BAND - Earnings call transcript Q2 2020

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Operator

Greetings, welcome to Bandwidth's Second Quarter 2020 Earnings Results Conference Call. [Operator Instructions] Please note that this conference is being recorded. At this time, I'll turn the conference over to Sarah Walas. Ms. Walas, you may begin.

Sarah Walas

you. Thank welcome quarter and Earnings Bandwidth's to afternoon, XXXX second Call. Good announced be close. press discussing we'll in the market Today, the results our after release issued me of Bandwidth. Morken, is and this the Hoffman, Chief Jeff Officer Executive Officer; With David Financial Chief on call Bandwidth's afternoon for with call will up begin we open remarks, prepared They then and will the Q&A.

year call, that financial forward-looking, full considered and concerning strategy, maintain our our XXXX, and our acquire may to guidance plans future to quarter we plans periods, the of including make customers fiscal our related statements will the extent the be During to business third for our our statements provided and execute on prospects. other new existing growth statements regarding to ability and and

be we update obligation with we of views reflect identified as any and of statements These our date. often anticipate no these upcoming. views not We such expect, to only our as as or statements. subsequent should revise today words statements forward-looking Forward-looking considered or be may undertake

are promises to risks are of of to guarantees could subject not our or future variety and uncertainties from expectations. the materially performance actual a differ that cause results and statements Forward-looking

section risks of our which material filing are available to all of our important discussion SEC's the could XX, at other of XXXX, Relations website affect website on February sec.gov. on the a For contained in that other at by actual filings, SEC factors refer please bandwidth.com XX-K results, and those our as and Investor updated on

release our at of we located included measures GAAP today, close financial of certain A During in issued reconciliation website non-GAAP on of the is call, is today's market to non-GAAP refer after which course bandwidth.com. the our press will to measures.

times, COVID-XX this Finally, within the impact we revenue prepared of estimated quarter. for our in remarks, have unprecedented these

inherent impacts and in Accordingly, quantify to and as methodology we attributes residual usage potential thresholds in the Management indistinguishable. and beyond become the may will corresponding challenging identifying David. of no me the a future increased that COVID-XX future. let business result makes COVID-XX. our platform future to current significantly over further call usage distinctions elevated impacts and make any any will be as estimate impact With any that, turn to above expected Our revenue periods assurances financial

David Morken

thoughts loss swift, America to grateful we working all Bandwidth, remain connected. to and unity At extend continue unity, endured Thank connect us and love or cherished the for like sympathies any the you, and tragedy our than us are who believe time this and to deep who My have today. passion with We there in are for people, livelihoods. serving I would any support purpose suffered remains more person. now Sarah, that in a everyone during to another I pandemic. to both equality connect these that navigate with my to challenging sacrifice drives continue thanks sick to connection. uniquely sincere that unemployed, of the and in us and in those pray to to all joining of great ever, deepest on those are. rooted culture Bandwidth's a we each work committed is form no celebration differences one us priceless and celebrating another. to against communities Bandwidth's a our to diversity, that anywhere and committed have for for We be one I'm also of make place keeping and a who is discrimination pain. multitude means season return times, are call to a safe

to the provide We can and stay need in We with experiences emergency connected workers productivity teachers voice need. businesses systems, governments, greatest those service for are remotely. that sure making to messaging health who care connect and

you're using number, video audio, you phone your most likely for and dial conferences Bandwidth into our days, and a these delivered the on use likely network. If call is

on for our is our customers their serving relentlessly unprecedented demand and services. Our focused team

As our best mission growth achieved moment of to and like to ever. our result ongoing commitment each a we their excellence take our Bandmates all performance revenue and other, a thank to I'd year-over-year execution. for

all uplifting truly are You of us.

