Technology
Bandwidth Announces Second Quarter 2024 Financial Results
Published
10 months agoon
By
Revenue of $174 million, up 19% year-over-year
Accelerating profitability, exceeding guidance
Expanding cash flow generation
RALEIGH, N.C., Aug. 1, 2024 /PRNewswire/ — Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced financial results for the second quarter ended June 30, 2024.
“We’re pleased to report a very strong first half, making significant progress toward our plan for 2024. In the second quarter, we delivered solid revenue growth while accelerating profitability and cash flow,” said David Morken, CEO of Bandwidth. “Our team’s disciplined approach, coupled with innovative solutions like Maestro and AI Bridge, is driving strong performance in a dynamic market. I am incredibly proud of our Bandmates’ execution and grateful for the trust our customers place in us. As we move forward, we remain focused on delivering exceptional value and transforming the communications landscape.”
Second Quarter 2024 Financial Highlights
The following table summarizes the condensed consolidated financial highlights for the three months ended June 30, 2024 and 2023 ($ in millions).
Three months ended
June 30,
2024
2023
Revenue
$ 174
$ 146
Gross Margin
37 %
40 %
Non-GAAP Gross Margin (1)
56 %
55 %
Adjusted EBITDA(1)
$ 19
$ 11
Free Cash Flow (1)
$ 18
$ (1)
(1) Additional information regarding the Non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of GAAP to Non-GAAP financial measures has also been provided in the financial tables included below.
“Bandwidth’s second quarter results underscore our commitment to sustainable, profitable growth. With total revenue reaching $174 million and Adjusted EBITDA up 77% from the prior year, we are performing well across all categories,” said Daryl Raiford, CFO of Bandwidth. “Our strategic investments and disciplined financial management have driven impressive free cash flow and operational efficiency. We are well-positioned to continue this momentum into the second half of the year, further enhancing our financial strength and growth trajectory.”
Second Quarter Customer and Operational Highlights
A nationwide provider of medical claims management selected Bandwidth as their exclusive provider for voice calling, valuing our exceptional customer support and the flexibility of our Maestro product to orchestrate and enhance functionality across their platform.A prominent provider of healthcare integrated supportive care solutions chose Bandwidth to power its cloud contact center. Our communications cloud reliability and the comprehensive protection offered by our Call Assure product resonated with the customer, ensuring redundancy and safeguarding mission critical communications.A trusted provider of business insurance switched to Bandwidth as their sole provider for voice calling. They valued our Advanced Call Routing solution, which offers robust resiliency and redundancy for their contact center traffic, along with our superior back-end reporting tools.A well-established customer and provider of communications management software significantly increased their messaging business with us. Our deep industry knowledge and outstanding customer service played pivotal roles in securing this additional business.
Financial Outlook
Bandwidth’s outlook is based on current indications for its business, which are subject to change. Bandwidth is providing guidance for its third quarter and full year 2024 as follows (in millions):
3Q 2024 Guidance
Full Year 2024 Guidance
Revenue
$180 – $184
$710 – $720
Adjusted EBITDA
$18 – $20
$72 – $76
Bandwidth has not reconciled its third quarter and full year 2024 guidance related to Adjusted EBITDA to GAAP net income or loss, because stock-based compensation cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.
Upcoming Investor Conference Schedule
Canaccord Genuity Growth Conference in Boston, MA. Presentation by Daryl Raiford, CFO on Wednesday, August 14th at 10:00AM Eastern Time.Piper Sandler Growth Frontiers Conference in Nashville, TN. Fireside chat with David Morken, CEO and Daryl Raiford, CFO on Tuesday, September 10th at 10:00AM Central Time.
About Bandwidth Inc.
Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 percent of global GDP, are trusted by all the leaders in unified communications and cloud contact centers–including Amazon Web Services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–as well as Global 2000 enterprises and SaaS builders like Docusign, Uber and Yosi Health. As a founder of the cloud communications revolution, we are the first and only global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, owner-operated network and broad regulatory experience. Our award-winning support teams help businesses around the world solve complex communications challenges to reach anyone, anywhere. For more information, visit www.bandwidth.com.
Conference Call
Bandwidth will host a conference call to discuss financial results for the second quarter ended June 30, 2024 on August 1, 2024. Details can be found below and on the investor section of its website at https://investors.bandwidth.com where a replay will also be available shortly following the call.
Conference Call Details
August 1, 2024
8:00 am ET
Domestic dial-in:
844-481-2707
International dial-in:
412-317-0663
Replay information
An audio replay of this conference call will be available through August 8, 2024, by dialing 877-344-7529 or 412-317-0088 for international callers, and entering passcode 9676778.
