- Earnings call transcript Q3 2022

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Operator

Welcome to the Bandwidth Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Sarah Walas, Vice President of Investor Relations. Please go ahead.

Sarah Walas

Thank you. to Quarter welcome Earnings and afternoon, Bandwidth's XXXX Third Call. Good and be after announced discussing we'll other the the close. issued Today, release results matters press in market our highlights an page Relations investors.bandwidth.com. with release the at earnings press found on and historical The financial can be Investor presentation and on me CEO; this our CFO. David Morken, afternoon With Raiford, is; call our the Daryl They the call up will will we open begin with then prepared Q&A. remarks, and for

any including We may statements forward-looking expressed will implied as make we statements and our to be update future plans During results statements, that for considered of Any actual statements. risks in reflect may or and obligation that fourth undue year may forward-looking, not as on our cause the and or by we call, the involve or forward-looking from put results and the this concerning our the analysis related statements today, on materially guidance to caution financial made full business these forward-looking slides uncertainties to call they them. reliance quarter no of presentation outcomes you have to XXXX. vary

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

of that, well to the release which issued David. located over reconciliation website refer in press is GAAP the on measures certain call turn With presentation, During let close to included investors.bandwidth.com. of the non-GAAP financial we course the of earnings market measures. as A call, at to are today's as me will our our in today, after non-GAAP

David Morken

top outlook Thank raising share for third full we year and I and to are quarter to bottom thanks our pleased lines. for and that joining guidance you, on everyone Today, am us. exceeded the Sarah,

to highest a quarter, profitably. growing gross this last our margin our we ever, achieved During non-GAAP commitment testament to

I ahead, people. us mates look opportunity connect customers outstanding and blessing support mission global for band watching to I we to God providing our our to thank quarter and performance work in serve And want each our the our thank together. other over another Before us for this

Going forward, we optimistic our three reasons. about remain confident plans operating and key for

essential power throughout we world. services First, the

Our business. are their customers that their demand rely durable. us of the and established is They on for mission-critical bedrock are communications

their half, where of Second, is looking cut thanks cost spend nearly in customers the for environment in owner to we an communications everyone economics help savings, platform. our

finally, the and world a early Third communications. the in digital massive of is shift to stages only

APIs positioned trend enterprise-grade secular network this our combination platform, years over win our deep through Bandwidth regulatory powerful is to our many As to global expertise. come, plays out of uniquely the and

let's to launches partnership new Now to capability Send-To decade-long services, environment, Teams' the an Bandwidth Teams users and Duet new truly application. voice essential beyond the and we Send-To quarter. full create recent Send-To raised Assure. highlights our our Teams with our co-creation the have within enterprise EXXX their experience. Microsoft. communications in latest native deployed Send-To unified messaging Teams expands With a for Microsoft within outstanding messaging of product bar Teams is third for innovations turn like of portfolio Call app Adding a the and with of to

by the innovated first toward new most an example a hardened, in Assure. kind of how responding and and our to of native customers capability It is messaging extraordinary Bandwidth event. its concrete capability are Assure Teams. toll-free to of are new and solution Call highly is Assure the business network for create our Call in disaster only the comprehensive offer this Call our expands old We space. in adding toll-free reliable we've calls new positively within thrilled resilient customers space. Duet Bandwidth's the case the our recovery already resilient to offering goal

Our more competitive security, vowed alarm network and led a all reputation to of us. service to Bandwidth to with This they go redundancy customer nation's the fire implement in their After robust monitoring for for well-known their and largest eliminate vulnerabilities. chose An resilience a help telephone platform which efficiently review, thousands detailed our was high of that are failure the numbers the redundancy fivefold lifeblood rerouting. more traffic their with back-end differentiator business. level volume of automatic manage customer analytics, toll-free call the additional and our tens of

"if so customer of use our integrity your As eloquently it network, new you you the about care put Bandwidth".

