Bandwidth (BAND) Morgan Stanley Technology, Media & Telecom Conference summary

Platform evolution and product strategy

• Expanded from a domestic, voice-centric platform to a global solution supporting 65+ countries and deep pre-integrations with major UCaaS and CCaaS providers.

• Added messaging capabilities alongside voice, with messaging expected to grow from 5% to 10% of enterprise revenue by 2026.

• Maestro orchestration layer enables seamless cloud migration, third-party app integration, and flexible voice/messaging routing for large enterprises.

• Focused on best-of-breed integrations, prioritizing large, established partners and customer-driven requests.

• Maintains an agnostic platform approach, avoiding direct competition with CCaaS offerings and supporting bring-your-own-carrier models.

Customer growth, retention, and go-to-market

• Enterprise business grew 29% last year, with Maestro customers representing larger average deal sizes and higher net revenue retention.

• Net revenue retention rates remain high (112%-124%), with logo retention above 99% year-over-year.

• Direct outbound sales motion targets large enterprises, while channel effectiveness has recently driven more large opportunities.

• Upsell and cross-sell initiatives focus on maximizing value from existing customers, especially in international markets.

• Sales teams are structured to land large enterprise customers and then transition them to teams focused on expansion and retention.

Financial performance and outlook

• Achieved 25% revenue growth last year; guiding for 8%-11% normalized revenue growth in 2025, offsetting cyclical political campaign revenue headwinds.

• Medium-term target of 15%-20% revenue CAGR through 2026 remains on track, with a recent CAGR of 16%.

• Gross margin reached a record 57% last year, driven by direct connect aggregator status and higher-margin software/platform fees.

• EBITDA grew 70% last year, with targets set for EBITDA margins above 20% by 2026.

• Strong balance sheet with net debt at 2x EBITDA, $100M cash, and $150M undrawn credit line; no plans for dividends.