Investor Presentation
Bandwidth Investor Presentation
Discover how Bandwidth is redefining enterprise communications at global scale. In this investor presentation, CEO David Morken and CFO Daryl Raiford walk through Bandwidth’s unique position as the only CPaaS provider with an owned-and-operated cloud communications platform—powering mission-critical AI voice and messaging for the world’s most demanding brands. Learn how our platform, strategy, and financial performance come together to create durable growth and long-term value.
Introduction to Bandwidth's Purpose(slide 3)
At Bandwidth, our purpose is clear and powerful.
We develop and deliver the power to communicate.
From a voice call to customer support, to a flight confirmation text, to a life saving emergency alert, our technology makes it happen.
We're at the center of mission critical communications for enterprises around the world, delivering cloud based voice, messaging, and emergency services, all delivered over a global software driven platform that we own and operate, giving Bandwidth superior economics and our customers a resilient foundation where they can build, scale, and innovate.
Key Pillars of Bandwidth's Strategy(slide 4)
As we walk through the topics ahead, you'll see why Bandwidth is uniquely positioned for long term growth and value creation.
First, we're a global communications leader in a large, growing market, powering mission critical voice, messaging, and emergency services for some of the world's largest and most demanding enterprises.
Second, we're orchestrating AI, voice, and messaging across cloud communications through our open, award winning Maestro platform.
Third, we have a highly attractive business model delivering profitability and capital structure strength that powers durable long term growth.
These pillars define how we compete, grow, and win.
Let's start with the foundation of our story.
Bandwidth's Market Position and Differentiation(slide 5)
Bandwidth is a global communications leader, trusted by some of the world's most iconic brands with the scale, infrastructure, and innovation to meet the demands of a growing market.
This is where our differentiation begins.
Bandwidth powers global communications
Global Communications at scale(slide 6)
at scale, trusted by some of the world's most recognized and demanding brands. We power one hundred percent of the UCaaS and CCaaS leaders, including Microsoft, Google, Zoom, AWS, and Genesys.
These aren't just logos. These are platforms millions rely on every day, and they count on bandwidth for high quality, low latency voice, messaging, and emergency services around the world. We're also trusted by large enterprises with their most mission critical needs, like Ally and Southwest, where reliability, scale, and uptime aren't just important, they're non negotiable.
On the messaging side, Bandwidth is the trusted provider behind some of North America's largest engagement platforms.
Through customers like Attentive, Yotpo, and Weave, we help thousands of brands reach their consumers at scale with reliable, high volume messaging.
Our strategy to deepen direct connections with mobile carriers continues to improve capacity and cost efficiency while expanding margin.
At the same time, our investments in global two way messaging are opening up new opportunities for our customers to deliver richer, more personalized brand experiences virtually anytime, anywhere.
That's what it means to be a global communications leader, delivering not just infrastructure, but real solutions to real challenges.
Whether it's
Mission-critical Communications(slide 7)
Microsoft, Southwest, or Attentive, the world's most trusted brands rely on bandwidth to solve their toughest communications problems.
Microsoft needed to embed reliable voice into Teams and Azure communication services.
We delivered APIs that enabled cloud based calling at scale, becoming a co creation partner in the process.
Southwest Airlines needed to modernize customer service and employee communications.
We helped them replace a legacy carrier with a scalable, high capacity solution, leveraging APIs to unify their cloud contact center and internal messaging.
Attentive, a leading engagement platform, faced limits with its prior provider during periods of hyper growth.
Bandwidth provided a high capacity messaging backbone that scaled seamlessly through seasonal peaks, ensuring reliable uninterrupted delivery.
These are just a few examples of how Bandwidth shows up, not just as a platform provider, but as a strategic partner in delivering flexible, high performance communications at scale.
The Power of Bandwidth's Cloud Platform(slide 8)
Behind every call, message, and emergency connection is a global cloud platform that just works.
A foundation our customers can build on with confidence.
Bandwidth operates in more than sixty five countries, covering over ninety percent of the global economy.
