Bandwidth Inc. — Call Transcript 2026

We good? All right. Good afternoon. I'm Vineet Chhangani. I'm a Managing Director of Morgan Stanley's investment banking. Just for important disclosures, please see Morgan Stanley's research disclosure website. If you have any questions, please reach out to your Morgan Stanley sales rep. Okay, great. Thank you for joining us today. We're here with David Morken, Co-Founder CEO of Bandwidth, and John Bell, Chief Product Officer. David, John, welcome to the conference. Thank you, Vineet. Thank you. How's the conference been so far? Outstanding. Great. why don't we just start, you know, let's just go for the audience who are not familiar with this story. David, I'd love to, have you talk a little bit about what is Bandwidth all about. Talk to us a little bit about the platform, the trajectory, a little bit of the history. Happy to, and have to start with I have henna on my hands. I'm not Mike Tyson wanting to have, like, a permanent tattoo. About 70 hours ago, I was in New Delhi when we decided to attack Iran, but I'm happy to be here today. I'm on fumes, Vineet, please be gentle. Origin story for us, founded in 1999 and began selling internet connectivity back then, but then in 2007, with Google as an anchor tenant, built out a nationwide network. We like to call ourselves the last CLEC ever built, but in all 50 states we were able to offer voice services, and then from that beginning, expanded through acquisition to now serve 65 countries with a global voice network and software platform on top of it. We do cloud communications for enterprise customers, including all 12 of the Gartner Magic Quadrant leaders in conferencing, CCaaS, UCaaS, and then many enterprise customers. Based in Raleigh, North Carolina, and went public in 2017 because of the outstanding leadership of a certain individual at Morgan Stanley who's doing this interview. Thank you. John, maybe one question for you. You've been with the company 14 years now. You've seen the evolution of technology. Talk to us a little bit about oftentimes people hear CPaaS, CCaaS, UCaaS. Where does Bandwidth sit, and what makes Bandwidth different than some of the other players in the space? Yeah, it's great question. The moment we're at right now, there's a lot of things changing. If you hear CPaaS is enabling platform, a lot of people will think it's text messaging, and that's where a lot of the industry's been. We've been off in a different area. We've been very focused on the voice side of CPaaS and enabling the CCaaS providers, contact centers, the service, the UCaaS providers, contact center apps, when they go to market to SMBs, large enterprises and bundle telecom in, customers that way. We've also been selling directly to large enterprises. What's interesting about this moment now is everything used to be separate. There was digital channels, and they did one thing on their own, and there were voice channels that did things with human beings on the other side. That is changing. Voice is becoming a digital channel and being tightly woven in with other digital channels. It's a very exciting time for us as voice AI is changing and really becoming front and center in what we see happening, and clearly in the core of decisions we see enterprises making now as they choose their infrastructure. Mm-hmm. We should call out you cater to large scale enterprise customers. You have Maestro cloud communication platform that sits on top of your owned and operated network. Talk to us a little bit about, like, we're in a very interesting time right now. Investors have seen the CX, the CCaaS bucket, if you will, get disrupted or pressure on their stocks and valuations, but it feels like you're sitting in a very interesting spot that's powering them. Talk to us a little bit about, like, how's that strategically differentiated? What does that mean for you? Maybe, David, you start, and I'd love some product insight on it. Our view is the next 1 billion users of the PSTN globally are AI voice agents. Mm-hmm. They may be performing the function that is currently fulfilled in a contact center. They may be fulfilling the function of a knowledge worker. None of them need a mobile phone. All of them originate and receive their calls from the cloud. All of them need a global network to be able to communicate. What we have and our vision is to be the network and platform of choice where you can orchestrate an AI voice agent that you built with ElevenLabs, or you built it with Sierra, or you built it with Vapi or somebody else, but you need to bring it to life around the world for whatever its mission is, and we want you to be able to bring that voice agent experience through the Maestro platform and our global network to life. You have to have ultra-low latency, high fidelity, resiliency and reach. We have 65 countries where we're full PSTN replacement, and we own and operate our network. That is ideal for this next wave of voice, and we're already starting to see that in the voice growth rates that we've seen in 2025 versus 2024 and going into 2026. Got it. You wanna add to that from a product-. Yeah, I think we're asking kind of what's changing. CCaaS customers, great customers of ours, love to serve them. There's a lot of great innovation as they are bringing AI into their platforms. The opportunity is for the enterprise that wants to go best of breed. Mm-hmm. It says, we wanna do something that is not within the capabilities of that current CCaaS platform, and it wants to bring in a highly verticalized application here that wants to train their people differently, that wants to do things differently, and that is the opportunity that we're enabling with our Maestro platform, being able to bring in many of these voice agents at the same time to create really differentiated B2C communications experiences for the enterprise. Why is it that you can do this better than the others? Who are the customers choosing between? Is it more like they're working homegrown solutions? Who are the competitors in RFPs? Tell us a little bit about that differentiation. In the fourth quarter, we announced four new large enterprise voice customers. One was a top 10 bank in the U.S., another a household name in insurance that you would recognize immediately. All four were winaways from Verizon, AT&T, Lumen, and represent the differentiation we offer with the Maestro software platform. If you're going to do agentic call flows, or in one case, if you have a Cisco environment, but you need Google's AI solution, Maestro lets you orchestrate and send a call first to the AI sentiment analysis engine simultaneously to the called party. That capability, Verizon has nothing like. Mm-hmm. AT&T doesn't have an orchestration layer for any of these kinds of call flows, and Lumen as well. In all four of these cases, they illustrate the primary competitive dynamic we see and how we win. That orchestration layer, that software platform on top of the global network. Mm-hmm ... is what wins the enterprise and I think that the next generation of voice from these enterprises will largely include voice agents. Interesting. David, maybe switch gears a little bit. Interesting business model. You know, you know, investors have always kinda looked at software versus hardware, but you kinda have a good mix and maybe now that's playing to more of the strength given your, you know, owned and operated network. Talk to us a little bit about what's the most misunderstood aspect of Bandwidth business model right now for the investors? Yeah. Historically it was, you really have a software platform, you're just the network. It's forget about the software platform, let's talk about the network. Mm-hmm. Wait a minute, you don't have SaaS seats, you have usage. What, what the heck is usage? How do you predict that? Sure. For 32 straight quarters we've met or exceeded guidance. Mm-hmm. Predictability is something we've got a good handle on. We have an outstanding cloud communication software platform. For some reason, it is rather challenging to understand that we have a vertically integrated voice solution that includes the ability to engage with voice orchestration through software, but control the delivery, quality, reliability, latency of the voice call on the network. Mm-hmm. That's a unique model. Yeah. Just staying with the voice, you obviously had great year. You just reported your Q4 full year results. We're seeing the growth accelerate. You're delivering on the margins. Talk to us a little bit about like what have been the key drivers, and you obviously gave great guidance going forward, good mix of growth and profitability. Tell us like what gives you the confidence, like how are things changing? One of our segments, Enterprise, is growing at 21%, and we've seen voice accelerate from 3% in 2024 to 8% in 2025 for global voice plans, and it exited the 2025 fourth quarter at 12%. Mm-hmm. That voice tailwind comes from the agentic voice moment that we're in. We have installed customers that are beginning to finally scale beta and alpha and early R&D projects in voice agents, and that is manifesting in the voice growth rate. Messaging is growing at the rate of the market. We're happy with that. Mm-hmm. What we're most excited about is in the past we have been cyclical around political messaging in one year versus the next, and what we see going forward is double-digit cloud comms growth paired with 20% EBITDA %. Mm-hmm. That excites us to be a consistent grower in the future. Got it. Staying with that a little bit, which is a key theme in our conference right now, just given what we're seeing, the SaaS disruption, if you will, and, you know, the ability to just wide code what software can do. Maybe, John, a question for you. How do you think about that in your space? You know, as you think about your defensibility around it, is there anything that could disrupt your, you know, the orchestration layer, the Maestro? Can somebody use an LLM and put a tool on top? Or how do you think about that? Yeah. I don't think of it in a defensive way. Sure. What's really important to us is our global communications network. Everybody talks. You'll see great demos, and people talk about the functionality that can be built. Mm-hmm. To really deploy it at scale in enterprise, it needs to be fast, so low latency. Mm-hmm. Right? Your voice AI experience has to be low latency. It needs to be high quality, which means you need to control the media. It needs to scale, it needs to be resilient and redundant. Mm-hmm. It needs to be cost-effective. You cannot do that if you're operating a software layer that sits on some legacy telco's network. Sure. It just doesn't work. You have no control, you can't deliver the latency. It just won't work. That's really what we enable. It's more than just the functionality, it's actually the performance. Will it work at scale reliably for an enterprise? That's what our platform enables. We continue to expand our coverage, so we can provide that experience that just works and always works. Mm-hmm ... for our customers. Great. Talk to us a little bit about just the roadmap, let's just call it next 12 to 18 months, both on the product side and also as you think of geos, how are you thinking of the rollout? You mentioned 65 countries. Maybe we start with the product first, then talk to us a little bit about the geos after. Yeah. Obviously voice AI is really important to us as we look at the tech stack and where we believe we fit in the tech stack. We'll continue to do investments there. We're excited about supporting agents. We're excited about opportunities for our own agents we can bring as well. There's an area that's really important. Our Voice API, we continue to grow. We find that there are a lot of new entrants coming into the market, not just enterprises, but platforms. We continue to expand our Voice API and its capabilities. A lot of traditional customers want to work with SIP. That's great. You wanna work with Voice API, that's great. You wanna come with WebRTC, great. We continue to expand there as well. We have a very flexible platform that lets our customers choose the technology they wanna work with. Mm-hmm. We continue to take a very open approach. We are 100% open. We will bring our own services. We'll also make sure our platform works for the best of breed services that our customers wanna bring as well. Mm. In terms of jurisdictions, we have large current customers that are pulling us into new countries. Mm. That's been really important in places like Brazil because it underwrites the nominal CapEx to get there, but in a way that we have a return on that investment within a reasonable period of time. That's exciting for us to expand into certain key jurisdictions, and we'll continue to do that. That's within our guidance for 2026. Got it. David, how should we think about when you think of an international market owned and operated versus partnership? Like, how do you think about the network when you go to a country like Brazil or... Yeah. We have what we call our network is the universal platform. Mm. That's a consistent set of hardware and interconnects in a regulatorily compliant manner. Within Brazil, you end up only one hop in terms of proximity from the core of the network, and that's vital for low latency and reliability, the codec flexibility that we have by managing our own hardware in country. This is very different than just reselling somebody by commercial agreement in Brazil. Mm-hmm. It gives you the visibility into the performance of the network and its conduct, and you can have, you can have failover and resiliency, but it takes time. You're also legally in front of the regulator in a way that's appropriate so that you can provide service. In our case, when we say PSTN service, that's inbound calls, outbound calls, a phone number, and emergency service. The 911 equivalent in that country. That's very important to an enterprise customer for us, folks like Microsoft or Google or Amazon. We have large internet hyperscalers we serve as well as large global 3,000s. When we open up a new country, it's a real investment in time and money, and that's really what drove our acquisition back in 2020 of a company that had spent 15 years building out around the world in this fashion. That was vital for us to expand our footprint to serve global enterprise. Sure. Sure. Just thinking through, you mentioned how, what role do you play with Sierra of the world, Decagon of the world. Talk to us a little bit about, like, how do you see your pricing, your business model evolve as you start supporting, let's just call it like the next gen of CCaaS platforms that are coming out? You will build your voice agent at ElevenLabs or at Sierra. In a local environment, you will tailor it and guardrail it and make it observable and be very excited about how empathetic and intelligent with the right context it appears. The moment you take it out into the wild and deploy it globally on a phone network, if that network partner does not have a high quality, ultra low latency network, the voice agent will start to annoy you to death. Okay. That voice agent, however, has