Forward-Looking Statements
This press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including, without limitation, future financial and business performance for the quarter ending September 30, 2024 and year ending December 31, 2024, the success of our product offerings and our platform, and the value proposition of our products, are forward-looking statements. The words “anticipate,” “assume,” “believe,” “continue,” “estimate,” “expect,” “intend,” “guide,” “may,” “will” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, risks related to our rapid growth and ability to sustain our revenue growth rate, competition in the markets in which we operate, market growth, our ability to innovate and manage our growth, our ability to expand effectively into new markets, macroeconomic conditions both in the U.S. and globally, legal, reputational and financial risks which may result from ever-evolving cybersecurity threats, our ability to operate in compliance with applicable laws, as well as other risks and uncertainties set forth in the “Risk Factors” section of our latest Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and any subsequent reports that we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no obligation to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States, or GAAP, we provide investors with certain Non-GAAP financial measures and other business metrics, which we believe are helpful to our investors. We use these Non-GAAP financial measures and other business metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these Non-GAAP financial measures and other business metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.
The presentation of Non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our Non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measure to evaluate our business.
We define Non-GAAP gross profit as gross profit after adding back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation. We add back depreciation, amortization of acquired intangible assets related to acquisitions and stock-based compensation because they are non-cash items. We eliminate the impact of these non-cash items, because we do not consider them indicative of our core operating performance. Their exclusion facilitates comparisons of our operating performance on a period-to-period basis. Therefore, we believe that showing gross margin, as adjusted to remove the impact of these non-cash expenses, is helpful to investors in assessing our gross profit and gross margin performance in a way that is similar to how management assesses our performance. We calculate Non-GAAP gross margin by dividing Non-GAAP gross profit by cloud communications revenue, which is revenue less pass-through messaging surcharges.
We define Non-GAAP net income (loss) as net income or loss adjusted for certain items affecting period to period comparability. Non-GAAP net income (loss) excludes stock-based compensation, amortization of acquired intangible assets related to acquisitions, amortization of debt discount and issuance costs for convertible debt, acquisition related expenses, impairment charges of intangibles assets, net cost associated with early lease terminations and leases without economic benefit, (gain) loss on sale of business, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, non-recurring items not indicative of ongoing operations and other, and estimated tax impact of above adjustments, net of valuation allowances.
We define Adjusted EBITDA as net income or losses from continuing operations, adjusted to reflect the addition or elimination of certain statement of operations items including, but not limited to: income tax (benefit) provision, interest (income) expense, net, depreciation and amortization expense, acquisition related expenses, stock-based compensation expense, impairment of intangible assets, (gain) loss on sale of business, net cost associated with early lease terminations and leases without economic benefit, net (gain) loss on extinguishment of debt, gain on business interruption insurance recoveries, and non-recurring items not indicative of ongoing operations and other. We have presented Adjusted EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business.
We define free cash flow as net cash provided by or used in operating activities less net cash used in the acquisition of property, plant and equipment and capitalized development costs for software for internal use. We believe free cash flow is a useful indicator of liquidity and provides information to management and investors about the amount of cash generated from our core operations that can be used for investing in our business. Free cash flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, it does not take into consideration investment in long-term securities, nor does it represent the residual cash flows available for discretionary expenditures. Therefore, it is important to evaluate free cash flow along with our condensed consolidated statements of cash flows.
We believe that these Non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making. While a reconciliation of Non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis as a result of the uncertainty regarding, and the potential variability of, many of these costs and expenses that we may incur in the future, we have provided a reconciliation of Non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release.
