Q3 2024 Bandwidth Inc Earnings Call
Most. We are excited to announce that bandwidth is a directly connected aggregate. We also have a new feature upgrade called Voice Configuration Packages. Two new integrations for conversational AI. bandwidth registration center. Alternative location routing, number, reputation management. Thank you for showing off our visual builder and my surintegration today. Thanks to a botanist like FanBread. Resilience is so important. We have a deeper level of visibility to the Colorado. We are very grateful for the partnership we've enjoyed with Google for decades. Each of you are great examples of how I just keep watching our customers do cool things with FanBread. We will see you!
on the Universal Platform.
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Speaker Change: At Reerberg, we're proud to have announced our plan to develop an industry-first nomadic emergency services solution for markets outside the U.S.
Speaker Change: as well as progress on a new number reputation management solution for trusted calling and also a new centralized message registration center for faster and easier texting campaign registration.
Speaker Change: These innovations cross all three of our key customer categories, global communications plans, programmable services, and direct enterprise.
Speaker Change: In addition to being true technical milestones achieved by our talented team, they are also business critical solutions that will drive continued revenue growth and margin expansion. So let's dig in.
Speaker Change: Our new next generation bandwidth universal platform is the foundation of everything we do.
Speaker Change: At Reaver, we unveiled a number of powerful new capabilities to turbo charge the bandwidth experience.
Speaker Change: including Faster onboarding, automated workflow management, tailored regulatory frameworks, and deeper performance monitoring. All managed through convenience software APIs. Bottom-Wine.
Speaker Change: These enhancements make bandwidth faster to implement easier to scale and spicier for customer attention. Just listen to how DocuSigns Vipin Karla described it at reverb.
Speaker Change: He consolidated nine different carriers in 15 geographies down to one with bandwidth to power DocuScience Contact Center Operations globally.
Speaker Change: [inaudible]
Speaker Change: Khaadim Ratshmeeding, 1st 15m, this is what I want and last 15m worth.
Vipin Karla: Hacer document H.U. attestic count, go for it and in next 45 minutes my lines were really hot. Integration done with bandwidth that firm.
Vipin Karla: and we're not going back to any of those carriers all alone. The Universal Platform is also where we're building the next generation of our renowned emergency services.
Vipin Karla: For years, we have been a leading innovator and provider of E911 in the United States. Now, we intend to make it global.
Vipin Karla: We were excited to announce at Reaver our plans to develop the first ever nomadic emergency services solution outside the US.
Vipin Karla: We call it alternate location routing and it promises to deliver a similar life-saving potential for on the bill workers globally as our 9-1-1 dynamic location routing services do in the United States.
Vipin Karla: Our emergency services are frequently a door opener for larger customers to get to know us and now we want to open that door to the entire world. So we've completely refreshed and upgraded the bandwidth experience with our next day and universal platform.
Vipin Karla: Turning now to the innovation pipeline for our enterprise business, we were excited to announce that reverb that our award-winning Maestro platform now has the largest ecosystem of bring your own carrier integrations of any provider worldwide.
Vipin Karla: That means enterprise IT teams have the flexibility to choose what works best for them to build custom-text stacks that enhance both customer and employee experiences.
Vipin Karla: This freedom of choice
Vipin Karla: and Flexibility are powerful differentiators.
Vipin Karla: Because our largest customers are now navigating multiple paths to the cloud.
Vipin Karla: Summer embracing hybrid environments to maintain the best of both worlds.
Vipin Karla: On-prem and Cloud, while others are re-optimizing their text acts by switching from cloud to cloud. And of course, many are still moving 100% to the cloud for the first time.
Vipin Karla: The power of mystro is that it supports all three of the strategies while reducing development time from months to hours and giving enterprises the control they need to adapt quickly in a constantly changing environment.
Vipin Karla: With new enterprise deals closing every quarter, mystro's flexibility and integration capabilities are driving steady business growth.
Vipin Karla: The latest example is a large diversified credit union that needed rock, solid reliability to modernize their on-prem contact center with a WebX C-Cass solution.
Vipin Karla: They chose my stroke because they wanted maximum flexibility to build a modern text stack to easily add new services they envision down the road.
Vipin Karla: In addition, our all IP solution made it easy to integrate the customer's payment solution right into the call flow. Many of our customers are seeing significant operational efficiencies and cost savings by implementing my stroke.
Vipin Karla: This creates additional upsell opportunities for advanced services such as conversational AI integrations.