chose providing they carrier Another deliver value is enterprise go This hospitality. challenge, and specializing APAC power look EMEA, scalability to partnership telephone mission-critical They Resilience are in and to different speed business our to Latin among the us scalability model. customer They in customers new proposition FiveX, the prospects. This their came Reliability, contact with features, and growing mission-critical numbers and security is faster backup relationships global the health of of when new and gaining global with to expansion hundreds thousands us while our platform quality, customers America. care of cost gaining assurance rapidly as XX vital services. while them their associated momentum manage consolidated a market. services that with world, all Bandwidth huge enterprise cloud add our for cloud help to we choosing growth the platform. future powerful by reliability, and savings footprint and center a around Bandwidth also also is their proofed drove

of channel success of is point this migration compared its to case offer world's and It proving now mission-critical a use Bandwidth's next-gen urgency, to and our theme to to customers more momentum its now and solutions proof our to quarter, our visibility essential platforms. On key of political both for ways. driver a Bandwidth's to accelerated Political much and platform Daryl Due is and more messaging sooner. customers strong increased saw be landing center benefit Continuing Messaging top positioned advantage engagement, from quarter. comprehensively. with as our this a leading another ongoing with a in solution we campaign messaging that, engagement. for self-service civic with FiveX is of expanding more enabling a example civic of alternatives, convenience, existing the revenue contact is and take messaging messaging XX% of will XX-fold capabilities commercial its meaningful FiveX services, first-line moment. mix Our a in is using detail their

registration Bandwidth becoming a know-how resulted with messaging in at Our political has all deliver platform ability and reliably to campaign U.S. scale regulatory the this go-to entire easy-to-use season. across election APIs for spectrum

of higher to growing commercial a actionable that also are engagement. and of we We joins stripes chorus seeing point-of-sale and response to programs messaging financial power patient now to issues year. embracing services, and rapid healthcare messaging throughout and identity awareness all authentication of from loyalty news engagement the retail the entire organizations for level e-commerce Civic calendar shopping

is Our a grow to that up one business we leading Friday. quarter, for with Black commerce continues steadily announced platform customers messaging ramping the text now like last

share Before changes. up, key two to I I leadership wrap want

to among depart help agreed in through shared through for Bandwidth. best. Marina global that and provide the time the year you, future shepherd enabling us so and years much First, critical fair our measure, after Thank Her our for it head the President, to the revenue contributed critical Marina, smooth advance Marina passion Carreker seven to away and customers to I true beyond been team end new challenge transition. She partners our the to Two nearly and challenges. has first stay her orchestrating ago, recently Marina unlocking wish our She on. customers all of business outstanding President new our of her in and growth of has family. asked very Having to the portfolio. and assume expansion. role service is vision Carreker, been following a principles. our the recent decided to wonderful essential our staying that the growth, met and She and blessed her helping step in Fortune years to foundation different toward our we have to Marina customers winds messaging of right for acumen while us to has has seas of XXX graciously

solid environment. will is am the Bandwidth XX with Marina, to nature current navigating we're to products We save enterprise new and to X,XXX role providers patents Strategy aboard Software we Chief worldwide. mission-critical Oracle cloud. X new XX customer benefit from I'm industry leader became name, strategic led BAND the against move Devesh progress I of proven Devesh senior farewell Officer. on business, standard the in In the thrilled priorities years his our joined of pleased the over base communications a to we technology welcome over our stability the created has to As a XG that through Devesh to and of Tier build our the team Agarwal, at team's software leader. continue of believe closing, how of very Devesh. for a relentless to the Welcome developers and newly in the the team, With proud

further our embracing we and ahead, our profitability. to manage long-standing Looking continue business extending by to prudently will commitment

of over our to now Daryl during results financial and year. thrive the to quarter outlook I'll details to expect walk final We this of it the uncertain the for through time. turn

