth QoQ	9%
Equity Growth YoY	20%

Assets & ROA

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Stockholders Equity & ROE

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Bandwidth Inc engages in the business of providing a cloud-based communications platform for enterprises in the United States. The company's solutions consist of software application programming interface for voice and text functionality and its owned and managed purpose-built internet protocol voice network. The segments of the company are Communications Platform-as-a-Service (CPaaS) and Other, of which a majority of the revenue is derived from the CPaaS segment. CPaaS revenue is derived from the provision of voice usage, phone number services, 911-enabled phone number services, messaging services and other services. It has the business presence in the United States and international countries, of which key revenue is derived from the United States.

SEC Filings

Direct access to Bandwidth Inc. (BAND) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Bandwidth Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Bandwidth Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 2%

Stability -14%

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Bandwidth Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Bandwidth Inc..

Years

Calculation mode

= $680M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$52M	$54M	$56M	$58M	$61M	$63M	$65M	$68M	$71M	$73M	$76M	$763M
DCF		$49M	$46M	$44M	$41M	$39M	$37M	$35M	$33M	$31M	$29M	$294M
Value	$680M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-5%	13%	3%	9%	1%	-13%	-6%	3%	-3%	-1%
ROA	-	-	14%	5%	-4%	-1%	-0%	2%	-1%	-1%
ROE	-	-	7%	16%	1%	-10%	-7%	7%	-5%	-5%

Bad Net Margins (-0.88%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	0.01	-	-0	-36.39	24.18	-71.14	14.07	5.4
Debt over Equity	-	-1.78	0	-	0	0.66	1.18	1.77	1.41	0.83
Growth Stability	-	-	-	100%	18%	-512%	-	-	-	-512%

Bad Debt/FCF ratio (5.4)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.83)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-512%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	10%	7%	25%	14%	48%	43%	17%	5%	25%
Earnings YoY growth	-	-390%	-73%	236%	-86%	-2K%	-38%	-172%	-184%	7%
Equity YoY growth	-	17%	-443%	42%	148%	59%	-4%	-34%	9%	-4%
FCF YoY growth	-	-21%	-27%	27%	-292%	-67%	-359%	-134%	-540%	35%