Vipin Karla: Our AI Bridge product, available with my stroke, enables contact center operators to easily plug in best-in-class conversational AI providers like Google Dialogue Flow and Cognitive.
Vipin Karla: At Reverb, we announced partnerships with two more leaders in the space, Core.ai and Amelia, which will expand our AI ecosystem as enterprise adoption increases.
Vipin Karla: Conversational AI enables enterprises to reduce operational costs by automating routine inquiries, which improves both the customer and the agent experience.
Vipin Karla: The key financial benefit for bandwidth is that AI interactions continue generating voice minutes on our network. Additionally, we can monetize the extra data streams needed to support AI integrations in the Testumer experience works in two ways.
Vipin Karla: Besides inbound communications, many of our customers also rely on outbound outreach, such as an in-home services provider scheduling an installation or a healthcare provider discussing test results.
Vipin Karla: The challenge is that a rise in spam and fraudulent calls has even a way it consumer trust, making it difficult for legitimate companies to connect with end users and get them to answer the phone. It's costing them a lot in wasted time and misrevenue.
Speaker Change: Ben with his now tackling this problem head on with number reputation management, which is a new solution coming soon to help enterprises take back control and protect their own housing.
Speaker Change: As a cloud platform owner and operator, we have access to critical cold data that can be analyzed to lead to remediation solutions.
Speaker Change: by ensuring that more calls are answered.
Speaker Change: and fewer on this labelled, we are enabling our customers to achieve higher conversion rates.
Speaker Change: and Maximize their revenue potential. This solution has already garnered significant interest with a waiting list of companies ready to come on board for our beta version.
Speaker Change: You've heard just some of the many ways we are elevating voice services with my stroke, AI bridge and number reputation management. As customer experience evolves, more and more consumers want to be communicated with in their channel of choice.
Speaker Change: 2. That end. At Meaver, we announced a comprehensive vision for multi-channel messaging.
Speaker Change: with the announcement that we are now a directly connected aggregator, bandwidth has enhanced our leadership position in the messaging market, improved our cloud owner economics, and strengthened our ability to deliver high volume, mission critical messaging solutions. This not only boost our margin profile, but it's the reason partners like attentive mobile, one of the largest conversational commerce platforms in the world, shows bandwidth.
Speaker Change: Reaperter sells on sending messages as quickly as possible and having the highest deliverability rates in the industry. The direct connection is allowed to make sure that we have the right throughput and capacities that get those messages out. Any partner to us to communicate easier for us to actually do what we do best, which is getting messages out to consumers. It's going to be really, you know, what we look for, and I think Ben was done a great job of doing that. Communication between RIT and the band's team is always seamless. They work with me and my team to make sure that we're really taking about everything we can be doing to provide the best possible messaging strategy to ensure that our customers can continue to drive billions of dollars of revenue and actually reach their subscribers in a way that matters.
Speaker Change: Another key pillar of our messaging vision is RCS or Rich Communications Services.
Speaker Change: With Apple support for RCS and Mobile Network Operators now on board, we are among the first to develop a proof of concept for business grade RCS, which is known as Rich Business Messaging or RBM.
Speaker Change: This is a game changer for business messaging and we're positioning ourselves to be the go-to partner for enterprises as they implement RBM across all our key markets just like we do with SMS.
Speaker Change: Navigating the global messaging landscape is highly complex, but bandwidth is uniquely positioned to lead.
Speaker Change: with constantly evolving registration and verification requirements.
Speaker Change: Our new bandwidth registration center.
Speaker Change: Simplifies the process for our customers.
Speaker Change: This centralized hub streamlines compliance for high-volume messaging, making it easier for enterprises to say inline with industry regulations while meeting high standards for trust that are set by carriers.
Speaker Change: Registration Center, Shigruti's friction, and drive usage for high volume centers, like a new patient engagement platform that shows bandwidth in Q3.
Speaker Change: This customer specializes in appointment verification for healthcare and dental providers as well.
Speaker Change: Knowing that misdeployments mean a loss of revenue for the provider, the customer came to us wanting a better way to verify messages were being delivered to patients.
Speaker Change: They also wanted better customer support after having deliverability issues with their previous provider. And with deployed a dedicated onboarding team to help them get up and running in just days.
Speaker Change: Well, our universal platform provides them with an unprecedented level of delivery insights to ensure timely patient communications. It is a great example of our messaging leadership and action.
Speaker Change: As we approach the end of 2024, we are excited by the momentum of our strong R&D roadmap and a clear focus on what the world's largest enterprises need and want.