Daryl Raiford

afternoon, Thank everyone. and you, David, good

Investor performance quarter $XXX exceeded details our beats that midpoints may with our guidance on income an As had strong Revenue $X earnings Relations against a be very our non-GAAP guidance. and $X quarter third both of by to are a million of accessed website. We third presentation million related million. in their reminder, of net provided significant

and beat guidance our the year outlook an lines. We raising third quarter to full improved on reflect year bottom and through top pass full are

to midpoint revenue raise. XXXX, be $XXX $X year at raise our of a EPS to range, full $X.XX, and reflecting the our non-GAAP For reflecting million guidance the million we be beat the to and expect also previous now

large, set critical use usage across expect cases and we to this David and a mentioned, As verticals serve be enterprise customers diverse durable. to of business continue many

We sheet million to prudent we par to season us continue of value. at to of team demonstrable uncertainty. the balance of well, track in Yesterday, with $XXX profitable are notes an convertible experienced repurchase record especially discount a serve meaningful our and a that agreeing by XXXX strengthened execution operating growth will

balance sustaining our repay fully growth, upon remaining current capital our XXXX resolute use Upon the best a outstanding year. transaction full respective continued of Rounding $XXX so convertible XX, results, We in expect be on the earnings choose. to the revenue $XXX at evaluate million close messaging completion, in million was of stay to if Political We third we our to available Notably, profitability, grew With of on total for our November in and out note option US approximately with we our convertible sheet cash, continuously focus debt from in to environment. the driver the this quarter. XX% strong from of over third maturities XXXX. contributed market midterm the elections options reduced revenue XX% maturity our will up be our opportunistic while borrowings quarter and the last million. create obligations messaging $X to revenue year. last XX%

which broad saw cross in with from $XX we usage-based last from across million was overall of both grew currents. included expectations, points headwinds by revenue line the This partially exceeding the and exclude on surcharges points couple by our we messaging our but in million strong described presentation. monthly earnings Slide surcharges, compared $XX continuing year-over-year, results recurring growth our revenue of the were customers the If charges. from XX prior expectations our quarters, Namely, quarter. illustrated and of nearly year base of contributions contribution of X% driven offset growth X affected to Our XX by pass-through

Our non-GAAP year's the the for was up our from gross basis third XXX quarter for margin prior business. XX% and points quarter, record a

of mix products from of operating scale, a benefit improvements. effects, richer higher-margin continue and We economies network to

XX-plus our and margin, free EBITDA This was third $XX demonstrates towards million $XX non-GAAP cash for gross XX% ambitions. quarter was continued long-term margin flow quarter's million. percent again, progress the

X,XXX. In our metrics, was count terms third was rate of net quarter retention XXX%, operating active customer

annual our on and in customers through yielded focus headwinds, execution macroeconomic with driving summary, and sales sharpen average customer improve towards our per to combined In $XXX,XXX. from relentless enterprises. isolated of focus to serve a uncertainty. large Consistent measurable us increased quarter, and consistent last market continue Our progress quarter last while we attracting growing our have the long-term revenue season profitability to serving with goals, our near-term especially

turn to like the operator I'd questions. for call back Now, over the to

Operator

Stotler now go will come Instructions] ahead. Matt the our of Blair. We [Operator question first from begin will question-and-answer William session. Please And

Matt Stotler

right? taking the much going current Thank Hi, and results of David, with broad Maybe political kind drivers better a expected, with you just messaging balancing to Daryl. the kind for the questions. on. long-term question, of Obviously, seasonal then uncertainty macro start some than

into usage patterns, you're One macro of buying in you're trends, dig that in this behavior in overall what the you the changing maybe of customers Anything terms just current of on terms pricing. seeing environment has behavior, impact from spending seeing environment.

