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Upturn AI SWOT - About
BAND 
Bandwidth Inc (BAND)
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Upturn Advisory Summary
07/02/2025: BAND (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
6 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $20.75
1 Year Target Price $20.75
| 1 | Strong Buy |
| 2 | Buy |
| 2 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -57.4% | Avg. Invested days 25 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/02/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 473.23M 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 07/1/2025 |
52 Weeks Range 11.33 - 23.90 | Updated Date 07/1/2025 | ||
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 910725348 | Price to Sales(TTM) 0.63 |
Enterprise Value 910725348 | Price to Sales(TTM) 0.63 | ||
Enterprise Value to Revenue 1.21 | Enterprise Value to EBITDA 18.99 | Shares Outstanding 27804900 | Shares Floating 26557449 |
Shares Outstanding 27804900 | Shares Floating 26557449 | ||
Percent Insiders 4.15 | Percent Institutions 76.59 |
Upturn AI SWOT
Bandwidth Inc
Company Overview
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.
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 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
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
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
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.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | Website https://www.bandwidth.com |
Full time employees 1100 | Website https://www.bandwidth.com | ||
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.
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