Each year, our cloud platform powers more than one hundred billion voice minutes and delivers over forty billion messages and growing. We support thirty million nine eleven endpoints and maintain five nines of core network uptime. Because when communications matter most, our customers count on us. And while we operate at massive scale, we keep it simple, reducing regulatory complexity and maximizing support with a team that's human, responsive, and always on. So what
The Bandwidth moat(slide 9)
makes all of this possible? What gives Bandwidth its lasting edge in the market? It starts with our cloud platform.
We're the only provider with a truly owned and operated global communications cloud. We don't rent our platform, we own it. That means more reliability, better performance, economics, and deeper insight for our customers. And it's open so customers can integrate the best in class AI and other capabilities they need.
Then there's our software. We've built a platform where we have an API for that isn't a slogan. It's real. From messaging to number management to emergency calling, enterprises can automate and integrate every part of their communications stack, including those repetitive back office tasks.
And finally, our service. While others push customers to self serve, we've invested in a state of the art customer experience. And our award winning support team of real people is available twenty fourseven, three sixty five, solving complexity with a human touch.
It's how we deliver the power to communicate and why the world's most demanding enterprises choose bandwidth.
Customer Loyalty and Retention Metrics(slide 10)
And the proof of that value?
It shows up in our customer loyalty.
Our name retention rate is over ninety nine percent.
Once a customer chooses Bandwidth, they stay.
Our twenty twenty four net retention rate was one hundred twenty two percent, fueled by strong growth within existing accounts. And among our top twenty customers, the median tenure is eleven years. That's serious loyalty.
These aren't just metrics. They reflect the trust we've earned by solving complex communications challenges and showing up as a true partner year after year.
Industry Recognition and Awards(slide 11)
Our track record of innovation isn't just talk. It's recognized across the industry.
We're proud to be named a leader in the IDC Worldwide CPaaS Marketscape for twenty twenty five, a testament to our scale, strategy, and execution.
We've also earned honors like Best CPaaS Platform, Most Innovative Product, Innovation in Customer Service, and Best of Show at Enterprise Connect.
These awards validate a simple truth: we don't just follow the industry, we lead it. The market opportunity ahead of us is large and accelerating.
Market Growth and Future Opportunities(slide 12)
Our total serviceable market is projected to grow from eighteen billion dollars in twenty twenty four to twenty eight billion dollars by twenty twenty eight, with an eleven percent compound annual growth rate. That growth is fueled by continued momentum in enterprise voice, rising demand for programmable messaging, and global expansion of voice plans, all within a communications ecosystem rapidly shifting to the cloud. And in this expanding market, Bandwidth is uniquely positioned to lead, especially as AI becomes central to how businesses engage with their customers.
The Role of AI in Customer Engagement(slide 13)
In the race to modernize customer engagement, AI will reshape how businesses harness voice and messaging.
But delivering intelligent, real time experiences across channels and at global scale will take more than great AI models. It will take great orchestration.
That's where Bandwidth stands apart. We're not just enabling AI, we're orchestrating AI powered voice and messaging across the cloud communications stack with an open architecture approach that gives the flexibility, fidelity, and global reach enterprises need to lead. We're at
AI-powered conversations(slide 14)
a turning point in how enterprises engage customers, and AI voice agents are leading the charge. With major advances in latency, interruptability, emotional tone, and model quality, these aren't basic bots or legacy IVR systems. They're intelligent, adaptive, and custom built, able to carry natural conversations, personalized responses, and improve service outcomes.
AI voice agents will transform customer service at scale eliminating hold times, boosting availability, and delivering instant consistent support twenty fourseven.
The expected result? Faster resolutions, higher satisfaction, lower operational cost, and with Bandwidth's platform behind them, enterprises will have the power to launch these experiences with a single global provider without sacrificing quality or control.
AI
Where AI is growing fastest(slide 15)
voice agents are gaining the fastest traction in industries where real time communication directly affects cost, conversion, or customer experience.
Financial services, healthcare, hospitality, and retail are leading the way.