David Morken

up. is We've Matt, ticked Average customer Hey term ticked up. this annual contract has customer David. that spend links noted have

with our them in cloud we're specifically, is and solutions. Our companies, the centered used XXXX enterprise of secular be digital and equipment to squarely of in working moving all and with macro on what the trend premise-based focus Global verticals different to larger case, in kinds transformations

I at certainly results the And and macro powerful so length we're more seeing our term that much the force contract the a spend. And that through whether trend, in it's think, the moment average uncertainty. is

the expertise contract but engagements, enterprise close that specifically concerned I how cycles anything don't desk, got close to both management about pipeline nurture way then On in share and to you're a long-term now. elongating right understands that sales have we've

Matt Stotler

you. Got helpful. see, good good to And hear. very, to That's

margin seeing margin any being be and in what's non-GAAP a pretty further traffic? expansion net to step would of color in of In gross that up an give terms you QX, terms side can messaging Any maybe driven you're what is on mean, year-over-year driving there that the that obviously, performance, sequentially partially commentary primarily the of XX%, gross by Is business? of adjusted the increase I nice additional helpful. compared

Daryl Raiford

do more on This our volume is to is It our role. continues be there. benefit margin. Hi, savings from we've play accretive talked total mix as of Product we network yield vendors. from important XX% revenues. to with Daryl. before scale, continually overall Messaging did now an And about traffic

Our really scale, discounts that securing operating job teams spend the I earlier. great referred and have to of and a actually part doing been optimizing of that was execution at

Matthew Stotler

again. Got it, very helpful, Thanks

Operator

Our ahead. comes Ryan from with Please MacWilliams next Barclays. question go

Ryan MacWilliams

see and congrats one strongest question the recent the quarters flow the taking for Thanks Bandwidth to of from free on in quarter. Great years. cash

additional opportunities? growth are converts forward you after thinking converts, addressing So of in buying in back about $XXX light million how going your the Thanks.

Daryl Raiford

again. the end repurchase We a $XXX strengthen Thank to left sheet we, That our the of of XXXX we're and said to our you. notes respective repay as value. fully of in will obligations to going agreeing we've our around available XXXX and both at first and par think million. note opportunistic going remain our This to remaining upon maturities November, to is now, full with very chosen going we're around that option capital profitable balance we've cash the necessary $XXX the Daryl we're occur in right -- the we We our really structure eventually in confident million But I created. in convertible earnings our We're did optionality choose. complete by at create our November, remarks, past meaningful discount convertible prepared actions. the to in growth, their and in our if through with take be maturity debt

Ryan MacWilliams

you Do how the Thanks. from the any on appreciated there I And Daryl, then, this from And line? detailing benefit benefit quarter. XQ have margin material messaging quarter gross messaging? in political could political benefit on expectations was you the political to Perfect. any top

Daryl Raiford

and customers. Messaging stripes, captured of in as in our whether or trends leading political -- that for our the to, That benefit presidential we into It our elections. about last for guidance. up right, David our -- accretive in is the similar expect contribution commerce margin. all usage saw We messaging quarter gross do engagement political to peaking to all referred week it's the gross fourth company civic -- and election now with is into next we you're do increased some the of

Ryan MacWilliams

color. Appreciate guys. Excellent. the Thanks,

Daryl Raiford

Ryan. Thanks,

Operator

Mike go question Genuity. next from ahead. Walkley of The comes Please Canaccord

Mike Walkley

just Great. on I last also follow-up the Thanks congrats question. on Daryl, the and guess, quarter. to strong my

With guidance? margin the just a the investments? kind non-GAAP any Is there leverage of operating Or gross lack talk guidance flattish messaging, EPS strong sequential mix lower items? you ongoing we change another that from can political of the expense about the about and revenue just Or onetime is other think in forward? should in going

Daryl Raiford

Well, There third it shifts to quarter. of outlook we timing operating some did our our to from expenses -- view fourth for the previous timing raise have quarter, fourth we fourth quarter quarter. as from some of do are

seasonality take experienced that well, something quarter into holidays the have the with the years. in account that's to of occurs for fourth has normal number as We company also the a

embedded our guidance that's well in So fourth looking the quarter. at as with

Mike Walkley

just follow-up, maybe in well that mean large Thanks. you, then customers. and see customers. mainly it's is are you for behind of ARPU my lower new churning Great. terms in spend up of that guys where And that the with I some this adds churning your going still still great customers to net But the is hitting lower-end some are year doing the customers?

