Bandwidth Inc.

Good day and welcome to the Bandwidth, Inc. third quarter 2026 earnings conference call. All participants will be in listen-only mode. Should 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. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Nils Erdmann, Senior Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning and welcome to Bandwidth's third quarter 2026 earnings conference call. I'm joined today by David Morken, Chief Executive Officer, and Daryl Raiford, Chief Financial Officer. We will begin with prepared remarks and then open up the call for Q&A. During this call, we will make forward-looking statements including statements related to our future financial performance, expectations regarding the growth of our business. These forward-looking statements are subject to certain risks, uncertainties, and assumptions, and actual results may differ materially. These forward-looking statements represent our beliefs and assumptions only as of today, and we undertake no obligation to revise or update any statements to reflect changes that occur after this call. Thank you for joining us. Definitions of these non-gap metrics and other operating metrics, as well as reconciliations with the most comparable historical gap measures, are available in our earnings press release and our earnings presentation, both of which can be found on the investor relations page of our website at investors.bandwidth.com. With that, I will now turn the discussion over to David.

Thank you and welcome everyone. We are pleased to report solid third quarter results with record revenue of $234 million up 22% and record adjusted EBITDA of $35 million. Daryl will walk through the financial details shortly. I want to start by thanking our customers. The trust you place in us grows with every call and message we carry together. To our bandmates, thank you for the craft and care You put into serving others so well, and I thank God for the gift of serving alongside our exceptional team. Now, we'd like to kick off this call with a few words about where bandwidth is headed. Today, we are raising the midpoint of our full year 2026 outlook across all of our guidance metrics. We have growing confidence in achieving double-digit cloud communications revenue growth in fiscal 2027, even as we lap this year's contributions from political messaging revenue. We see the fourth quarter of 2026 as the turning point in our growth rates this year, with momentum building throughout 2027, and that confidence rests on what is already in hand. Specifically, We've signed 11 deals greater than 1 million of ACV since the start of the year, and they are deploying in phases and will layer into our results over the next 12 months. We're also seeing early traction with Salesforce, which, while not in our 2026 outlook, we expect will be a contributor next year. That's the near-term picture. The question, then, is why we believe it lasts, and that brings me to the topic of AI or superintelligence, SI, to use the new official terminology. Across the technology sector this year, the same questions keep coming up about superintelligence. Who wins? Does the layer beneath the models become a commodity? How does SI turn into revenue, and when? We think the answers are structural, favorable, and durable for bandwidth and come down to three things. First, ownership. We own and operate a global communications network. That gives us the licensed ability to connect, to attest who is calling, and to do it with the speed a real-time conversation demands. An SI model cannot replicate that, and SI makes it more valuable, not less. Second, economics. We monetize interactions, not seats. The industry is still working out how to price SI and what it costs to train and run models. Our revenue follows the conversation, whether a person or an agent is having it, and SI creates more conversations. Third, reliance. Every SI voice or messaging agent needs a number, a trusted identity, and access to a human being. That is what we provide, and it's why customers find us easy to deploy and hard to leave. I'll take each of these structural advantages in turn and show you where it's becoming visible in our results. Let's start with ownership. Software is going headless. Vendors are opening their platforms to third-party agents and giving up the interface, and the fair question is what stays differentiated beneath it. For application vendors, the answer is context. For bandwidth, It is execution authority. That means a licensed, owned and operated network, number inventory, caller identity attestation, direct carrier interconnections, and local regulatory expertise in nearly 70 countries. These are regulated network assets, not API features. A model layer or an application layer cannot replicate them, any more than a generic connector can recreate a CRM. Context The network decides whether a call connects, whether the customer trusts it, and whether it's delivered. We are the trusted infrastructure layer that enables the entire voice ecosystem. SI is raising the value of that layer. For most of its history, the legacy carrier network was a means of connecting two people on a call. And all the network had to do was put them in contact with one another. An SI conversation is different. There is an agent listening and responding. Other applications are at the same time transcribing, translating, checking for fraud, or pulling up a customer record, and all while the caller is talking. Many applications are now part of the conversation and acting on it in real time. That puts new demands on the underlying network. The network has to take part in the call. On bandwidth's network, a caller's live audio can be streamed to an agent and any other applications surrounding it, and the responses stream back in real time. A legacy carrier connection cannot do that. The network has to keep pace. An agent has much less than a second to hear, think, and answer. We can't make the model faster, but because we own the path, we can make sure the network never spends more milliseconds than the model needs. and the network has to be trusted. As SI drives more outbound calling, enterprises will need to prove their calls are legitimate and consumers will need to know who is calling. Voice SI raises the bar for latency, trust and compliance. We're deploying compute in our points of presence to deliver all three. You can see evidence of this in the growing number of enterprises that are choosing bandwidth, all of whom have adopted Maestro. enabling them to take further advantage of our orchestration layer to solve complex integration, routing, and communication workflows. It has an intuitive UX that allows enterprises to plug into conversational SI engines and to swap or add SI tools without custom middleware code. Maestro's pre-built