Technology
Bandwidth Announces Third Quarter 2024 Financial Results
Published
2 years agoon
By
Exceeded revenue and profitability guidance ranges
Raising full year 2024 guidance for revenue and profitability
RALEIGH, N.C., Oct. 31, 2024 /PRNewswire/ — Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced financial results for the third quarter ended September 30, 2024.
“We’re pleased to report solid momentum carrying us into the end of the year, with record revenue and profitability performance, strong conversion to free cash flow and continued operating discipline,” said David Morken, CEO of Bandwidth. “These results are driven by the trust our customers place in us to deliver their business-critical services. We are excited by our new, next-generation Universal Platform as the foundation of our strong innovation roadmap, demonstrating a clear focus on the needs of the world’s largest enterprises.”
Third Quarter 2024 Financial Highlights
The following table summarizes the condensed consolidated financial highlights for the three and nine months ended September 30, 2024 and 2023 ($ in millions).
Three months ended
September 30,
Nine months ended
September 30,
2024
2023
2024
2023
Revenue
$ 194
$ 152
$ 539
$ 436
Gross Margin
38 %
39 %
38 %
40 %
Non-GAAP Gross Margin (1)
58 %
55 %
57 %
54 %
Adjusted EBITDA (1)
$ 24
$ 14
$ 59
$ 29
Free Cash Flow (1)
$ 14
$ 18
$ 28
$ 6
(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 delivered a record third quarter, with growth across all our products and customer categories. Total revenue reached $194 million, marking a 28 percent increase, and Adjusted EBITDA grew to $24 million, representing a 74 percent increase year-over-year. Both metrics surpassed the upper range of our guidance, leading us to raise our full-year outlook on both the top and bottom lines” said Daryl Raiford, Bandwidth’s Chief Financial Officer. “Our priorities remain consistent: to serve and delight our customers, execute with precision and stay committed to long-term, profitable growth.”
Third Quarter Customer and Operational Highlights
Introduced the next-generation Universal Platform bringing the power of Bandwidth in one consistent global experience for all real-time communications needs, with new features, upgraded capabilities, and a modernized global network underpinning the platform to make it easier to consolidate and expand into new markets around the world.Bandwidth announced it now offers the largest ecosystem of bring-your-own-carrier (BYOC) integrations of any provider in the world within the Maestro communications platform – giving enterprises more ways to solve complex communications challenges.Bandwidth has registered as an RBM (RCS Business Messaging) partner with Google, setting itself up to enable RCS (Rich Communication Services) across all key markets.Bandwidth announced Number Reputation Management is coming soon as a solution to correct false “spam” labels and make sure enterprise’s urgent and important calls are displayed correctly so they can be answered.A high-volume patient engagement platform switched to Bandwidth for text messaging. They needed message deliverability assurance and message performance insights to ensure timely patient communications.A large, diversified credit union chose Bandwidth to provide voice services for its new, modernized on-premise contact center. Bandwidth’s all-IP network and Maestro platform made it easy for the customer to integrate with a modern tech stack and enables them to add new services in the future.
Financial Outlook
Bandwidth’s outlook is based on current indications for its business, which are subject to change. Bandwidth is providing guidance for its fourth quarter and full year 2024 as follows (in millions):
4Q 2024
Guidance
Full Year 2024
Guidance
Revenue
$198 – $208
$737 – $747
Adjusted EBITDA
$19 – $21
$78 – $80
Bandwidth has not reconciled its fourth 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
Barclays Global Technology Conference in San Francisco, CA. Meetings with John Bell, Chief Product Officer and Shiv Hira, EVP Finance on Wednesday, December 11th, 2024.
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.
Earnings webcast
Bandwidth will host a webcast to discuss financial results for the third quarter ended September 30, 2024 on October 31, 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 event.