BANDWIDTH INC.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Revenue
$ 173,602
$ 145,874
$ 344,635
$ 283,718
Cost of revenue
108,773
86,919
214,322
169,110
Gross profit
64,829
58,955
130,313
114,608
Operating expenses
Research and development
28,132
24,852
57,044
50,513
Sales and marketing
26,066
25,754
55,205
50,783
General and administrative
16,705
15,868
34,554
32,587
Total operating expenses
70,903
66,474
146,803
133,883
Operating loss
(6,074)
(7,519)
(16,490)
(19,275)
Other income, net
9,798
3,782
10,781
16,021
Income (loss) before income taxes
3,724
(3,737)
(5,709)
(3,254)
Income tax benefit (provision)
331
(153)
531
2,975
Net income (loss)
$ 4,055
$ (3,890)
$ (5,178)
$ (279)
Net income (loss) per share:
Basic
$ 0.15
$ (0.15)
$ (0.19)
$ (0.01)
Diluted
$ (0.17)
$ (0.15)
$ (0.19)
$ (0.01)
Numerator used to compute net income (loss) per share:
Basic
$ 4,055
$ (3,890)
$ (5,178)
$ (279)
Diluted
$ (5,043)
$ (3,890)
$ (5,178)
$ (279)
Weighted average number of common shares outstanding:
Basic
27,079,333
25,555,219
26,786,568
25,502,131
Diluted
29,500,598
25,555,219
26,786,568
25,502,131
The Company recognized total stock-based compensation expense as follows:
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Cost of revenue
$ 375
$ 204
$ 771
$ 396
Research and development
4,684
3,315
10,000
6,456
Sales and marketing
2,105
1,428
4,270
2,665
General and administrative
4,196
3,058
8,658
5,866
Total
$ 11,360
$ 8,005
$ 23,699
$ 15,383
BANDWIDTH INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of June 30,
As of December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$ 62,044
$ 131,987
Marketable securities
14,399
21,488
Accounts receivable, net of allowance for doubtful accounts
85,576
78,155
Deferred costs
3,871
4,155
Prepaid expenses and other current assets
15,492
16,990
Total current assets
181,382
252,775
Property, plant and equipment, net
173,400
177,864
Operating right-of-use asset, net
155,484
157,507
Intangible assets, net
155,966
166,914
Deferred costs, non-current
4,800
4,586
Other long-term assets
4,851
5,530
Goodwill
326,220
335,872
Total assets
$ 1,002,103
$ 1,101,048
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$ 31,933
$ 34,208
Accrued expenses and other current liabilities
69,256
69,014
Current portion of deferred revenue
7,685
8,059
Advanced billings
4,111
6,027
Operating lease liability, current
3,478
5,463
Line of credit, current portion
40,000
—
Total current liabilities
156,463
122,771
Other liabilities
354
386
Operating lease liability, net of current portion
220,497
220,548
Deferred revenue, net of current portion
8,142
8,406
Deferred tax liability
28,540
33,021
Convertible senior notes
280,660
418,526
Total liabilities
694,656
803,658
Stockholders’ equity:
Class A and Class B common stock
27
26
Additional paid-in capital
418,503
391,048
Accumulated deficit
(70,068)
(64,890)
Accumulated other comprehensive loss
(41,015)
(28,794)
Total stockholders’ equity
307,447
297,390
Total liabilities and stockholders’ equity
$ 1,002,103
$ 1,101,048
BANDWIDTH INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six months ended June 30,
2024
2023
Cash flows from operating activities
Net loss
$ (5,178)
$ (279)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization
24,714
18,692
Non-cash reduction to the right-of-use asset
2,007
3,242
Amortization of debt discount and issuance costs
962
1,485
Stock-based compensation
23,699
15,383
Deferred taxes and other
(4,116)
(5,225)
Net gain on extinguishment of debt
(10,267)
(12,767)
Gain on business interruption insurance recoveries
—
(4,000)
Changes in operating assets and liabilities:
Accounts receivable, net of allowances
(7,642)
3,712
Prepaid expenses and other assets
1,886
(957)
Accounts payable
(1,112)
(6,171)
Accrued expenses and other liabilities
3,968
(12,464)
Operating right-of-use liability
(2,020)
(3,919)
Net cash provided by (used in) operating activities
26,901
(3,268)
Cash flows from investing activities
Purchase of property, plant and equipment
(7,145)
(3,859)
Capitalized software development costs
(5,843)
(5,001)
Purchase of marketable securities
(31,096)
(40,625)
Proceeds from sales and maturities of marketable securities
38,312
81,233
Proceeds from sale of business
469
835
Net cash (used in) provided by investing activities
(5,303)
32,583
Cash flows from financing activities
Borrowings on line of credit
65,000
—
Repayments on line of credit
(25,000)
—
Payments on finance leases
(44)
(90)
Net cash paid for debt extinguishment
(128,451)
(51,259)
Payment of debt issuance costs
(354)
—
Proceeds from exercises of stock options
119
413
Value of equity awards withheld for tax liabilities
(2,290)
(1,000)
Net cash used in financing activities
(91,020)
(51,936)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(608)
27
Net decrease in cash, cash equivalents, and restricted cash
(70,030)
(22,594)
Cash, cash equivalents, and restricted cash, beginning of period
132,307
114,622
Cash, cash equivalents, and restricted cash, end of period
$ 62,277
$ 92,028
BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
Non-GAAP Gross Profit and Non-GAAP Gross Margin
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Gross Profit
$ 64,829
$ 58,955
$ 130,313
$ 114,608
Gross Profit Margin %
37 %
40 %
38 %
40 %
Depreciation
4,678
4,205
9,456
7,734
Amortization of acquired intangible assets
1,941
1,959
3,900
3,904
Stock-based compensation
375
204
771
396
Non-GAAP Gross Profit
$ 71,823
$ 65,323
$ 144,440
$ 126,642
Non-GAAP Gross Margin % (1)
56 %
55 %
56 %
54 %
________________________
(1) Calculated by dividing Non-GAAP gross profit by cloud communications revenue of $128 million and $257 million in the three and six months ended June 30, 2024, respectively, and $118 million and $233 million for the three and six months ended June 30, 2023, respectively.
BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
Non-GAAP Net Income
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Net income (loss)
$ 4,055
$ (3,890)
$ (5,178)
$ (279)
Stock-based compensation
11,360
8,005
23,699
15,383
Amortization of acquired intangibles
4,336
4,338
8,697
8,612
Amortization of debt discount and issuance costs for convertible debt
384
474
869
1,036
Net cost associated with early lease terminations and leases without economic benefit
877
—
2,033
—
Net gain on extinguishment of debt
(10,267)
—
(10,267)
(12,767)
Gain on business interruption insurance recoveries
—
(4,000)
—
(4,000)
Non-recurring items not indicative of ongoing operations and other (1)
49
180
129
739
Estimated tax effects of adjustments (2)
(2,075)
(708)
(3,443)
(3,135)
Non-GAAP net income
$ 8,719
$ 4,399
$ 16,539
$ 5,589
Interest expense on Convertible Notes (3)
300
317
617
655
Numerator used to compute Non-GAAP diluted net income per share
$ 9,019
$ 4,716
$ 17,156
$ 6,244
Net income (loss) per share
Basic
$ 0.15
$ (0.15)
$ (0.19)
$ (0.01)
Diluted
$ (0.17)
$ (0.15)
$ (0.19)
$ (0.01)
Non-GAAP net income per Non-GAAP share
Basic
$ 0.32
$ 0.17
$ 0.62
$ 0.22
Diluted
$ 0.29
$ 0.16
$ 0.55
$ 0.21
Weighted average number of shares outstanding
Basic
27,079,333
25,555,219
26,786,568
25,502,131
Diluted
29,500,598
25,555,219
26,786,568
25,502,131
Non-GAAP basic shares
27,079,333
25,555,219
26,786,568
25,502,131
Convertible debt conversion
2,421,265
3,317,023
2,869,144
3,569,511
Stock options issued and outstanding
28,513
27,413
30,108
60,583
Nonvested RSUs outstanding
1,284,862
—
1,260,376
—
Non-GAAP diluted shares
30,813,973
28,899,655
30,946,196
29,132,225
________________________
(1) Non-recurring items not indicative of ongoing operations and other include (i) less than $0.1 million and $0.2 million of losses on disposals of property, plant and equipment during the three months ended June 30, 2024 and 2023, respectively, (ii) $0.1 million of losses on disposals of property, plant and equipment during the six months ended June 30, 2024, and (iii) $0.4 million of expense resulting from the early termination of our undrawn SVB credit facility and $0.3 million of losses on disposals of property, plant and equipment during the six months ended June 30, 2023.
(2) The estimated tax-effect of adjustments is determined by recalculating the tax provision on a Non-GAAP basis. The Non-GAAP effective income tax rate was 15.0% and 2.8% for the six months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024, the Non-GAAP effective income tax rate differed from the federal statutory tax rate of 21% in the U.S. primarily due to the research and development tax credits generated in 2024. We analyze the Non-GAAP valuation allowance position on a quarterly basis. In the fourth quarter of 2022, we removed the valuation allowance against all U.S. deferred tax assets for Non-GAAP purposes as a result of cumulative Non-GAAP U.S. income over the past three years and a significant depletion of net operating loss and tax credit carryforwards on a Non-GAAP basis. As of June 30, 2024, we have no valuation allowance against our remaining deferred tax assets for Non-GAAP purposes.
(3) Non-GAAP net income is increased for interest expense as part of the calculation for diluted Non-GAAP earnings per share.
BANDWIDTH INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except share and per share amounts)
(Unaudited)
Adjusted EBITDA
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Net income (loss)
$ 4,055
$ (3,890)
$ (5,178)
$ (279)
Income tax (benefit) provision
(331)
153
(531)
(2,975)
Interest expense, net
698
322
65
1,236
Depreciation
7,964
5,460
16,017
10,080
Amortization
4,336
4,338
8,697
8,612
Stock-based compensation
11,360
8,005
23,699
15,383
Net cost associated with early lease terminations and leases without economic benefit
877
—
2,033
—
Net gain on extinguishment of debt
(10,267)
—
(10,267)
(12,767)
Gain on business interruption insurance recoveries
—
(4,000)
—
(4,000)
Non-recurring items not indicative of ongoing operations and other (1)
49
180
129
337
Adjusted EBITDA
$ 18,741
$ 10,568
$ 34,664
$ 15,627
________________________
(1) Non-recurring items not indicative of ongoing operations and other include less than $0.1 million and $0.2 million of losses on disposals of property, plant and equipment during the three months ended June 30, 2024 and 2023, respectively, and $0.1 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively.
