Q1 2025 Bandwidth Inc Earnings Call
Speaker Change: Good morning, and welcome to the Bandwidth Inc First Quarter 2025 earnings call, or participants will be in lesson only mode.
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Speaker Change: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star and then two.
Speaker Change: Please note that this event is being recorded. I would now like to tell the conference over to Sarah Walas. Please go ahead, ma'am.
Sarah Walas: Good morning and welcome to Bandwidth's first quarter 2025 earnings call.
Speaker Change: I'm joined today by David Morken, our CEO and Daryl Raiford, our CFO . They will begin with prepared remarks and then we will open up the call for Q&A.
Speaker Change: Our earnings press release was issued earlier today. The press release and an earnings presentation with historical financial highlights and a reconciliation of gap to non-GAAP financial results can be found on the investor relations page at investors.bandwidth.com
Speaker Change: During the call, we will make statements related to our business that may be considered forward-looking, including statements concerning our financial guidance for the second quarter of full year 2025.
Speaker Change: We caution you not to put undue reliance on these forward-looking statements [inaudible]
Speaker Change: As they may involve risks and uncertainties that could cause actual results to vary materially from any future results or outcomes expressed or implied by the forward-licking statements Any forward-licking statements made on this call and in the presentation slides reflect our analysis as of today
Speaker Change: and we have new plans or obligation to update them. For a discussion of material risks and other important factors that could affect our actual results please refer to those contained and our latest 10K filing as updated by other SEC filings.
With that, let me turn the discussion over to David.
David Morken: Thank you Sarah, and good morning everyone. Welcome to Bandwidth's first quarter 2025 earnings call.
David Morken: We're pleased to report a solid start to 2025 with results exceeding both our top and bottom line expectations.
David Morken: Driven in large part by strong performance in our core offerings, reflecting healthy demand for our cloud communication services and discipline to operating execution. We deeply appreciate the continued trust of our customers and the opportunity to serve them.
David Morken: To our dedicated bandmates, thank you for the talent, drive, and unwavering commitment to our mission.
David Morken: I thank God for each of you and for his many blessings on our company. Before we discuss our first quarter performance
David Morken: We continue to see healthy usage across our core offerings in voice and messaging, particularly in regulated mission critical verticals like healthcare and financial services.
David Morken: In our 26-year history, Bandwidth has always been known for resilience, and we remain focused on disciplined execution, new innovations, and delivering the essential communications our customers rely on every day.
Now let's turn to our first quarter performance
David Morken: Bandwidth Powers, Mission Critical Communications, Across AI Voice, Messaging, and Emergency Services.
David Morken: Our Mistro platform is the orchestration layer for the modern enterprise. Giving enterprises the freedom to integrate their choice of best-in-class C-Cas, U-Cas, and voice AI agent providers.
David Morken: As the only see-pass company with our own Global Communications Cloud, we deliver unmatched Geographic Reach and Reliability.
David Morken: The results of our strategy to drive growth in our core platform are evident in our first quarter-performance across all three of our market offers, enterprise voice, global voice plans, and programmable messaging.
David Morken: Our Enterprise Voice Business is experiencing significant traction as enterprises increasingly choose Bandwidth to modernize their communications infrastructure.
David Morken: They are leveraging our software platform and global network to deliver mission-critical voice communications and enable AI-powered voice agents. Notably, over half of our enterprise customers are now utilizing our myestro or AI bridge platforms.
David Morken: Maestro's flexibility and orchestration capabilities are proving to be a strong competitive differentiator in sectors like financial services, healthcare, and hospitality. As enterprises choose us for the measurable ROI we deliver in streamlining operations and accelerating innovation.
David Morken: We saw this firsthand with significant customer wins in the healthcare sector.
David Morken: One prominent healthcare provider with locations across the Midwestern U.S.
David Morken: Seeking to implement a hybrid environment to integrate their legacy on premises applications.