Webcast Details
October 31, 2024
8:00 am ET
To view live event and replay investors and analysts can register at investors.bandwidth.com
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 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 September 30,
Nine months ended September 30,
2024
2023
2024
2023
Revenue
$ 193,883
$ 152,013
$ 538,518
$ 435,731
Cost of revenue
120,749
92,514
335,071
261,624
Gross profit
73,134
59,499
203,447
174,107
Operating expenses
Research and development
30,171
24,792
87,215
75,305
Sales and marketing
26,285
25,011
81,490
75,794
General and administrative
17,576
15,843
52,130
48,430
Total operating expenses
74,032
65,646
220,835
199,529
Operating loss
(898)
(6,147)
(17,388)
(25,422)
Other income, net
577
798
11,358
16,819
Loss before income taxes
(321)
(5,349)
(6,030)
(8,603)
Income tax benefit
734
219
1,265
3,194
Net income (loss)
$ 413
$ (5,130)
$ (4,765)
$ (5,409)
Net income (loss) per share:
Basic
$ 0.02
$ (0.20)
$ (0.18)
$ (0.21)
Diluted
$ 0.01
$ (0.20)
$ (0.18)
$ (0.21)
Weighted average number of common shares outstanding:
Basic
27,374,367
25,613,441
26,983,931
25,539,642
Diluted
28,615,520
25,613,441
26,983,931
25,539,642
The Company recognized total stock-based compensation expense as follows:
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
Cost of revenue
$ 352
$ 182
$ 1,123
$ 578
Research and development
4,606
2,822
14,606
9,278
Sales and marketing
1,744
1,160
6,014
3,825
General and administrative
4,747
2,778
13,405
8,644
Total
$ 11,449
$ 6,942
$ 35,148
$ 22,325
BANDWIDTH INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of September 30,
As of December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$ 74,940
$ 131,987
Marketable securities
4,967
21,488
Accounts receivable, net of allowance for doubtful accounts
99,616
78,155
Deferred costs
3,806
4,155
Prepaid expenses and other current assets
15,333
16,990
Total current assets
198,662
252,775
Property, plant and equipment, net
170,131
177,864
Operating right-of-use asset, net
152,559
157,507
Intangible assets, net
159,254
166,914
Deferred costs, non-current
4,511
4,586
Other long-term assets
4,244
5,530
Goodwill
340,387
335,872
Total assets
$ 1,029,748
$ 1,101,048
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$ 20,557
$ 34,208
Accrued expenses and other current liabilities
94,414
69,014
Current portion of deferred revenue
7,020
8,059
Advanced billings
3,304
6,027
Operating lease liability, current
3,360
5,463
Line of credit, current portion
25,000
—
Total current liabilities
153,655
122,771
Other liabilities
360
386
Operating lease liability, net of current portion
219,705
220,548
Deferred revenue, net of current portion
8,133
8,406
Deferred tax liability
30,348
33,021
Convertible senior notes
280,972
418,526
Total liabilities
693,173
803,658
Stockholders’ equity:
Class A and Class B common stock
28
26
Additional paid-in capital
426,757
391,048
Accumulated deficit
(69,655)
(64,890)
Accumulated other comprehensive loss
(20,555)
(28,794)
Total stockholders’ equity
336,575
297,390
Total liabilities and stockholders’ equity
$ 1,029,748
$ 1,101,048
BANDWIDTH INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine months ended September 30,
2024
2023
Cash flows from operating activities
Net loss
$ (4,765)
$ (5,409)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization
37,138
29,687
Non-cash reduction to the right-of-use asset
2,759
5,227
Amortization of debt discount and issuance costs
1,332
1,995
Stock-based compensation
35,148
22,325
Deferred taxes and other
(4,249)
(5,902)
Gain on sale of intangible asset
(1,000)
—
Net gain on extinguishment of debt
(10,267)
(12,767)
Changes in operating assets and liabilities:
Accounts receivable, net of allowances
(21,318)
(654)
Prepaid expenses and other assets
2,482
2,102
Accounts payable
(11,940)
4,164
Accrued expenses and other liabilities
24,991
(13,031)
Operating right-of-use liability
(2,946)
(8,004)
Net cash provided by operating activities
47,365
19,733
Cash flows from investing activities
Purchase of property, plant and equipment
(10,636)
(5,287)
Refund of deposits for construction in progress
2,707
—
Capitalized software development costs
(8,571)
(8,384)
Purchase of marketable securities
(32,081)
(60,625)
Proceeds from sales and maturities of marketable securities