Industries with high call volumes, strict regulations, or complex customer needs. They have a few things in common: High cost per call when handled by humans Need for twenty fourseven availability Emphasis on tone, accuracy, and empathy Growing openness to automation especially where performance can be measured and improved.
According to data from Y Combinator and A sixteen Z, B2B AI startups are focusing on fintech, operations, and healthcare, use cases with tightly scoped, repeatable call types that are ideal for automation.
Bottom line, when customer sentiment and efficiency matter most, voice AI isn't experimental anymore. It's becoming essential.
To make
What AI requires(slide 16)
AI voice agents work in the real world, enterprises need more than smart models. They need high fidelity, low latency, rich data, app integrations, and intelligent call flows at global scale.
That's exactly what the Bandwidth Communications Cloud delivers.
Our Cloud is purpose built to support these needs with an open, vendor agnostic architecture that lets enterprises plug in best in class AI voice providers along with other capabilities.
We give them the freedom to choose the agents they want, paired with the network quality, orchestration, and software needed to make those experiences fast, reliable, and real time.
That's how we make AI voice agents ready for prime time, not just for prototypes, but for production.
And that's just the beginning.
Primed for AI(slide 17)
Every part of Bandwidth's portfolio is being primed for the AI powered future of communications.
Across global voice plans, enterprise voice, and programmable messaging, our APIs are already embedded in UC, CC, and SaaS platforms, enabling advanced use cases with AI at the core.
Whether it's enhancing customer experience through intelligent routing and voice agents or enabling conversational messaging with SaaS platforms, Bandwidth's infrastructure is already powering AI use cases today. With Maestro, enterprises will be able to orchestrate AI across every key channel, voice, messaging, and beyond, meeting customers where they are with personalized AI powered experiences.
And as we look ahead, we see advanced messaging emerging as the next major driver of consumer engagement.
RCS is already available in beta with WhatsApp in development for later this year.
Delivering these AI powered cross channel experiences requires more than great tools, it demands orchestration.
Maestro: The Orchestration Layer for Enterprises(slide 18)
That's where Maestro comes in. Maestro is the orchestration layer for the modern enterprise built on Bandwidth's open API first platform.
Unlike other CPaaS solutions that force their own applications and limit flexibility, Bandwidth embraces a freedom of choice approach. Maestro lets enterprises integrate best in class tools across CCaaS, UCaaS, CRM, and AI on their terms.
Whether they're using Genesys, Five9, or another provider, enterprises can bring in voice AI from Cognigy, Google Dialogflow, or a vertical specific solution and orchestrate it all seamlessly through Maestro. With the largest integration ecosystem in the market, Maestro helps enterprises cut through complexity, adding visibility, agility, and resiliency to global communications.
And because it's powered by Bandwidth's global owned and operated network, they get the low latency and high fidelity real time AI needs. With Maestro, enterprises get the solution they want, no compromises, just control.
When
Transformation at scale(slide 19)
communications are mission critical, leading enterprises trust Bandwidth to deliver. From healthcare to financial services to the Fortune one hundred, Bandwidth powers voice, messaging, emergency services, and now AI with the performance, flexibility, and orchestration today's complex organizations require.
These recent customer examples highlight how Maestro is enabling that transformation at scale. A diversified multi state healthcare provider used Maestro's dynamic call routing and BYOC capabilities to bridge legacy on prem systems with the cloud, accelerating migration and gaining centralized control.
A global financial services firm leveraged Maestro AI Bridge to seamlessly integrate third party AI voice agents across multiple UCaaS and CCaaS platforms, reducing cost and enhancing customer and agent experiences.
A Fortune twenty five health care company needed to move quickly from a legacy vendor. With Maestro's pre integrated CCaaS support, they enabled a rapid, low friction transition, future proofing their stack and unlocking access to AI. These are just a few examples of how Maestro helps enterprises cut through complexity and move faster on their terms.
Business Model and Financial Performance(slide 20)
We've covered our platform, our position in AI, and the enterprises that rely on us. Now let's talk about what drives long term value creation. Bandwidth has a highly attractive business model, delivering profitable growth, operating leverage, and capital strength.
