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Bandwidth Announces Fourth Quarter and Full Year 2021 Financial Results

Full year Total Revenue of $491 million, up 43% year-over-year
Full year CPaaS Revenue of $414 million, up 39% year-over-year

RALEIGH, N.C., Feb. 23, 2022 /PRNewswire/ — Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced financial results for the fourth quarter and full year ended December 31, 2021.

“I am very pleased with our strategic, operational and financial achievements in 2021. We helped customers unlock the potential of the cloud, deepened existing relationships and rose to the challenge of DDoS, all while delivering strong financial results,” stated David Morken, Chief Executive Officer of Bandwidth. “We have strengthened our ability to provide customers with unparalleled enterprise-grade service across the globe. With the successful completion of our integration efforts and globally aligned operations, we are uniquely positioned to be the global platform of choice for cloud communications transformation.”

Fourth Quarter and Full Year 2021 Financial Highlights
The following table summarizes the consolidated financial highlights as of December 31, 2021 (in millions, except per share amounts). (1)

Three months ended
December 31,

Year ended

December 31,

2020

2021

2020

2021

CPaaS Revenue (2)

$        98

$     101

$      298

$      414

Total Revenue (2)

$      113

$     126

$      343

$      491

Consolidated Gross Margin

46 %

42 %

46 %

45 %

Non-GAAP Gross Margin

49 %

47 %

49 %

49 %

CPaaS Gross Margin

47 %

48 %

46 %

47 %

Non-GAAP CPaaS Gross Margin

51 %

53 %

50 %

53 %

Net Loss

$      (20)

$        (8)

$       (44)

$       (27)

Non-GAAP Net Income

$         4

$          2

$        14

$        26

Net loss per share, basic and diluted

$   (0.81)

$   (0.33)

$    (1.83)

$    (1.09)

Weighted average shares outstanding, basic and diluted

25

25

24

25

Non-GAAP net income per Non-GAAP share

$    0.13

$    0.09

$     0.55

$     0.97

Non-GAAP weighted average shares outstanding, diluted

27

25

26

26

Adjusted EBITDA

$         8

$         8

$         26

$         50

(1)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.

(2) For the twelve months following acquisition closing on November 2, 2020, Voxbone contributed CPaaS revenue of $17 million and $81 million in 2020 and 2021, respectively and Other revenue of $1 million and $3 million in 2020 and 2021, respectively.

 

Year ended

December 31,

2020

2021

Active CPaaS Customers (1)

2,848

3,228

Dollar-based net retention rate (1)

131%

110%

Normalized dollar-based net retention rate (2) 

123%

117%

(1) Additional information regarding our active CPaaS customers and dollar-based net retention rate and how each are calculated are included below.

(2) Normalizing for estimated benefit from COVID-related usage revenue of $11 million and $2 million political messaging benefit in 2020 and estimated loss of revenue from previously disclosed DDoS attack of approximately $10 million in 2021.

“I’m proud of our team for delivering another strong performance in the fourth quarter, despite the approximate impact of $10 million from DDoS. We exceeded both top and bottom-line guidance for the quarter and full year along with our original 2021 revenue and non-GAAP EPS guidance,” said Daryl Raiford, Chief Financial Officer of Bandwidth. “While the DDoS event continues to affect some customer demand, our profitable operations support our ability to fully invest in our long-term growth. We continue to feel optimistic about the sizable market opportunity ahead of us.”

Fourth Quarter Customer and Company Highlights

  • Bandwidth announced Duet for Genesys, a global BYOC solution to accelerate the enterprise contact center move to the cloud. This is the third Duet partnership after Microsoft and RingCentral, and the first in the contact center space. Duet for Genesys enables enterprise customers to unbundle telephony and enjoy cloud-based flexibility, easier integrations and global scale with market leader Genesys.
  • A game-changing CCaaS provider chose to expand with Bandwidth in the U.S. and Canada. Previously, Bandwidth powered their contact center platform with our voice services internationally, primarily in Europe. The customer values the call quality and ability to scale on the Bandwidth platform around the world.
  • Bandwidth also expanded wallet share within a global customer bundling UCaaS and CCaaS solutions to create a better customer experience. The expanded relationship includes an immediate 50% increase in international voice services and the opportunity to gain more. In addition to the expanded international business, Bandwidth is their primary provider for local numbers and inbound calling in the U.S. and their exclusive emergency services provider.
  • A marketing and advertising software provider chose Bandwidth’s programmable messaging APIs to power its software that helps small businesses communicate with their end-consumers in the U.S., Canada and Europe. Bandwidth was chosen for the ability to provide enterprise-grade service and improved message deliverability over their previous CPaaS provider.