our growth base. from are increased serving fundamental revenue was across acceleration Solutions Our revenue total in business The Meeting in second strength providing keeping $XX.X quarter our demand driving amplified The year-over-year, our by XX% UCaaS of and connected. driving Americans clearly million. elevated CPaaS is of quarter customer in customers, our the CPaaS that revenue broad-based the solutions

We continued also saw QX. which in grew messaging, XXX% momentum from

raise and believe on on velocity among And network that toward and our our Jeff are that and quality, million people will are highly customers. CPaaS we is of these because it of Enterprises we annual build scalable our the choose see strength record XXX as platform cost unique we their outlook, voice achieving serve amazing nationwide who we build pillars of $X more outline our profitability momentarily. net progress success: the income. made our operate pillars benefits goals, growth, revenue We flexible strong because to answer our achieving While pillars to providers. integrated able non-GAAP of also these supporting call capabilities three vertically CPaaS IP significantly APIs, that to our than our of

most teams has and the worked innovative revenue to users. once to operating many by disproportionately explosive to world. customers are season, support by attract customers, growth who XX/X approach among to the customers in working themselves our platform our surge onset of benefit home, this remote used companies leading vertically again environment. enterprise being their mission-critical been our are their and Americans integrated heavily for value network connectivity technology Our large large proposition current from our bolstered more and Bandwidth scale. the what Many At enterprises we scale our long-standing solutions at CPaaS In driven the overall acceleration in the experienced demonstrated value have CPaaS and

are deep-seated and our multifaceted, expanding. Our yielded customers approach enterprise customer-centric has relationships that with

our As their as extended multiyear of pleased States. ability for customer which we to in to the announced time provide our a We XXX to provider. primary for agreement with largest and to year. business multimillion-dollar signed come to position quest technology a of this our announce knowledge residential, retains executed largest are a one serve, and look customers, customers contracts, productivity completed solutions company we communications last season, this extension serving of five-year In that original connect and we extension their result our tools We exclusive forward and originally years this agreement two-year a the small Fortune with also offers an that United enterprises across workers. their

by serve continue are eager We this early customer. extension to pleased the platform, of customer's this to commitment the exclusively to we are and Bandwidth

share a customer to like this quarter to in that of I'd enterprise evolution Now customers significant the from migrating marks an engagement cloud. win serving our

cloud. services issues pleased customer cloud, one credit of and numbers cloud the managing ensuring from increasingly center support five-year are services to span company services. the cards phone challenged that multimillion-dollar contact migrating to provide legacy in US. migration to but and continuity CPaaS the This nation's solutions will largest a Visa in Unpredictable operational of largest the announce their by lines meetings. We agreement is banks to time as compliance. voice and this regulatory and issuers on-premise remain challenged by and a to XX power telephony the of complexity, case Mastercard to utilize of customer, to card tens are cause moving Bandwidth's scheduled one the of maintaining of can their thousands to are exclusively Fortune XXX Enterprises CIOs, employees a disrupt days, migration

Additionally, can providers a of a often cloud reliance entail in result operators quality. service migrating provider to and poor network on that local mix incumbent can

strategic many requires predictable partner capable in is UC To avoiding so software-driven important leading maintaining critical to collaboration and capabilities cloud solution to and viable providers, ideally a These and solutions. where employee directly is process, enterprise do cloud software in the voice migrating to large Bandwidth the provisioning porting agile encompassed is contact to a numbers of of in center our at customers customer, customers automation scale. connect positioned tools only and customer quality and encountered on-premise reliability. to platform to this solutions. Equally and, traditionally most from case are disruption alike control bases in this As large-scale

and for Likewise, customer. Bandwidth Teams, a real allows detect that connect continue our we All-IP can quickly am operate to for today to in time. migration focus Duet that the deliver need issues voice an that I can we a resolve announced predict, that onboarding that reliable, to Teams solution customers. their by them which and journey. deliver Given platforms. which on experience UCaaS certified telephony this and communications experience their was cloud able them voice with to voice all to complex and network, nationwide migration dynamic leading standard software-centric XXX We is routing, through EXXX single calling direct enterprises for currently CCaaS for two engage transformation regulations a providers long software-powered Bandwidth built meeting of connect on digital on deploying capabilities Microsoft provider. enterprises while only their one network, them a has the recently to is comprehensive Microsoft partner we accelerate own provide proud been to Enterprises