Free Cash Flow
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Net cash provided by (used in) operating activities
$ 24,436
$ 3,086
$ 26,901
$ (3,268)
Net cash used in investing in capital assets (1)
(6,116)
(4,314)
(12,988)
(8,860)
Free cash flow
$ 18,320
$ (1,228)
$ 13,913
$ (12,128)
________________________
(1) Represents the acquisition cost of property, plant and equipment and capitalized development costs for software for internal use.
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SOURCE Bandwidth Inc.
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Octopus&Whale’s challenge: Create a campaign that honors Jollibee’s heritage while speaking authentically to the hyper-connected, hyper-discerning gaming community.
“Contrary to the stereotype, gamers aren’t a monolith; they are as diverse as the games they play,” said Dorothy Dee Ching, VP & Head of Marketing at Jollibee. “So we created a reward that works across genres, platforms, and player types — something that brings all types of gamers together and brings the joy of eating and gaming to everyone. That’s what Jollibee is all about.”
“This couldn’t be just a simple brand partnership,” said Joey David-Tiempo, Founder and CEO of Octopus&Whale. “This is Jollibee — a global Filipino icon. The idea had to be culturally grounded, frictionless, and playable by anyone, whether you’re into Call of Duty Mobile, Eggy Party, or MU Origins. If there’s one thing Filipinos agree on, it’s that we all eat at Jollibee. So we asked ourselves: what if eating at Jollibee meant you were already in the game?”
The result is a campaign that sets a new benchmark for QSR-brand participation in gaming:
What makes Gamejoy different?
Playable IRL – Unlike typical gaming activations, Gamejoy starts in the real world with a meal and ends with in-game value. It’s gaming you can taste.Every Meal is Currency – The more you eat, the more you earn. Each Gamejoy Combo comes with a code that unlocks Gamejoy Credits — making every meal a step closer to your next in-game reward.Ecosystem-Led, Not Brand-Intrusive – Gamejoy brings together multiple industry players — including UniPin, Garena, NetEase, and Ourpalm — in a seamless experience never before seen in regional brand marketing.Locally Relevant, Globally Scalable – Born out of Filipino gaming behavior but designed to expand across markets.
From a brand perspective, Gamejoy drives both foot traffic and cultural capital. From a gamer’s perspective, it legitimizes fast food as part of the gaming lifestyle. And from an industry standpoint, it sets a precedent.
“A campaign like this uplifts the entire ecosystem,” said DC Dominguez, Country Head of UniPin PH. “It brings inclusivity to a fragmented space — something Jollibee is uniquely positioned to do.”
Garena’s Game Publishing Producer Nicolas Ting added, “It’s more than a campaign; it’s a grassroots movement that brings play to people—wherever they are. This is a strong example of how brands can connect with gamers not just through ads or sponsorships, but through experiences that are deeply rooted in local culture.”
Jollibee Gamejoy proves that when creativity is culturally tuned and ecosystem-driven, it can unlock new spaces for brands — not just to show up, but to belong.
Octopus&Whale is an affiliate partner of Stagwell (NASDAQ: STGW).
Contact
Joey Tiempo
joey.tiempo@octopusandwhale.com
ADDITIONAL RESOURCES:
VIDEO: https://www.youtube.com/watch?v=7EGuUixxx_M
View original content:https://www.prnewswire.com/apac/news-releases/a-game-changer-for-qsr-jollibee-enters-gaming-with-octopuswhale-302455910.html
SOURCE Stagwell Inc.
Q3 Operational Highlights
Strong growth in Global Licensing with a 44% year-over-year increase, driven by our premium franchises Peanuts, Strawberry Shortcake and Teletubbies across multiple categories and territories.Alongside the growth in owned IP, we reported strong growth in animation and live action production, continued momentum in free cash flow generation and a reduction in leverage to 4.4x.Proceeding with the strategic goal of focusing and simplifying business with definitive agreement to sell the Company’s television broadcast business.
Q3 Financial Highlights1
Revenue from continuing operations was $128.4 million, up 42% year over year. Revenue including discontinued operations of $140.1 million, up 40% year over year.Net loss from continuing operations was $10.8 million, compared with net loss of $16.4 million in Q3 2024. Net loss including discontinued operations was $13.8 million, compared with net loss of $14.7 million in Q3 2024.Adjusted EBITDA2 from continuing operations was $15.9 million, up 18% year over year. Adjusted EBITDA including discontinued operations of $26.1 million, up 33% year over year.Cash provided by operating activities was $47.3 million, compared to cash provided by operating activities of $23.3 million in Q3 2024.Free Cash Flow3 was positive $12.7 million, compared to negative $2.9 million in Q3 2024. Year to date, Free Cash Flow was positive $66.8 million, compared to negative $22.9 million in the prior year period.
