Bandwidth Q1 revenue beats estimates on demand for AI-driven platform; outlook raised

Overview

• US cloud communications firm's Q1 revenue rose 20% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q1 increased 17% yr/yr to $26 mln

• Company raised full-year 2026 outlook for revenue and adjusted EBITDA

Outlook

• Bandwidth raises full-year 2026 revenue outlook to $880 mln-$900 mln

• Company expects Q2 2026 revenue between $214 mln and $220 mln

• Bandwidth sees full-year 2026 adjusted EBITDA of $119 mln-$125 mln

Result Drivers

• AI PLATFORM ADOPTION - Co said accelerating adoption of its AI-driven platform increased usage and value capture

• LARGE ENTERPRISE DEALS - Strong momentum in large enterprise segment, including $1 mln+ wins and selection by Salesforce for Agentforce Contact Center

• HIGH-VOLUME MESSAGING - Continued growth in high-volume messaging contributed to results

Company press release: ID:nPn4syRcZa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Bandwidth Inc is $23.50, about 2.9% below its April 29 closing price of $24.20

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 7 three months ago

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