we front, into make existing to second extending services continue provided network both customers. XX to progress international toward new quarter, world-class countries. On European new we the the In our and

mission team With strategy. dedication thanking I me principle customers by the Jeff. to with let continue long-term pursue and our thanking over mission international We key serve ongoing a our profitability end to for to our and to each of want part it consistent for your growth all achieving and to other. our Bandwidth turn the our that, to objectives as by opportunity

Jeff Hoffman

afternoon, Thank you, everyone. good and David,

same new is CPaaS Second Revenue $X.X up up of serve was business. year-over-year. XX% the customers. integrated Within platform million, our record revenue remaining revenue total period was a up revenue, to XX% XX% power quarter a $XX.X at a vertically to growth total scale testament of Other from increasing year contributed $XX.X our is enterprise year-over-year, ago. communication the the growth which million, needs for revenue percentage the million, this

CPaaS quarter two was second key factors. driven stellar Our performance by revenue

scale their our usage First, cadence a their cloud-based emergency ongoing who into to in and to predictable continue customers with from services voice, growth services. plans increasingly messaging broad-based embedding communication across by and products utilize and expected enterprise platform

was remote the factor period. outperformance quarter, as compared second peaked thereafter the throughout which pre-pandemic in to levels but and driven dissipated our elevated by COVID-XX-related remained The at increased driving usage requirements April work

$X to in be million. that COVID-XX quarter estimate increasingly we usage it difficult impact in COVID-XX-related While to becoming to of differentiate the revenue range growth, second from organic is $X.X usage the

revenue, other primary for outperformance demand higher driven by messaging messaging offering. AXP due of our strong As to surcharges, our the continued driver customer was for

our an quarter, was the other on CPaaS metrics, to to and with with net enterprise by the even that Gross SMS to network the revenue gross for over created XX% Consistent profit retention as ended in and our This customers. our to our the to the to gross heavier favorable was Moving our XX% will profitability, business came as with to of overperformance income XXs XXX% impacted for the and negatively $X.X margins non-GAAP by rate another well be per deeper or second continue strong we demand the due investment in evidence which quarter passed response active well for normalize through our pandemic. in quarter the operating as relationships margins record share were growth We cost of net new our time balancing second with key year. surcharges, to drive breakeven X,XXX at in meaningful up $X.XX dollar-based our our expense to favorability. expected believe is more customers ability customers, in margins within as guide year-over-year. as is high quarter we commitment surge which million

regarding thoughts outlook. Now like our our to expand I'd financial

with from consistent expect date April's balance of usage behavior peak declines XXXX, from than trends by revenue usage COVID-XX observable evolves the second second million with continue to half overperformance contribution quarter the year, to the strong the the Despite estimated we more to continuing and the CPaaS are expected less our fundamentals. raising our XXXX business second of COVID-XX-related For as that work-from-home usage show quarter COVID-related we the dissipate, $XX reopening based guidance annual in on the throughout of economy.

the up XXXX million range. In midpoint terms or revenue, of have raised CPaaS XX% in full to $XXX.X of the be we $XXX.X our million guidance the year at of range to

total to at revenue XX.X range. XXXX the diluted non-GAAP year to outstanding. midpoint the of million weighted expect full XX% We're estimating $X.XX per of share, earnings We share per to for million, the $X.XX to of range our the shares $XXX.X $XXX.X in average in be range million be assuming up

Turning the third contributes range $XX the XXXX, $XX.X in to million. be revenue at total expect This guidance XX% million of our to guidance quarter $XX.X to to of million midpoint or revenue for our up million range. of we CPaaS year-over-year the to $XX.X the

Third quarter to per non-GAAP a is the million shares per loss weighted a of range in share share XX.X to be using outstanding. expected $X.XX $X.XX average loss earnings of of

remain strength, let's quarter. family hope questions. and efforts during to that, for all Operator? these up Bandmates Finally, I call safe And want exceptional and wish I everyone's that thank their the want tremendous open times, and With to you performance our challenging your led this healthy. our to for

Operator

this we'll be question-and-answer Thank [Operator now conducting Thank a Instructions] you. time At you. session.