48,649
100,109
Proceeds from sale of business
624
1,070
Proceeds from sale of intangible assets
1,000
—
Net cash provided by investing activities
1,692
26,883
Cash flows from financing activities
Borrowings on line of credit
165,500
—
Repayments on line of credit
(140,500)
—
Payments on finance leases
(68)
(124)
Net cash paid for debt extinguishment
(128,534)
(51,259)
Payment of debt issuance costs
(379)
(696)
Proceeds from exercises of stock options
128
413
Value of equity awards withheld for tax liabilities
(2,291)
(1,056)
Net cash used in financing activities
(106,144)
(52,722)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
41
(887)
Net decrease in cash, cash equivalents, and restricted cash
(57,046)
(6,993)
Cash, cash equivalents, and restricted cash, beginning of period
132,307
114,622
Cash, cash equivalents, and restricted cash, end of period
$ 75,261
$ 107,629
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 September 30,
Nine months ended September 30,
2024
2023
2024
2023
Gross Profit
$ 73,134
$ 59,499
$ 203,447
$ 174,107
Gross Profit Margin %
38 %
39 %
38 %
40 %
Depreciation
4,679
4,056
14,135
11,790
Amortization of acquired intangible assets
1,977
1,959
5,877
5,863
Stock-based compensation
352
182
1,123
578
Non-GAAP Gross Profit
$ 80,142
$ 65,696
$ 224,582
$ 192,338
Non-GAAP Gross Margin % (1)
58 %
55 %
57 %
54 %
________________________
(1) Calculated by dividing Non-GAAP gross profit by cloud communications revenue of $139 million and $396 million in the three and nine months ended September 30, 2024, respectively, and $120 million and $353 million for the three and nine months ended September 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 September 30,
Nine months ended September 30,
2024
2023
2024
2023
Net income (loss)
$ 413
$ (5,130)
$ (4,765)
$ (5,409)
Stock-based compensation
11,449
6,942
35,148
22,325
Amortization of acquired intangibles
4,436
4,348
13,133
12,960
Amortization of debt discount and issuance costs for convertible debt
311
484
1,180
1,520
Net cost associated with early lease terminations and leases without economic benefit
350
1,175
2,383
1,175
Net gain on extinguishment of debt
—
—
(10,267)
(12,767)
Gain on business interruption insurance recoveries
—
—
—
(4,000)
Non-recurring items not indicative of ongoing operations and other (1)
(957)
54
(828)
793
Estimated tax effects of adjustments (2)
(3,211)
(1,526)
(6,654)
(4,661)
Non-GAAP net income
$ 12,791
$ 6,347
$ 29,330
$ 11,936
Interest expense on Convertible Notes (3)
251
317
868
971
Numerator used to compute Non-GAAP diluted net income per share
$ 13,042
$ 6,664
$ 30,198
$ 12,907
Net income (loss) per share
Basic
$ 0.02
$ (0.20)
$ (0.18)
$ (0.21)
Diluted
$ 0.01
$ (0.20)
$ (0.18)
$ (0.21)
Non-GAAP net income per Non-GAAP share
Basic
$ 0.47
$ 0.25
$ 1.09
$ 0.47
Diluted
$ 0.43
$ 0.23
$ 0.98
$ 0.44
Weighted average number of shares outstanding
Basic
27,374,367
25,613,441
26,983,931
25,539,642
Diluted
28,615,520
25,613,441
26,983,931
25,539,642
Non-GAAP basic shares
27,374,367
25,613,441
26,983,931
25,539,642
Convertible debt conversion
1,779,025
3,317,023
2,503,118
3,484,424
Stock options issued and outstanding
25,021
20,360
28,785
47,345
Nonvested RSUs outstanding
1,216,132
—
1,430,317
—
Non-GAAP diluted shares
30,394,545
28,950,824
30,946,151
29,071,411
________________________
(1) Non-recurring items not indicative of ongoing operations and other include (i) $1.0 million gain on the sale of an intangible asset and less than $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2024, (ii) $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2023, (iii) $1.0 million gain on the sale of an intangible asset and $0.2 million of losses on disposals of property, plant and equipment during the nine months ended September 30, 2024, and (iv) $0.4 million of expense resulting from the early termination of our undrawn SVB credit facility and $0.4 million of losses on disposals of property, plant and equipment during the nine months ended September 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 15.5% and 11.0% for the nine months ended September 30, 2024 and 2023, respectively. For the nine months ended September 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 September 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.