Speaker Change: We're proud of the breakthrough innovations that we launched at Reverb, which come from listening to our customers and anticipating the market.
Speaker Change: Our vendor agnostic approach gives CIO's freedom of choice, helping us win their trust and long-term business with continued leadership in Maestro, AI, and multi-channel messaging. Along with our next-gen universal platform, we are confident that we are well positioned to continue building our durable franchise as the most trusted provider in enterprise cloud communications.
Speaker Change: All now turn it over to Daryl, to walk through the details of our financial results and our outlook.
Daryl: Thank you, David, and thanks everyone for joining us today for this very special episode of Bandwidth's earnings announcement.
Daryl: Building on our over-performance for the first half of the year, and with delivered a record third quarter. Total revenue reached $194 million, marking a 28% increase.
Daryl: and adjusted EBITDA Groups $24 million representing a 74% increase year-to-year. Both metrics surpass the upper range of our guidance.
Daryl: Drilling down into our third quarter results. Again, total revenue rose to $109,4 million with cloud communications revenue of $139 million, up 15%.
Daryl: from last year. Our cloud communications revenue benefited from growth across all our products and customer categories.
Daryl: And as a reminder, we go to market serving three custom brocategories within Cloud Communications Revenue.
Daryl: Direct Enterprise Customers, Programmbal customers, and Global Communications Plans customers. We grew revenue 30% year-to-year in our Direct Enterprise Customer category.
Daryl: The flexibility and control to build custom communications environments that enhance both customer and employee experiences using the My Stroke platform continues to resonate with enterprises.
Daryl: Our programmable services category grew 55% year a year. We've experienced strong demand for messaging which represented 24% of cloud communications revenue and was driven by commercial customers in e-commerce.
Daryl: Financial Services and Healthcare, as well as $8 million recognized from political campaign messaging. In fact, for the last 12 months, ended September 30, compared to the same period last year, our commercial messaging revenue grew 32%.
Daryl: A very tangible demonstration of our ability to acquire new customers and take market share. For global communications plans, our third quarter revenue grew 5% year over year, slightly ahead of our expectations reflecting stable momentum.
Daryl: In terms of operating metrics, our third quarter net retention rate was 117%.
Daryl: and increase a six percentage points from last quarter.
Daryl: Political campaign revenue contributed approximately 2 percentage points. Our RPU climbed to a record $212,000. Reflecting our success in attracting and serving large enterprises for their business critical communications and modest benefit from political campaigns.
Daryl: A justing for political campaign benefit, the third quarter RP grew to a record, $201,000.
Daryl: Our third quarter, non-got gross margin, was a record of 58%. Upper approximately 3 percentage points from the prior year's quarter, as we continue to benefit from our four gross margin expansion pillars.
Daryl: We generated free cash flow of $14 million showing strong flow through from the Justity Bedaa.
Daryl: We remain on track to achieve greater than $50 million free cash flow in 2024. Before I turn to the full year outlet, let me summarize our third quarter business model achievement. We've compared to last year, revenue grew 28%.
Daryl: With the total revenue, cloud communications revenue grew 15%. The conversion to gross profit was very strong, with gross profit growing 22% on our 15% cloud revenue growth.
Daryl: Setting a record quarterly gross margin of 58%.
Daryl: Operating expenses grew 7% with half of that coming from increased investment in R&D innovation.
Daryl: and David Outland from Reverb, all adding up to a remarkable, profit growth of 74%. Now, turning to our outlook, we are raising our full-year guidance.
Daryl: We now expect revenue to be $742 million at the midpoint of our range, reflecting a $27 million raise to our previous guidance, and year over year growth of 23%. We expect to just hit even though to be $79 million at the midpoint.
Daryl: Refresigning a 65% profitability growth over last year. Embedded in our update to full-year projections, we're now estimating a $25 million cloud communications revenue contribution from political campaign messaging customers.
Daryl: Which notably represents less than 5% of cloud communications revenue, in closing our priorities remain consistent.
Daryl: Serving and deliding our customers, executing with precision and staying committed to long-term profitable growth.
Daryl: These priorities were clearly reflected in the innovation on display at the reverb event, a testament to the emerging market opportunities captured by the ingenuity and hard work of our bandmates. We believe our culture of innovation will propel us forward through the next several years as leaders in the market.
Speaker Change: Now I'd like to turn it back to Sarah to begin the question and answer portion.
Speaker Change: The End
Sarah: Thank you, Daryl and as he said we will now move into the question and answer session.
Sarah: Will be joined by our Chief Product Officer John Bell to provide additional insight on your innovation roadmap questions.