The with proceed your from Bhavan Blair. question. first with the question line William of is Suri Please

Bhavan Suri

about Hey progression kind of guys, results thanks little and talk for taking like deal there. flow bit terms that a May-June, the into and to in cetera. from of set Those of you et usage congratulations. I'd a see are platform March-April my great questions

you the Sort you've over in what compared you months about customers to changes played we've to that past? as sort you there the the understand seen the Just several how of notable on in What out? want and on platform? usage any talked last early to the saw of that see behavioral obviously, lockdown sort pandemic talked were of

JeffHoffman

Glad to is Bhavan, hi, this Jeff.

we it of have In saw, that to in you progression the terms think I pieces. take two

the obviously, impact. try our best So March. doing we've further month peak you carve in saw June peak seen the almost a decline that declined Obviously, we've and than thereafter, higher We But to it end in let's July. out That that that first And to was April. we're the COVID began in decline talk at May, in further and seen all. about we're even for well. to as of

you're points so externally get belief see we down. can to trend the we've that been when our to some seen we expect usage what back to down. gone continue it other is going people And that similar to is that to followed to is this. clearly have We've guidance degree, come work, see to have we And but data that

business, we're, In fundamental everything just in meaning terms the organic other else cylinders. we're of COVID-related number than usage, frankly, on of seeing strength great the and a business, clicking

is And the the with so and the strong, we'll carry business year. that second half very of us in

Bhavan Suri

helpful. thanks super for That's transparency. Yeah. the And

out host I messaging guys The aggregators business clear the maybe growing, always You is concerning messaging a guess there's puts very and takes. broader question. a whole are there but globally. about

of them of sort some Some are of minutes. just aggregating the messaging

about pricing maybe gross Some are about with even your five margins. a you of helpful. to growth the but That and next, see few ability over from power, how think a pricing do years, be low think perspective quarters, both business When would environment how say, and competitive the trends, or perspective? pressure heavily the discounting really next over not sort you pricing that

JeffHoffman

I'd Sure. very glad business I'd with to start. the is start well. be messaging performing

accretive actually actually in margins of additive margins messaging heard our grew helping that lot so toll-free we XXX%. driving and is prepared to is right messaging. And You is gross A now. overall what's David's to year-over-year, remarks, that's our and

anything I that's So if where want I would there, start. David, don't to add you know, there's but

David Morken

over voice, horizon, horizon over that a Bhavan, five-year a voice we our very that add as structural favorable. stable Jeff. advantages remains time think, and of kind well, and of got to different believe business and in costs you, I remains Messaging, we we've that has we profile quality would XX% related a Thank only will that growing be small time but are minority. it but revenue

Bhavan Suri

differentiation the obviously, very on focus nice job. questions guess it, a taking helpful. voice I for and thanks Got guys the Coo, hat's keeps my Thanks. going.