TORONTO, May 14, 2025 /CNW/ – WildBrain Ltd. (“WildBrain” or the “Company”) (TSX: WILD), a global leader in kids’ and family entertainment, today reported its third quarter (“Q3 2025”) results for the period ended March 31, 2025.
Josh Scherba, WildBrain President and CEO, said: “In the third quarter, we continued to see strong growth in our Global Licensing business for Peanuts, Strawberry Shortcake and Teletubbies as well as for our in-house licensing agency. Our global Peanuts partnership with Starbucks was a particularly bright spot, with record-breaking social engagement and merchandise selling out in the first week in the majority of markets, reflecting the broad appeal of the brand around the world. We also returned to growth in our Content Creation business, with production on a new teen live-action series for Netflix, as well as the Peanuts feature film for Apple TV+. This growth is a testament to the strength of our brands and our focused, 360-degree capabilities across Content Creation, Audience Engagement and Global Licensing.
“As announced in the quarter, we continue to advance our TV transaction with IoM, as we renegotiate certain commercial terms of the agreement. The transaction reflects our ongoing commitment to simplifying our business and focusing on key franchises and strong-growth areas with the greatest return for shareholders.”
Nick Gawne, WildBrain CFO, added: “We are pleased to report continued sustained strength in our owned brands this quarter, which reflects the company’s deliberate focus on our key franchises. This is accompanied, as we expected, by improved working capital cycles, which, coupled with better capital allocation decisions, has driven continued free cash flow generation despite the increase in our finance costs. This combination creates a strong platform for WildBrain’s continued success.”
Fiscal Year 2025 Outlook
The Company reaffirms its previously announced outlook for Fiscal Year 2025. We expect:
Revenue growth including discontinued operations of approximately 10 to 15% andAdjusted EBITDA growth including discontinued operations of approximately 5 to 10%.
We note that the close date of the WildBrain Television sale could have a material impact on our outlook. We continue to see strong underlying growth in our continuing operations in Global Licensing, AVOD, FAST and Media Solutions, as well as a return to growth in content production.
Q3 2025 Financial Highlights
EBITDA Reconciliation
(in millions of Cdn$)
Three Months Ended
March 31,
2025
2024
2025
2024
2025
2024
Continuing Operations
Discontinued Operations
WildBrain Television
Consolidated Results
Including Discontinued
Operations
Revenue
$128.4
$90.4
$11.8
$9.7
$140.1
$100.1
Cost of Sale
$(76.9)
$(47.2)
$(0.4)
$(2.3)
$(77.3)
$(49.5)
Gross Margin
$51.4
$43.2
$11.4
$7.4
$62.9
$50.5
SG&A
$(26.6)
$(23.8)
$(1.3)
$(1.3)
$(27.9)
$(25.1)
Adjusted EBITDA
$24.8
$19.3
$10.2
$6.1
$35.0
$25.4
Portion of Adjusted EBITDA attributable to NCI
$(8.9)
$(5.8)
$—
$—
$(8.9)
$(5.8)
Adjusted EBITDA attributable to WildBrain
$15.9
$13.5
$10.2
$6.1
$26.1
$19.6
Q3 2025 Financial Highlights from Continuing Operations1
In Q3 2025, revenue increased 42% to $128.4 million, compared to $90.4 million in Q3 2024.
Global Licensing revenue increased 44% to $71.4 million in Q3 2025, compared to $49.6 million in Q3 2024. Revenue in the quarter was driven by strong growth in Peanuts, growth within our global licensing agency, WildBrain CPLG, as well as strong growth in WildBrain’s owned brands Strawberry Shortcake and Teletubbies. Global Licensing growth reflects management’s actions to focus the business on higher growth opportunities, leveraging our platform to drive greater engagement which drives consumer demand and revenue.
Content Creation and Audience Engagement revenue increased 40% to $57.0 million in Q3 2025, compared to $40.8 million in Q3 2024. Revenue in the quarter grew strongly with both the Peanuts feature and live action production ramping up.
Gross margin for Q3 2025 was 40%, compared to gross margin of 48% in Q3 2024. Gross margin for Q3 2025 was $51.4 million, an increase of $8.3 million, compared to $43.2 million for Q3 2024.
Cash provided by operating activities in Q3 2025 was $47.3 million, compared to $23.3 million cash provided by operating activities in Q3 2024. Free Cash Flow was positive $12.7 million in Q3 2025, compared with Free Cash Flow of negative $2.9 million in Q3 2024. Year to date, Free Cash Flow was positive $66.8 million, compared to negative $22.9 million in the prior-year period.
