Bandwidth

Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to enterprise customers. The majority of our revenue is generated from usage-based fees that includes voice communication and messaging communication that traverse the platform and network.

2d,Rendering,Cloud,Computing,,Cloud,Computing,Concept

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The Fed cut rates by 0.5%, making it easier for small- to medium-sized cloud computing companies to refinance debt. Analyst suggests 5 firms may benefit.

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Bandwidth Inc

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Citizens Capital Markets analyst Patrick Walravens reiterates Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Market Outperform and maintains $36 price target.

Price Target

Reiteration

Analyst Ratings

Citizens Capital Markets Reiterates Market Outperform on Bandwidth, Maintains $36 Price Target

Needham analyst Ryan Koontz reiterates Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) from Hold to Hold.

Needham Reiterates Hold on Bandwidthto Hold

Barclays analyst Ryan Macwilliams maintains Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Overweight and lowers the price target from $25 to $22.

Barclays Maintains Overweight on Bandwidth, Lowers Price Target to $22

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Bandwidth shares are trading lower after the company issued Q1 revenue guidance below estimates.

Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) sees FY2025 sales of $740.000 million-$760.000 million vs $764.65 million analyst estimate.

Guidance

Bandwidth Sees FY2025 Sales $740.000M-$760.000M vs $764.65M Est

Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) sees Q1 sales of $168.000 million-$170.000 million vs $183.73 million analyst estimate.

Bandwidth Sees Q1 Sales $168.000M-$170.000M vs $183.73M Est

Earnings

Earnings Beats

Earnings Misses

Bandwidth Q4 2024 Adj. EPS $0.37 Misses $0.39 Estimate, Sales $209.969M Beat $203.500M Estimate

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Earnings Scheduled For February 20, 2025

Management

Bandwidth Appoints Devesh Agarwal As COO

Morgan Stanley analyst Meta Marshall maintains Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Underweight and raises the price target from $17 to $18.

Morgan Stanley Maintains Underweight on Bandwidth, Raises Price Target to $18

Baird analyst William Power maintains Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Neutral and raises the price target from $19 to $22.

Baird Maintains Neutral on Bandwidth, Raises Price Target to $22

Needham analyst Ryan Koontz reiterates Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Hold.

Needham Reiterates Hold on Bandwidth

Bandwidth shares are trading higher after the company reported better-than-expected Q3 financial results and issued Q4 revenue guidance above estimates.

CORRECTION: Bandwidth Sees Q4 Revenue $198M-$208M vs $189.67M Est., Sees FY24 Revenue $737M-$747M

Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) reported quarterly earnings of $0.43 per share which beat the analyst consensus estimate of $0.32 by 34.37 percent. The company reported quarterly sales of $194.000 million which beat the analyst consensus estimate of $181.992 million by 6.60 percent. This is a 27.62 percent increase over sales of $152.013 million the same period last year.

Bandwidth Q3 2024 Adj. EPS $0.43 Beats $0.32 Estimate, Sales $194M Beat $181.992M Estimate