an enormous number of things going on in the background. The media of the call from the voice agent to you needs to also simultaneously be routed to a sentiment analysis engine, a fraud engine, a speech-to-text engine, a transcription service. Each one of those legs of that call for us is one minute of usage. What used to be one minute at $0.002 per call is now $0.10 per call. Mm ... because we're doing five things simultaneously. It's not just that we think the next billion users of the PSTN globally are voice agents. Each call is a multiple revenue opportunity for us because we are very expertly handling the media and the signaling to not just the called party, but every aspect of the voice agent stack that needs to be invoked. By the way, your time budget to round trip the inference and reasoning stack is like 300 milliseconds. That's also your communications budget before you hang up. Mm-hmm. if you're at 600 total milliseconds, you're gonna abandon the call. Right. Suddenly our very traditional, incredible voice infrastructure is now suddenly extremely important at a very competitive dimension of latency. Interesting. Are you seeing those use cases as you've seen some of the recent RFPs? Like, what are you seeing? We're seeing hospitality partners like Wyndham. Mm-hmm take to market a voice agent for the concierge desk that does precisely what I just described in routing a call to a voice agent that's also doing transcription, sentiment, and other things simultaneously at great effectiveness. Is it fair to say that David Morken's view is even if call center reps go down because of the voice agents, the volume is actually going up, which is a driver for the business? Do you know the number of voice agents in the contact center that are going to exist? It's infinite. Mm-hmm. It's as many as are needed, spun up in real time, 24/7, as empathetic as Dr. Oz and as smart as a Nobel laureate, aware of your entire consumer context. You will demand to talk not to a representative, but you'll be talking to a representative, and you'll be saying, "AI agent, AI agent," on the voice tree. Interesting. Okay. Let's switch gears to messaging for a second. You published the State of Messaging Report back in January. We've always heard about RCS, but it seems like SMS still sort of owns majority. Tell us a little bit about, like, what you're seeing and what's gonna be the impact on your business model going forward. Yeah. RCS is exciting. I think what you're seeing now is it's still the early days of people understanding how to use it. Mm-hmm. People look at it and say, "Oh, I could make my existing... Transaction look a little better. Well, it costs more, and they do the ROI, and it might not be worth it. I think what we're excited to see is people starting to realize that you can do more with RCS. Like, it can do more mobile, maybe mobile advertising lead into commerce, whereas a lot of text messaging is super transactional. It was a one-way information message. It's really getting in the hands of the right people. We're investing in helping people develop content for it because you didn't have to really develop content for a text message or a picture message before. Mm-hmm. With RCS, it's actually much richer. It's actually challenging our customers to do more for it. There are many different ROI opportunities they have with different use cases, and that's the excitement. It's brand new, so it takes a while for people- Yeah to realize what they can do with it. John, just staying with that, like, one of the things that we're hearing is commerce itself. Let's just talk about commerce for a second. Commerce itself is going through an evolution with AI. You're seeing new protocols. OpenAI and Stripe came out with ACP, and then Shopify and Google do UCP. The idea is that the front end would be some chat-based prompt. You find something, and you can make the transaction happen there. Alternatively, in the past, you could do some of that on your SMS, and there was messaging, and you'd get paid from your merchants. What are your thoughts on that? Like, do you think the volume and the transaction can move there away from SMS? Are you seeing anything or- I mean, it's still we're both going to say yes. Also from apps as well, right? Because so much of this was locked up in apps in the past, and there's a lot of friction using an app as well. So there's a lot of opportunity as the interface becomes more natural. Mm-hmm. Like the way you do things in a brick-and-mortar store with your voice talking to somebody. Mm-hmm. There's a lot of opportunity for communications and commerce to remove a lot of this friction that's existed in the past. You still get to be the backbone of. Like, I'm just trying to picture where Bandwidth gets advantage of this change, or is it a disadvantage? Like, how should we think about that? I think of it as we are operationalizing AI and AI-driven communications. Across all of the channels, making sure it's consistent and persistent conversation between the consumer and the business, that's the value of the CPaaS platform of the future. David, you know, again, just a question on, like, disruption, and this is my last one on that one. Talk to us a little bit about the moat. The customers that you have, you know, we've heard from some of the other software players talk about integration and, you know, the compliance risk that you would have. Talk to us more about as you think of next 12, 18, 24 months, your retention numbers were amazing in the last quarter. You know, as we think of the next 24 months, like, what drives that retention even higher? What keeps Bandwidth the platform of choice? yeah, Net Revenue Retention of 107%, and that goes up with the use cases in voice that are expanding and that AI voice tailwind that we're talking about. The competitive dynamic or the moat regarding how we continue. I should say we have basically zero logo churn. Mm-hmm ... our customers, once they're with us, stay with us forever. Yep. The usage that they have with us will continue to grow, depending upon those use cases. The moat that we enjoy, even though John doesn't wanna talk about it as a defensive thing, is really important because it would take an enormous amount of new capital and an enormous amount of patience because you open up each of these country jurisdictions and even the 50-state Public Utility Commission processes for a CLEC, you move at the speed of government. Mm-hmm. That means eons. It's a glacial pace. It took 15 years to get to the 65-plus countries we have today. Many of these countries aren't talking to new entrants anymore. I don't think it's anything that we will see, nor have we seen a new entrant in over 10 years. Mm-hmm. In terms of the defensibility, again, there's a lot of regulatory compliance. There's much international work that has to be done domestically. There are, as I said, 50 jurisdictions. You have to be all over TCPA and the robocalling rules and be vigilant as heck about gatekeeping the right actors, and there's a lot of vigilance involved. All this to yield us as a single partner for our existing customers to come to market. In some cases, like the hyperscalers I mentioned, we're serving 30 different products for them. Mm-hmm ... today that they bring to market. That's exciting for us. I'll just back up for a minute, Vineet, and touch on texting. The last, you know, decade plus, certainly since the iPhone in 2007, has been dominated by texting. I think the payload and content potential of the voice channel in this AI moment is going to really be fundamental in shifting many, many behaviors from text to voice- Mm-hmm ... and even, UI to AI because of voice, and that's exciting for us. Most of our revenue, most of our business, we've specialized in voice for a very long time. That's exciting. Great. One question I wanted to ask is, imagine we're here next year. Let's fast-forward 12 months. It's been a year in a row, so it's not too hard to imagine. Yes. I'm sitting here. Tell us what do you think we'll be talking about? Everything is about AI right now. You're at the front row. You're seeing this whole communication landscape sort of go through these big changes. What, what do you think happens? Who's doing what? Give us a picture. I'm This and $5 will buy you a cup of coffee at Starbucks. we've As I look back six months to where we are now, just seeing the pace, I'm very much a true believer in the value and extraordinary the incredible impact of these foundational models. When tuned appropriately, they change lives and they change work. It's an amazing moment. I was registered the first Bandwidth website in 1994, so saw the web. Mobile, we did an MVNO we spun out of Bandwidth and sold to DISH, so saw mobile. This is unlike anything we've seen. If I answer your question directly, one year hence, I think we look back and are amazed, absolutely amazed at how much benefit and redemptive power there is in this technology. Hmm. I'm totally excited and jazzed, but I couldn't tell you specifically anything other than I hope we are the network of choice for the next 1 billion users of the PSTN. That's the right answer. John, you wanna add to that? Yeah. I think a year from now we will have some very concrete examples of voice AI driving mission-critical properties for name brand enterprises. It will not be abstract anymore. Mm-hmm. It will be real, and it'll become clear to everybody how the actual tech stack actually has to look to enable true mission-critical applications, and that's what we're excited about. Yeah, being in that tech stack. Okay. Just a couple more questions now on just the financials. You guys have been great steward of capital. You recently bought back some converts that was due in 2028. You are guiding to double-digit growth. You had record year-end profitability. Help us understand, like, what are your priorities from a capital structure perspective? How do you plan on deploying capital, think about growth, and mix of profitability? Very excited about the repurchase of the converts. Mm-hmm. going from having $600 million of debt to now $150, that's it. Mm-hmm. Very much in control of our own destiny when you look at our EBITDA and free cash flow and what we're projecting in 2026 and growing EBITDA 30%. Even with the stock buyback, which is meant to mitigate dilution and the repurchase of the debt, we're also investing a record amount in R&D. Yeah. -while we're doing that. We've wonderfully achieved the kind of free cash flow generation that affords us the opportunity to both be stewards of capital, be responsible to our equity investors, but also to put more money to work in creative ways than we ever have before. All three things are in play simultaneously, and I'm very grateful to our CFO, Daryl Raiford, who has pioneered the debt repurchase and saved us $80 million in doing so. There should be a bronze in our lobby of Daryl. And it's exciting to have the discipline of operating responsibly at this moment when there's so much opportunity to create new. Okay. Organic, inorganic, how do you think about M&A going forward? Organic. Organic? Yeah. Yeah. You've had great results with, like, 1+ million customers. You talked about you're not gonna slow down on R&D. Tell us more, like. Yeah. OpEx side. We did more enterprise $1 million+ deals in 2025 than we did in 2023 and 2024 combined. We're gonna do even more in 2026. The pipeline is larger now than it was in 2025. Mm-hmm. That's exciting. The deal cycle, because we've expanded the channel, is shorter than it's ever been. Those are both really favorable for the 26 guide, which is 16% growth top line. Yep. Really healthy EBITDA %. Again, hat tip to Daryl for making sure that we have a capital strategy that's robust. John's product roadmap, I think, is terrific for the sales team, and they're excited about it. Perfect. I love how you have maintained and, you know, cultivated this culture at Bandwidth. I'd love to hear your thoughts on, like, how are you getting your employees, you know, not just giving them comfort, getting them excited in the world of AI when you see Block just let go 40% of their workforce. Talk to us a little bit about that. We made a declaration during COVID that we would be five days a week in person, and we lost, you know, 20% of the team immediately. We're still five days a week in person, but we made a different declaration right now in this moment of AI, which was, "We're gonna give you every tool you need across all the major models," this was a year ago, "to embrace, use every day, and we're gonna make a commitment to you will not lose your job because of AI. You may be learning something new, doing a new job, but it will not replace you." That was a firm declaration we made in confidence, and I think that it's proved to be really effective in getting adoption and creativity without fear, which is hard to do in a moment like this. I think that we'll make good on that. I don't see any issue with that, and I'm excited about repetitive, uncreative work going away. Mm-hmm. I'm fired up about it, but it does take a leap of faith to be able to make that kind of commitment to your team. That's amazing. Let me take one minute now, see if there are any questions in the audience. I think we got one here. I think there's, like, some very good tailwinds with AI for your business, right? Like, 24/7 support centers, like, multiple streams in Maestro. I have a concern around voice minutes. You know, if I call my bank right now, I'm waiting 15, 20 minutes, and you guys are getting paid for it. If I call an agent, it's picking it up, you know, immediately, and it's getting it resolved in two, three minutes. Can the voice minutes are pressured. How do you handle for it? Like, do you think it's a headwind for you? I don't, because abandonment in the 20-minute queue is acute. There's no abandonment if you can answer every call immediately. You end up net positive in the total number of calls and the call durations. The conversations are incredibly effective, and so the callback rate becomes higher. All of us in this room loathe having to call, and that's changing because these voice agents know who you are, what you talked to them about last time, every detail of your account, and indeed actually interpret if you're hangry based upon the last time they talked to you, or if you might have a cold based upon how nasal you might sound. That kind of intensity in their interpretation from the voice signals you're giving them allows them to have a very wonderful dialogue with you, driving overall engagement from text and chat and app to voice. I'd also add to that the idea of the long hold times, we've supported a lot of our customers in doing the callbacks, right? You've probably seen it many times where agent won't be available for some minutes, type in your phone number, you do it, hang up, you get a text back later. I think a lot of that has been worked. There's been opportunities for enterprises to already improve that today. Yeah. Great. Any other questions? Nope. Great. Well, David, thank you so much. Thank you. John, thanks for taking the time. Yeah. Thank you all. Thank you.

