Communications platform-as-a-service company Bandwidth (NASDAQ: BAND) will be reporting results tomorrow before market hours. Here’s what you need to know.
Bandwidth beat analysts’ revenue expectations by 6.5% last quarter, reporting revenues of $193.9 million, up 27.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Bandwidth a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bandwidth’s revenue to grow 23.2% year on year to $203.8 million, improving from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bandwidth has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.2% on average.
Looking at Bandwidth’s peers in the software development segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Twilio delivered year-on-year revenue growth of 11%, beating analysts’ expectations by 1.5%, and F5 reported revenues up 10.7%, topping estimates by 7.2%. Twilio traded down 15% following the results while F5 was up 11.4%.
Read our full analysis of Twilio’s results here and F5’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 5.4% on average over the last month. Bandwidth is up 16.4% during the same time and is heading into earnings with an average analyst price target of $24.60 (compared to the current share price of $18.65).
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