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Bandwidth Inc (BAND)

Upturn stock ratingUpturn stock rating
$15.9
Last Close (24-hour delay)
Profit since last BUY8.9%
upturn advisory
Consider higher Upturn Star rating
BUY since 31 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
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Time period over
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Upturn Advisory Summary

06/30/2025: BAND (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

6 Analysts rated it

Moderately tracked stock, growing coverage, gaining market and investor attention.

1 Year Target Price $20.75

1 Year Target Price $20.75

Analysts Price Target For last 52 week
$20.75Target price
Low$11.33
Current$15.9
high$23.9

Analysis of Past Performance

Type Stock
Historic Profit -57.95%
Avg. Invested days 25
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 1.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 06/30/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 453.88M USD
Price to earnings Ratio -
1Y Target Price 20.75
Price to earnings Ratio -
1Y Target Price 20.75
Volume (30-day avg) 6
Beta 1.82
52 Weeks Range 11.33 - 23.90
Updated Date 06/29/2025
52 Weeks Range 11.33 - 23.90
Updated Date 06/29/2025
Dividends yield (FY) -
Basic EPS (TTM) -0.02

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin -0.14%
Operating Margin (TTM) -2.69%

Management Effectiveness

Return on Assets (TTM) -0.88%
Return on Equity (TTM) -0.32%

Valuation

Trailing PE -
Forward PE 23.04
Enterprise Value 891379453
Price to Sales(TTM) 0.6
Enterprise Value 891379453
Price to Sales(TTM) 0.6
Enterprise Value to Revenue 1.19
Enterprise Value to EBITDA 18.58
Shares Outstanding 27804900
Shares Floating 26557449
Shares Outstanding 27804900
Shares Floating 26557449
Percent Insiders 4.15
Percent Institutions 76.59

Analyst Ratings

Rating 3
Target Price 20.75
Buy 2
Strong Buy 1
Buy 2
Strong Buy 1
Hold 2
Sell -
Strong Sell 1
Strong Sell 1

ai summary icon Upturn AI SWOT

Bandwidth Inc

stock logo

Company Overview

overview logo History and Background

Bandwidth Inc. was founded in 1999 by David Morken and Henry Kaestner in Raleigh, North Carolina. Initially focused on providing voice and data services, it evolved into a leading provider of cloud-based communications platform as a service (CPaaS). Significant milestones include expanding into international markets and developing a comprehensive suite of APIs for voice, messaging, and 911 services.

business area logo Core Business Areas

  • CPaaS: Bandwidth's core offering is its CPaaS platform, providing APIs for voice, messaging, and emergency services. It allows businesses to embed communication capabilities directly into their applications and workflows.
  • Enterprise Services: Provides enterprise-grade voice and messaging services to large organizations, including direct routing and SIP trunking.

leadership logo Leadership and Structure

David Morken is the Chairman and CEO. The organizational structure consists of various departments responsible for engineering, sales, marketing, finance, and operations, organized under executive leadership.

Top Products and Market Share

overview logo Key Offerings

  • Voice API: Allows businesses to integrate voice calling functionality into their applications. The market share is estimated to be around 10-15% in the CPaaS voice segment. Competitors include Twilio (TWLO), Vonage (VG), and MessageBird.
  • Messaging API: Enables businesses to send and receive SMS and MMS messages programmatically. Bandwidth's messaging API has a market share of approximately 5-10% in the CPaaS messaging segment. Competitors include Twilio (TWLO), Vonage (VG), and Sinch (SINCH).
  • E911 Services: Provides emergency calling infrastructure for businesses, ensuring compliance with regulatory requirements. Market share is significant within its specialized segment of CPaaS offerings. Competitors include Intrado and 911 Enable.

Market Dynamics

industry overview logo Industry Overview

The CPaaS industry is experiencing rapid growth driven by the increasing demand for flexible and scalable communication solutions. Key trends include the adoption of cloud-based services, the proliferation of mobile devices, and the need for personalized customer experiences.

Positioning

Bandwidth Inc. is positioned as a provider of enterprise-grade CPaaS solutions with a focus on reliability, compliance, and customer service. Its competitive advantages include its own network infrastructure and expertise in regulatory compliance.