Speaker 3: We good? All right. Good afternoon. I'm Vineet Chhangani. I'm a Managing Director of Morgan Stanley's investment banking. Just for important disclosures, please see Morgan Stanley's research disclosure website. If you have any questions, please reach out to your Morgan Stanley sales rep. Okay, great. Thank you for joining us today. We're here with David Morken, Co-Founder CEO of Bandwidth, and John Bell, Chief Product Officer. David, John, welcome to the conference. We good? we good All right. all right Good afternoon. good afternoon I'm Vineet Chhangani. i'm vineet chhangani I'm a Managing Director of Morgan Stanley's investment banking. i'm a managing director of morgan stanley's investment banking Just for important disclosures, please see Morgan Stanley's research disclosure website. just for important disclosures please see morgan stanley's research disclosure website If you have any questions, please reach out to your Morgan Stanley sales rep. if you have any questions please reach out to your morgan stanley sales rep Okay, great. okay great Thank you for joining us today. thank you for joining us today We're here with David Morken, Co-Founder CEO of Bandwidth, and John Bell, Chief Product Officer. we're here with david morken co-founder ceo of bandwidth and john bell chief product officer David, John, welcome to the conference. david john welcome to the conference

Speaker 1: Thank you, Vineet. Thank you, Vineet. thank you vineet

Speaker 2: Thank you. Thank you. thank you

Speaker 3: How's the conference been so far? How's the conference been so far? how's the conference been so far

Speaker 1: Outstanding. Outstanding. outstanding

Speaker 3: Great. why don't we just start, you know, let's just go for the audience who are not familiar with this story. David, I'd love to, have you talk a little bit about what is Bandwidth all about. Talk to us a little bit about the platform, the trajectory, a little bit of the history. Great. why don't we just start, you know, let's just go for the audience who are not familiar with this story. great why don't we just start you know let's just go for the audience who are not familiar with this story David, I'd love to, have you talk a little bit about what is Bandwidth all about. david i'd love to have you talk a little bit about what is bandwidth all about Talk to us a little bit about the platform, the trajectory, a little bit of the history. talk to us a little bit about the platform the trajectory a little bit of the history

Speaker 1: Happy to, and have to start with I have henna on my hands. I'm not Mike Tyson wanting to have, like, a permanent tattoo. About 70 hours ago, I was in New Delhi when we decided to attack Iran, but I'm happy to be here today. I'm on fumes, Vineet, please be gentle. Origin story for us, founded in 1999 and began selling internet connectivity back then, but then in 2007, with Google as an anchor tenant, built out a nationwide network. We like to call ourselves the last CLEC ever built, but in all 50 states we were able to offer voice services, and then from that beginning, expanded through acquisition to now serve 65 countries with a global voice network and software platform on top of it. Happy to, and have to start with I have henna on my hands. happy to and have to start with i have henna on my hands I'm not Mike Tyson wanting to have, like, a permanent tattoo. i'm not mike tyson wanting to have like a permanent tattoo About 70 hours ago, I was in New Delhi when we decided to attack Iran, but I'm happy to be here today. about 70 hours ago i was in new delhi when we decided to attack iran but i'm happy to be here today I'm on fumes, Vineet, please be gentle. i'm on fumes vineet please be gentle Origin story for us, founded in 1999 and began selling internet connectivity back then, but then in 2007, with Google as an anchor tenant, built out a nationwide network. origin story for us founded in 1999 and began selling internet connectivity back then but then in 2007 with google as an anchor tenant built out a nationwide network We like to call ourselves the last CLEC ever built, but in all 50 states we were able to offer voice services, and then from that beginning, expanded through acquisition to now serve 65 countries with a global voice network and software platform on top of it. we like to call ourselves the last clec ever built but in all 50 states we were able to offer voice services and then from that beginning expanded through acquisition to now serve 65 countries with a global voice network and software platform on top of it We do cloud communications for enterprise customers, including all 12 of the Gartner Magic Quadrant leaders in conferencing, CCaaS, UCaaS, and then many enterprise customers. Based in Raleigh, North Carolina, and went public in 2017 because of the outstanding leadership of a certain individual at Morgan Stanley who's doing this interview. We do cloud communications for enterprise customers, including all 12 of the Gartner Magic Quadrant leaders in conferencing, CCaaS, UCaaS, and then many enterprise customers. we do cloud communications for enterprise customers including all 12 of the gartner magic quadrant leaders in conferencing ccaas ucaas and then many enterprise customers Based in Raleigh, North Carolina, and went public in 2017 because of the outstanding leadership of a certain individual at Morgan Stanley who's doing this interview. based in raleigh north carolina and went public in 2017 because of the outstanding leadership of a certain individual at morgan stanley who's doing this interview

Speaker 3: Thank you. John, maybe one question for you. You've been with the company 14 years now. You've seen the evolution of technology. Talk to us a little bit about oftentimes people hear CPaaS, CCaaS, UCaaS. Where does Bandwidth sit, and what makes Bandwidth different than some of the other players in the space? Thank you. thank you John, maybe one question for you. john maybe one question for you You've been with the company 14 years now. you've been with the company 14 years now You've seen the evolution of technology. you've seen the evolution of technology Talk to us a little bit about oftentimes people hear CPaaS, CCaaS, UCaaS. talk to us a little bit about oftentimes people hear cpaas ccaas ucaas Where does Bandwidth sit, and what makes Bandwidth different than some of the other players in the space? where does bandwidth sit and what makes bandwidth different than some of the other players in the space

Speaker 2: Yeah, it's great question. The moment we're at right now, there's a lot of things changing. If you hear CPaaS is enabling platform, a lot of people will think it's text messaging, and that's where a lot of the industry's been. We've been off in a different area. We've been very focused on the voice side of CPaaS and enabling the CCaaS providers, contact centers, the service, the UCaaS providers, contact center apps, when they go to market to SMBs, large enterprises and bundle telecom in, customers that way. We've also been selling directly to large enterprises. What's interesting about this moment now is everything used to be separate. There was digital channels, and they did one thing on their own, and there were voice channels that did things with human beings on the other side. That is changing. Yeah, it's great question. yeah it's great question The moment we're at right now, there's a lot of things changing. the moment we're at right now there's a lot of things changing If you hear CPaaS is enabling platform, a lot of people will think it's text messaging, and that's where a lot of the industry's been. if you hear cpaas is enabling platform a lot of people will think it's text messaging and that's where a lot of the industry's been We've been off in a different area. we've been off in a different area We've been very focused on the voice side of CPaaS and enabling the CCaaS providers, contact centers, the service, the UCaaS providers, contact center apps, when they go to market to SMBs, large enterprises and bundle telecom in, customers that way. we've been very focused on the voice side of cpaas and enabling the ccaas providers contact centers the service the ucaas providers contact center apps when they go to market to smbs large enterprises and bundle telecom in customers that way We've also been selling directly to large enterprises. we've also been selling directly to large enterprises What's interesting about this moment now is everything used to be separate. what's interesting about this moment now is everything used to be separate There was digital channels, and they did one thing on their own, and there were voice channels that did things with human beings on the other side. there was digital channels and they did one thing on their own and there were voice channels that did things with human beings on the other side That is changing. that is changing Voice is becoming a digital channel and being tightly woven in with other digital channels. It's a very exciting time for us as voice AI is changing and really becoming front and center in what we see happening, and clearly in the core of decisions we see enterprises making now as they choose their infrastructure. Voice is becoming a digital channel and being tightly woven in with other digital channels. voice is becoming a digital channel and being tightly woven in with other digital channels It's a very exciting time for us as voice AI is changing and really becoming front and center in what we see happening, and clearly in the core of decisions we see enterprises making now as they choose their infrastructure. it's a very exciting time for us as voice ai is changing and really becoming front and center in what we see happening and clearly in the core of decisions we see enterprises making now as they choose their infrastructure

Speaker 3: Mm-hmm. We should call out you cater to large scale enterprise customers. You have Maestro cloud communication platform that sits on top of your owned and operated network. Talk to us a little bit about, like, we're in a very interesting time right now. Investors have seen the CX, the CCaaS bucket, if you will, get disrupted or pressure on their stocks and valuations, but it feels like you're sitting in a very interesting spot that's powering them. Talk to us a little bit about, like, how's that strategically differentiated? What does that mean for you? Maybe, David, you start, and I'd love some product insight on it. Mm-hmm. mm-hmm We should call out you cater to large scale enterprise customers. we should call out you cater to large scale enterprise customers You have Maestro cloud communication platform that sits on top of your owned and operated network. you have maestro cloud communication platform that sits on top of your owned and operated network Talk to us a little bit about, like, we're in a very interesting time right now. talk to us a little bit about like we're in a very interesting time right now Investors have seen the CX, the CCaaS bucket, if you will, get disrupted or pressure on their stocks and valuations, but it feels like you're sitting in a very interesting spot that's powering them. investors have seen the cx the ccaas bucket if you will get disrupted or pressure on their stocks and valuations but it feels like you're sitting in a very interesting spot that's powering them Talk to us a little bit about, like, how's that strategically differentiated? talk to us a little bit about like how's that strategically differentiated What does that mean for you? what does that mean for you Maybe, David, you start, and I'd love some product insight on it. maybe david you start and i'd love some product insight on it

Speaker 1: Our view is the next 1 billion users of the PSTN globally are AI voice agents. Our view is the next 1 billion users of the PSTN globally are AI voice agents. our view is the next 1 billion users of the pstn globally are ai voice agents

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: They may be performing the function that is currently fulfilled in a contact center. They may be fulfilling the function of a knowledge worker. None of them need a mobile phone. All of them originate and receive their calls from the cloud. All of them need a global network to be able to communicate. What we have and our vision is to be the network and platform of choice where you can orchestrate an AI voice agent that you built with ElevenLabs, or you built it with Sierra, or you built it with Vapi or somebody else, but you need to bring it to life around the world for whatever its mission is, and we want you to be able to bring that voice agent experience through the Maestro platform and our global network to life. They may be performing the function that is currently fulfilled in a contact center. they may be performing the function that is currently fulfilled in a contact center They may be fulfilling the function of a knowledge worker. they may be fulfilling the function of a knowledge worker None of them need a mobile phone. none of them need a mobile phone All of them originate and receive their calls from the cloud. all of them originate and receive their calls from the cloud All of them need a global network to be able to communicate. all of them need a global network to be able to communicate What we have and our vision is to be the network and platform of choice where you can orchestrate an AI voice agent that you built with ElevenLabs, or you built it with Sierra, or you built it with Vapi or somebody else, but you need to bring it to life around the world for whatever its mission is, and we want you to be able to bring that voice agent experience through the Maestro platform and our global network to life. what we have and our vision is to be the network and platform of choice where you can orchestrate an ai voice agent that you built with elevenlabs or you built it with sierra or you built it with vapi or somebody else but you need to bring it to life around the world for whatever its mission is and we want you to be able to bring that voice agent experience through the maestro platform and our global network to life You have to have ultra-low latency, high fidelity, resiliency and reach. We have 65 countries where we're full PSTN replacement, and we own and operate our network. That is ideal for this next wave of voice, and we're already starting to see that in the voice growth rates that we've seen in 2025 versus 2024 and going into 2026. You have to have ultra-low latency, high fidelity, resiliency and reach. you have to have ultra-low latency high fidelity resiliency and reach We have 65 countries where we're full PSTN replacement, and we own and operate our network. we have 65 countries where we're full pstn replacement and we own and operate our network That is ideal for this next wave of voice, and we're already starting to see that in the voice growth rates that we've seen in 2025 versus 2024 and going into 2026. that is ideal for this next wave of voice and we're already starting to see that in the voice growth rates that we've seen in 2025 versus 2024 and going into 2026