David Morken

Bhavan. Thanks

Operator

is Please Power W. your of question proceed question. next Baird. with from with The the Will line Robert

Will Power

the to drivers on pipeline out that message, the sustainability that? about results. front? that And other quarter of back ahead great over think within you how do we what's total just That's Maybe strength, any Thanks. three great. up of and called in come of Okay, a XXX%, to messaging kind the

David Morken

allowed remains Will, this set is is the a not vital contact David. is broad There cases are current engagement we're among different impaired. of face-to-face season during constituencies that use where communication really and or in, where

In addition, and of election terms political. so in season contributes, cases you've that and political also use broad-based got also activities an

Will Power

back just I and thinking just and puts there. to want different come And takes the the guidance maybe to about Okay. QX

less you just I people look curious think as QX. a to And it's the last a back customer like we presumably of kind your year, to usage, but if the nice like case, base, at about there? a UCaaS part go would continuing it be How would sequentially into would big had work, of core look pace. what COVID seasonality seem do the be a normal there'll I nice meetings think increase little I'm about actually impacts, grow

we're early still think there. pretty I innings

the the of the way last So of months? you've related different trend over that couple any kind pieces to COVID disaggregate seen impacts to

JeffHoffman

well, start, that would if this would Jeff. to in like then I'll Will, is be David chime as great.

got well. we number the business on. think just I the with way going the resonating strength our prop think that look Again, netting quarter, third of start market. go what going I value very you've into a frankly, is you of in things we're And would and at some as I the fundamental seeing is

is alluded seeing had I that we're through to earlier declining. What there. that strength And there's COVID so July. And was

year. continue to of balance the the We throughout expect that

And so balancing that's it.

look as right take kind quarter, our second COVID, and of off example, think that's take line with for COVID, you rate, And if CPaaS growth an guidance. third XX% you quarter We're normalize for at XX% our so I in XX%. you about

Will Power

Okay, great. Thank you all.

Operator

Thank you.

of your next Our the Walravens is from Patrick proceed with line question. with JMP. question Please

Patrick Walravens

about. and congratulations, There's you thank many talk so Great, Jeff. and things to Dave

I'll do the Fortune extension. I that company think XXX

So stage give Dave, what go company? two then sort us you is? what this details more can us for And remind stage back X on just was of and

David Morken

with your ago, in all having couple provider them bet, for Pat, effective we've been in critical needs helps. hear times. agreement platform this few during This to primary a the really role CCaaS the if great them to and maintain favorable, a UCaaS, terms us renewing years company, served as that visibility that's exciting case, them of a that of quite gives we and came supply suite, to You they we so that engaged us used And terms two-year in of for voice. a extension season, well such and both that that's continuity the really us with in that a on

Patrick Walravens

Yeah. getting you know us you What the it. And I you what's just how do get – do that? How harder, But how impact? do against? measure it's do is Jeff, do much you COVID how can remind you're know and you do saying how – you it benchmark

JeffHoffman

Sure.

extended did that's Let we principle. me understand, the then we just easiest March to think how that with and start I same because

speak there was knew January COVID impact in we So of February. no and to

trend Meeting in a March, there And use doing do is customer interpretation say used minute might to attribute growth sense, harder COVID. knowing compare if we use amplified second same the the be their in in to why. be the quarter. that a may we of reason then of growing, they where expected would did saw I provided involved customers. even that we where to to scrubbing COVID and the so pop, still but time well, is that that customer getting if really from think we obviously, that natural with some And in have it's an minute definitely a we Solutions. is We this what range there's And business that really asking our would theoretical usage. organic, both. and a to talking thing was we And And could differentiate UCaaS that we're to that attribute trend The that's but And acknowledge this. some we organic of COVID-driven without key we

the to doing can. we're so can best we trying be we and as as that And transparent

Patrick Walravens

go then a just sort level and Okay just of deeper. like a to –

rate for big much customers who So providers that someone like Is to be figure natural that how example, the right? where an conferencing COVID. out video versus example, you're would are trying was the

JeffHoffman

Exactly right.

that at look can You trend.

would We second what bit March, in that that would to cases, be distinct. we COVID-related in data be. anecdotes estimate – what then points, You it know, and little use so was we the amount extrapolate often because particularly a less and would that other very quarter,

You could trend. see a different

very though close, even an And so I think it's estimate. we're

Patrick Walravens

much Okay, congratulations great. Thank you very and again.