Daryl Raiford

a by of in defocusing did customers. very net continue. quarter. and That -- of moment customer ago removing XXX XX we from adds just We logos strong did the that spoke smallest up were that and this have to The churning the was Absolutely. offset architected new customers the churn

focus that increase again, much see annual we revenue the sharpened can -- more did more customer on customers. our average and You are per enterprise

Mike Walkley

my taking for Thanks Great. questions.

Operator

Meta ahead. Morgan Please go Stanley. of from comes Marshall question Next

Meta Marshall

Great. Thanks.

QX driver. noted kind Looking more lot at to expected the be transcript, a QX the of you a back of you political

there's in building then it QX. if question, wondering on last just as that in for what that So, seems picks kind embedded you you're of up saying the OpEx And political QX? had

get think of a increase you expenses to of trying to whether in gross should and translate really margin of that most the strength QX OpEx the line in that sense Thanks. should the Just some item? from saw you QX come

Daryl Raiford

contribution, line in political hello. Hey nice political third that weeks in we represents the did do six be quarter, Meta, was the expect And experience excluding contribution campaign to surcharges. expectations million in campaign $X looking with slight The the that really first with of we're did the -- it's third the QX six expectations. of $X the terms slightly million going messaging, weeks is to it in in previous our fourth quarter that The higher. of season -- at say in political The increase in our we line we quarter the contribution as well. the experience is

In we expense a that the re-sequenced be shift increase and quarter operating terms fourth that the expenses do just slight believe -- the we've will over operating of expense, the the to QX.

Meta Marshall

there But gross clarify, have would QX as considering should than as stay political that to anything stronger margin just is on QX? contribution? been margin the should Thanks. considering we item gross the line Or be about strong being the

Daryl Raiford

truly progression or fluctuate by annual focused possible really will -- or margin point does the over We've be on up does could future. our line Margin from and in It years been very can is Thanks. quarter-to-quarter. deviate a two. margin into and down progressing -- does or last three the that

Meta Marshall

Thank you.

Operator

question next of from go will Will Baird. The Please come Power ahead.

Will Power

to the guess see questions. couple you. of performance. Thank Great financial Good. better a I

David, relative upside I the on kind look saw perspective would either that, it you'd probably just U.S. you maybe for -- results I like had call piece look anything with any what as been, at guess, to But versus to messaging that. question revenue expectations guess U.S. aligned a of I mean, of love outside where I at else the internationally, you U.S. mean, out, the a I sounds is As you get

David Morken

Hey that uncertain we Will, think an first extremely we've and for going reasons. I three what into well are as foremost, described future positioned

an -- mentioned, established capabilities. have and of season, advantage focus that as providing for you customers. additional and a offering owner also attractive That's I As as savings vital. got added because broad, a to economics, cost benefit mission-critical beyond service the two, just And we've we're know, solution we this got us. we we've in that's Number large

by prop, that home, still so accelerated additional now proposition States everyone was and we're still not the outside And us countries now XX United the days. And driving we in has an base, we as economic value if our we're you Certainly, at question. on the recession. in installed communications. represented has adoption towards cases taken appetite a had resonance customer platform to what not you'll then offer to of of right The some And years of And over the and to have grow that our that addressable third, we're see uniquely, very that's continues with usage work believe customer specific everyone in asked glass, enterprise our with much them particular that capabilities has you that very years, International, alive globally. Based conversation a know, serve decade digital when building in had to continue do of COVID a international end, experience And and can transformation because this globally. having that is an base, we early sales globally. right the and happen flourishing desk it's as years season, now owner we from that which market, have be resonates to pane every your savings, to addition original component. right now. single asset cost an a value

And making good very so we're progress.