Adjusted EBITDA
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
Net income (loss)
$ 413
$ (5,130)
$ (4,765)
$ (5,409)
Income tax benefit
(734)
(219)
(1,265)
(3,194)
Interest expense (income), net
1,025
(59)
1,090
1,177
Depreciation
7,989
6,647
24,005
16,727
Amortization
4,436
4,348
13,133
12,960
Stock-based compensation
11,449
6,942
35,148
22,325
Net cost associated with early lease terminations and leases without economic benefit
350
1,175
2,383
1,175
Net gain on extinguishment of debt
—
—
(10,267)
(12,767)
Gain on business interruption insurance recoveries
—
—
—
(4,000)
Non-recurring items not indicative of ongoing operations and other (1)
(957)
54
(828)
391
Adjusted EBITDA
$ 23,971
$ 13,758
$ 58,634
$ 29,385
________________________
(1) Non-recurring items not indicative of ongoing operations and other include (i) $1.0 million gain on the sale of an intangible asset and less than $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2024, (ii) $0.1 million of losses on disposals of property, plant and equipment during the three months ended September 30, 2023, (iii) $1.0 million gain on the sale of an intangible asset and $0.2 million of losses on disposals of property, plant and equipment during the nine months ended September 30, 2024, and (iv) $0.4 million of losses on disposals of property, plant and equipment during the nine months ended September 30, 2023.
Free Cash Flow
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
Net cash provided by operating activities
$ 20,464
$ 23,001
$ 47,365
$ 19,733
Net cash used in investing in capital assets (1)
(6,219)
(4,811)
(19,207)
(13,671)
Free cash flow
$ 14,245
$ 18,190
$ 28,158
$ 6,062
________________________
(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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“Goodwill Houston saw what it could be across the region and built the training around it. Our job is to keep the recycling secure, certified, and done right here in Houston,” said Kelly Adels Hess, CEO of CompuCycle.
Building a Pathway to Success for Students with Autism
“We have run into so many students who have a passion for telling you how things work and taking them apart. But we did not have a pathway set aside for them. The greatest part about this program is we’re paying these students. They now have certified training and a resume builder,” said Vernee Sampson, Senior Manager of Vocational Rehabilitation Programs at Goodwill Houston.
“Most arrive assuming that they can’t do this or this isn’t for them, but we want them to walk away believing that they can do it,” said Alicia Franklin, Career Coach and instructor for Tech Recycle.
How Can Districts and Organizations Get Involved?
School districts that want to train their students through Tech Recycle can contact Goodwill Houston. Organizations with retired electronics can send them through CompuCycle. Learn more about the CompuCycle and Goodwill Houston partnership.
“Community impact is the point of Tech Recycle. A district retires its devices, we recycle them securely, and Goodwill Houston turns that into paid training for students. When a recycler, a nonprofit, and a school district work together, the whole community benefits,” Hess said.
Join the Conversation at E-Scrap
Kelly Adels Hess will lead a workshop, “Community Partnerships, Real Impact,” at the E-Scrap Conference in New Orleans on October 27 from 8:30 to 9:30 a.m.
About Goodwill Houston
Goodwill Houston is a nonprofit organization dedicated to changing lives through the power of work. Serving individuals and families across the Greater Houston area, Goodwill Houston provides workforce development, job training, career services and other programs designed to help people build skills, overcome barriers to employment and achieve greater independence.
About CompuCycle
CompuCycle is a Houston-based IT asset disposition and electronics recycling company. It holds R2v3, e-Stewards, and ISO 27001 certifications, the only electronics recycler in Texas with all three.
Media Contacts
CompuCycle: Kelly Adels Hess, CEO, khess@compucycle.com, 713-869-6700Goodwill Houston: Mia Brooks, Events and Public Relations Coordinator, MBrooks@goodwillhouston.org, 713-805-7031
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SOURCE CompuCycle
Technology
xTool Launches C1 Color Cutter : The Full-Color Cutting Machine Built to Scan, Print, and Cut with Precision
Published
19 minutes agoon
October 20, 2026By
PARIS, Oct. 20, 2026 /PRNewswire/ — xTool, a global pioneer in digital fabrication and smart desktop manufacturing, announces today its expansion into the craft cutter market with the launch of the xTool C1 Color Cutter.
