Bandwidth communications platform is back in the spotlight against the background of COVID-19.
The shares of the company – provider of a platform for corporate communications Bandwidth Inc. (BAND) on Friday, November 26, rose by 3.50% to $73.93. The market capitalization was $1.95 billion.
Bandwidth Inc. quotes have been growing for three consecutive sessions against the background of the new COVID-19 strain. In 2020, Bandwidth increased sales, and its shares developed a rally. The Bandwidth messaging platform has to inform the U.S. public about the requirements associated with the pandemic.
They also used Bandwidth solutions to organize remote work in large companies. Later, due to mass vaccination and the withdrawal of the COVID-19 theme, interest in Bandwidth shares, beginning of 2021, have fallen in price 52%. Nevertheless, the pandemic accelerated trends that provided Bandwidth with improved financial performance.
In mid-November, Bandwidth reported a continued increase in demand for telemedicine communications solutions. For this area of healthcare, Bandwidth supplies a large set of communication tools for video and voice calls, messaging, sending reminders, and notifications.
Reliable operation and high throughput are critical for telemedicine, and Bandwidth expects that this area of its business will maintain steady growth. According to Gartner forecasts, by 2023, there will be more telemedicine virtual visits to doctors than the number of actual visits. In the third quarter, Bandwidth’s revenue grew by 54% year-on-year, to $131 million.
Non-GAAP earnings per share were $0.25 per share, significantly exceeding Wall Street expectations. The company receives more than half of its revenue under the CPaaS (Communication Platform as a Service) scheme.
