
Bandwidth (BAND) Stock Forecast & Price Target
Bandwidth (BAND) Analyst Ratings
Bulls say
Bandwidth Inc reported a 7.4% year-over-year increase in Cloud Communications revenue, driven primarily by a 7.6% rise in voice revenue, indicating robust demand for its services. The company also demonstrated significant financial strength by generating $30 million in free cash flow in the fourth quarter of 2024, an increase from $14 million in the previous quarter, while operational cash flow rose to $37 million from $19 million year-over-year. Furthermore, Bandwidth's successful management of its balance sheet, including the repayment of $35 million in convertible notes, positions the company favorably for future growth.
Bears say
Bandwidth Inc's financial outlook appears negative due to a notable decline in Messaging growth coupled with mixed Q4 results that fell short of consensus expectations for Q1 2025 guidance. The company's anticipated flat revenue growth has led to reduced non-GAAP EPS estimates for both 2025 and 2026, indicating potential challenges in achieving higher profitability amid significant cash burn from aggressive investment strategies. Additionally, the concentration of revenue among a limited number of enterprise customers and the highly competitive nature of the cloud communications market could further exacerbate the difficulties facing Bandwidth's financial performance.
This aggregate rating is based on analysts' research of Bandwidth and is not a guaranteed prediction by Public.com or investment advice.
Bandwidth (BAND) Analyst Forecast & Price Prediction
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