RALEIGH, NC—Devin M. Krupka, the Controller and Principal Accounting Officer of Bandwidth Inc. (NASDAQ:BAND), recently executed a stock transaction involving the company's Class A Common Stock. According to a filing with the Securities and Exchange Commission, Krupka sold 10 shares on November 4, 2024, at an average price of approximately $18.73 per share, totaling $187.
The transaction was part of a pre-established trading plan designed to cover tax obligations related to restricted stock units that vested earlier. Following this transaction, Krupka holds 7,056 shares of Bandwidth Inc.
The sale was executed under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid concerns about insider trading.
In other recent news, Bandwidth Inc. has reported a significant increase in their Q3 2024 revenue and adjusted EBITDA. The company announced a record revenue of $194 million, a 28% year-over-year increase, and a 74% rise in adjusted EBITDA to $24 million. The full-year revenue outlook has been revised upward to $742 million, indicating a 23% growth forecast. The average revenue per user (ARPU) reached a record of $212,000.
Bandwidth Inc. hosted a successful Reverb24 user conference, unveiling new global services and platform enhancements. The company anticipates free cash flow for 2024 to exceed $50 million. Despite potential headwinds from political campaign cycles, Bandwidth expects profit growth to continue into the next year.
Operating expenses increased by 7% due to investments in research and development. Nevertheless, commercial messaging revenue grew by 32%, reflecting effective customer acquisition and market share expansion. The net retention rate improved to 117%, a 6 percentage point increase from the previous quarter.
InvestingPro Insights
To provide context for Devin M. Krupka's recent stock transaction, let's examine some key financial metrics and insights from InvestingPro for Bandwidth Inc. (NASDAQ:BAND).
According to InvestingPro data, Bandwidth's market capitalization stands at $538.37 million. The company has shown strong revenue growth, with a 27.54% increase in quarterly revenue as of Q3 2024. This growth trajectory aligns with an InvestingPro Tip indicating that net income is expected to grow this year, suggesting potential improvement in the company's financial performance.
Despite the positive revenue trend, it's worth noting that Bandwidth is not currently profitable, with an adjusted operating income of -$27.03 million over the last twelve months. This is reflected in the negative P/E ratio of -22.33. However, an InvestingPro Tip highlights that analysts predict the company will be profitable this year, which could be a positive sign for investors.
The stock has shown remarkable performance, with a 52.93% total return over the past year and a strong 31.01% return in the last three months. This aligns with another InvestingPro Tip mentioning high returns over the last year and strong returns over the last three months. The stock's volatility, as noted by InvestingPro, may present opportunities for investors who can navigate market fluctuations.
For those interested in a more comprehensive analysis, InvestingPro offers 5 additional tips for Bandwidth Inc., providing deeper insights into the company's financial health and market position.
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