Speaker 3: Got it. Got it. got it

Speaker 1: You wanna add to that from a product-. You wanna add to that from a product-. you wanna add to that from a product-

Speaker 2: Yeah, I think we're asking kind of what's changing. CCaaS customers, great customers of ours, love to serve them. There's a lot of great innovation as they are bringing AI into their platforms. The opportunity is for the enterprise that wants to go best of breed. Yeah, I think we're asking kind of what's changing. yeah i think we're asking kind of what's changing CCaaS customers, great customers of ours, love to serve them. ccaas customers great customers of ours love to serve them There's a lot of great innovation as they are bringing AI into their platforms. there's a lot of great innovation as they are bringing ai into their platforms The opportunity is for the enterprise that wants to go best of breed. the opportunity is for the enterprise that wants to go best of breed

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: It says, we wanna do something that is not within the capabilities of that current CCaaS platform, and it wants to bring in a highly verticalized application here that wants to train their people differently, that wants to do things differently, and that is the opportunity that we're enabling with our Maestro platform, being able to bring in many of these voice agents at the same time to create really differentiated B2C communications experiences for the enterprise. It says, we wanna do something that is not within the capabilities of that current CCaaS platform, and it wants to bring in a highly verticalized application here that wants to train their people differently, that wants to do things differently, and that is the opportunity that we're enabling with our Maestro platform, being able to bring in many of these voice agents at the same time to create really differentiated B2C communications experiences for the enterprise. it says we wanna do something that is not within the capabilities of that current ccaas platform and it wants to bring in a highly verticalized application here that wants to train their people differently that wants to do things differently and that is the opportunity that we're enabling with our maestro platform being able to bring in many of these voice agents at the same time to create really differentiated b2c communications experiences for the enterprise

Speaker 3: Why is it that you can do this better than the others? Who are the customers choosing between? Is it more like they're working homegrown solutions? Who are the competitors in RFPs? Tell us a little bit about that differentiation. Why is it that you can do this better than the others? why is it that you can do this better than the others Who are the customers choosing between? who are the customers choosing between Is it more like they're working homegrown solutions? is it more like they're working homegrown solutions Who are the competitors in RFPs? Tell us a little bit about that differentiation. who are the competitors in rfps? tell us a little bit about that differentiation

Speaker 1: In the fourth quarter, we announced four new large enterprise voice customers. One was a top 10 bank in the U.S., another a household name in insurance that you would recognize immediately. All four were winaways from Verizon, AT&T, Lumen, and represent the differentiation we offer with the Maestro software platform. If you're going to do agentic call flows, or in one case, if you have a Cisco environment, but you need Google's AI solution, Maestro lets you orchestrate and send a call first to the AI sentiment analysis engine simultaneously to the called party. That capability, Verizon has nothing like. In the fourth quarter, we announced four new large enterprise voice customers. in the fourth quarter we announced four new large enterprise voice customers One was a top 10 bank in the U.S., another a household name in insurance that you would recognize immediately. one was a top 10 bank in the u.s another a household name in insurance that you would recognize immediately All four were winaways from Verizon, AT&T, Lumen, and represent the differentiation we offer with the Maestro software platform. all four were winaways from verizon at&t lumen and represent the differentiation we offer with the maestro software platform If you're going to do agentic call flows, or in one case, if you have a Cisco environment, but you need Google's AI solution, Maestro lets you orchestrate and send a call first to the AI sentiment analysis engine simultaneously to the called party. if you're going to do agentic call flows or in one case if you have a cisco environment but you need google's ai solution maestro lets you orchestrate and send a call first to the ai sentiment analysis engine simultaneously to the called party That capability, Verizon has nothing like. that capability verizon has nothing like

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: AT&T doesn't have an orchestration layer for any of these kinds of call flows, and Lumen as well. In all four of these cases, they illustrate the primary competitive dynamic we see and how we win. That orchestration layer, that software platform on top of the global network. AT&T doesn't have an orchestration layer for any of these kinds of call flows, and Lumen as well. at&t doesn't have an orchestration layer for any of these kinds of call flows and lumen as well In all four of these cases, they illustrate the primary competitive dynamic we see and how we win. in all four of these cases they illustrate the primary competitive dynamic we see and how we win That orchestration layer, that software platform on top of the global network. that orchestration layer that software platform on top of the global network

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 1: ... is what wins the enterprise and I think that the next generation of voice from these enterprises will largely include voice agents. ... is what wins the enterprise and I think that the next generation of voice from these enterprises will largely include voice agents. is what wins the enterprise and i think that the next generation of voice from these enterprises will largely include voice agents

Speaker 3: Interesting. David, maybe switch gears a little bit. Interesting business model. You know, you know, investors have always kinda looked at software versus hardware, but you kinda have a good mix and maybe now that's playing to more of the strength given your, you know, owned and operated network. Talk to us a little bit about what's the most misunderstood aspect of Bandwidth business model right now for the investors? Interesting. interesting David, maybe switch gears a little bit. david maybe switch gears a little bit Interesting business model. interesting business model You know, you know, investors have always kinda looked at software versus hardware, but you kinda have a good mix and maybe now that's playing to more of the strength given your, you know, owned and operated network. you know you know investors have always kinda looked at software versus hardware but you kinda have a good mix and maybe now that's playing to more of the strength given your you know owned and operated network Talk to us a little bit about what's the most misunderstood aspect of Bandwidth business model right now for the investors? talk to us a little bit about what's the most misunderstood aspect of bandwidth business model right now for the investors

Speaker 1: Yeah. Historically it was, you really have a software platform, you're just the network. It's forget about the software platform, let's talk about the network. Yeah. yeah Historically it was, you really have a software platform, you're just the network. historically it was you really have a software platform you're just the network It's forget about the software platform, let's talk about the network. it's forget about the software platform let's talk about the network

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: Wait a minute, you don't have SaaS seats, you have usage. What, what the heck is usage? How do you predict that? Wait a minute, you don't have SaaS seats, you have usage. wait a minute you don't have saas seats you have usage What, what the heck is usage? what what the heck is usage How do you predict that? how do you predict that

Speaker 3: Sure. Sure. sure

Speaker 1: For 32 straight quarters we've met or exceeded guidance. For 32 straight quarters we've met or exceeded guidance. for 32 straight quarters we've met or exceeded guidance

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: Predictability is something we've got a good handle on. We have an outstanding cloud communication software platform. For some reason, it is rather challenging to understand that we have a vertically integrated voice solution that includes the ability to engage with voice orchestration through software, but control the delivery, quality, reliability, latency of the voice call on the network. Predictability is something we've got a good handle on. predictability is something we've got a good handle on We have an outstanding cloud communication software platform. we have an outstanding cloud communication software platform For some reason, it is rather challenging to understand that we have a vertically integrated voice solution that includes the ability to engage with voice orchestration through software, but control the delivery, quality, reliability, latency of the voice call on the network. for some reason it is rather challenging to understand that we have a vertically integrated voice solution that includes the ability to engage with voice orchestration through software but control the delivery quality reliability latency of the voice call on the network

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: That's a unique model. That's a unique model. that's a unique model

Speaker 3: Yeah. Just staying with the voice, you obviously had great year. You just reported your Q4 full year results. We're seeing the growth accelerate. You're delivering on the margins. Talk to us a little bit about like what have been the key drivers, and you obviously gave great guidance going forward, good mix of growth and profitability. Tell us like what gives you the confidence, like how are things changing? Yeah. yeah Just staying with the voice, you obviously had great year. just staying with the voice you obviously had great year You just reported your Q4 full year results. you just reported your q4 full year results We're seeing the growth accelerate. we're seeing the growth accelerate You're delivering on the margins. you're delivering on the margins Talk to us a little bit about like what have been the key drivers, and you obviously gave great guidance going forward, good mix of growth and profitability. talk to us a little bit about like what have been the key drivers and you obviously gave great guidance going forward good mix of growth and profitability Tell us like what gives you the confidence, like how are things changing? tell us like what gives you the confidence like how are things changing

Speaker 1: One of our segments, Enterprise, is growing at 21%, and we've seen voice accelerate from 3% in 2024 to 8% in 2025 for global voice plans, and it exited the 2025 fourth quarter at 12%. One of our segments, Enterprise, is growing at 21%, and we've seen voice accelerate from 3% in 2024 to 8% in 2025 for global voice plans, and it exited the 2025 fourth quarter at 12%. one of our segments enterprise is growing at 21% and we've seen voice accelerate from 3% in 2024 to 8% in 2025 for global voice plans and it exited the 2025 fourth quarter at 12%

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: That voice tailwind comes from the agentic voice moment that we're in. We have installed customers that are beginning to finally scale beta and alpha and early R&D projects in voice agents, and that is manifesting in the voice growth rate. Messaging is growing at the rate of the market. We're happy with that. That voice tailwind comes from the agentic voice moment that we're in. that voice tailwind comes from the agentic voice moment that we're in We have installed customers that are beginning to finally scale beta and alpha and early R&D projects in voice agents, and that is manifesting in the voice growth rate. we have installed customers that are beginning to finally scale beta and alpha and early r&d projects in voice agents and that is manifesting in the voice growth rate Messaging is growing at the rate of the market. messaging is growing at the rate of the market We're happy with that. we're happy with that

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: What we're most excited about is in the past we have been cyclical around political messaging in one year versus the next, and what we see going forward is double-digit cloud comms growth paired with 20% EBITDA %. What we're most excited about is in the past we have been cyclical around political messaging in one year versus the next, and what we see going forward is double-digit cloud comms growth paired with 20% EBITDA %. what we're most excited about is in the past we have been cyclical around political messaging in one year versus the next and what we see going forward is double-digit cloud comms growth paired with 20% ebitda %

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: That excites us to be a consistent grower in the future. That excites us to be a consistent grower in the future. that excites us to be a consistent grower in the future

Speaker 3: Got it. Staying with that a little bit, which is a key theme in our conference right now, just given what we're seeing, the SaaS disruption, if you will, and, you know, the ability to just wide code what software can do. Maybe, John, a question for you. How do you think about that in your space? You know, as you think about your defensibility around it, is there anything that could disrupt your, you know, the orchestration layer, the Maestro? Can somebody use an LLM and put a tool on top? Or how do you think about that? Got it. got it Staying with that a little bit, which is a key theme in our conference right now, just given what we're seeing, the SaaS disruption, if you will, and, you know, the ability to just wide code what software can do. staying with that a little bit which is a key theme in our conference right now just given what we're seeing the saas disruption if you will and you know the ability to just wide code what software can do Maybe, John, a question for you. maybe john a question for you How do you think about that in your space? how do you think about that in your space You know, as you think about your defensibility around it, is there anything that could disrupt your, you know, the orchestration layer, the Maestro? you know as you think about your defensibility around it is there anything that could disrupt your you know the orchestration layer the maestro Can somebody use an LLM and put a tool on top? can somebody use an llm and put a tool on top Or how do you think about that? or how do you think about that

