Stock Monitor: Simulations Plus Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 16, 2018 / Active-Investors.com has just released a free earnings report on Bandwidth Inc. (NASDAQ: BAND). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BAND. Bandwidth reported its third quarter fiscal 2017 operating results on December 14, 2017. The Cloud computing operator outperformed earnings expectations and provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Simulations Plus, Inc. (NASDAQ: SLP), which also belongs to the Technology sector as the Company Bandwidth. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Bandwidth most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=BAND
Earnings Highlights and Summary
For the third quarter ended September 30, 2017, Bandwidth's total revenue grew 7% to $41.3 million compared to $38.6 million for Q3 2016. The Company's reported numbers topped analysts' estimates of $40.8 million.
During Q3 2017, Bandwidth's gross profit was $18.8 million compared to $17.1 million for Q3 2016. The Company's non-GAAP gross profit for the reported quarter totaled $19.9 million compared to $18.3 million for the prior year's corresponding quarter. Bandwidth's gross margin for Q3 2017 was 45% compared to 44% in Q3 2016. The Company's non-GAAP gross margin for the reported quarter came in at 48% versus 47% for the prior year's comparable quarter.
Bandwidth's net income from continuing operations attributable to common stockholders for Q3 2017 was $1.4 million, or $0.11 per share, compared to net income from continuing operations attributable to common stockholders of $3.5 million, or $0.27 per share for Q3 2016. The Company's non-GAAP net income for the reported quarter came in at $2.2 million, or $0.15 per share, compared to a non-GAAP net income of $3.7 million, or $0.25 per share, for the year earlier same quarter. The Company's earnings topped Wall Street's estimates of $0.09 per share.
Bandwidth's adjusted EBITDA was $5.2 million for Q3 2017 compared to $6.2 million for Q3 2016.
Key Metrics
During Q3 2017, Bandwidth's communications platform-as-a-service(CPaaS) revenue totaled $33.4 million, up 10% compared to $30.2 million for Q3 2016. The Company's Other revenue contributed the remaining $7.9 million of the overall revenue for the reported quarter, compared to $8.4 million in the year earlier quarter.
Bandwidth's number of active CPaaS customers were 918 as of September 30, 2017, reflecting an increase of 18% from 781 CPaaS customers as of September 30, 2016. The Company's dollar-based net retention rate was 105% during Q3 2017 compared to 112% during Q3 2016 which primarily reflects Bandwidth's decision to curtail services to a competitor.
Cash Matters
As of September 30, 2017, Bandwidth had cash and cash equivalents of $5.4 million and $38.5 million in debt. Subsequent to the end of the reported quarter, the Company closed its initial public offering of Class A common stock on November 14, 2017, which generated proceeds, net of underwriting discounts and commissions, to the Company of approximately $74.4 million, a portion of which was utilized to pay down all amounts outstanding under Bandwidth's term loan facility.
Bandwidth generated $4.8 million in net cash provided by operating activities from continuing operations for Q3 2017 compared to $2.2 million during Q3 2016. The Company generated $2.7 million in free cash flow for the reported quarter compared to $1.3 million for the year earlier same quarter.
Financial Outlook
For the fourth Quarter 2017, Bandwidth is forecasting CPaaS revenue to be in the range of $34.2 million to $34.7 million. The Company's total revenue is expected to be in the band of $41.4 million to $41.9 million and non-GAAP EPS is expected to be in the range of $0.00 to $0.01 per share.
For full year 2017, Bandwidth's CPaaS revenue is estimated to be in the range of $130.8 million to $131.3 million. The Company is anticipating total revenue to be in the band of $161.9 million to $162.4 million and non-GAAP EPS in the range $0.50 to $0.51 per share.
Stock Performance Snapshot
January 12, 2018 - At Friday's closing bell, Bandwidth's stock slightly dropped 0.22%, ending the trading session at $23.01.
Volume traded for the day: 69.88 thousand shares.
Stock performance in the last month – up 13.63%
After last Friday's close, Bandwidth's market cap was at $404.75 million.
Price to Earnings (P/E) ratio was at 28.16.
The stock is part of the Technology sector, categorized under the Business Software & Services industry. This sector was up 0.5% at the end of the session.
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