Engineered under the slogan “Scan It. Print It. Cut It. Always in One Workflow,” the C1 solves long-standing industry challenges by integrating high-precision CIS scanning, CMYK full-color inkjet printing, and dynamic blade cutting into a single automated desktop workstation.
Starting October 20th, 2026, xTool is launching its official global pre-order campaign, offering an exclusive £10 deposit incentive that provides early buyers with substantial machine discounts, physical material bundles, and livestream giveaway entries.
Beyond Lasers and Printers : The Natural Evolution into Craft Cutting
The launch of the xTool C1 marks a milestone in xTool’s strategy to build a fully integrated hardware and software ecosystem for creators, DIY enthusiasts, and small-business owners. Building on its global leadership in desktop laser engravers and digital printers, xTool is bringing its expertise in precision mechanics and automation to traditional blade cutting.
By combining full-color printing and precision cutting in one compact machine, the C1 eliminates the need for separate printers, manual material transfers, and error-prone registration marks, simplifying workflows for paper crafts, vinyl graphics, HTV, apparel, and stickers.
Designed for Advanced Crafters and Small Businesses
For DIY enthusiasts, its integrated print-and-cut workflow helps reduce material waste, alignment errors, and the need to cut and weed multiple layers of vinyl. Complex projects involving heat transfer vinyl (HTV) for textile customisation, sticker making, and paper crafts become easier to complete.
For entrepreneurs and small businesses producing customised apparel, labels, packaging, or promotional items, the C1 is a valuable addition to their production workflow. It helps improve productivity, reduce manufacturing costs, and deliver professional-quality results.
Seamless Print-and-Cut Workflow
Combining CMYK inkjet printing with precision blade cutting, the C1 prints directly onto materials before cutting, eliminating registration marks, maximizing printable space, and minimizing alignment errors and waste. Its proprietary Duraproof ink produces vibrant, waterproof, fade-resistant graphics that can withstand up to 30 home washes on textiles.
Built-In CIS Scanner and Live Preview
An integrated Contact Image Sensor (CIS) provides a 1:1 live preview, allowing users to position designs accurately, including leftover materials. Additional features include automatic contour extraction, material nesting, and QR-code-based parameter setup.
AI-Powered Atomm Creation Suite
xTool’s Atomm software transforms text prompts and images into ready-to-cut vectors, with tools for background removal, artistic text, line-art conversion, and 3D papercraft templates, reducing design preparation from hours to minutes.
Versatile Materials and Tools
Compatible with Fine-Point, Deep-Point, Rotary, and 3mm Cutting blades, Foil-Transfer tips, and detail pens, the C1 supports paper, cardstock, vinyl, HTV, leather, balsa wood, and fabrics. Optional accessories include an Electrostatic Mat and Roll Holder with built-in trimmer.
Pre-Order Details
Global pre-orders open on October 20th, 2026, with prices starting at £399 and reservations available for a £10 deposit. Several bundles will be offered, including the first-ever C1 bundle with Atomm Membership.
Pre-order customers will receive exclusive £10 Pre-Order Bonus Perks, including a material kit with over 10 crafting materials, a 20% Material Card valid for 180 days across the xTool store, and entry into a livestream giveaway to win a free C1.
Final payments and global shipping begin November 5, 2026. Further details are available at xtool.com.
About xTool
xTool is a brand founded in 2020 that specialises in smart digital fabrication machines. The company’s mission is to foster creativity by developing intelligent, user-friendly tools that leverage advanced technologies to significantly lower the barriers to creation.
The brand primarily serves makers, DIY enthusiasts, and the education sector by combining powerful software with safe, easy-to-use hardware. xTool provides users with new opportunities to bring their creative ideas to life efficiently and professionally.
For more information: xtool.com
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Technology
Green Data Center Market worth $197.02 billion by 2031 – Report by MarketsandMarkets™
Published
19 minutes agoon
October 20, 2026By
DELRAY BEACH, Fla., Oct. 20, 2026 /PRNewswire/ — According to MarketsandMarkets™, the global Green Data Center Market is expanding rapidly, with a projected market size anticipated to rise from about USD 60.77 billion in 2026 to USD 197.02 billion by 2031, featuring a CAGR of 26.5%.