Financial Outlook

Bandwidth’s outlook assumes current business conditions, current foreign currency exchange rates including the effect of weakened US dollar rates, divestitures and an estimated impact of $16 million – $24 million in 2022 arising from the previously disclosed 2021 DDoS attacks.  Bandwidth is providing guidance for its first quarter and full year 2022 as follows:

Q1 2022
Guidance

Full Year 2022
Guidance

Total Revenue (millions) (1)

$125 – $127

$547 – $555

Non-GAAP earnings per share (2)

($0.11) – ($0.07)

$0.03 – $0.09

(1) Following a successful completion of its Voxbone integration efforts, a strategic organization of its go-to-market, operating and development functions in first quarter 2022, and recently concluded or ongoing non-core business divestments, Bandwidth has aligned its operating segment during first quarter 2022 to focus exclusively on its global CPaaS market opportunity.  Accordingly, segment disclosure going forward along with the company’s financial outlooks and results will reflect the company’s singular CPaaS market focus.

(2) Assumes weighted average share count of approximately 31.2 million in 1Q 2022 and weighted average diluted share count of 31.3 million in FY 2022. Bandwidth adopted ASU 2020-06 on January 1, 2022 using modified retrospective method and accounted for our convertible notes due 2026 and 2028 on a whole-instrument basis. Upon adoption, diluted EPS is calculated using the “If-Converted Method” which results in an increase in weighted average diluted shares count of 4.8 million shares.

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.

Upcoming Investor Conference Schedule

  • Morgan Stanley Technology, Media & Telecom Conference in San Francisco, CA on Wednesday, March 9.

Live webcasts and replays of the fireside chat will be available on the Investor Relations section of the company’s website at https://investors.bandwidth.com.

Conference Call
Conference call to discuss the Company’s financial results for the fourth quarter and full year ended December 31, 2021 on February 23, 2022, via the investor section of its website at https://investors.bandwidth.com where a replay will also be available shortly following the conference call.

Conference Call Details
February 23, 2022
5:00 pm ET
Domestic dial-in:
(855) 327-6837
International dial-in:
(631) 891-4304

Replay information
An audio replay of this conference call will be available through March 2, 2022, by dialing (844) 512-2921 or (412) 317-6671 for international callers, and entering passcode 10018013.

About Bandwidth Inc.

Bandwidth (NASDAQ: BAND) is a global communications software company that helps enterprises connect people around the world with cloud-ready voice, messaging, and emergency services. Backed by the largest directly-connected network on the planet, companies like Cisco, Google, Microsoft, RingCentral, Uber and Zoom use Bandwidth’s APIs to easily embed communications into software and applications. Bandwidth has more than 20 years in the technology space and is the first and only Communications Platform-as-a-Service (CPaaS) provider offering a robust selection of APIs built around our own global network. Our award-winning support teams help businesses around the world solve complex communications challenges every day.  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 2022 and full-year 2022, attractiveness of our product offerings, our platform, the value proposition of our products, and our assessment of the impact of the distributed denial of service (“DDoS”) attacks discussed herein and in previous press releases 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, legal, reputational and financial risks which may result from the DDoS attacks or other cybersecurity incidents, 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, amortization of acquired intangible assets related to acquisitions and stock-based compensation. We add back depreciation, amortization of acquired intangible assets related to acquisitions 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 of acquired intangible assets related to acquisitions 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, 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, net cost associated with early lease terminations and leases without economic benefit, 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, loss (gain) from disposal of property and equipment and net cost associated with early lease terminations and leases without economic benefit. 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. Customers of acquired businesses are included in the subsequent year’s calendar quarter of acquisition. 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,

2020

2021

2020

2021

Revenue

$               113,047

$               126,132

$               343,113

$               490,907

Cost of revenue

61,357

72,602

185,252

272,384

Gross profit

51,690

53,530

157,861

218,523

Operating expenses:

Research and development

12,743

15,664

42,059

55,173

Sales and marketing

13,479

13,649

40,552

51,817

General and administrative

37,685

28,289

88,755

113,770

Total operating expenses

63,907

57,602

171,366

220,760

Operating loss

(12,217)

(4,072)

(13,505)

(2,237)

Other expense, net

(6,487)

(8,190)

(15,467)

(28,958)

Loss before income taxes

(18,704)

(12,262)

(28,972)

(31,195)

Income tax (provision) benefit

(1,222)

4,088

(15,005)

3,833

Net loss

$               (19,926)

$                  (8,174)

$               (43,977)

$               (27,362)

Net loss per share, basic and diluted

$                    (0.81)

$                    (0.33)

$                    (1.83)

$                    (1.09)

Weighted average number of common shares outstanding, basic and diluted

24,650,258

25,135,355

24,092,574

25,090,916

The Company recognized total stock-based compensation expense as follows:

Three months ended December 31,

Year ended  December 31,

2020

2021

2020

2021

(in thousands)

Cost of revenue

$                         47

$                         62

$                      208

$                      252

Research and development

537

593

2,118

2,648

Sales and marketing

385

299

1,525

1,890

General and administrative

1,606

1,991

6,030

9,747

Total

$                   2,575

$                   2,945

$                   9,881

$                 14,537

 

BANDWIDTH INC. 

