Bandwidth Inc.

Good day and welcome to the bandwidth fourth quarter and full year 2024 earnings conference call. All participants will be in listen-only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad and to withdraw your question, please press star then two. Please note today's event is being recorded. I'd now like to turn the conference over to Sarah Wallace, Vice President of Investor Relations. Please go ahead.

Good morning. Welcome to Bandwidth's fourth quarter 2024 earnings call. I'm joined today by 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. Our earnings press release was issued earlier today. The press release and an earnings presentation with historical financial highlights and a reconciliation of gap to non-gap financial results can be found on the investor relations page at investors.bandwidth.com. 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 first quarter and full year 2025 and our current product roadmap. We 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 in 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. With that, let me turn the discussion over to David.

Thank you, Sarah, and good morning, everyone. Welcome to Bandwidth's fourth quarter and full year 2024 earnings call. This morning, we are excited to share our 2024 results with exceptional performance across all key metrics. Before Daryl dives into the specifics, let me highlight our fourth quarter achievements. 27% revenue growth with record annual non-GAAP gross margins. 25% EBITDA growth. 122% net retention rate, and average annual recurring revenue per customer is now at $226,000 a year. Our operational momentum was equally strong with record-breaking quarterly messaging volume, successful global rollout of our universal platform, hundreds of enterprises now utilizing our Maestro platform, while Maestro's AI Bridge software enables customers to develop new voice AI capabilities on this award-winning platform, and 29% growth in enterprise revenue driven by strong CCaaS and UCaaS adoption. We want to thank our customers worldwide for their continued trust and partnership, many spanning more than a decade. To our global bandmates, Your innovation and customer dedication have been extraordinary. And I thank God for blessing us and our work together. Looking ahead in 2025, we are uniquely positioned to capitalize on the massive opportunity in enterprise communications. Let me explain why. First, we've earned the trust of the world's most demanding enterprises for their mission-critical communications needs. We are the only provider offering a global communications cloud combined with advanced automation, AI capabilities, and premium human support. This unique position has earned us IDC's recognition as a CPaaS leader for the fourth consecutive year. Bandwidth has been a leader in every major communications transformation throughout our history. We pioneered cloud communications APIs on our own network, then revolutionized enterprise messaging at scale. Now, we're driving the most transformative wave yet, conversational AI in voice communications. This isn't just another iteration in technology. It is a revolutionary technology. development in how enterprises interact with their customers. Every voice AI application and agent require five critical elements, high fidelity, low latency, rich data and context, and intelligent routing, along with seamless app integration. The bandwidth communications cloud is unique in delivering all five. Our open technology approach gives customers freedom to choose their preferred AI solutions, positioning us as the essential platform for enterprise voice AI. Here's an example. A leading global hospitality brand is revolutionizing the guest experience by enabling visitors to simply speak to access hotel services. No typing required. Using Bandwidth's voice API, they've created a seamless system where guests can naturally interact with a voice AI assistant for everything from room service and housekeeping to concierge services. What's crucial here is that any interaction can instantly transfer to hotel staff when needed. This is the future of hospitality, and it's built on our platform. We're seeing AI drive another major trend, accelerated enterprise cloud migrations. Companies are realizing that to leverage AI effectively, they need cloud-based capabilities. This is where our maestro platform with AI Bridge becomes transformative, turning what used to be months of integration work into something that can be done in hours. Let me share two recent wins that showcase this. First, One of the world's largest cruise lines chose bandwidth for their first ever cloud contact center migration, and they did it right before their peak holiday season. That is the ultimate vote of confidence. They chose us for three reasons. Our proven CCaaS integration capabilities, our comprehensive communications offering, and our track record of mission-critical reliability. But what really sealed the deal was our ready-to-deploy voice AI capabilities, positioning them for future innovation. Second, a Fortune 25 healthcare provider needed to switch between cloud contact center platforms, traditionally a massive undertaking. Because Maestro is pre-integrated with leading CCaaS platforms, We made this transition seamless. Their legacy provider quoted months for the same project. Even more compelling, our platform enables them to integrate AI capabilities that were simply impossible with their previous solution. We're also applying AI innovation to transform our own operations. Here's a recent example. Our AI analytics engine which won a Stevie Award for innovation, detected an incoming surge in call volume for one of our top banking customers. Before the bank even noticed the spike, our system had automatically scaled capacity to handle it. This kind of proactive AI-driven support is why the world's largest companies trust us with their mission-critical communications. Before wrapping up, I want to call out Devesh Agarwal's promotion to Chief Operating Officer on January 1st. Devesh has embodied our commitment to customer success and innovation since joining us two years ago as Chief Software Strategy Officer. In his new mission, his leadership will be instrumental in executing our strategy, driving operational excellence, and strengthening our global customer partnerships to deliver the next phase of our growth. In closing, 2024 was exceptional, but we believe we are just getting started. We're leading another transformation in cloud communications, just as we did with cloud voice two decades ago and enterprise messaging after that. The AI revolution represents a shift as fundamental as the internet itself. We are more excited about our opportunity to shape the future of enterprise communications today than we have ever been before. I'll now turn it over to Daryl to walk through the details of our financial results and outlook.