Page 1

@ bandwidth Bandwidth Announces First Quarter 2021 Financial Results First quarter total revenue of $ 113.5 million , up 66 % year - over - year First quarter CPaaS revenue of $ 100.1 million , up 69 % year - over - year First quarter dollar - based net retention rate of 125 % Raleigh , NC - May 5 , 2021 - Bandwidth Inc. ( NASDAQ : BAND ) , a leading global enterprise cloud communications company , today announced financial results for the first quarter ended March 31 , 2021 . " The first quarter marked a strong start to the year for Bandwidth , with CPaaS revenue growth of 69 % year - over - year and dollar - based net retention rate of 125 % . We are energized by our role enabling the innovation , creativity , and incredible scale unfolding in global enterprise communications , which we believe will drive Bandwidth's growth for years to come , " stated David Morken , Chief Executive Officer of Bandwidth . “ Bandwidth is uniquely positioned to leverage our software - driven platform and our broad relationships across the industry and around the world to serve as a global leader for enterprise - grade cloud communications . ” First Quarter 2021 Financial Highlights • • • Revenue : Total revenue for the first quarter of 2021 was $ 113.5 million , up 66 % compared to $ 68.5 million in the first quarter of 2020. Within total revenue , CPaaS revenue was $ 100.1 million , up 69 % compared to $ 59.1 million for the first quarter of 2020 . Other revenue contributed the remaining $ 13.3 million for the first quarter of 2021. Other revenue was $ 9.4 million in the same period last year . Total , CPaaS and Other Revenue include $ 22.1 million , $ 21.1 million and $ 1.0 million , respectively , from Voxbone . Gross Profit : Gross profit for the first quarter of 2021 was $ 52.2 million , compared to $ 32.2 million for the first quarter of 2020 . Gross margin for the first quarter of 2021 was 46 % , compared to 47 % for the first quarter of 2020. Non - GAAP gross profit for the first quarter of 2021 was $ 57.4 million , compared to $ 34.7 million for the first quarter of 2020. Non - GAAP gross margin was 51 % for the first quarter of 2021 and the first quarter of 2020 . Net Loss : Net loss for the first quarter of 2021 was $ ( 5.3 ) million , or $ ( 0.21 ) per share , based on 25.0 million weighted average shares outstanding . During the first quarter of 2020 , net loss was $ ( 1.1 ) million , or $ ( 0.04 ) per share , based on 23.6 million weighted average shares outstanding . Non - GAAP Net Income : Non - GAAP net income for the first quarter of 2021 was $ 8.3 million , or $ 0.30 per share , based on 27.3 million weighted average diluted shares outstanding . This compares to Non - GAAP net income of $ 1.1 million , or $ 0.04 per share , based on 24.5 million weighted average diluted shares outstanding for the first quarter of 2020 . Adjusted EBITDA : Adjusted EBITDA was $ 13.4 million for the first quarter of 2021 , compared to $ 3.1 million for the first quarter of 2020 . Additional information regarding the non - GAAP financial measures discussed in this release , including an explanation of these measures and how each is calculated , is included below under the heading “ Non - GAAP Financial Measures . " A reconciliation of GAAP to non - GAAP financial measures has also been provided in the financial tables included below . 1