Will Power

I Maybe great. if for Daryl. That's one in Okay. could sneak

focus of free how next flow the to over be how about cash of couple in cash that from should you're It'd there, of the free framework years? kind great think understand, of here, the kind looked flow Just thinking about we quarter. good level

Daryl Raiford

more resulting needs to we've versus X% flow. our do free X% profitability on possibly particular Capex, I provide as called expense we and will do it business. driving sales through along go through around XXXX not we specific, flat grow as revenue margin those EBITDA expect we to expect thinking operating leverage of cash efficiency, several the about years. growing gross years do be next of while the the becoming We that flow fall with target as depending expect continues view and on over cash business the scaling free towards X%, to more with our our the

Will Power

Thank you.

Operator

comes next JMP of Pat go Walravens from Securities. Please question The ahead.

Pat Walravens

Thank me my you. Great. And let add congratulations.

So Daryl to mean it's million debt you buy see great So at why back just I XX% yesterday, to first, curious I'm yesterday? you $XXX a right? of discount

Daryl Raiford

Well, week. we advance were start felt that's the other when We that we've not monitoring. time last right, going able macro to complete it. been the We on, process was that … of something did It's in are items

Pat Walravens

Yes.

Daryl Raiford

perfect election of like being them it wanted do. we timing, and one …being the was to we felt something that's the

Pat Walravens

why And million? Great. then, $XXX

Daryl Raiford

business there's was like you that uncertainty suitable any discount the with reserves amount, cash amount, and build book. the have was to right to face it in Well, we a the wherewithal leaving more felt future. oversubscribed, the than -- between the the you right and the have And to balance face

Pat Walravens

Okay. Awesome. And back then five a right? office the to so David, guys are week, days you

David Morken

Pat. we Yes, are,

Pat Walravens

are pros the and are going? what that is How What the cons?

David Morken

and morale, the celebrate we are they're have and ultimately, love period hook energy, speed and rank dynamic and adjusting it. leadership is vibrancy our that People time. initially manifest a spirit that where and was admiration, the across long among camaraderie but respect, may Pros a and core, teams things adapting, in human like seen collective haven't and we file creativity off [Phonetic], week a

time an happens when another to being here think by analyst I pro. also big drop is

Pat Walravens

Yes, a good one. that's

that investors be building And it. Okay. other about be this they're able to worry the use is going then use able oh, Are they're not big you they're like, thing efficiently? going to campus, to campus to

David Morken

envy term. on be concrete and really but in lease manifests morale, really many important, also, teams to both are has but It savvy, productivity this will our it's over retention it's and as and and that economically the path, is we usage ways excited recruiting take believe, shrewd multiples and of the may it, of different that productivity. a I about the

time we hot thrive. available be and we're we And at yes, going to Raleigh. if most to things able one so this now going at the including do able to And We're point, was when market, to deciding use to the we what realize shrewd be back and of were in what it economically a was to very this have it. here in do look

Pat Walravens

you for that. Thank Awesome.

Operator

Please next comes of Harry Needham. The ahead. from go Wilmerding question

Harry Wilmerding

everyone. Ryan This Koontz. is in Needham. from Hi, for I'm Harry

Just one new products? quick sales your Could or entirely sales your mitigation development question please, front new direct videos, other or OpEx. to highlight reach on global you on on motion SMS how the investments, enterprise strategic for some features of SMS R&D OpEx robocall, the the front, And is of developing?