Speaker 2: Yeah. I don't think of it in a defensive way. Yeah. yeah I don't think of it in a defensive way. i don't think of it in a defensive way

Speaker 3: Sure. Sure. sure

Speaker 2: What's really important to us is our global communications network. Everybody talks. You'll see great demos, and people talk about the functionality that can be built. What's really important to us is our global communications network. what's really important to us is our global communications network Everybody talks. everybody talks You'll see great demos, and people talk about the functionality that can be built. you'll see great demos and people talk about the functionality that can be built

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: To really deploy it at scale in enterprise, it needs to be fast, so low latency. To really deploy it at scale in enterprise, it needs to be fast, so low latency. to really deploy it at scale in enterprise it needs to be fast so low latency

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: Right? Your voice AI experience has to be low latency. It needs to be high quality, which means you need to control the media. It needs to scale, it needs to be resilient and redundant. Right? right Your voice AI experience has to be low latency. your voice ai experience has to be low latency It needs to be high quality, which means you need to control the media. it needs to be high quality which means you need to control the media It needs to scale, it needs to be resilient and redundant. it needs to scale it needs to be resilient and redundant

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: It needs to be cost-effective. You cannot do that if you're operating a software layer that sits on some legacy telco's network. It needs to be cost-effective. it needs to be cost-effective You cannot do that if you're operating a software layer that sits on some legacy telco's network. you cannot do that if you're operating a software layer that sits on some legacy telco's network

Speaker 3: Sure. Sure. sure

Speaker 2: It just doesn't work. You have no control, you can't deliver the latency. It just won't work. That's really what we enable. It's more than just the functionality, it's actually the performance. Will it work at scale reliably for an enterprise? That's what our platform enables. We continue to expand our coverage, so we can provide that experience that just works and always works. It just doesn't work. it just doesn't work You have no control, you can't deliver the latency. you have no control you can't deliver the latency It just won't work. it just won't work That's really what we enable. that's really what we enable It's more than just the functionality, it's actually the performance. it's more than just the functionality it's actually the performance Will it work at scale reliably for an enterprise? will it work at scale reliably for an enterprise That's what our platform enables. that's what our platform enables We continue to expand our coverage, so we can provide that experience that just works and always works. we continue to expand our coverage so we can provide that experience that just works and always works

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 2: ... for our customers. ... for our customers. for our customers

Speaker 3: Great. Talk to us a little bit about just the roadmap, let's just call it next 12 to 18 months, both on the product side and also as you think of geos, how are you thinking of the rollout? You mentioned 65 countries. Maybe we start with the product first, then talk to us a little bit about the geos after. Great. great Talk to us a little bit about just the roadmap, let's just call it next 12 to 18 months, both on the product side and also as you think of geos, how are you thinking of the rollout? talk to us a little bit about just the roadmap let's just call it next 12 to 18 months both on the product side and also as you think of geos how are you thinking of the rollout You mentioned 65 countries. you mentioned 65 countries Maybe we start with the product first, then talk to us a little bit about the geos after. maybe we start with the product first then talk to us a little bit about the geos after

Speaker 2: Yeah. Obviously voice AI is really important to us as we look at the tech stack and where we believe we fit in the tech stack. We'll continue to do investments there. We're excited about supporting agents. We're excited about opportunities for our own agents we can bring as well. There's an area that's really important. Our Voice API, we continue to grow. We find that there are a lot of new entrants coming into the market, not just enterprises, but platforms. We continue to expand our Voice API and its capabilities. A lot of traditional customers want to work with SIP. That's great. You wanna work with Voice API, that's great. You wanna come with WebRTC, great. We continue to expand there as well. Yeah. yeah Obviously voice AI is really important to us as we look at the tech stack and where we believe we fit in the tech stack. obviously voice ai is really important to us as we look at the tech stack and where we believe we fit in the tech stack We'll continue to do investments there. we'll continue to do investments there We're excited about supporting agents. we're excited about supporting agents We're excited about opportunities for our own agents we can bring as well. we're excited about opportunities for our own agents we can bring as well There's an area that's really important. there's an area that's really important Our Voice API, we continue to grow. our voice api we continue to grow We find that there are a lot of new entrants coming into the market, not just enterprises, but platforms. we find that there are a lot of new entrants coming into the market not just enterprises but platforms We continue to expand our Voice API and its capabilities. we continue to expand our voice api and its capabilities A lot of traditional customers want to work with SIP. That's great. a lot of traditional customers want to work with sip. that's great You wanna work with Voice API, that's great. you wanna work with voice api that's great You wanna come with WebRTC, great. you wanna come with webrtc great We continue to expand there as well. we continue to expand there as well We have a very flexible platform that lets our customers choose the technology they wanna work with. We have a very flexible platform that lets our customers choose the technology they wanna work with. we have a very flexible platform that lets our customers choose the technology they wanna work with

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: We continue to take a very open approach. We are 100% open. We will bring our own services. We'll also make sure our platform works for the best of breed services that our customers wanna bring as well. We continue to take a very open approach. we continue to take a very open approach We are 100% open. we are 100% open We will bring our own services. we will bring our own services We'll also make sure our platform works for the best of breed services that our customers wanna bring as well. we'll also make sure our platform works for the best of breed services that our customers wanna bring as well

Speaker 3: Mm. Mm. mm

Speaker 1: In terms of jurisdictions, we have large current customers that are pulling us into new countries. In terms of jurisdictions, we have large current customers that are pulling us into new countries. in terms of jurisdictions we have large current customers that are pulling us into new countries

Speaker 3: Mm. Mm. mm

Speaker 1: That's been really important in places like Brazil because it underwrites the nominal CapEx to get there, but in a way that we have a return on that investment within a reasonable period of time. That's exciting for us to expand into certain key jurisdictions, and we'll continue to do that. That's within our guidance for 2026. That's been really important in places like Brazil because it underwrites the nominal CapEx to get there, but in a way that we have a return on that investment within a reasonable period of time. that's been really important in places like brazil because it underwrites the nominal capex to get there but in a way that we have a return on that investment within a reasonable period of time That's exciting for us to expand into certain key jurisdictions, and we'll continue to do that. that's exciting for us to expand into certain key jurisdictions and we'll continue to do that That's within our guidance for 2026. that's within our guidance for 2026

Speaker 3: Got it. David, how should we think about when you think of an international market owned and operated versus partnership? Like, how do you think about the network when you go to a country like Brazil or... Got it. got it David, how should we think about when you think of an international market owned and operated versus partnership? david how should we think about when you think of an international market owned and operated versus partnership Like, how do you think about the network when you go to a country like Brazil or... like how do you think about the network when you go to a country like brazil or

Speaker 1: Yeah. We have what we call our network is the universal platform. Yeah. yeah We have what we call our network is the universal platform. we have what we call our network is the universal platform

Speaker 3: Mm. Mm. mm

Speaker 1: That's a consistent set of hardware and interconnects in a regulatorily compliant manner. Within Brazil, you end up only one hop in terms of proximity from the core of the network, and that's vital for low latency and reliability, the codec flexibility that we have by managing our own hardware in country. This is very different than just reselling somebody by commercial agreement in Brazil. That's a consistent set of hardware and interconnects in a regulatorily compliant manner. that's a consistent set of hardware and interconnects in a regulatorily compliant manner Within Brazil, you end up only one hop in terms of proximity from the core of the network, and that's vital for low latency and reliability, the codec flexibility that we have by managing our own hardware in country. within brazil you end up only one hop in terms of proximity from the core of the network and that's vital for low latency and reliability the codec flexibility that we have by managing our own hardware in country This is very different than just reselling somebody by commercial agreement in Brazil. this is very different than just reselling somebody by commercial agreement in brazil

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: It gives you the visibility into the performance of the network and its conduct, and you can have, you can have failover and resiliency, but it takes time. You're also legally in front of the regulator in a way that's appropriate so that you can provide service. In our case, when we say PSTN service, that's inbound calls, outbound calls, a phone number, and emergency service. The 911 equivalent in that country. That's very important to an enterprise customer for us, folks like Microsoft or Google or Amazon. We have large internet hyperscalers we serve as well as large global 3,000s. It gives you the visibility into the performance of the network and its conduct, and you can have, you can have failover and resiliency, but it takes time. it gives you the visibility into the performance of the network and its conduct and you can have you can have failover and resiliency but it takes time You're also legally in front of the regulator in a way that's appropriate so that you can provide service. you're also legally in front of the regulator in a way that's appropriate so that you can provide service In our case, when we say PSTN service, that's inbound calls, outbound calls, a phone number, and emergency service. in our case when we say pstn service that's inbound calls outbound calls a phone number and emergency service The 911 equivalent in that country. the 911 equivalent in that country That's very important to an enterprise customer for us, folks like Microsoft or Google or Amazon. that's very important to an enterprise customer for us folks like microsoft or google or amazon We have large internet hyperscalers we serve as well as large global 3,000s. we have large internet hyperscalers we serve as well as large global 3,000s When we open up a new country, it's a real investment in time and money, and that's really what drove our acquisition back in 2020 of a company that had spent 15 years building out around the world in this fashion. That was vital for us to expand our footprint to serve global enterprise. When we open up a new country, it's a real investment in time and money, and that's really what drove our acquisition back in 2020 of a company that had spent 15 years building out around the world in this fashion. when we open up a new country it's a real investment in time and money and that's really what drove our acquisition back in 2020 of a company that had spent 15 years building out around the world in this fashion That was vital for us to expand our footprint to serve global enterprise. that was vital for us to expand our footprint to serve global enterprise

Speaker 3: Sure. Sure. Just thinking through, you mentioned how, what role do you play with Sierra of the world, Decagon of the world. Talk to us a little bit about, like, how do you see your pricing, your business model evolve as you start supporting, let's just call it like the next gen of CCaaS platforms that are coming out? Sure. sure Sure. sure Just thinking through, you mentioned how, what role do you play with Sierra of the world, Decagon of the world. just thinking through you mentioned how what role do you play with sierra of the world decagon of the world Talk to us a little bit about, like, how do you see your pricing, your business model evolve as you start supporting, let's just call it like the next gen of CCaaS platforms that are coming out? talk to us a little bit about like how do you see your pricing your business model evolve as you start supporting let's just call it like the next gen of ccaas platforms that are coming out

Speaker 1: You will build your voice agent at ElevenLabs or at Sierra. In a local environment, you will tailor it and guardrail it and make it observable and be very excited about how empathetic and intelligent with the right context it appears. The moment you take it out into the wild and deploy it globally on a phone network, if that network partner does not have a high quality, ultra low latency network, the voice agent will start to annoy you to death. You will build your voice agent at ElevenLabs or at Sierra. you will build your voice agent at elevenlabs or at sierra In a local environment, you will tailor it and guardrail it and make it observable and be very excited about how empathetic and intelligent with the right context it appears. in a local environment you will tailor it and guardrail it and make it observable and be very excited about how empathetic and intelligent with the right context it appears The moment you take it out into the wild and deploy it globally on a phone network, if that network partner does not have a high quality, ultra low latency network, the voice agent will start to annoy you to death. the moment you take it out into the wild and deploy it globally on a phone network if that network partner does not have a high quality ultra low latency network the voice agent will start to annoy you to death