The Federal Reserve&#8217;s decision to cut rates by a <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40926026/federal-reserve-delivers-bold-0-5-rate-cut-signals-further-easing-ahead">hefty 0.5% on Wednesday</a> should be helpful to small- to medium-sized companies in the cloud computing space by making it easier for them to refinance debt, according to an analyst.
Piper Sandler analyst James Fisher pointed to five such firms in particular that may benefit the most, given their heavy debt loads: Bandwidth, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>), DigitalOcean Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOCN#NYSE">DOCN</a>), Fastly, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSLY#NYSE">FSLY</a>), RingCentral, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNG#NYSE">RNG</a>), and Five9, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVN#NASDAQ">FIVN</a>).
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40878710/investors-bet-on-50-basis-point-rate-cut-wall-street-analysts-urge-caution-this-is-">Investors Bet On 50-Basis-Point Rate Cut, Wall Street Analysts Urge Caution: &#8216;This Is A Low-Conviction Fed&#8217;</a>
&#8220;A few names in our coverage will need to refinance debt over the next few years,&#8221; he wrote in a note on Wednesday.
He noted Bandwidth has $250 million in debt coming due in March 2026 and DigitalOcean has $1.5 billion in debt maturing in December 2026. He also pointed out Fastly needs to pay up $347 million by March 2026 and RingCentral has $609 million in debt coming due in March 2026.
He said lower interest rates may better help these companies better assume the interest costs on their debt.
Price Action: These companies all saw gains into Thursday&#8217;s late-morning trading.
<ul>
<li>Bandwidth rose 1.61% to $17.64</li>
<li>Digital Ocean gained 2.38% to $41.75</li>
<li>Fastly picked up 2.98% to $7.25</li>
<li>RingCentral went up 2.04% to $30.70</li>
<li>Five9 went up 2% to $29.09</li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40937291/bank-stocks-hit-inflection-point-after-feds-50-basis-point-cut-analyst-reveal-top-p">Bank Stocks Hit Inflection Point After Fed&#8217;s 50 Basis Point Cut, Analyst Reveals Top Picks</a></li>
</ul>
Photo: Shutterstock

Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $23.75, a high estimate of $36.00, and a low estimate of $15.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 11.21%. 
<img src="https://www.benzinga.com/files/images/story/2024/1724763625_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The standing of Bandwidth among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Patrick Walravens</td>
<td>JMP Securities</td>
<td>Maintains</td>
<td>Market Outperform</td>
<td>$36.00</td>
<td>$36.00</td>
</tr>
<tr>
<td>William Power</td>
<td>Baird</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$19.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Ryan Macwilliams</td>
<td>Barclays</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$25.00</td>
<td>$28.00</td>
</tr>
<tr>
<td>Meta Marshall</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Underweight</td>
<td>$15.00</td>
<td>$18.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Bandwidth. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Bandwidth compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Bandwidth's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Bandwidth's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/BAND/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Bandwidth analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>About Bandwidth</h2>
Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.
<h3>Bandwidth's Economic Impact: An Analysis</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Bandwidth's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 19.01%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Bandwidth's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.34% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Bandwidth's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.34% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Bandwidth's ROA stands out, surpassing industry averages. With an impressive ROA of 0.39%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 1.77, Bandwidth adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>How Are Analyst Ratings Determined?</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Key Takeaways From Bandwidth Analyst Ratings

JMP Securities analyst Patrick Walravens reiterates Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Market Outperform and maintains $36 price target.

JMP Securities Reiterates Market Outperform on Bandwidth, Maintains $36 Price Target

Baird analyst William Power maintains Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Neutral and lowers the price target from $25 to $19.

Baird Maintains Neutral on Bandwidth, Lowers Price Target to $19

Barclays analyst Ryan Macwilliams maintains Bandwidth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BAND#NASDAQ">BAND</a>) with a Overweight and lowers the price target from $28 to $25.

Barclays Maintains Overweight on Bandwidth, Lowers Price Target to $25

Press Releases

Bandwidth Will Livestream Its Universal Platform Launch TODAY at 10:30 am EDT, With Registration Still Available

Bandwidth Announces the Largest BYOC Ecosystem, Giving Enterprises More Ways To Solve Complex Challenges

Bandwidth and its Employees Announce Hurricane Relief For Western North Carolina and Invite Customers To Participate

Bandwidth to Report Third Quarter 2024 Financial Results on October 31, 2024

Bandwidth Announces Third Quarter 2024 Financial Results

Bandwidth Announces Devesh Agarwal as Chief Operating Officer To Lead Growth and Innovation

Bandwidth to Report Fourth Quarter and Full Year 2024 Financial Results on February 20, 2025

Bandwidth Named a Leader in IDC MarketScape for Worldwide CPaaS

Bandwidth Announces Fourth Quarter and Full Year 2024 Financial Results

Bandwidth Releases 2025 State of Messaging Report: RCS, Deliverability and Consumer Trust Take Center Stage

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