Sarah: To ask a question, select the join tab at the top right of your screen.
Sarah: Then click on the blue request permission to join state button.
Sarah: to be placed in the queue. When I approve your request to join, you'll select the green join stage button and approve the use of your camera and microphone before asking your question.
Sarah: Let's jump in. Our first question will be from Ryan Coops with Needle.
Sarah: The End.
Speaker Change: Ryan, you can go ahead with your question.
Speaker Change: and be sure to hit the green join button.
Speaker Change: The End
Speaker Change: Are you ready?
Speaker Change: The End
Speaker Change: I don't hear you.
Speaker Change: Alright, we're going to take another question and we'll come back to you right okay?
Speaker Change: Alright, our next will be Jim Fish.
Speaker Change: with Piper Sandler.
Jim Fish: Hey, John.
Jim Fish: Jim, we can't hear you.
Jim Fish: Can you hear me now? Yes!
Jim Fish: Awesome. I'm happy that I get to be the first one on this. So thank you. Nice quarter guys, especially even when normalizing everything. I appreciate all that color there.
Jim Fish: and maybe just to dive into the RCS side of things, which is kind of a hot topic here in this space. Relatively kind of, I'll say, not new, but you know, a big sign up with Google here. I guess what are you guys, what do you guys see playing out with RCS versus SMS volumes on the messaging side and how back could impact?
Jim Fish: your gross margins moving forward.
Vipin Karla: Thanks, Jim and good to see you. I'm joined today by my bandmate John Bell with whom I've had the pleasure of working for 13 years. He's our Chief Product Officer and I'd like to ask him to handle your good question about RCS.
Jim Fish: and what we've talked about today.
Speaker Change: and a great, great question, Jim.
John Bell: I'd say it's still early days for RCHRCS and RBM, which use cases will work best for which technologies.
John Bell: Still early along with the economic impact of it. So we're still navigating it, but I think there's still a lot of uncertainty about how all the different channels will balance out over time as we can forward.
Speaker Change: Make sense and then you guys talked about the driver or I'm sorry voice coming in a little bit higher than then you guys were expecting just trying to understand what was the cause of that. Thanks guys
Speaker Change: Thank you, Jim. We've had broad usage in voice across the different enterprise, verticals and categories that we serve, contact center certainly continues to be a focus for us, both in that period and going forward. But very pleased, both domestically internationally, with the usage of voice as a driver that we point out.
Speaker Change: Faker.
Jim Fish: Thank you, Daryl Raiford.
Speaker Change: Our next question will be from Arjun, Bautaya with William Blair.
Speaker Change: Hi Ardys.
Speaker Change: We don't hear you.
Speaker Change: The End
Speaker Change: Now we don't hear you. Did you approve that you say your microphone?
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Speaker Change: Alright.
Speaker Change: Okay, we'll come back, we'll come back to you, Arjun.
Speaker Change: Our next question will be Will Power with Fairge.
Speaker Change: The End
Speaker Change: Will be sure to hit the green join button.
Speaker Change: Okay, you really? Yeah!
Speaker Change: Good night.
Speaker Change: Um...
Speaker Change: I may just come back to him.
Speaker Change: I'm sorry, universal platform, you know, great to hear someone, you know, some of the highlights sounds like a real success.
Speaker Change: and maybe for Johnson's son's age, I'm just kind of here looking at feedback and getting for customers. And I guess he kind of break it down and think, David went through a lot. He rolled out a lot and reverb.
Speaker Change: You know, are there a couple of things that we should really be focused on as investors that could be, you know, bigger drivers, you know, with an extra couple of years and I guess couple with that again, what's kind of resonate with customers when you get feedback.
Speaker Change: Thanks, well John. Yeah, great, great question. I think when you look in total of what we rolled out.
Speaker Change: It really represents bandwidth open approach towards the market, our integrations to all the major UCAAS, CCAAS, AI platforms.
Speaker Change: really important and then I'd also point out our program of voice API that we've rolled out globally as well. They really important because we see more and more new entrance into our market.
Speaker Change: Man and I have a different technical background and so having that program of voice platform helps us serve those new entrance with the technologies they're familiar with. So I think looking at the integrations and the technical breadth that we're taking globally really important to us for the long term.
Speaker Change: and maybe you know, David or David are there, just thinking about the messaging growth.
Speaker Change: You know, excluding political, this could great get any other, you know, color you could distill that for most in terms of key drivers and how this core kind of core trends trended versus, you know, recent periods there.
