Bandwidth Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $193.9 million for Q3 2024, marking a 28% increase from $152.0 million in Q3 2023. For the nine months ended September 30, 2024, revenue reached $538.5 million, up 24% from $435.7 million in the same period last year. This growth was driven by a notable rise in messaging surcharges, which increased by 73% to $55.1 million in Q3 2024, attributed to higher messaging volumes.
Gross profit for Q3 2024 was $73.1 million, a 23% increase from $59.5 million in Q3 2023. For the nine-month period, gross profit rose to $203.4 million, up 17% from $174.1 million in the prior year. However, the gross margin percentage slightly declined to 38% for both the three and nine months ended September 30, 2024, down from 39% and 40%, respectively, due to increased pass-through messaging surcharges.
Operating losses improved significantly, with a loss of $0.9 million in Q3 2024 compared to a loss of $6.1 million in Q3 2023. For the nine months, the operating loss was $17.4 million, down from $25.4 million in the previous year. The company reported a net income of $0.4 million for Q3 2024, a turnaround from a net loss of $5.1 million in Q3 2023. However, for the nine months, Bandwidth recorded a net loss of $4.8 million, slightly better than the $5.4 million loss in the same period last year.
Bandwidth's total current assets decreased to $198.7 million as of September 30, 2024, from $252.8 million at the end of 2023, primarily due to a reduction in cash and cash equivalents, which fell to $74.9 million from $132.0 million. Accounts receivable increased to $99.6 million, up from $78.2 million, reflecting higher sales activity.
Strategically, the company amended its Credit Agreement in May 2024, increasing its revolving credit commitments from $50 million to $100 million, with a maturity extension to May 2029. As of September 30, 2024, Bandwidth had $25 million in outstanding borrowings under this facility.
The company continues to face challenges, including increased operating expenses driven by higher personnel costs across research and development, sales and marketing, and general administrative functions. Stock-based compensation also rose significantly, totaling $11.4 million for Q3 2024, compared to $6.9 million in Q3 2023.
Overall, Bandwidth's performance reflects a positive trajectory in revenue growth and operational efficiency, despite ongoing challenges in managing costs and market competition.
About Bandwidth Inc.
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