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

As of December 31,

As of December 31,

2020

2021

Assets

Current assets:

Cash and cash equivalents

$                       72,163

$                     331,453

Restricted cash

9,274

836

Other investments

40,000

Accounts receivable, net of allowance for doubtful accounts

55,243

61,572

Deferred costs

2,411

3,204

Prepaid expenses and other current assets

14,508

15,820

Total current assets

193,599

412,885

Property and equipment, net

51,645

69,604

Operating right-of-use asset, net

19,491

14,061

Intangible assets, net

248,055

211,217

Deferred costs, non-current

3,604

4,676

Other long-term assets

1,975

8,673

Goodwill

372,239

344,423

Total assets

$                     890,608

$                  1,065,539

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$                       11,665

$                          9,142

Accrued expenses and other current liabilities

63,065

65,921

Current portion of deferred revenue

6,515

6,248

Advanced billings

5,429

6,380

Operating lease liability, current

5,515

5,807

Total current liabilities

92,189

93,498

Other liabilities

1,707

6,018

Operating lease liability, net of current portion

17,202

10,958

Deferred revenue, net of current portion

6,386

7,634

Deferred tax liability

61,005

48,396

Convertible senior notes

282,196

486,440

Total liabilities

460,685

652,944

Stockholders’ equity:

Class A and Class B common stock

24

25

Additional paid-in capital

451,463

502,477

Accumulated deficit

(49,505)

(76,867)

Accumulated other comprehensive income (loss)

27,941

(13,040)

Total stockholders’ equity

429,923

412,595

Total liabilities and stockholders’ equity

$                     890,608

$                  1,065,539

 

BANDWIDTH INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Year ended  December 31,

2020

2021

Cash flows from operating activities

Net loss

$                 (43,977)

$                 (27,362)

Adjustments to reconcile net loss to net cash provided by operating activities

Depreciation and amortization

16,803

36,642

Right-of-use asset amortization

4,812

5,722

Amortization of debt discount and issuance costs

15,647

26,754

Stock-based compensation

9,881

14,537

Deferred taxes

14,266

(8,318)

Loss on disposal of property and equipment

334

832

Changes in operating assets and liabilities:

Accounts receivable, net of allowances

(18,832)

(6,711)

Prepaid expenses and other assets

(3,823)

(6,751)

Accounts payable

315

1,992

Accrued expenses and other liabilities

14,393

9,693

Operating right-of-use liability

(5,301)

(6,227)

Net cash provided by operating activities from continuing operations

4,518

40,803

Cash flows from investing activities

Purchase of property and equipment

(12,273)

(20,686)

Capitalized software development costs

(2,319)

(3,926)

Purchase of land

(30,017)

Proceeds from sale of land

17,462

Purchase of other investments

(230,780)

Proceeds from sales and maturities of other investments

190,780

40,000

Acquisition, net of cash acquired

(400,493)

Net cash (used in) provided by investing activities

(455,085)

2,833

Cash flows from financing activities

Payments on finance leases

(28)

(212)

Proceeds from issuance of convertible senior notes

400,000

250,000

Purchase of capped call

(43,320)

(25,500)

Payment of Acquisition holdback

(6,689)

Payment of debt issuance costs

(11,990)

(7,544)

Proceeds from exercises of stock options

4,073

926

Value of equity awards withheld for tax liabilities

(1,844)

(3,954)

Net cash provided by financing activities

346,891

207,027

Effect of exchange rate changes on cash, cash equivalents and restricted cash

109

189

Net (decrease) increase in cash, cash equivalents, and restricted cash

(103,567)

250,852

Cash, cash equivalents, and restricted cash, beginning of period

185,004

81,437

Cash, cash equivalents, and restricted cash, end of period

$                   81,437

$                 332,289

 