Revenue is growing, margins are expanding, and our model is built to scale. Let's
Revenue Performance(slide 21)
start with revenue performance, where we've shown consistent growth over time. From twenty twenty to twenty twenty four, Bandwidth nearly doubled total revenue, reaching seven hundred forty eight million dollars in twenty twenty four.
That includes a twenty five percent year over year increase in two thousand twenty four total revenue and thirteen percent growth in cloud communications revenue, our core business.
These results reflect the expansion of our enterprise relationships and rising demand for programmable voice and messaging across industries.
And this growth isn't just a top line story. It's laying the groundwork for margin expansion and long term profitability, which we'll cover next. In twenty
Revenue by Customer Category(slide 22)
twenty four, Bandwidth delivered five hundred forty million dollars in cloud communications revenue across global voice, enterprise voice, and programmable messaging. Global voice plans remain a significant revenue source at sixty nine percent of revenue, growing three percent year over year.
Alongside this stability, we're seeing strong momentum in higher growth, higher margin categories.
Enterprise voice, now eight percent of our mix, grew twenty nine percent as enterprises modernized communications with AI and CX integrations.
Programmable messaging used for engagement, alerts, and notifications grew forty six percent and now makes up twenty three percent of revenue. Best of all, the fastest growing parts of our business are also the most profitable, driving top line growth and long term operating leverage. Our growth isn't just
Customer Metrics(slide 23)
about adding new customers. It's about expanding the value of the ones we already serve.
In twenty twenty four, our net revenue retention hit one hundred twenty two percent, up from one hundred one percent last year, showing strong wallet share expansion across our installed base.
Average annual customer revenue rose twenty seven percent year over year, reaching two hundred twenty six thousand dollars, and these relationships last. Our top twenty accounts have a median tenure of eleven years, while our name retention rate is over ninety nine percent. This kind of loyalty, longevity, and revenue growth reflects the critical role we play in powering communications for some of the world's most demanding organizations.
Our
Non-GAAP Gross Margin Performance(slide 24)
network ownership
model continues to drive strong margin expansion.
In twenty twenty four, non GAAP gross margin was fifty seven percent, a two percentage point increase year over year.
What sets Bandwidth apart is simple. We own our communications cloud. We don't resell third party carrier access. We run the network ourselves.
That model supports structurally higher margins that expand with usage.
Our margin performance is fueled by scale and AI adoption, an increasing software contribution, global coverage, and operational efficiencies.
This is the foundation of our operating leverage and a key driver of long term profitability.
Adjusted EBITDA Performance(slide 25)
Our revenue and
gross margin gains are translating directly into bottom line growth.
In twenty twenty four, we delivered eighty two million dollars in adjusted EBITDA, a seventy percent year over year increase with a fifteen percent adjusted EBITDA margin.
This growth highlights the strength of our operating model and our ability to scale profitably.
As we grow, we're gaining leverage, not just in infrastructure but across the business, setting us up for continued margin expansion and cash flow generation.
Free Cash Flow(slide 26)
Our disciplined
execution and scalable model are driving meaningful free cash flow growth.
In twenty twenty four, free cash flow reached fifty nine million dollars more than triple the prior year, representing two hundred six percent year over year growth and an eleven percent free cash flow margin.
This performance reflects not only higher profitability, but also improved working capital efficiency and continued focus on cost discipline.
With expanding margins and growing cash
flow, we're in a strong position to reinvest in innovation while continuing to deliver shareholder value.
Investor Thesis and Future Outlook(slide 27)
It all adds up to a clear and compelling investment thesis. First, we operate in a large and growing twenty eight billion dollars market, serving mission critical enterprise communications around the world. Second, we have a durable competitive advantage, driven by software innovation and our global owned and operated communications cloud.
Third, we're leading the next evolution of cloud communications, bringing voice, messaging, and AI together with Maestro, our platform for choice, control, and scale.
And finally, we deliver from a position of financial strength, combining profitable growth, expanding margins, and capital structure flexibility.
Bandwidth is built for the dynamic world of communications today and orchestrated for where it's going next. And we're just getting started.