Speaker 3: Okay. Okay. okay

Speaker 1: That voice agent, however, has an enormous number of things going on in the background. The media of the call from the voice agent to you needs to also simultaneously be routed to a sentiment analysis engine, a fraud engine, a speech-to-text engine, a transcription service. Each one of those legs of that call for us is one minute of usage. What used to be one minute at $0.002 per call is now $0.10 per call. That voice agent, however, has an enormous number of things going on in the background. that voice agent however has an enormous number of things going on in the background The media of the call from the voice agent to you needs to also simultaneously be routed to a sentiment analysis engine, a fraud engine, a speech-to-text engine, a transcription service. the media of the call from the voice agent to you needs to also simultaneously be routed to a sentiment analysis engine a fraud engine a speech-to-text engine a transcription service Each one of those legs of that call for us is one minute of usage. each one of those legs of that call for us is one minute of usage What used to be one minute at $0.002 per call is now $0.10 per call. what used to be one minute at $0.002 per call is now $0.10 per call

Speaker 3: Mm Mm mm

Speaker 1: ... because we're doing five things simultaneously. It's not just that we think the next billion users of the PSTN globally are voice agents. Each call is a multiple revenue opportunity for us because we are very expertly handling the media and the signaling to not just the called party, but every aspect of the voice agent stack that needs to be invoked. By the way, your time budget to round trip the inference and reasoning stack is like 300 milliseconds. That's also your communications budget before you hang up. ... because we're doing five things simultaneously. because we're doing five things simultaneously It's not just that we think the next billion users of the PSTN globally are voice agents. it's not just that we think the next billion users of the pstn globally are voice agents Each call is a multiple revenue opportunity for us because we are very expertly handling the media and the signaling to not just the called party, but every aspect of the voice agent stack that needs to be invoked. each call is a multiple revenue opportunity for us because we are very expertly handling the media and the signaling to not just the called party but every aspect of the voice agent stack that needs to be invoked By the way, your time budget to round trip the inference and reasoning stack is like 300 milliseconds. by the way your time budget to round trip the inference and reasoning stack is like 300 milliseconds That's also your communications budget before you hang up. that's also your communications budget before you hang up

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: if you're at 600 total milliseconds, you're gonna abandon the call. if you're at 600 total milliseconds, you're gonna abandon the call. if you're at 600 total milliseconds you're gonna abandon the call

Speaker 3: Right. Right. right

Speaker 1: Suddenly our very traditional, incredible voice infrastructure is now suddenly extremely important at a very competitive dimension of latency. Suddenly our very traditional, incredible voice infrastructure is now suddenly extremely important at a very competitive dimension of latency. suddenly our very traditional incredible voice infrastructure is now suddenly extremely important at a very competitive dimension of latency

Speaker 3: Interesting. Are you seeing those use cases as you've seen some of the recent RFPs? Like, what are you seeing? Interesting. interesting Are you seeing those use cases as you've seen some of the recent RFPs? are you seeing those use cases as you've seen some of the recent rfps Like, what are you seeing? like what are you seeing

Speaker 1: We're seeing hospitality partners like Wyndham. We're seeing hospitality partners like Wyndham. we're seeing hospitality partners like wyndham

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 1: take to market a voice agent for the concierge desk that does precisely what I just described in routing a call to a voice agent that's also doing transcription, sentiment, and other things simultaneously at great effectiveness. take to market a voice agent for the concierge desk that does precisely what I just described in routing a call to a voice agent that's also doing transcription, sentiment, and other things simultaneously at great effectiveness. take to market a voice agent for the concierge desk that does precisely what i just described in routing a call to a voice agent that's also doing transcription sentiment and other things simultaneously at great effectiveness

Speaker 3: Is it fair to say that David Morken's view is even if call center reps go down because of the voice agents, the volume is actually going up, which is a driver for the business? Is it fair to say that David Morken's view is even if call center reps go down because of the voice agents, the volume is actually going up, which is a driver for the business? is it fair to say that david morken's view is even if call center reps go down because of the voice agents the volume is actually going up which is a driver for the business

Speaker 1: Do you know the number of voice agents in the contact center that are going to exist? It's infinite. Do you know the number of voice agents in the contact center that are going to exist? do you know the number of voice agents in the contact center that are going to exist It's infinite. it's infinite

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: It's as many as are needed, spun up in real time, 24/7, as empathetic as Dr. Oz and as smart as a Nobel laureate, aware of your entire consumer context. You will demand to talk not to a representative, but you'll be talking to a representative, and you'll be saying, "AI agent, AI agent," on the voice tree. It's as many as are needed, spun up in real time, 24/7, as empathetic as Dr. Oz and as smart as a Nobel laureate, aware of your entire consumer context. it's as many as are needed spun up in real time 24/7 as empathetic as dr oz and as smart as a nobel laureate aware of your entire consumer context You will demand to talk not to a representative, but you'll be talking to a representative, and you'll be saying, "AI agent, AI agent," on the voice tree. you will demand to talk not to a representative but you'll be talking to a representative and you'll be saying "ai agent ai agent," on the voice tree

Speaker 3: Interesting. Okay. Let's switch gears to messaging for a second. You published the State of Messaging Report back in January. We've always heard about RCS, but it seems like SMS still sort of owns majority. Tell us a little bit about, like, what you're seeing and what's gonna be the impact on your business model going forward. Interesting. interesting Okay. okay Let's switch gears to messaging for a second. let's switch gears to messaging for a second You published the State of Messaging Report back in January. you published the state of messaging report back in january We've always heard about RCS, but it seems like SMS still sort of owns majority. we've always heard about rcs but it seems like sms still sort of owns majority Tell us a little bit about, like, what you're seeing and what's gonna be the impact on your business model going forward. tell us a little bit about like what you're seeing and what's gonna be the impact on your business model going forward

Speaker 2: Yeah. RCS is exciting. I think what you're seeing now is it's still the early days of people understanding how to use it. Yeah. yeah RCS is exciting. rcs is exciting I think what you're seeing now is it's still the early days of people understanding how to use it. i think what you're seeing now is it's still the early days of people understanding how to use it

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: People look at it and say, "Oh, I could make my existing... People look at it and say, "Oh, I could make my existing... people look at it and say "oh i could make my existing Transaction look a little better. Well, it costs more, and they do the ROI, and it might not be worth it. I think what we're excited to see is people starting to realize that you can do more with RCS. Like, it can do more mobile, maybe mobile advertising lead into commerce, whereas a lot of text messaging is super transactional. It was a one-way information message. It's really getting in the hands of the right people. We're investing in helping people develop content for it because you didn't have to really develop content for a text message or a picture message before. Transaction look a little better. transaction look a little better Well, it costs more, and they do the ROI, and it might not be worth it. well it costs more and they do the roi and it might not be worth it I think what we're excited to see is people starting to realize that you can do more with RCS. i think what we're excited to see is people starting to realize that you can do more with rcs Like, it can do more mobile, maybe mobile advertising lead into commerce, whereas a lot of text messaging is super transactional. like it can do more mobile maybe mobile advertising lead into commerce whereas a lot of text messaging is super transactional It was a one-way information message. it was a one-way information message It's really getting in the hands of the right people. it's really getting in the hands of the right people We're investing in helping people develop content for it because you didn't have to really develop content for a text message or a picture message before. we're investing in helping people develop content for it because you didn't have to really develop content for a text message or a picture message before

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: With RCS, it's actually much richer. It's actually challenging our customers to do more for it. There are many different ROI opportunities they have with different use cases, and that's the excitement. It's brand new, so it takes a while for people- With RCS, it's actually much richer. with rcs it's actually much richer It's actually challenging our customers to do more for it. it's actually challenging our customers to do more for it There are many different ROI opportunities they have with different use cases, and that's the excitement. there are many different roi opportunities they have with different use cases and that's the excitement It's brand new, so it takes a while for people- it's brand new so it takes a while for people-

Speaker 3: Yeah Yeah yeah

Speaker 2: to realize what they can do with it. to realize what they can do with it. to realize what they can do with it

Speaker 3: John, just staying with that, like, one of the things that we're hearing is commerce itself. Let's just talk about commerce for a second. Commerce itself is going through an evolution with AI. You're seeing new protocols. OpenAI and Stripe came out with ACP, and then Shopify and Google do UCP. The idea is that the front end would be some chat-based prompt. You find something, and you can make the transaction happen there. Alternatively, in the past, you could do some of that on your SMS, and there was messaging, and you'd get paid from your merchants. What are your thoughts on that? Like, do you think the volume and the transaction can move there away from SMS? Are you seeing anything or- John, just staying with that, like, one of the things that we're hearing is commerce itself. john just staying with that like one of the things that we're hearing is commerce itself Let's just talk about commerce for a second. let's just talk about commerce for a second Commerce itself is going through an evolution with AI. commerce itself is going through an evolution with ai You're seeing new protocols. you're seeing new protocols OpenAI and Stripe came out with ACP, and then Shopify and Google do UCP. openai and stripe came out with acp and then shopify and google do ucp The idea is that the front end would be some chat-based prompt. the idea is that the front end would be some chat-based prompt You find something, and you can make the transaction happen there. you find something and you can make the transaction happen there Alternatively, in the past, you could do some of that on your SMS, and there was messaging, and you'd get paid from your merchants. alternatively in the past you could do some of that on your sms and there was messaging and you'd get paid from your merchants What are your thoughts on that? what are your thoughts on that Like, do you think the volume and the transaction can move there away from SMS? like do you think the volume and the transaction can move there away from sms Are you seeing anything or- are you seeing anything or-

Speaker 2: I mean, it's still we're both going to say yes. Also from apps as well, right? Because so much of this was locked up in apps in the past, and there's a lot of friction using an app as well. So there's a lot of opportunity as the interface becomes more natural. I mean, it's still we're both going to say yes. i mean it's still we're both going to say yes Also from apps as well, right? also from apps as well right Because so much of this was locked up in apps in the past, and there's a lot of friction using an app as well. because so much of this was locked up in apps in the past and there's a lot of friction using an app as well So there's a lot of opportunity as the interface becomes more natural. so there's a lot of opportunity as the interface becomes more natural

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: Like the way you do things in a brick-and-mortar store with your voice talking to somebody. Like the way you do things in a brick-and-mortar store with your voice talking to somebody. like the way you do things in a brick-and-mortar store with your voice talking to somebody

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: There's a lot of opportunity for communications and commerce to remove a lot of this friction that's existed in the past. There's a lot of opportunity for communications and commerce to remove a lot of this friction that's existed in the past. there's a lot of opportunity for communications and commerce to remove a lot of this friction that's existed in the past

Speaker 3: You still get to be the backbone of. Like, I'm just trying to picture where Bandwidth gets advantage of this change, or is it a disadvantage? Like, how should we think about that? You still get to be the backbone of. you still get to be the backbone of Like, I'm just trying to picture where Bandwidth gets advantage of this change, or is it a disadvantage? like i'm just trying to picture where bandwidth gets advantage of this change or is it a disadvantage Like, how should we think about that? like how should we think about that

Speaker 2: I think of it as we are operationalizing AI and AI-driven communications. Across all of the channels, making sure it's consistent and persistent conversation between the consumer and the business, that's the value of the CPaaS platform of the future. I think of it as we are operationalizing AI and AI-driven communications. i think of it as we are operationalizing ai and ai-driven communications Across all of the channels, making sure it's consistent and persistent conversation between the consumer and the business, that's the value of the CPaaS platform of the future. across all of the channels making sure it's consistent and persistent conversation between the consumer and the business that's the value of the cpaas platform of the future

