David A. Morken, Chairman and CEO of Bandwidth Inc. (NASDAQ:BAND), recently sold shares of the company's Class A Common Stock, according to a filing with the Securities and Exchange Commission. On November 29, Morken sold 15,410 shares at prices ranging from $21.2571 to $22.015, totaling approximately $327,617. This transaction was part of a pre-arranged plan to cover tax obligations associated with equity compensation awards. According to InvestingPro data, Bandwidth has demonstrated strong momentum with a 78% return over the past year, while maintaining a "GOOD" overall financial health score.
In addition to the sales, Morken acquired a significant number of shares through the vesting of Restricted Stock Units (RSUs). On November 28, he acquired 42,144 shares of Class A Common Stock at no cost, following the vesting of RSUs granted in previous years.
Following these transactions, Morken's direct ownership of Bandwidth Inc. stock totaled 101,821 shares.
In other recent news, Bandwidth Inc. reported a notable increase in revenue and adjusted EBITDA in its Q3 2024 earnings call. The company's revenue reached a record $194 million, marking a 28% year-over-year increase, while adjusted EBITDA rose by 74% to $24 million. Bandwidth also raised its full-year revenue outlook to $742 million, indicating a projected growth of 23%. The company's performance is attributed to growth in direct enterprise customers and a rise in programmable communications services.
In addition to financial growth, Bandwidth reported a record average revenue per user (ARPU) of $212,000. The company also revealed that it expects its free cash flow for 2024 to exceed $50 million. However, it's worth noting that operating expenses increased by 7%, primarily due to investments in research and development.
These recent developments suggest Bandwidth is on a robust growth trajectory, with commercial messaging revenue growing by 32% and the net retention rate improving to 117%. The company's focus on innovation and customer satisfaction, along with its raised revenue forecast, suggests that it is positioned for continued profitability.
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