Bandwidth Inc. (NASDAQ:BAND) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 pm ET

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Bandwidth Inc. (NASDAQ:BAND) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Bandwidth Third Quarter 2019 Earnings Call. [Operator Instructions] A brief question and answer session will follow the formal presentation. [Operator Instructions]

It is now my pleasure to introduce Sarah Walas. Thank you. Please begin.

Executive
Sarah Walas

Thank you. Good afternoon, and welcome to Bandwidth's Third Quarter 2019 Earnings Call. Today, we'll be discussing the results announced in our press release issued after the market close. With me on the call this afternoon is David Morken, Bandwidth's Chief Executive Officer; and Jeff Hoffman, Chief Financial Officer of Bandwidth.

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 fourth fiscal quarter of 2019 and the full year of 2019, and to the extent provided future periods. Our plans to execute on our growth strategy, our ability to maintain existing and acquire new customers and other statements regarding our plans and profits.

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

Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our 10-K filing on February 15th, 2019, 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's website at sec.gov.

Finally, 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, which is located on our website at bandwidth.com and on the SEC's website at sec.gov.

With that, let me turn the call over to David.

Executive
David Morken

Thank you, Sarah, and please allow me to introduce you to everyone on our third quarter earnings call today. Sarah Walas, joins Bandwidth to lead our Investor Relations efforts. She spent the last seven plus years at Red Hat here in Raleigh in various finance roles, including Investor Relations Manager. Thank you for joining us, Sarah. We're all excited to be working with you.

I'm pleased to report that our third quarter results exceeded our expectations on both the top and bottom lines. Our CPaaS revenue increased 24% year-over-year, driving total revenue in the quarter of $60.5 million. We saw continued momentum within our sales and marketing teams adding 143 net CPaaS customers in the quarter, resulting in a record 39% increase from the prior year. And our ongoing traction