Adjusted EBITDA increased 18% to $15.9 million in Q3 2025, compared with $13.5 million in Q3 2024.
Q3 2025 net loss was $10.8 million, compared to net loss of $16.4 million in Q3 2024.
Leverage in Q3 2025 was 4.4x, a reduction from 5.3x in Q2 2025.
1.
The Company has classified the Canadian Television Broadcast business unit (“WildBrain Television”) as held for sale in the quarter, and accordingly, has presented the historical results of the business unit as discontinued operations in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations.
2.
Free Cash Flow, Gross Margin, Adjusted EBITDA and Adjusted EBITDA attributable to WildBrain are non-GAAP financial measures – see below for further details.
3.
Free Cash Flow includes discontinued operations.
Q3 2025 Conference Call
The Company will hold a conference call on May 15, 2025 at 10:00 a.m. ET to discuss the results.
To immediately join the call by phone on that date without operator assistance, please use the following URL to receive a toll-free automated instant call back connecting you into the conference:
Alternatively, you may dial direct to be entered into the call by an operator, referencing conference ID 42922 at +1 (888) 699-1199 in North America or +1 (416) 945-7677 internationally.
If dialing in, please allow 10 minutes to be connected to the conference call.
Replay will be available after the call on +1 (888) 660-6345 or +1 (289) 819-1450, under passcode 42922#, until May 22, 2025.
The audio and transcript will also be archived on our website approximately three business days following the event.
For more information, please contact:
Investor Relations: Kathleen Persaud – VP, Investor Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089
Media: Shaun Smith – Sr. Director, Global Communications & Public Relations, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations through the wonder of storytelling. As a leader in 360° franchise management, we are experts in content creation, audience engagement and global licensing, cultivating and growing love for our own and partner brands around the world. With approximately 14,000 half-hours of kids’ and family content in our library—one of the world’s most extensive—we are home to such treasured franchises as Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Inspector Gadget and Degrassi. WildBrain’s mission is to create exceptional entertainment experiences that captivate and delight fans both young and young at heart.
Our studios produce such award-winning series as The Snoopy Show; Snoopy in Space; Camp Snoopy; Strawberry Shortcake: Berry in the Big City; Sonic Prime; Chip and Potato; Teletubbies Let’s Go! and many more. Enjoyed on platforms worldwide, our content is everywhere kids and families view entertainment, including YouTube, where our network has garnered over 1.5 trillion minutes of watch time. Our television group owns and operates some of Canada’s most-loved family entertainment channels. WildBrain CPLG, our leading consumer-products and location-based entertainment agency, represents our owned and partner properties in every major territory worldwide.
WildBrain is headquartered in Canada with offices worldwide and trades on the Toronto Stock Exchange (TSX: WILD). Visit us at wildbrain.com.
Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects WildBrain’s current assumptions and expectations regarding future events as at the time they are made. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond WildBrain’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include but are not limited to: changes in general economic, business and political conditions. WildBrain undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Non-IFRS Measures
In addition to the results reported in accordance with IFRS as issued by the International Accounting Standards Board, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of our operating performance and financial position. These non-GAAP financial measures are provided to enhance the user’s understanding of our historical and current financial performance and our prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of our core operating results and ongoing operations and provide a consistent basis for comparison between periods. The following discussion explains the Company’s use of certain non-GAAP financial measures, which are Adjusted EBITDA, Adjusted EBITDA attributable to the Shareholders of the Company, Gross Margin and Free Cash Flow.
Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative measure to net income or loss, or other measures as determined in accordance with GAAP, or as an indicator of the Company’s financial performance or a measure of liquidity and cash flows.
“Adjusted EBITDA” means earnings (loss) before net finance costs, income taxes, amortization of property & equipment and right-of-use and intangible assets, amortization of acquired and library content, equity-settled share-based compensation expense, changes in fair value of embedded derivatives, gain/loss on foreign exchange, reorganization, development and other expenses, impairment of certain investments in film and television programs/acquired and library content/P&E/intangible assets/goodwill, and also includes adjustments for other identified charges, as specified in the accompanying tables. Adjusted EBITDA is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that certain lenders, investors and analysts use Adjusted EBITDA to measure a company’s ability to service debt and meet other payment obligations, and as a common valuation measurement in the media and entertainment industry. Further, certain of our debt covenants use Adjusted EBITDA in the calculation. The most comparable GAAP measure is earnings before income taxes.
“Adjusted EBITDA attributable to the Shareholders of the Company” means Adjusted EBITDA excluding the portion of Adjusted EBITDA attributable to non-controlling interests.