Browse 303 market data Tables and 60 Figures spread through 240 Pages and in-depth TOC on “Green Data Center Market – Global Forecast to 2031”
Green Data Center Market Size & Forecast:
Market Size Available for Years: 2021–20312025 Market Size: USD 48.26 billion2026 Market Size: USD 60.77 billion2031 Projected Market Size: USD 197.02 billionCAGR (2026–2031): 26.5%
Green Data Center Market Trends & Insights:
The global market is gaining momentum as data center operators and enterprises respond to rising energy costs, increasingly stringent sustainability regulations, and growing commitments to reduce carbon emissions.The infrastructure segment is expected to hold the largest market value of USD 39.31 billion by 2026.The building management software is projected to grow at the highest CAGR of 32.1% during the forecast period.Cloud and hyperscale data centers are expected to dominate the market during the forecast period.Retail and e-commerce enterprises are projected to grow at the highest CAGR during the forecast period.North America is estimated to dominate the market with the highest value of USD 25.12 billion by 2026.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=1032
Green data centers are transforming digital infrastructure by integrating technologies such as renewable energy systems, liquid and immersion cooling, and intelligent energy management solutions to enable sustainability at scale. These innovations improve power usage efficiency, reduce carbon emissions, and support compliance with increasingly stringent global sustainability regulations, accelerating adoption across hyperscale facilities, colocation providers, and enterprise data centers. By incorporating energy-efficient and environmentally optimized technologies into core operations, green data centers enhance long-term resilience, regulatory alignment, and cost efficiency for energy-intensive workloads. This infrastructure enables organizations to support AI-driven applications, cloud services, and high-density computing environments more efficiently, while reducing reliance on fossil fuel-based power systems and minimizing overall environmental impact.
By Cooling Infrastructure, Green Air Cooling will register the largest market share during the forecast period
Green air cooling is expected to remain a key thermal management solution in data centers, driven by the growing emphasis on energy efficiency, sustainability, and reduced environmental impact. Key components include Computer Room Air Handlers (CRAH) and Computer Room Air Conditioning (CRAC) units, which use chilled water and refrigerant-based systems, respectively, to maintain optimal temperature and humidity conditions. These systems are increasingly equipped with variable-speed fans, advanced controls, and high-efficiency motors to reduce energy consumption and improve overall cooling performance. Energy-efficient air-cooled chillers further complement these systems by using low Global Warming Potential (GWP) refrigerants and incorporating free-cooling modes that leverage ambient outdoor air to reduce cooling energy requirements. Additional approaches, including hot/cold aisle containment, variable airflow management, and intelligent monitoring systems, enable cooling capacity to be dynamically adjusted according to real-time demand, improving energy efficiency. Emerging vendors and solution providers can capitalize on this trend by developing advanced thermal management technologies. Carrier’s investment in ZutaCore, announced in February 2025, highlights the industry’s increasing focus on advanced cooling solutions. The collaboration aims to deliver scalable and energy-efficient thermal management systems capable of addressing the rising cooling requirements of modern data centers. To capture these opportunities, vendors can focus on developing innovative cooling technologies that improve efficiency and support sustainability objectives. Strategic collaborations, industry partnerships, and continuous technological innovation will remain important for strengthening capabilities in the evolving green data center cooling market.
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Software segment is poised for the fastest growth rate during the forecast period
The software segment is expected to register the highest CAGR in the Green Data Center Market, driven by growing demand for intelligent automation, energy optimization, operational visibility, and regulatory compliance. Data Center Infrastructure Management (DCIM) software provides real-time visibility into power consumption, cooling performance, server utilization, and environmental conditions, enabling operators to identify inefficiencies, optimize resource allocation, and maintain high availability. Building Management Systems (BMS) integrate electrical, mechanical, and HVAC systems to automate energy-efficient facility operations while regulating lighting, temperature, and airflow to minimize energy waste and improve cooling efficiency. Compliance software supports adherence to environmental standards, industry regulations, and sustainability certifications such as LEED and ISO 50001 by automating reporting, documentation, and audit processes, thereby improving transparency and accountability. Specialized software solutions, including AI-driven predictive workload management and energy analytics platforms, can dynamically optimize cooling, power distribution, and IT workloads based on real-time demand, reducing energy consumption, environmental impact, and operating costs. Emerging vendors and solution providers can capitalize on this growth through strategic partnerships, technology integration, and AI-enabled capabilities. For instance, in August 2025, Vertiv acquired Waylay NV, a Belgium-based AI-powered software provider, to strengthen monitoring, optimization, and operational efficiency across data center systems. By developing advanced software solutions, collaborating with established technology providers, and leveraging AI, automation, and analytics, vendors can support sustainable, efficient, and regulatory-compliant green data center operations while addressing the growing demand for intelligent infrastructure management.