Speaker Change: So in one of the customer examples that we cited in the period will, we talked about how use of our universal platform API from SGA and was a key driver in winning them away from their incumbent.
Speaker Change: Deliverability and demonstrating that the message is sent received on time and accurately is a huge insights product that we offer the differentiates us for the commercial customers. And I think that that value will continue to resonate.
Speaker Change: In the next year as we think about messaging used through the oversupply form, in terms of the financial contributions of messaging, that political pause and esterals, if you'd like to add to anything. Well, thank you, David. It's certainly, will. It's so nice to say hello to you.
Speaker Change: We're really pleased with the performance of our commercial messaging in the third quarter, it again performed off the second quarter very well. If we take...
Speaker Change: Commercial messaging, ex-sert charges, ex-political, it grew 18% in the third quarter, off of 18% in the second quarter. We're really happy with that figure that's more than double our nearest competitor in the space.
Speaker Change: and that nearest competitor includes search arches.
Speaker Change: [inaudible]
Speaker Change: We're happy with the growth there and the healthcare companies that David highlighted.
Speaker Change: the healthcare platform where they had deliverability issues with that competitor. And we were able to onboard as just a customer highlight. On board, then successfully in the third quarter, is the attraction of the platform and our customer service and operations that seems to resonate really well with our commercial messaging customers.
Speaker Change: Alright, great, thank you. Alright, thanks well.
Speaker Change: Our next question will be from Amen Coffland with Barkley.
Speaker Change: Aimee, Fisher's a Heptagreen joined that night.
Speaker Change: Go, good day, I'm just gone. Alright, we're gonna move on to meet a martial.
Speaker Change: with Morgan Stanley.
Speaker Change: Meetup, share to hit the green join button.
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Speaker Change: Alright, Mita, we're gonna move on, we're gonna try.
Speaker Change: Austin Cole at, nope, we're going to go to Arjun Bautia, we're willing to play, we're going to give this one another shot.
Speaker Change: Argyl?
Speaker Change: Ah!
Speaker Change: We still don't hear you.
Speaker Change: The End
Speaker Change: What do you send me your question and I'll read it?
Speaker Change: Okay.
Speaker Change: All right, we'll go to Austin Cole with JMP Securities.
Speaker Change: The End
Speaker Change: The End
Speaker Change: Austin hit the green join button.
Speaker Change: We'll try Pat Walraven with DMP.
Speaker Change: Hi, hi, Beth. And how's the volume? On the volume is working too. Sweet, it's not that hard. So I'm not sure what's going on. Okay, so congratulations, it's awesome. So Dave, I mean, you have all these.
Speaker Change: Ummm...
Speaker Change: Procannouncements, you know, you've got the nomadic global, you've got number reputation management, just the AI bridge.
Speaker Change: and I mean it's incredible how much product you guys are delivering but which of these is most likely to move the needle soonest you know so from an investor's point of view.
Speaker Change: Thanks Pat, that's a very insightful question and I would...
Speaker Change: I would welcome that opportunity to speculate actually because I think it's anybody's best guess, but removing friction from things like porting.
Speaker Change: and doing things in a single universal user experience across expanding country footprint are very tangible, very immediate and very relevant to the decision makers we talk to today.
Speaker Change: Those are actionable, they're gritty.
Speaker Change: and that's where I would guess.
Speaker Change: Okay, and then Daryl, you dress this already a little bit, but it's already coming up. So, you know, I'm getting the, oh, but you know, this political messaging is a one-time benefit, right?
Speaker Change: What's the response investors are skeptical to say you're having a one-time benefit? Just give us a top two or three points.
Speaker Change: Well look, uh...
Speaker Change: No one should dismiss the political campaign customer because they also participate in the market engagement which is commercial and civic engagement. So we grow across all of those three forks.
Speaker Change: Weren't we pleased with that? No one should dismiss our commercial revenue growth at now two quarters in a row twice our nearest competitor.
Speaker Change: We're really pleased with the profit growth for the year. We're really pleased to have raised our guidance. Our revenue guidance, $27 million, $7 million in cloud communications with...
Speaker Change: and a several million dollars of that coming from commercial revenue.
Speaker Change: and we're looking forward to continuing that momento. I don't think that there's a criticism in there growing twice than yours compared to it.
Speaker Change: I would only add to that pad. We'll certainly have to wait to guide 25 later, but I don't think I'm speaking out of the train there when I suggest it will continue to grow profit.
Speaker Change: Next year. So, despite.
