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.