Speaker 3: David, you know, again, just a question on, like, disruption, and this is my last one on that one. Talk to us a little bit about the moat. The customers that you have, you know, we've heard from some of the other software players talk about integration and, you know, the compliance risk that you would have. Talk to us more about as you think of next 12, 18, 24 months, your retention numbers were amazing in the last quarter. You know, as we think of the next 24 months, like, what drives that retention even higher? What keeps Bandwidth the platform of choice? David, you know, again, just a question on, like, disruption, and this is my last one on that one. david you know again just a question on like disruption and this is my last one on that one Talk to us a little bit about the moat. talk to us a little bit about the moat The customers that you have, you know, we've heard from some of the other software players talk about integration and, you know, the compliance risk that you would have. the customers that you have you know we've heard from some of the other software players talk about integration and you know the compliance risk that you would have Talk to us more about as you think of next 12, 18, 24 months, your retention numbers were amazing in the last quarter. talk to us more about as you think of next 12 18 24 months your retention numbers were amazing in the last quarter You know, as we think of the next 24 months, like, what drives that retention even higher? you know as we think of the next 24 months like what drives that retention even higher What keeps Bandwidth the platform of choice? what keeps bandwidth the platform of choice

Speaker 1: yeah, Net Revenue Retention of 107%, and that goes up with the use cases in voice that are expanding and that AI voice tailwind that we're talking about. The competitive dynamic or the moat regarding how we continue. I should say we have basically zero logo churn. yeah, Net Revenue Retention of 107%, and that goes up with the use cases in voice that are expanding and that AI voice tailwind that we're talking about. yeah net revenue retention of 107% and that goes up with the use cases in voice that are expanding and that ai voice tailwind that we're talking about The competitive dynamic or the moat regarding how we continue. the competitive dynamic or the moat regarding how we continue I should say we have basically zero logo churn. i should say we have basically zero logo churn

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 1: ... our customers, once they're with us, stay with us forever. ... our customers, once they're with us, stay with us forever. our customers once they're with us stay with us forever

Speaker 3: Yep. Yep. yep

Speaker 1: The usage that they have with us will continue to grow, depending upon those use cases. The moat that we enjoy, even though John doesn't wanna talk about it as a defensive thing, is really important because it would take an enormous amount of new capital and an enormous amount of patience because you open up each of these country jurisdictions and even the 50-state Public Utility Commission processes for a CLEC, you move at the speed of government. The usage that they have with us will continue to grow, depending upon those use cases. the usage that they have with us will continue to grow depending upon those use cases The moat that we enjoy, even though John doesn't wanna talk about it as a defensive thing, is really important because it would take an enormous amount of new capital and an enormous amount of patience because you open up each of these country jurisdictions and even the 50-state Public Utility Commission processes for a CLEC, you move at the speed of government. the moat that we enjoy even though john doesn't wanna talk about it as a defensive thing is really important because it would take an enormous amount of new capital and an enormous amount of patience because you open up each of these country jurisdictions and even the 50-state public utility commission processes for a clec you move at the speed of government

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: That means eons. It's a glacial pace. It took 15 years to get to the 65-plus countries we have today. Many of these countries aren't talking to new entrants anymore. I don't think it's anything that we will see, nor have we seen a new entrant in over 10 years. That means eons. that means eons It's a glacial pace. it's a glacial pace It took 15 years to get to the 65-plus countries we have today. it took 15 years to get to the 65-plus countries we have today Many of these countries aren't talking to new entrants anymore. many of these countries aren't talking to new entrants anymore I don't think it's anything that we will see, nor have we seen a new entrant in over 10 years. i don't think it's anything that we will see nor have we seen a new entrant in over 10 years

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: In terms of the defensibility, again, there's a lot of regulatory compliance. There's much international work that has to be done domestically. There are, as I said, 50 jurisdictions. You have to be all over TCPA and the robocalling rules and be vigilant as heck about gatekeeping the right actors, and there's a lot of vigilance involved. All this to yield us as a single partner for our existing customers to come to market. In some cases, like the hyperscalers I mentioned, we're serving 30 different products for them. In terms of the defensibility, again, there's a lot of regulatory compliance. in terms of the defensibility again there's a lot of regulatory compliance There's much international work that has to be done domestically. there's much international work that has to be done domestically There are, as I said, 50 jurisdictions. there are as i said 50 jurisdictions You have to be all over TCPA and the robocalling rules and be vigilant as heck about gatekeeping the right actors, and there's a lot of vigilance involved. you have to be all over tcpa and the robocalling rules and be vigilant as heck about gatekeeping the right actors and there's a lot of vigilance involved All this to yield us as a single partner for our existing customers to come to market. all this to yield us as a single partner for our existing customers to come to market In some cases, like the hyperscalers I mentioned, we're serving 30 different products for them. in some cases like the hyperscalers i mentioned we're serving 30 different products for them

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 1: ... today that they bring to market. That's exciting for us. I'll just back up for a minute, Vineet, and touch on texting. The last, you know, decade plus, certainly since the iPhone in 2007, has been dominated by texting. I think the payload and content potential of the voice channel in this AI moment is going to really be fundamental in shifting many, many behaviors from text to voice- ... today that they bring to market. today that they bring to market That's exciting for us. that's exciting for us I'll just back up for a minute, Vineet, and touch on texting. i'll just back up for a minute vineet and touch on texting The last, you know, decade plus, certainly since the iPhone in 2007, has been dominated by texting. the last you know decade plus certainly since the iphone in 2007 has been dominated by texting I think the payload and content potential of the voice channel in this AI moment is going to really be fundamental in shifting many, many behaviors from text to voice- i think the payload and content potential of the voice channel in this ai moment is going to really be fundamental in shifting many many behaviors from text to voice-

Speaker 3: Mm-hmm Mm-hmm mm-hmm

Speaker 1: ... and even, UI to AI because of voice, and that's exciting for us. Most of our revenue, most of our business, we've specialized in voice for a very long time. That's exciting. ... and even, UI to AI because of voice, and that's exciting for us. and even ui to ai because of voice and that's exciting for us Most of our revenue, most of our business, we've specialized in voice for a very long time. most of our revenue most of our business we've specialized in voice for a very long time That's exciting. that's exciting

Speaker 3: Great. One question I wanted to ask is, imagine we're here next year. Let's fast-forward 12 months. Great. great One question I wanted to ask is, imagine we're here next year. one question i wanted to ask is imagine we're here next year Let's fast-forward 12 months. let's fast-forward 12 months

Speaker 1: It's been a year in a row, so it's not too hard to imagine. It's been a year in a row, so it's not too hard to imagine. it's been a year in a row so it's not too hard to imagine

Speaker 3: Yes. I'm sitting here. Tell us what do you think we'll be talking about? Everything is about AI right now. You're at the front row. You're seeing this whole communication landscape sort of go through these big changes. What, what do you think happens? Who's doing what? Give us a picture. Yes. yes I'm sitting here. i'm sitting here Tell us what do you think we'll be talking about? tell us what do you think we'll be talking about Everything is about AI right now. everything is about ai right now You're at the front row. you're at the front row You're seeing this whole communication landscape sort of go through these big changes. you're seeing this whole communication landscape sort of go through these big changes What, what do you think happens? what what do you think happens Who's doing what? who's doing what Give us a picture. give us a picture

Speaker 1: I'm This and $5 will buy you a cup of coffee at Starbucks. we've As I look back six months to where we are now, just seeing the pace, I'm very much a true believer in the value and extraordinary the incredible impact of these foundational models. When tuned appropriately, they change lives and they change work. It's an amazing moment. I was registered the first Bandwidth website in 1994, so saw the web. Mobile, we did an MVNO we spun out of Bandwidth and sold to DISH, so saw mobile. This is unlike anything we've seen. If I answer your question directly, one year hence, I think we look back and are amazed, absolutely amazed at how much benefit and redemptive power there is in this technology. I'm This and $5 will buy you a cup of coffee at Starbucks. we've As I look back six months to where we are now, just seeing the pace, I'm very much a true believer in the value and extraordinary the incredible impact of these foundational models. i'm this and $5 will buy you a cup of coffee at starbucks we've as i look back six months to where we are now just seeing the pace i'm very much a true believer in the value and extraordinary the incredible impact of these foundational models When tuned appropriately, they change lives and they change work. when tuned appropriately they change lives and they change work It's an amazing moment. it's an amazing moment I was registered the first Bandwidth website in 1994, so saw the web. i was registered the first bandwidth website in 1994 so saw the web Mobile, we did an MVNO we spun out of Bandwidth and sold to DISH, so saw mobile. mobile we did an mvno we spun out of bandwidth and sold to dish so saw mobile This is unlike anything we've seen. this is unlike anything we've seen If I answer your question directly, one year hence, I think we look back and are amazed, absolutely amazed at how much benefit and redemptive power there is in this technology. if i answer your question directly one year hence i think we look back and are amazed absolutely amazed at how much benefit and redemptive power there is in this technology

Speaker 3: Hmm. Hmm. hmm

Speaker 1: I'm totally excited and jazzed, but I couldn't tell you specifically anything other than I hope we are the network of choice for the next 1 billion users of the PSTN. I'm totally excited and jazzed, but I couldn't tell you specifically anything other than I hope we are the network of choice for the next 1 billion users of the PSTN. i'm totally excited and jazzed but i couldn't tell you specifically anything other than i hope we are the network of choice for the next 1 billion users of the pstn

Speaker 3: That's the right answer. John, you wanna add to that? That's the right answer. that's the right answer John, you wanna add to that? john you wanna add to that

Speaker 2: Yeah. I think a year from now we will have some very concrete examples of voice AI driving mission-critical properties for name brand enterprises. It will not be abstract anymore. Yeah. yeah I think a year from now we will have some very concrete examples of voice AI driving mission-critical properties for name brand enterprises. i think a year from now we will have some very concrete examples of voice ai driving mission-critical properties for name brand enterprises It will not be abstract anymore. it will not be abstract anymore

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: It will be real, and it'll become clear to everybody how the actual tech stack actually has to look to enable true mission-critical applications, and that's what we're excited about. It will be real, and it'll become clear to everybody how the actual tech stack actually has to look to enable true mission-critical applications, and that's what we're excited about. it will be real and it'll become clear to everybody how the actual tech stack actually has to look to enable true mission-critical applications and that's what we're excited about

Speaker 1: Yeah, being in that tech stack. Yeah, being in that tech stack. yeah being in that tech stack

Speaker 3: Okay. Just a couple more questions now on just the financials. You guys have been great steward of capital. You recently bought back some converts that was due in 2028. You are guiding to double-digit growth. You had record year-end profitability. Help us understand, like, what are your priorities from a capital structure perspective? How do you plan on deploying capital, think about growth, and mix of profitability? Okay. okay Just a couple more questions now on just the financials. just a couple more questions now on just the financials You guys have been great steward of capital. you guys have been great steward of capital You recently bought back some converts that was due in 2028. you recently bought back some converts that was due in 2028 You are guiding to double-digit growth. you are guiding to double-digit growth You had record year-end profitability. you had record year-end profitability Help us understand, like, what are your priorities from a capital structure perspective? help us understand like what are your priorities from a capital structure perspective How do you plan on deploying capital, think about growth, and mix of profitability? how do you plan on deploying capital think about growth and mix of profitability

Speaker 1: Very excited about the repurchase of the converts. Very excited about the repurchase of the converts. very excited about the repurchase of the converts

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: going from having $600 million of debt to now $150, that's it. going from having $600 million of debt to now $150, that's it. going from having $600 million of debt to now $150 that's it

