Bandwidth Inc. (NASDAQ:BAND) Q3 2023 Earnings Call Transcript

Unidentified Analyst: All right, thanks so much.

Operator: [Operator Instructions] Our next question will come from Arjun Bhatia with William Blair. Your may now go ahead.

Arjun Bhatia: All right. Thank you. I appreciate you guys taking the question here. I heard the commercial messaging growth was 51%. It sounded like you said I think e-commerce conversational messaging among some of the contributors there. What is your sense for how durable that is? I mean we all know that it’s a little bit of a choppy macro, but it’s a very strong growth rate. How do you anticipate that might trend through Q4 and into next year?

David Morken: I’ll use the example that we laid out in the quarter of a customer in the automotive industry. They’ve engaged with us for commercial messaging and are using messaging to have conversations in a marketing context. That’s an example of something that we think is very durable. Messaging drives open rates that are extraordinary, 98% for example. That kind of effectiveness is going to lead to more and more uptake. And the reason why a customer like we talked about for the quarter came to us is they value the support that we have especially for enterprise users of messaging and the scalability. They can grow massively. They can grow globally with us. And so, when you look at use cases whether you’re driving with the relationships you have with businesses you relate to or if you look out there at examples that we’re using, messaging between businesses and end users and customers is only going to increase. And so we think it’s quite durable.

Arjun Bhatia: Got it. Understood. Very helpful. And then just when you’re thinking of — I guess for Q3 and maybe what you’re seeing thus far in Q4, are there any verticals that stick out that are doing relatively better or some that are doing maybe relatively worse just given the macro backdrop here?

David Morken: No, I appreciate the question, but I don’t have any particular vertical that we call out is under more pressure than others.

Arjun Bhatia: All right. Appreciate it. Thank you, guys.

David Morken: Thank you.

Operator: This concludes our question-and-answer session. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.