New opportunities in the Market: Bandwidth
Bandwidth stocks lost
over 88% of their record February 2021 level. The company’s services allow its
clients to communicate with their clients. The company sells software
application services or APIs for voice and messaging. Users also get extended
professional monitoring, report, and analysis services. The company has Google
and Zoom among its clients as well as other various large market players of the
sector that use voice communication services.
The Q1 2022 revenue
rose 16% year-on-year to $131.4 million beating consensus forecast at $125
million. The number of active corporate clients grew by 72 to 3,372 by March 31
compared to December 31, 2021, 12% up from Q1 2021. The net revenue rate was up
to 114% meaning existing clients are paying 14% above Q1 2021 figures. The
company’s revenues are linked to the network capacity usage of its clients.
That means the company is going to benefit from further business
digitalisation.
What really separates Bandwidth
from its peers is a positive adjusted EDITDA that was at $8.4 million in the
first three month of 2022, while EDITDA margin rose to 53%.
The mid-term target
price for Bandwidth is expected at $35.