“Gross Margin” means revenue less direct production costs and expense of film and television produced. Gross Margin is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Gross Margin may not be comparable to similar measures presented by other issuers. Management believes Gross Margin is a useful measure of profitability before considering operating and other expenses and can be used to assess the Company’s ability to generate positive net earnings and cash flows. The most comparable GAAP measure is gross profit.
“Free Cash Flow” means operating cash flow less distributions to non-controlling interests, changes in interim production financing, cash interest paid on our long-term debt, bank indebtedness, and lease liabilities, and principal repayments on our lease liabilities. Free Cash Flow does not have a standardized meaning prescribed by GAAP; accordingly, Free Cash Flow may not be comparable to similar measures presented by other issuers. Management believes Free Cash Flow is a useful measure of the Company’s ability to repay debt, finance strategic business acquisitions and investments, pay dividends, and repurchase shares. The most comparable GAAP measure is cash from operating activities.
View original content to download multimedia:https://www.prnewswire.com/news-releases/wildbrain-reports-q3-2025-results-302455894.html
SOURCE WildBrain Ltd.
Technology
EVA Air to Launch Exciting Upgrade for Inflight Wi-Fi Service this July
Published
54 minutes agoon
May 14, 2025By
TAIPEI, Taiwan, May 14, 2025 /PRNewswire/ — EVA Air is set to launch a significant upgrade to its in-flight Wi-Fi service this July, offering complimentary access to “Infinity MileageLands” members across all cabin classes. Passengers can enjoy seamless connectivity when the aircraft reaches 10,000 feet cruising altitude. To promote this upgrade, EVA Air plans to roll out a limited-time summer promotion, from July 1 to September 30, 2025, allowing all passengers—members and non-members alike—onboard Wi-Fi equipped aircraft (Boeing 777-300ER, Boeing 787, and Airbus A330-300) to enjoy free unlimited web browsing Wi-Fi service.
Following the promotional period, complimentary in-flight Wi-Fi access will be available exclusively for Business Class passengers and “Infinity MileageLands” members, allowing them to stay connected to unlimited web browsing or text messaging. Whether it’s replying to work emails, chatting with friends and family, monitoring the stock market, or sharing travel photos on social media, staying connected in the sky has never been easier.
When booking a flight with EVA Air, members need to input their “Infinity MileageLands” membership number for the system to determine their eligible inflight Wi-Fi service. The plan description is as follows:
Diamond / Gold Card
Silver Card
Green Card
Non EVA FF member
Royal Laurel / Premium Laurel / Business
Unlimited Web Browsing (Note 1)
Unlimited Web Browsing
Unlimited Web Browsing
Unlimited Web Browsing
Premium Economy
Unlimited Web Browsing
Unlimited Web Browsing
Unlimited Web Browsing
None
Economy
Unlimited Web Browsing
Unlimited Text (Note 2)
Unlimited Text
None
**Effective October 1, 2025, this plan applies to all EVA Air and UNI Air international flights.
Note 1: Unlimited web browsing does not support video streaming, voice calls, VPN connections, and video conferencing.
Note 2: Text messaging is supported via apps such as LINE and WhatsApp (excluding photo sharing).
Passengers who are not yet members of “Infinity MileageLands” are highly encouraged to sign up via the EVA Air website. New members can receive 1,000 bonus miles and gain access to complimentary Wi-Fi benefits.
For passengers flying on Airbus A321-200 aircraft, EVA Air has introduced a newly developed wireless in-flight entertainment system. Passengers can enjoy a wide selection of high-quality entertainment services by connecting their mobile devices or tablets to the onboard network and using personal earphones. The upgraded system is already being rolled out and is expected to be fully available across the fleet by early 2026.
Through advanced technology, EVA Air continues to innovate and enhance the digital in-flight experience. For more information about Wi-Fi and wireless inflight entertainment services, please visit https://www.evaair.com/en-global/fly-prepare/flying-with-eva/inflight-entertainment-service/.
About EVA Air:
A Star Alliance member, EVA Air was founded in 1989 as Taiwan’s first privately owned international airline. It is an affiliated company of global container-shipping leader Evergreen Line. It flies a fleet of more than 80 Boeing and Airbus aircraft to around 60 international destinations throughout Asia, Oceania, Europe, and North America. Travelers can learn more about EVA and schedules, book, and buy tickets at www.evaair.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/eva-air-to-launch-exciting-upgrade-for-inflight-wi-fi-service-this-july-302455932.html
SOURCE EVA Airways Corporation
A Game-Changer for QSR: Jollibee Enters Gaming with Octopus&Whale
WILDBRAIN REPORTS Q3 2025 RESULTS
EVA Air to Launch Exciting Upgrade for Inflight Wi-Fi Service this July
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