Speaker Change: Anyone talking about one time political contribution, we'll continue to grow profit next year. So over the last several years, everyone has seen high-quality profit growth out of our business model. And indeed,
Speaker Change: The model taking just this last quarter of growing growth profit, 22% on 15% revenue growth.
Speaker Change: Growing our e-vidot to the extent that we did.
Speaker Change: We intend to keep extending that profit growth. Whether there is a cyclical, a liticle campaign headwind or not, that is the nature of our commercial business. It is taking market share and we're very pleased with that.
Speaker Change: Alright great, thank you.
Speaker Change: Hi, we are going to try Amen, Cofflin again with Barkley's.
Speaker Change: Are you guys can hear me? Yeah.
Speaker Change: Thank you. Thank you. Sarah, I'm off-prime act. I sent a question and he's grass on a great quarter. We are hearing more interest from customers on gender AI use cases.
Speaker Change: Given the complexity and uptime requirements for these UK use cases, could BAMLIT's have an edge for enterprises looking to activate around these voice AI use cases?
Speaker Change: Thanks very much and I'll be getting an invite John Bell to pile on.
Speaker Change: It's certainly the case thing vertically integrated in having a universal footprint all our own.
Speaker Change: that we have the ability to see quality, to promise quality, and to deliver it in vital media and signaling use cases for voice.
Speaker Change: and Hanyard Offsetting and receiving you to cross important jurisdictions and doing that in a regularly compliant way. So, yes, if you're doing AI use cases, you want to work with a provider that is responsible for the entire tech stack.
Speaker Change: But let me pass it over to John. Yeah, I agree and we're watching...
John Bell: A number of different AM models being used by enterprises, and so providing them the flexibility and the freedom of choice of which.
John Bell: platform they're choosing to use.
John Bell: Making sure they can easily integrate into the communications.
John Bell: Stair
John Bell: is a really important. So, we believe the foundational lessons we've made in the universal platform are really applicable to this future.
Speaker Change: Guy and then just trying to get a better understanding for political expectations for for Q, so we've expect similar results to 3Q or you know, a little more or
Speaker Change: We recognize date million dollars of political campaign revenue in.
Speaker Change: in Cloud Communications in the third quarter. And in her and in our guide of around $25 million now, after experiencing 3, 3, 8, the remainder of 11 were expecting us for quarter, so we are expecting.
Speaker Change: A bit of a growth in terms of this last quarter. Awesome. Thank you guys.
Speaker Change: Thanks very much.
Speaker Change: and the other one.
Speaker Change: Okay?
Speaker Change: In our last question, we'll come from Mietamarshall at Morgan's family.
Speaker Change: Nina, be sure to hit the green join button.
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Speaker Change: Ok.
Speaker Change: I don't know if we're going to get me to but I do have, I'm going to give her one more second and I'm going to read Arden's question while we're waiting for me to come up.
Speaker Change: So, an urgent William Blair asked on messaging the growth is exceptional. Where is the incremental share and usage coming from? Is that new customers from competitors or existing customers expanding?
Speaker Change: or these net news cases that are coming live that didn't exist previously.
Speaker Change: So it certainly is a combination of existing and new customers with existing customers always out contributing just based upon the basic business we have with Steller Enterprise brands.
Speaker Change: Use cases always are evolving, into creative and exciting new ways for end users. But there's nothing fundamentally different or unexpected about the way in which our customers are going to work with messaging using our platform both domestically and now also internationally.
Speaker Change: I'd like to echo David's comments, they're on the mark and I want to punctuate them with our net retention rate. Our net retention rate.
Speaker Change: Without the political tailwind is 115% for the quarter. And we're very, very pleased with that. That demonstrates, arguing that demonstrates a combination of new cuts with our revenue growth, a new customer, and a very nice...
Speaker Change: Growth Rate, and then the existing customer cohort from last year. So we're seeing it very broad.
Speaker Change: Mark, Arjun, to have one additional question with the strong growth in global communications, are we already seeing AI drive more volume and voice or is that still to come?
Speaker Change: It is already a launched adopted and growing part of our MySTRO platform. Our AI Bridge product now offers five partner integrations that are exciting. So yes, it has begun.
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Speaker Change: Okay, and that, please.
Speaker Change: Yeah, I don't think we're going to be able to hear me there.
Speaker Change: So sorry, Mita, we will talk to you very shortly. We have a call with the East Gettle, so we'll follow up there. And this concludes our question and answer session. Thank you all for joining today's presentation. You may now disconnect. We have a wonderful day.
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