Bandwidth Inc.

Greetings and welcome to the Bandwidth, Inc. First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presence. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sarah Wallace. Please go ahead.

Thank you. Good afternoon and welcome to Bandwidth's first quarter 2022 earnings call. Today we'll be discussing the results announced in our press release issued after the market closed. The press release and an earnings presentation with historical financial highlights can be found on the investor relations page at investors.bandwidth.com. With me on the call this afternoon is David Morkin, our CEO, and Daryl Rayford, our CFO. They will begin with prepared remarks, and then we will open up the call for Q&A. During the call, we will make statements related to our business that may be considered forward-looking, including statements concerning our financial guidance for the second quarter and full year of 2022. We could caution you not to put undue reliance on these forward-looking statements, as they may involve risks and uncertainties that may cause actual results to vary materially from any future results or outcomes expressed or implied by the forward-looking statements. Any forward-looking statements made on this call and the presentation slides reflect our analysis as of today, and we have no plans or obligation to update them. For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our latest 10-K filing as updated by other SEC filings all of which are available on the investor relations section of our website at bandwidth.com and on the SEC website at sec.gov. During the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release issued after the close of Market Today, as well as in the earnings presentation, which are located on our website at investors.bandwidth.com. With that, let me turn the call over to David.

Thank you, Sarah, and thanks to each of you for joining us. Our team is off to a great start in 2022. In the first quarter, we grew revenue to $131 million and reported $3 million non-GAAP net income, both ahead of our expectations. We are pleased to be able to raise guidance for the year and are proud of the team's strong execution in a challenging operating environment. Thank you to our bandmates for your continued commitment to our customers and to each other. And I thank God for blessing our work together. Today we will share how the bandwidth platform enabled innovative organizations around the world to deliver exceptional experiences. Enterprises increasingly rely on the bandwidth platform to do all their communications in the cloud. We are winning these new customers with our portfolio of voice, messaging, and emergency services APIs, and with our insights and analytics tools, regulatory leadership, and unmatched customer support. Our customers tell us they successfully move and scale communications in the cloud with our platform and our people. Earlier this year, I outlined three main priorities for driving our growth and performance in 2022. Grow with existing customers, win new large enterprises, and become the best global CPaaS platform for scaling digital engagement. We made excellent progress on each during the quarter. Existing customers grew voice and messaging with us across geographies and use cases and in many different verticals, including healthcare, financial services, retail, manufacturing, and even construction. We are amazed by the creativity of developers and product teams building their next indispensable app and experience on the bandwidth platform. Our momentum is accelerating with enterprise customers. We are well aware that enterprises are migrating their technology stack to the cloud. Enterprises that began migrating storage and compute and security are now asking how to migrate their communications. They grapple with different service providers, legacy infrastructure, critical integrations, and proprietary technologies, all of which are mission critical and must work together seamlessly. Enter the bandwidth platform, which enables a seamless cloud migration for UCaaS and CCaaS platforms and other enterprise communications applications. Let me give you four recent examples. In Q1, an iconic top five global investment bank chose bandwidth to be the centerpiece of its new best-in-class cloud contact center build-out. This customer initially considered legacy carriers that could not or would not integrate the bank's required third-party authentication solution. For years, this customer relied on two different legacy incumbents. They are now consolidating into a single relationship with Bandwidth. Because our network is cloud-native, we route calls and deliver call data in ways a number of competitors simply can't, integrating third-party applications before the call gets delivered to the contact center platform. Our number management APIs simplify onboarding and allow for increased control over a complex portfolio of telephone numbers for this customer. It is a powerful validation of our cloud platform's ability to provide call control and flexibility in even the most complex contact center cloud migrations. And it's another example of how our close relationship with Genesys is continuing to grow our total contact center business. We went live this quarter with a global hospitality company that describes itself as the largest hotel franchisor in the world. This customer recognized that its legacy carrier could not support its critical application integrations necessary to make the move to the cloud a success. As a result, this new customer is using our cloud platform as the foundation for its next generation approach to customer service, And importantly, this also represents yet another bring your own carrier implementation with Five9, which is a cloud contact center platform we are increasingly partnering with for new opportunities. We look forward to sharing more success together in the future. Third, internationally we are steaming ahead, winning enterprise customers across our expanded global footprint. The latest example is a premium cruise line based in Europe. This customer's phones are ringing off the hook with pent-up demand from cruisers who want to get back out and set sail. In an innovative effort to modernize their contact center and also connect and protect their employees, this customer chose bandwidth to power both their UCaaS and CCaaS needs. We are proud to serve as the foundation for their global cloud communications technology stack. Once again, our duet for Microsoft Teams offering opened the door to a much broader conversation about the full enterprise portfolio, and the power of our platform was compelling to this customer. Fourth and last, this final customer win I'll highlight is a healthcare technology leader for HIPAA compliant medical text messaging. More than 600,000 caregivers across 4,000 personal care agencies in the US and Canada rely on this customer to care for over 500,000 seniors every year, the largest network of in-home care providers in North America. This customer chose our cloud platform to deliver SMS and MMS messaging containing protected health information to engage with patients, provide appointment reminders and notifications, to deliver care management as well. This customer seeks to use messaging to close communications gaps with their customers and told us Bandwidth stood out as the clear platform of choice for the reliability, delivery insights, and future scalability they need to deliver that vision. This customer had outgrown their prior CPaaS provider and needed enterprise-grade CPaaS to scale. We continue to position Bandwidth's cloud platform to power the front lines of digital healthcare transformation. With our suite of communication solutions, Bandwidth can provide the tools to deliver a better, more engaging patient experience. Our financial results and these four customer highlights demonstrate that we are executing on all three growth priorities we outlined for 2022. Finally, I want to recognize that we recently divested another heritage business at Bandwidth that supported infrastructure for legacy SIP trunking. I'd like to thank our customers and bandmates that made this business a success through the years. We wish this business well as it charts its new independent course. And before I wrap up, I want to welcome Sandy Pretzler as our new Chief Revenue Officer. Sandy joined us April 18th and has already hit the ground running. He is a true hands-on leader who teams have consistently exceeded sales goals for billion-dollar cloud and software portfolios. Sandy joins our new Chief Operating Officer, Anthony Bartolo, in bringing fresh perspectives and deep experience to shape Bandwidth's next exciting chapter. I'll now turn it over to Daryl to walk through our financial results.