David Morken

product. experience a one as to do right And a come the David. innovative your Hey, for we Harry, for two question, is which what able is included that's Teams. market example first this that messaging of from app great text to announce what On is productivity in did Microsoft suite Microsoft. quarter new messaging user it your truly really was product developments we native be investment R&D Send-To, new to represents That launched a

The calling, contact one in a their past kind. some absolute so comprehensive And the really the we toll-free did center with it's the we contact And toll-free already had assurance be second the It's only that believe is to enterprise hard you very that disaster afford Call learned a really space. calling, industry-leading center, of one recent something those of from took largest high-volume we work the to experiences one but can't lessons Call create solution innovative, enterprise redundancy recovery solution allows engineering in down. do really Assure to Assure. continuity. we and our and was for for contact centers And a toll-free lessons

another in to coming investment a that's of example So product. extraordinary market

and scenes contact solutions doing to a work There's in live integrations, third we're flow work delays sentiment I've off off the complexity integrate parties. to which call Cambrian that contact really of have become solutions, center, engines, a doing when can make what behind call time reliable. high so We really afford the AI transcription. also you're to the hand really past, or are or center much important a you AI and center with millisecond handing spending as really contact analysis has among in R&D only important complementary of And explosion, you quality and said in

some So are examples. those

side on the really we our in business, challenges of season. focused capacity the reliability messaging On really messaging intense and during challenges have a the

me? part of I so And And of your that's investment. have the second forgotten question, you area can remind another Harry,

Pat Walravens

Yes.

the how Just development front, motion going? is on to of enterprise your sales sales the direct

David Morken

among and both for relative resonates both solutions voice It's Chief who's opportunity Officer; on capability that, for enterprise, team going more incumbent this team Revenue board our with season business for also against messaging. time, value Again, we've Sandy that that's Officer, right we doing our globally. the believe things the Global brought well. the Anthony And because the stepping a uncertain this most leader casings. right and continues the Bartolo, time. got we that's the into And our more has right Operating lead the cost to compete the prop XXXX, in enterprise and and to but Chief of Sandy, of

we only or if domestic have not to favorably. a So us that Lumen, compete do compete have platform we but that's economics don't, that software they Verizon, and owner AT&T allows

Pat Walravens

so Awesome. you Thank much.

Operator

Sandler. ahead. question from go James comes Piper Fish Please Next of

James Fish

exclude I or in sequentially, you was confirm messaging Or business for the maybe the this you if pricing to messaging, messaging you, quarter? from Hey, questions. guys. that? political imply are that the guys the changes the made if political ex for it does was seeing can with $X quarter. that quarter million the overall actually messaging what contribution you messaging for guys due the Thanks And down Nice Daryl, two? last so,

Daryl Raiford

-- part political was clarify, again, driven price a growth -- that's by in our price Messaging has up messaging pricing But by CPaaS Yes, solutions driven quarter, to without after quarter in across during messaging of our overall, aggregate we terms XX% experienced and improved. increase -- price, year-over-year. the always now quarter, improvement mix.

James Fish

for for few here looking bit I at planning necessarily. as what XXXX starting to a include in reasonable next that you a you expansion as your It out of retention thinking include level think does Fair what are of kind enough. kind rate especially retention is seem like years, growing net net the business? And around as But just not or Not well stabilize housekeeping messaging about political appropriate here of is do fees rate does this question, carry quarter? here, guess, here. a guys this

David Morken

part take of first the I'll the question.

and strong when that's that we of looking dollar-based XXX retention, annually I while customers. had you I emphasis net got it's spend stabilize, large period. and and a base understand a important our customers We've net said say our think, this the number you think the enterprise And with retention, at You're increasing. to focus

it You should terms be to grow flat. Dubner. expect And expect we us stable to in wouldn't continue to of being

We customers expect they additional as to that and to enterprise succeed, to continue will them add and grow. with grow

that consistent we're strong that will it Dubner conviction space So periods. the but can past the got work to enterprise period, doing in from we've with yield strong a period fluctuate

so hat I number wouldn't fixed, And right? this on your being hang

James Fish

net retention as that include calculation incremental carrier fee messaging? the rate excluded is And does clarification, Or the well here? as the from just on political

Daryl Raiford

does net dollar-based rate retention it. include Our

James Fish

guys. Thanks Okay.

Operator

as well question-and-answer presentation, you our you today's Thank may session concludes now for conference call. today's as and attending disconnect. This

Bandwidth (BAND) 2 Nov 222022 Q3 Earnings call transcript