David Morken

Pat. Thanks

Operator

comes Please from line & Valera Our with next of Rich Needham proceed with question Company. question. the your

Unidentified Analyst

on [ph] Valera. David Chad for it's Rich Hey,

terms in the of Just Duet Teams. for Microsoft

Just can announcement? color you any success that additional talk wondering any about if early about or

David Morken

Duet great The providers our Microsoft, look customer provides release is wins, future. powerful a it's forward that solution the made to of primary two announcement. opportunity our additional and about out, is announcements takeaway To but in – than other EXXX point, the unique, market the we is with have that extremely There's we're your we we doing platform only lots and is press on tremendous. the a that of one put about site not, certified so information

Unidentified Analyst

you. thank Great,

Operator

with your Our question. Murphy next line JPMorgan. Mark question comes proceed with Please from the of

Mark Murphy

that add I'll any you? perhaps users video are turn benefits dialing fatigue rather my camera and I'm don't again, you via David, on of than wondering always so regarding video in a signs Zoom, telephone in they're Hey the using want way to congrats. seeing where

David Morken

use around whatever behind want out which walk and a up didn't at ability I We screen is are, you the the anticipate, simply time get in to. from to particular, case Mark, and

on video, on then away still the walk want. with the phone dialing we're by your conference whenever be screen be use then users able their starting the they and in to for but in and go and So mobile seeing video dial ahead video, and

power us. a of new use that's case So kind favorable that's aggressive user for

anticipate. And something certainly I didn't

Mark Murphy

got Okay, it.

So strategic agreement It the perhaps some I'm with contract. preemptively still had they of misunderstanding. they're customers, extended back the runway sounded left almost like extending when to some your large on

all, that? that them to understanding prompting not? So do the I or first of am if what's And correctly that's case,

David Morken

understanding be by them You customer we're and that extraordinary team And what work that the an Mark. teams that these the what's doing it prompting season. I'm And do that gives so to our is team to opportunities. perfectly, many The so are an is opportunities in continuity about has own all-time talking early. sentiment strong precisely business is us are our that great visibility, perceived of There And is and high. extended relationship at of across positive great together. case, that been doing of being chemistry so gratified because so customer well it's just are both long, and during both our to do great our for

Mark Murphy

the we're to April. of all reversing, to going When curious even I ask these the what are COVID And you and work. one. how And being as I to behaviors But I all challenged some at commentary your of unfortunately. July, back if heard go ingrained peaked people you become some look Okay. has June impacts wanted a on well, think or as final in are re-openings in maybe happened,

this learning it's XXXX? half of work or sustain, in into wonder that to remote some maybe So I guess of some to mind sustain – into back that but peak, of going is maybe and understanding your in whether the is again, going I'm you that just remote whether maybe are farther tailwind second interested the there

David Morken

reopenings behavior is But wondering to that that's what happen trend we're will account you and We ongoing modification into forecasting the way are, what approach, get we're don't. not takes like the over out our the after our platform, be on or seeing which the skis. Mark, actually

forward. if add But we're you'll – the and with you think us forecasting front comments. we understand permanent Certainly, to more should be past doing so my can best behaviors at me to job where change favorable. what's And us let on would Jeff But going projecting. of we're basis, the consistent to in that see I be looking a invite

JeffHoffman

I think think to some think what and I the that's, that's I I normal pretty Work-from-home, permanent. not foreseeable add is multiple future. there's what a said going would guess think, around to was back And pre-pandemic. I don't years, there comprehensive. is I degree, working if well or for remotely,

I think we're but where the trying confident what of find new would level that to it's higher we're I be. level normal is, old than think sort

Mark Murphy

said, Okay. much. Well thank you Yeah. very

Operator

is proceed your next line with Morgan Meta Our Marshall from question of Please the with Stanley. question.