Total Addressable Market (TAM)

The global CPaaS market is estimated to reach $100 billion by 2027. Bandwidth is well-positioned to capture a significant share of this expanding market, focusing on enterprise customers and regulatory expertise.

Upturn SWOT Analysis

Strengths

  • Proprietary network infrastructure
  • Strong focus on regulatory compliance
  • Enterprise-grade solutions
  • Experienced leadership team
  • Strong relationships with Tier 1 carriers

Weaknesses

  • Smaller market share compared to larger competitors like Twilio
  • Dependence on regulatory changes
  • Limited brand awareness compared to some competitors
  • Capital Expenditures for the Network

Opportunities

  • Expansion into new international markets
  • Development of new APIs and services
  • Increased adoption of CPaaS solutions by enterprises
  • Strategic acquisitions to expand product portfolio
  • Growth in remote work and telehealth, increasing demand for communication solutions

Threats

  • Intense competition from larger CPaaS providers
  • Rapid technological changes in the industry
  • Economic downturn affecting enterprise spending
  • Changes in regulatory landscape
  • Security breaches and data privacy concerns

Competitors and Market Share

competitor logo Key Competitors

  • TWLO
  • VG
  • DT
  • CMCSA

Competitive Landscape

Bandwidth Inc. competes with larger CPaaS providers like Twilio and Vonage. Bandwidth differentiates itself through its enterprise-grade solutions, regulatory expertise, and proprietary network infrastructure, providing greater control and customization to its customers.

Major Acquisitions

Voxbone

  • Year: 2020
  • Acquisition Price (USD millions): 550
  • Strategic Rationale: Expanded Bandwidth's global reach and capabilities in international voice and messaging services.

Growth Trajectory and Initiatives

Historical Growth: Bandwidth Inc. has experienced steady revenue growth over the past several years, driven by the increasing adoption of CPaaS solutions. Growth has been tempered by profitability challenges.

Future Projections: Analysts project continued revenue growth for Bandwidth Inc. in the coming years, driven by increased demand for CPaaS and the company's expansion into new markets. Profitability is expected to improve with scale and efficiency.

Recent Initiatives: Recent initiatives include expanding the company's product portfolio with new APIs, investing in its network infrastructure, and expanding its sales and marketing efforts in key markets.

Summary

Bandwidth Inc. is a key player in the CPaaS market, leveraging its own network infrastructure and regulatory compliance expertise. While it faces intense competition from larger companies, it has experienced steady revenue growth, although profitability is a continuing challenge. The company's focus on enterprise customers and expansion into new markets positions it for future growth. Bandwidth should closely monitor competitive pressures, technological changes, and economic conditions to maintain its momentum and profitability.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company Filings (10-K, 10-Q)
  • Investor Presentations
  • Industry Reports
  • Analyst Estimates

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Market data and analyst estimates are subject to change. Investment decisions should be made based on independent research and consultation with a qualified financial advisor.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Bandwidth Inc

Exchange NASDAQ
Headquaters Raleigh, NC, United States
IPO Launch date 2017-11-10
Co-Founder, CEO, & Chairman Mr. David Andrew Morken J.D.
Sector Technology
Industry Software - Infrastructure
Full time employees 1100
Full time employees 1100

Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service provider in the United States and internationally. The company's platform enables enterprises to create, scale, and operate voice or messaging communications services across various mobile applications or connected devices. Its platform also provides voice services through SIP or programmable voice application programming interfaces (API); software APIs for messaging; communications solutions with integrated local emergency services; number management solutions; insights on customer's voice and messaging performance to make data-driven decisions; and bring your own carrier integrations services, which includes unified communications as a service, contact center as a service, conversational AI, and speech-to-text/text-to-speech platforms. In addition, the company offers Call Assure, which provides hands-free alternative routing; application to person messaging solutions that supports SMS and MMS on local numbers, toll free numbers, and short codes; Bandwidth Maestro, an enterprise cloud communications platform; and AIBridge, which enables enterprises to deploy voice-based AI tools in their contact centers. It serves technology companies, enterprise customers, and software-as-a-service platforms. The company was formerly known as Bandwidth.com, Inc. and changed its name to Bandwidth Inc. in September 2017. Bandwidth Inc. was founded in 1999 and is headquartered in Raleigh, North Carolina.