North America accounts for the largest market during the forecast period
North America is witnessing measurable growth in green data center activity, driven by corporate decarbonization targets, rising onsite power costs, and the increasing need to deploy high-density computing infrastructure with lower water and energy intensity. According to the US Energy Information Administration, solar power generation in the United States increased by 25% in 2024, while wind power generation grew by 8%, improving the availability of low-carbon electricity for hyperscale and colocation data center campuses. Additionally, Schneider Electric announced collaborative AI data center reference designs with NVIDIA in December 2024 that support liquid cooling at densities of up to 132 kilowatts per rack, highlighting supplier responses to rising rack power densities and efficiency requirements. Federal and commercial developments during 2024 and 2025 are also influencing procurement timelines and technical specifications. The White House issued an executive order in July 2025 aimed at accelerating federal permitting for large data center projects and supporting infrastructure. By streamlining approvals for facilities exceeding 100 megawatts or involving capital expenditures of at least USD 500 million, the order supports faster deployment of next-generation data centers, enabling integration of renewable power, liquid cooling systems, and energy-efficient designs. Schneider Electric also introduced and validated new electrical and liquid cooling reference designs through 2024 and 2025, creating standardized deployment pathways for integrators and data center owners. Vendors and solution providers are increasingly focusing on liquid cooling systems, modular electrical skids, facility-level heat recovery, and advanced DCIM capabilities to address evolving procurement requirements amid faster permitting processes and increasing renewable power availability.
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Top Companies in Green Data Center Market:
The Top Companies in Green Data Center Market are Schneider Electric (France), Vertiv (US), Eaton (US), Daikin (Japan), ABB (Switzerland), Delta Electronics (Taiwan), Siemens (Germany), Carrier (US), and GE Vernova (US).
Green Data Center Market – Investment & funding +Merger & Acquisition
Investment and Funding Context
The global Green Data Center Market is attracting strong investment from hyperscalers, cloud providers, colocation operators, and enterprises seeking sustainable ways to expand capacity for AI, high-performance computing, and edge workloads. Investment is increasingly directed toward energy-efficient power and cooling systems, eco-friendly IT modules, high-density green AI pods, and sustainable manufacturing capacity.
Capital is also flowing toward companies developing technologies that address the power, cooling, and energy-efficiency requirements of sustainable AI infrastructure. For example, Eaton completed its USD 9.5 billion acquisition of Boyd Thermal in March 2026, adding liquid cooling and thermal management capabilities for high-density, energy-efficient data centers. Similarly, Vertiv agreed in September 2026 to acquire UtilityInnovation Group for approximately USD 1.45 billion to add microgrid controls, on-site generation orchestration, and behind-the-meter power architecture that shorten time to power. Schneider Electric completed the acquisition of a 75% controlling interest in Motivair for USD 850 million in February 2025 to strengthen its liquid cooling portfolio for AI data centers. These investments and strategic transactions demonstrate the increasing emphasis on energy-efficient, low-carbon, and rapidly deployable power and cooling infrastructure across the green data center ecosystem.
Revenue Shift Context
The market is shifting from conventional, energy-intensive data center infrastructure toward energy-efficient, low-carbon, and sustainability-oriented architectures as operators seek to reduce power consumption, operating costs, and carbon emissions. The rapid growth of AI and high-performance computing is accelerating this transition by increasing power density and cooling requirements, creating greater demand for efficient power distribution, advanced thermal management, renewable energy integration, and intelligent energy management. Technologies such as liquid cooling, high-efficiency UPS systems, renewable-powered generation, energy storage, and intelligent monitoring platforms are increasingly being integrated into data center infrastructure to improve energy utilization and support sustainability targets. Operators are also adopting modular and prefabricated solutions that improve deployment efficiency while incorporating energy-efficient power and cooling systems.