integrations and network level security and fraud defenses are without equal. And they were a significant factor in winning a key $1 million plus financial services customer this quarter. This rapidly expanding all digital banking platform sought to modernize its customer contact center while integrating an SI agent. The bank needed low latency connectivity for real time SI interactions, a native integration with Genesis and resilient toll-free calling that could scale to support its growing customer base. These requirements highlighted the advantage of direct control over the underlying network and call routing rather than relying on a virtual provider's third-party carrier infrastructure. Bandwidth Displaced, a major CPaaS competitor, winning on the strength of our low latency-owned network, Our 5x redundant toll-free solution with Maestro advanced routing and observability, our long-standing Genesys partnership, and expert support. This win will translate into high-value enterprise voice traffic on our network with the opportunity to grow alongside the bank as it scales its SI-powered customer interactions. The second structural advantage we have is economics. Application vendors are still working out price. They're moving from seats to consumption to outcomes and most will tell you they don't yet know the end state. Our price is set by network value and trust, not seat count. Our model is usage based. Usage has always been our model and SI is driving more of it. Every call or text runs across our network. Whether a person or an SI agent is on the other end doesn't change that, and a genetic voice adds legs to many interactions. Sentiment analysis, transcription, translation, orchestration between systems, each leg is expected to be new usage. Fewer human agents doesn't mean fewer conversations. SI agents answer calls human teams never could, and they place outbound calls that were never economic before. Thank you for watching. We are model agnostic. Maestro works whether a customer runs a cascaded or a speech-to-speech model, and we do not compete with our customers. Maestro gives us a strategic advantage. As enterprises adopt more SI, we can capture both the communications usage they generate and the value of orchestrating those interactions. Third and finally, reliance. There are two parties to every call, and agents are now showing up on both ends. On the enterprise end, agents answer calls and place calls on behalf of business. That is where the growth is today and it's what the maestro adoption and the wins I'll describe reflect. But on the consumer end, the large consumer platforms have just begun giving their personal agents the ability to pick up the phone and call a business on a person's behalf. It's early. It's in limited testing and the volumes will be small for a while. But every one of those calls is an inbound call to a business, into a toll-free number or a contact center. And we carry those calls for many of the enterprises and platforms that will answer them. When consumers delegate the dialing, we are on the receiving end. Whichever end an agent is on, it needs a number, an identity, the other side will actually trust, and a path to a human. and the business answering needs to know whose agent is calling. That is what we provide and it is why customers find us easy to deploy with and hard to leave. We built for that. Our network is a global licensed infrastructure that took decades to build. On top of it, bandwidth build and our MCP server let an agent provision its own numbers and configure its own services in plain language and our media streaming carries live audio into the agent and back. Thank you for watching. Thank you for joining us. Additional services are planned using our WebRTC solution, and we will benefit from opportunities to capture expanded voice and software usage as the customer's business scales. We also expanded with a major enterprise network and communications provider serving businesses in state and local governments across the U.S. Building on a long-standing relationship that includes toll-free, 911, and other voice services, the customer adopted our platform voice solution, allowing them to retain their own phone numbers while using our network infrastructure for connectivity. This creates the potential for a significant new source of recurring platform fees and incremental usage-based revenue for bandwidth. In our fourth million-dollar-plus win, a specialized communications provider serving thousands of businesses and government agencies through its reseller and managed service provider network selected bandwidth to expand its calling services internationally. The customer is relying on our network footprint and our global routing capabilities to serve destinations its previous provider could not support. Together, These wins demonstrate how our network and software investments create new revenue opportunities, deepen existing customer relationships, and allow us to capture more usage as our customers scale. And with Salesforce, in September we announced the expansion of our collaboration with Bandwidth named as the first certified carrier to support the global rollout of Salesforce's native contact center. Following our North American partnership, This extends their CRM contact center capabilities to more than 25 countries across Europe, the UK, Australia, and New Zealand, with additional markets to follow. Enterprises will be able to connect to Salesforce's native contact center through a bring your own carrier model, BYOC, enabling SI-driven customer engagement on a global scale. This is a relationship we believe in deeply. Salesforce's own vision is that every customer call should become a conference call with a human and SI agent and the full context of that customer relationship on the line together. We share that vision and we built Maestro on top of our global network to make it possible. We're embedded in Salesforce's governed workflows today with the control, observability, and integration depth their platform requires. Looking forward, the three structural advantages that make bandwidth unique in the SI space are we own and operate the connectivity layer, we are compensated on interactions, not seats, and every SI voice or messaging agent will need a number, a trusted identity, and access to a human being, all which bandwidth can provide. As more and more consumers and businesses are SI and SI agents, these advantages will grow and strengthen. We are excited about solidifying our position of strength, expanding our global footprint, obtaining regulatory coverage in new markets, and deploying edge and data center infrastructure to capture this demand. Now, I'll turn it over to Daryl to walk through the financial details of the quarter and our outlook for the remainder of the year.