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: Very much in control of our own destiny when you look at our EBITDA and free cash flow and what we're projecting in 2026 and growing EBITDA 30%. Even with the stock buyback, which is meant to mitigate dilution and the repurchase of the debt, we're also investing a record amount in R&D. Very much in control of our own destiny when you look at our EBITDA and free cash flow and what we're projecting in 2026 and growing EBITDA 30%. very much in control of our own destiny when you look at our ebitda and free cash flow and what we're projecting in 2026 and growing ebitda 30% Even with the stock buyback, which is meant to mitigate dilution and the repurchase of the debt, we're also investing a record amount in R&D. even with the stock buyback which is meant to mitigate dilution and the repurchase of the debt we're also investing a record amount in r&d

Speaker 3: Yeah. Yeah. yeah

Speaker 1: -while we're doing that. We've wonderfully achieved the kind of free cash flow generation that affords us the opportunity to both be stewards of capital, be responsible to our equity investors, but also to put more money to work in creative ways than we ever have before. All three things are in play simultaneously, and I'm very grateful to our CFO, Daryl Raiford, who has pioneered the debt repurchase and saved us $80 million in doing so. There should be a bronze in our lobby of Daryl. And it's exciting to have the discipline of operating responsibly at this moment when there's so much opportunity to create new. -while we're doing that. -while we're doing that We've wonderfully achieved the kind of free cash flow generation that affords us the opportunity to both be stewards of capital, be responsible to our equity investors, but also to put more money to work in creative ways than we ever have before. we've wonderfully achieved the kind of free cash flow generation that affords us the opportunity to both be stewards of capital be responsible to our equity investors but also to put more money to work in creative ways than we ever have before All three things are in play simultaneously, and I'm very grateful to our CFO, Daryl Raiford, who has pioneered the debt repurchase and saved us $80 million in doing so. all three things are in play simultaneously and i'm very grateful to our cfo daryl raiford who has pioneered the debt repurchase and saved us $80 million in doing so There should be a bronze in our lobby of Daryl. there should be a bronze in our lobby of daryl And it's exciting to have the discipline of operating responsibly at this moment when there's so much opportunity to create new. and it's exciting to have the discipline of operating responsibly at this moment when there's so much opportunity to create new

Speaker 3: Okay. Organic, inorganic, how do you think about M&A going forward? Okay. okay Organic, inorganic, how do you think about M&A going forward? organic inorganic how do you think about m&a going forward

Speaker 1: Organic. Organic. organic

Speaker 3: Organic? Organic? organic

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Yeah. You've had great results with, like, 1+ million customers. You talked about you're not gonna slow down on R&D. Tell us more, like. Yeah. yeah You've had great results with, like, 1+ million customers. you've had great results with like 1+ million customers You talked about you're not gonna slow down on R&D. you talked about you're not gonna slow down on r&d Tell us more, like. tell us more like

Speaker 1: Yeah. Yeah. yeah

Speaker 3: OpEx side. OpEx side. opex side

Speaker 1: We did more enterprise $1 million+ deals in 2025 than we did in 2023 and 2024 combined. We're gonna do even more in 2026. The pipeline is larger now than it was in 2025. We did more enterprise $1 million+ deals in 2025 than we did in 2023 and 2024 combined. we did more enterprise $1 million+ deals in 2025 than we did in 2023 and 2024 combined We're gonna do even more in 2026. we're gonna do even more in 2026 The pipeline is larger now than it was in 2025. the pipeline is larger now than it was in 2025

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: That's exciting. The deal cycle, because we've expanded the channel, is shorter than it's ever been. Those are both really favorable for the 26 guide, which is 16% growth top line. That's exciting. that's exciting The deal cycle, because we've expanded the channel, is shorter than it's ever been. the deal cycle because we've expanded the channel is shorter than it's ever been Those are both really favorable for the 26 guide, which is 16% growth top line. those are both really favorable for the 26 guide which is 16% growth top line

Speaker 3: Yep. Yep. yep

Speaker 1: Really healthy EBITDA %. Again, hat tip to Daryl for making sure that we have a capital strategy that's robust. John's product roadmap, I think, is terrific for the sales team, and they're excited about it. Really healthy EBITDA %. really healthy ebitda % Again, hat tip to Daryl for making sure that we have a capital strategy that's robust. again hat tip to daryl for making sure that we have a capital strategy that's robust John's product roadmap, I think, is terrific for the sales team, and they're excited about it. john's product roadmap i think is terrific for the sales team and they're excited about it

Speaker 3: Perfect. I love how you have maintained and, you know, cultivated this culture at Bandwidth. I'd love to hear your thoughts on, like, how are you getting your employees, you know, not just giving them comfort, getting them excited in the world of AI when you see Block just let go 40% of their workforce. Talk to us a little bit about that. Perfect. perfect I love how you have maintained and, you know, cultivated this culture at Bandwidth. i love how you have maintained and you know cultivated this culture at bandwidth I'd love to hear your thoughts on, like, how are you getting your employees, you know, not just giving them comfort, getting them excited in the world of AI when you see Block just let go 40% of their workforce. i'd love to hear your thoughts on like how are you getting your employees you know not just giving them comfort getting them excited in the world of ai when you see block just let go 40% of their workforce Talk to us a little bit about that. talk to us a little bit about that

Speaker 1: We made a declaration during COVID that we would be five days a week in person, and we lost, you know, 20% of the team immediately. We're still five days a week in person, but we made a different declaration right now in this moment of AI, which was, "We're gonna give you every tool you need across all the major models," this was a year ago, "to embrace, use every day, and we're gonna make a commitment to you will not lose your job because of AI. You may be learning something new, doing a new job, but it will not replace you." That was a firm declaration we made in confidence, and I think that it's proved to be really effective in getting adoption and creativity without fear, which is hard to do in a moment like this. We made a declaration during COVID that we would be five days a week in person, and we lost, you know, 20% of the team immediately. we made a declaration during covid that we would be five days a week in person and we lost you know 20% of the team immediately We're still five days a week in person, but we made a different declaration right now in this moment of AI, which was, "We're gonna give you every tool you need across all the major models," this was a year ago, "to embrace, use every day, and we're gonna make a commitment to you will not lose your job because of AI. we're still five days a week in person but we made a different declaration right now in this moment of ai which was "we're gonna give you every tool you need across all the major models," this was a year ago "to embrace use every day and we're gonna make a commitment to you will not lose your job because of ai You may be learning something new, doing a new job, but it will not replace you." That was a firm declaration we made in confidence, and I think that it's proved to be really effective in getting adoption and creativity without fear, which is hard to do in a moment like this. you may be learning something new doing a new job but it will not replace you." that was a firm declaration we made in confidence and i think that it's proved to be really effective in getting adoption and creativity without fear which is hard to do in a moment like this I think that we'll make good on that. I don't see any issue with that, and I'm excited about repetitive, uncreative work going away. I think that we'll make good on that. i think that we'll make good on that I don't see any issue with that, and I'm excited about repetitive, uncreative work going away. i don't see any issue with that and i'm excited about repetitive uncreative work going away

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: I'm fired up about it, but it does take a leap of faith to be able to make that kind of commitment to your team. I'm fired up about it, but it does take a leap of faith to be able to make that kind of commitment to your team. i'm fired up about it but it does take a leap of faith to be able to make that kind of commitment to your team

Speaker 3: That's amazing. Let me take one minute now, see if there are any questions in the audience. I think we got one here. That's amazing. that's amazing Let me take one minute now, see if there are any questions in the audience. let me take one minute now see if there are any questions in the audience I think we got one here. i think we got one here

Speaker 4: I think there's, like, some very good tailwinds with AI for your business, right? Like, 24/7 support centers, like, multiple streams in Maestro. I have a concern around voice minutes. You know, if I call my bank right now, I'm waiting 15, 20 minutes, and you guys are getting paid for it. If I call an agent, it's picking it up, you know, immediately, and it's getting it resolved in two, three minutes. Can the voice minutes are pressured. How do you handle for it? Like, do you think it's a headwind for you? I think there's, like, some very good tailwinds with AI for your business, right? i think there's like some very good tailwinds with ai for your business right Like, 24/7 support centers, like, multiple streams in Maestro. like 24/7 support centers like multiple streams in maestro I have a concern around voice minutes. i have a concern around voice minutes You know, if I call my bank right now, I'm waiting 15, 20 minutes, and you guys are getting paid for it. you know if i call my bank right now i'm waiting 15 20 minutes and you guys are getting paid for it If I call an agent, it's picking it up, you know, immediately, and it's getting it resolved in two, three minutes. if i call an agent it's picking it up you know immediately and it's getting it resolved in two three minutes Can the voice minutes are pressured. can the voice minutes are pressured How do you handle for it? how do you handle for it Like, do you think it's a headwind for you? like do you think it's a headwind for you

Speaker 1: I don't, because abandonment in the 20-minute queue is acute. There's no abandonment if you can answer every call immediately. You end up net positive in the total number of calls and the call durations. The conversations are incredibly effective, and so the callback rate becomes higher. All of us in this room loathe having to call, and that's changing because these voice agents know who you are, what you talked to them about last time, every detail of your account, and indeed actually interpret if you're hangry based upon the last time they talked to you, or if you might have a cold based upon how nasal you might sound. That kind of intensity in their interpretation from the voice signals you're giving them allows them to have a very wonderful dialogue with you, driving overall engagement from text and chat and app to voice. I don't, because abandonment in the 20-minute queue is acute. i don't because abandonment in the 20-minute queue is acute There's no abandonment if you can answer every call immediately. there's no abandonment if you can answer every call immediately You end up net positive in the total number of calls and the call durations. you end up net positive in the total number of calls and the call durations The conversations are incredibly effective, and so the callback rate becomes higher. the conversations are incredibly effective and so the callback rate becomes higher All of us in this room loathe having to call, and that's changing because these voice agents know who you are, what you talked to them about last time, every detail of your account, and indeed actually interpret if you're hangry based upon the last time they talked to you, or if you might have a cold based upon how nasal you might sound. all of us in this room loathe having to call and that's changing because these voice agents know who you are what you talked to them about last time every detail of your account and indeed actually interpret if you're hangry based upon the last time they talked to you or if you might have a cold based upon how nasal you might sound That kind of intensity in their interpretation from the voice signals you're giving them allows them to have a very wonderful dialogue with you, driving overall engagement from text and chat and app to voice. that kind of intensity in their interpretation from the voice signals you're giving them allows them to have a very wonderful dialogue with you driving overall engagement from text and chat and app to voice

Speaker 2: I'd also add to that the idea of the long hold times, we've supported a lot of our customers in doing the callbacks, right? You've probably seen it many times where agent won't be available for some minutes, type in your phone number, you do it, hang up, you get a text back later. I think a lot of that has been worked. There's been opportunities for enterprises to already improve that today. I'd also add to that the idea of the long hold times, we've supported a lot of our customers in doing the callbacks, right? i'd also add to that the idea of the long hold times we've supported a lot of our customers in doing the callbacks right You've probably seen it many times where agent won't be available for some minutes, type in your phone number, you do it, hang up, you get a text back later. you've probably seen it many times where agent won't be available for some minutes type in your phone number you do it hang up you get a text back later I think a lot of that has been worked. i think a lot of that has been worked There's been opportunities for enterprises to already improve that today. there's been opportunities for enterprises to already improve that today

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Great. Any other questions? Nope. Great. Well, David, thank you so much. Great. great Any other questions? any other questions Nope. nope Great. great Well, David, thank you so much. well david thank you so much

Speaker 1: Thank you. Thank you. thank you

Speaker 3: John, thanks for taking the time. John, thanks for taking the time. john thanks for taking the time

Speaker 2: Yeah. Yeah. yeah

Speaker 3: Thank you all. Thank you all. thank you all

Speaker 1: Thank you. Thank you. thank you