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,

2020

2021

2020

2021

Consolidated Gross Profit

$            51,690

$            53,530

$          157,861

$          218,523

Consolidated Gross Profit Margin %

46 %

42 %

46 %

45 %

Depreciation

2,578

3,104

9,536

12,051

Amortization of acquired intangible assets

1,445

2,064

1,445

8,543

Stock-based compensation

47

62

208

252

Non-GAAP Gross Profit

$            55,760

$            58,760

$          169,050

$          239,369

Non-GAAP Gross Margin %

49 %

47 %

49 %

49 %

By Segment

CPaaS

Three months ended December 31,

Year ended  December 31,

2020

2021

2020

2021

CPaaS Gross Profit

$            45,892

$            48,600

$          137,384

$          196,545

CPaaS Gross Profit Margin %

47 %

48 %

46 %

47 %

Depreciation

2,578

3,104

9,536

12,051

Amortization of acquired intangible assets

1,445

2,064

1,445

8,543

Stock-based compensation

47

62

208

252

Non-GAAP CPaaS Gross Profit

$            49,962

$            53,830

$          148,573

$          217,391

Non-GAAP CPaaS Gross Margin %

51 %

53 %

50 %

53 %

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 Income

Three months ended December 31,

Year ended  December 31,

2020

2021

2020

2021

Net loss

$               (19,926)

$                  (8,174)

$               (43,977)

$               (27,362)

Stock-based compensation

2,575

2,945

9,881

14,537

Amortization of acquired intangibles

3,276

4,624

3,666

19,119

Amortization of debt discount and issuance costs for convertible debt

4,713

7,279

15,565

26,672

Acquisition-related expenses

12,713

14,458

Loss on disposal of property and equipment

71

475

334

832

Estimated tax effects of adjustments (1)

(758)

(11,534)

(758)

(15,036)

Valuation allowance (2)

851

9,337

15,024

9,552

Income tax benefit of option exercises

(2,603)

(2,603)

Non-GAAP net income

$                   3,515

$                   2,349

$                 14,193

$                 25,711

Net loss per share, basic and diluted

$                    (0.81)

$                    (0.33)

$                    (1.83)

$                    (1.09)

Non-GAAP net income per Non-GAAP share

Basic

$                     0.14

$                     0.09

$                     0.59

$                     1.02

Diluted

$                     0.13

$                     0.09

$                     0.55

$                     0.97

Non-GAAP weighted average number of shares outstanding

Non-GAAP basic shares

24,650,258

25,135,355

24,092,574

25,090,916

Convertible debt conversion

1,967,546

1,022,941

987,149

Stock options issued and outstanding

243,936

157,658

443,738

180,318

Nonvested RSUs outstanding

353,367

70,650

352,854

197,538

Non-GAAP diluted shares

27,215,107

25,363,663

25,912,107

26,455,921

____________________

(1)

The Non-GAAP tax-effect adjustments are calculated based on 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 in that jurisdiction is considered to be zero. The rate was 1.8% and 13.2% for the years ended December 31, 2020 and 2021, respectively.

(2)

The Company recognized a tax expense of $15.0 million and $9.6 million to record a valuation allowance on U.S. deferred tax assets in the years ended December 31, 2020 and 2021, 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,

2020

2021

2020

2021

Net loss

$               (19,926)

$                  (8,174)

$               (43,977)

$               (27,362)

Income tax provision (benefit) (1)

1,222

(4,088)

15,005

(3,833)

Interest expense, net

4,749

7,960

13,672

28,784

Depreciation

3,600

4,540

13,137

17,523

Amortization

3,276

4,624

3,666

19,119

Acquisition-related expenses

12,713

14,458

Stock-based compensation

2,575

2,945

9,881

14,537

Loss on disposal of property and equipment

71

475

334

832

Adjusted EBITDA

$                   8,280

$                   8,282

$                 26,176

$                 49,600

____________________

(1)

Includes $15.0 million and $9.6 million of tax expense to record a valuation allowance on U.S. deferred tax assets in the years ended December 31, 2020 and 2021, respectively.

 

Free Cash Flow

Three months ended December 31,

Year ended  December 31,

2020

2021

2020

2021

Net cash (used in) provided by operating activities

$                 (6,813)

$                17,115

$                  4,518

$                40,803

Net cash used in investing in capital assets (1) (2)

(3,210)

(8,848)

(14,592)

(37,167)

Free cash flow

$               (10,023)

$                  8,267

$               (10,074)

$                  3,636

____________________

(1)

Represents the acquisition cost of property, equipment and capitalized development costs for software for internal use.

(2)

Includes the net cash used from the purchase of land of $(30.0) million offset by the proceeds from sale of land of $17.5 million from investing activities of the statement of cash flows for the year  ended December 31, 2021.

 

Cision View original content:https://www.prnewswire.com/news-releases/bandwidth-announces-fourth-quarter-and-full-year-2021-financial-results-301489020.html

SOURCE Bandwidth Inc.

Investor Contact: Sarah Walas, Bandwidth, 919-504-6585, [email protected]