Revenue opportunities are consequently expanding beyond conventional energy-efficiency equipment toward integrated green infrastructure solutions, including renewable energy systems, liquid and immersion cooling, energy storage, high-efficiency power systems, AI-enabled energy management, DCIM platforms, carbon monitoring, and heat recovery technologies. The growing deployment of high-density AI infrastructure is particularly increasing demand for liquid cooling, optimized power architectures, and real-time energy monitoring capable of maintaining performance while controlling energy consumption.
Mergers and Acquisitions
Mergers, acquisitions, and strategic investments are increasingly shaping the Green Data Center Market as infrastructure providers seek to strengthen capabilities across energy-efficient power systems, advanced cooling, renewable energy integration, and intelligent energy management. Recent activity is focused on expanding sustainable technology portfolios, enhancing vertical integration across critical infrastructure components, and accelerating the development and deployment of energy-efficient solutions for AI-ready and high-density data center environments.
GREEN DATA CENTER MARKET: MERGERS AND ACQUISITIONS, AUGUST 2025–SEPTEMBER 2026
Month and Year
Deal Type
Company 1
Company 2
Description
September 2026
Acquisition
Eaton (Ireland)
COL Group (Italy) (from Oaktree)
Eaton signed a deal to buy COL Group at an enterprise value of about EUR 810 million. COL makes medium-voltage distribution equipment, including SF6-free switchgear, grid automation, and modular power systems. The deal expands Eaton’s European manufacturing for data center and utility customers.
September 2026
Acquisition
Vertiv (US)
King Environmental Services (KES) (Ireland)
Vertiv agreed to buy this Europe-based provider of fluid management, commissioning, and load-testing services for liquid-cooled data centers. It extends Vertiv’s thermal services into EMEA, building on PurgeRite in North America.
April 2026
Acquisition
Vertiv (US)
BMarko Structures (US)
Vertiv acquired BMarko to bring structural fabrication in-house and expand capacity for manufactured, prefabricated, and converged infrastructure solutions.
November 2025
Acquisition
Eaton (Ireland)
Boyd Thermal (US)
Eaton announced the USD 9.5 billion purchase of Boyd’s thermal business, which closed on March 12, 2026. It adds liquid cooling and thermal components for data centers, and about 80% of Boyd’s business serves that market.
Company Revenue Share Details
The global Green Data Center Market is led by established power, cooling, and electrical infrastructure providers competing across energy-efficient power distribution, power backup and energy storage, green air and liquid cooling, and DCIM and energy management software. Major participants include Schneider Electric, Vertiv, Eaton, ABB, and Hitachi Energy, alongside other global and regional players such as Daikin, Delta Electronics, Siemens, Carrier, and STULZ. Competition is increasingly shaped by the ability to offer integrated power and cooling portfolios that lower PUE, support renewable and low-carbon power integration, and handle the higher rack densities of AI workloads.
Competition is also shifting toward vertical integration and end-to-end offerings that span grid interconnect to chip. Recent transactions demonstrate this focus on liquid cooling, thermal management, and sustainable power distribution. For example, Eaton’s USD 9.5 billion acquisition of Boyd Thermal added liquid cooling capabilities. Its agreement to acquire COL Group (EUR 810 million enterprise value) adds SF6-free medium-voltage switchgear.
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Data Center Rack Market by Rack Type (Open Frame, Enclosed), Type (Server Racks, Network Racks), Rack Height (42U & Below, 43U up to 52U), Rack Width (19 Inch, 23 Inch), Data Center Type (Enterprise, Colocation, Hyperscale) – Global Forecast to 2030
Data Center Solutions Market by Infrastructure [Power (Critical Power, Backup, Distribution), Mechanical & Cooling (Air Cooled, Liquid Cooling, Heat Pumps), IT (Server, Storage, Networking), Physical (Racks, Cables)], Software – Forecast to 2031
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Goodwill Houston and CompuCycle Launch Tech Recycle Workforce Training Program for Students with Disabilities
xTool Launches C1 Color Cutter : The Full-Color Cutting Machine Built to Scan, Print, and Cut with Precision
Green Data Center Market worth $197.02 billion by 2031 – Report by MarketsandMarkets™
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