Meta Marshall

Great, thanks.

onetime to with wanted Just or in you're ask were how update nature that second, scalability whether investments any or QX, seeing And international for ramp? about on some over in you progress business we then time that think margin made just on made? those of gross how just the just just should what period they're

JeffHoffman

this Jeff. first is him it. it kind question, first the and one, I second of this to part and Meta, I'll Maybe, repeat the me after David of let I tackle heard but one. got the missed it

decline our gross in was we This a see related really issue. to a sequentially, of terms timing did margin. In

pandemic existing when network our able capacity in excess So end March, pandemic the the to were utilize hit, of at we hit. when the the quarter

it periods, somewhat time, over regain normalize of a this a more our the function admittedly, elected you this are to on network that the in that a pop bounce this of costs was designed And And recreate of margin. see And first you'll high our we invest will step usage, at in In And in these of heavily revenue. second level sort was captured and growth. little our our of some nature. bit or in point. quarter, headroom We to excess so quarter. based future the more capacity cost continued back for into COVID-related saw believe future margins

really So other also that But informed minor mix caused There was margins. factors the some geographic that's primary change. that to some gross messaging were what the our changes AXP reason. like surcharges and

David Morken

Meta, this is David.

related question to general I think I right? international. that of part get progress Did your the second on

Meta Marshall

during background noise. be the home, would from Yes. progress But international one. yes, lots the But of there's working

David Morken

Yeah. No worries.

to build-out make There's all to existing according plan. very to are around continuing that understanding, but plan. it's like II early, services The go-to-market continues. customers We per new privacy our certainly good selling Schrems both new some progress are we're and headwinds going and things with decisions been

Meta Marshall

Great, thanks.

Operator

you. Thank

of line Our next with question. question from is proceed with Canaccord. Please the your Walkley Mike

Mike Walkley

for thanks question. healthy is Great call. everybody my taking the on Hope

with you kind trend, Just slowing looks have as any distant the of building learning conference hybrid season? of out, and like kind coming colleges from vacations, fall of the video get and schools do on up might thoughts from any in at customers it UCaaS benefit some the your all schools more season, maybe kind summer approaches

David Morken

We that there persist are may us. do cases benefit use think that that many

summer Some estimate as are But it. disproportionately schools to we're is season. very all on return benefit to those mentioned new this or quickly certainly season. be But fall everything school whether affiliated us platform as of the to compared may and for normal to about your the as fluid. point, Jeff well hope earlier, doing possible. to not that to occurs, return our It level question through We there with tailwinds in-person best no our normal

Mike Walkley

to update Great you've us close flow? now? remote? think everybody you how Has kind and with deal Or that months you do closing tougher of accelerating it of I through working some April. normalized kind just the follow-up some about deals see deal my question, Is thoughts can of just these your prior – overall shared

David Morken

We that's lead see flow strong.

talked have uncertainty. delaying periods during about decision-makers in We past

to resolved to have involved. is periods. be it your the company I excited come the to Fortune solutions But enterprise many XXX it that can't us. make that question, truly person level When get the is But the to believe throughout we this transformation relates excited premise-based think transition March. that digital you it. the they and I for selling our in and excited the about at very the time to the obvious to get away full. of and and part close what enterprise about means to since plane challenges an from legacy We're that a can sure quarter, apparent, sure we've of for really as that is are we're seen things that remote. about we're that cloud relatively in We've opportunity and decision-maker cloud closing, year on stable second the decision-making customers fruition. And aggressive confident mindset of we're about during announced overcome

Mike Walkley

Great, revenue for the thanks questions. well, and quarter taking congrats growth on my record

David Morken

you. Thank

Operator

you. Thank

Alex Please comes question. Our of with your with the next from question line proceed Kurtz KeyBanc.

Steve Enders

on voice think opportunity what that previously? using of the Alex. is the said the on was want customer just I'm incumbent win I in I to versus the providers won This that Steve the Enders understand trying that you just CCaaS check led were quarter. that some to for factors to you

David Morken

Bandwidth an the of communications benefits aspects API platform providers the of All of legacy never had. include that the just approach to have

And the is that so at just you when a Bandwidth so to customer And that to see an a platform cloud you massively, never address. help And carriers don't migrate in something and any you scales speed, CCaaS solution do been incumbent you're we at the able change that enterprise are to designed to have their reliably. need looking flexible behavior. light that's

we've begun to in them that country chapter very platform. new as expect We service our it through the largest really enterprises the with providing relates a with

relative we that differentiation platform offer develop bottom about line to where So extend have from is the we're a continue to integrated excited begun. is network software platform. dominant a incumbent But vertically solutions and we've software and no that the

Steve Enders

a guess, you've helpful. the past. in know heard Okay, That's opportunity much bit being little I great. I there. CCaaS don't about touch to more if on And an just,

of And where it feel for today? emerging does like stand that's does newer use case Bandwidth? a it's kind wondering that Just

David Morken

We have customer the been about excited CCaaS means the that's and largest the this talked a the country, a transform role about vendors but what active past. have opportunity. partners great that's positive had provide first CCaaS solutions enterprises are helps they've significant. in material that to in in lots And does space solutions. really it in the ecosystem the the It past, and it extraordinary beyond the And represent premise-based we about a in we've good made with of CCaaS supporting we've announcement is

early. emerging. it's It's so And

it for We have about in and talked about means the what the we're excited it past, future.

Steve Enders

you. great. right, All Thank

Operator

Our your Securities. question. next question proceed comes with Please Soderberg from the line with Colliers of Derek

Derek Soderberg

sitting I'm for Hi, Trebnick. everyone. Catherine in

AT&T compare guys surcharge to Bandwidth about and AXP seen relative text solution Verizon You a relatively, little surcharges. the surcharges also Verizon message bit And and talked then and how do SMS on the Bandwidth for a to creating implementing We've AT&T? this, this do Is their competitive notifications. more others? environment favorable

David Morken

SMS over The would surcharges XX-digit is applied to So pass there's XX-digit the clear time anticipate XX we that through happens, cost surcharges an additional that question through customer the would apply but customers. and has we to messages, And messaging is we've that our have to world. to carrier for like code surcharges them long that that of messages. toll-free preponderance no likely are service those the former been we DLC, would toll-free the scenario when would ecosystem the passed

a everyone same When to an it's playing it's the where So field. everybody. ecosystem to on assess carrier decides is surcharges,

essentially increased the for decide cost provider involved, who the it's tax. world Verizon everyone that to So or the matter no basis AT&Ts of is, an

think whether a So of toll-free or a tax which DLC, long path numbers code for eventually, one the toll for asking the are is or it's that on we each regular carriers phone messages. to those XX

talked toll-free has may on through We but field. the Today, everybody surcharges, consistent very same we in else, change. past that will are and and pass certainly that playing just the is that advantage that think over well we've like those without an time, everyone

Derek Soderberg

guys of and expand then was of on is trending my drivers as if I some wondering business looking you how maybe on And sort follow-up, growth the forward. can Okay, that great. EXXX

David Morken

the we providers a is are is were That from past direct a for addressable are an think well that the large SPC prospects solution We legacy for our and and one two EXXX our announce companies market two forward. one from And a Bandwidth. is are the that excited with that which to only to solution solution of carrier EXXX that announced very they've going position supporting certified of utilized to we that transitioning large that Teams routing really real the that bodes we when vital very has we that that, cloud. business Duet, very leadership only Microsoft of enjoys. in And

Derek Soderberg

thanks. Great,

Operator

Thank concludes you. teleconference. today's gentlemen, this Ladies and

may your You thank your disconnect participation. lines at this you time. We for

Bandwidth (BAND) 2 Aug 202020 Q2 Earnings call transcript