David Morken: Bandwidth's Maestro platform is jump starting their cloud journey by modernizing their communications infrastructure.
David Morken: Maestro's dynamic call routing feature provides superior reliability while allowing the customer to consolidate and own their telephone numbers for greater control. These examples demonstrate how bandwidth's open and flexible architecture powered by Maestro serves both cloud first and hybrid customers with the integrations of their choice.
Addressing a wide spectrum of enterprise needs [inaudible]
David Morken: Our Voice AI Strategy resonates with enterprises and we are making significant strides in our AI Voice Strategy focusing on openness and flexibility, core tenets of our myestro platform that align with our customers' preferred approach to building their solutions.
David Morken: As enterprises increasingly adopt specialized AI voice agents, integrating them into existing communication workflows presents a challenge.
David Morken: Maestro AI Bridge is specifically designed to simplify this complexity, allowing organizations to integrate their choice of new AI voice solutions with their current C-CAS and U-CAS platforms.
David Morken: This strategy is already contributing to our growth in wallet share, a long-term customer recently selected AI bridge to power a new IVR replacement using a third-party AI voice agent.
David Morken: This deployment has significantly improved efficiency by resolving inquiries about transaction status and payment confirmations, freeing up human agents for higher value interactions, reducing operational costs, and enhancing both customer and agent satisfaction.
David Morken: Furthermore, AI Bridges Interoperability allowed the customer to deploy on their own timeline.
David Morken: In our enterprise business, our channel program continues to expand, enabling us to engage with large and complex enterprise transformations through MSPs and system integrators
David Morken: In the first quarter, we expanded our longstanding partnership with MiraTech through another multi-million dollar deal This collaboration will power a new Genesis Contact Center for the largest regional auto club in the US
David Morken: The customer chose Bandwidth for our Rapid Deployment Capabilities VR Genesis Integration on the Mistro platform and our ability to easily integrate AI voice agents for future automation of customer service functions, turning to global voice plans, our largest voice offering.
David Morken: This category continues to provide a strong foundation for Bandwidth's growth.
David Morken: Our Owned and Operated Global Network, coupled with our regulatory expertise and software automations on the universal platform, remain key differentiators for our hyperscale and communications platform customers like Microsoft, Zoom, and Genesis.
David Morken: In the first quarter, we successfully secured new business and expanded existing relationships.
Let me give you two examples.
David Morken: First, we secured a new relationship with a global IT services provider and Microsoft Gold Partner, serving over 3,000 customers across 57 countries.
David Morken: They selected Bandwidth to support mission critical contact center operations for several U.S. state governments and large enterprise clients.
David Morken: A key factor in their decision was the failover protection provided by our college or solution for their 7,000 toll-free numbers.
David Morken: This win highlights Bandwidth's reliability and platform resilience, positioning us for growth as this partner expands deployments.
David Morken: Second, we deepened our engagement with an existing long-time global voice plans customer that is pioneering a groundbreaking AI use case.
David Morken: They recently launched a real-time voice translation service powered by large language models enabling seamless communication in English, Chinese, Japanese and Spanish with plans for more languages in the future.
David Morken: The customer continued building on the Bandwidth Cloud because of our ability to deliver the high fidelity, low latency and reliability that voice AI applications demand.
David Morken: It's a powerful example of how enterprises are launching voice AI with Bandwidth, driving increased usage of our Bandwidth Cloud.
David Morken: Turning to our programmable messaging offer, customer use cases remain diversified and we're pleased by the core platform demand we're seeing across commercial messaging use cases.
David Morken: Customers continue to choose bandwidth for our reliability, scalability, and the deep expertise we have in messaging compliance.
David Morken: They selected Bandwidth for the capacity and enhanced reliability needed to support their growth, along with AI-powered tools like our Campaign Registration Center to simplify compliance.
Speaker Change: I want to congratulate our bandmates on earning two Gold Stevi Awards, the highest honors given in this global competition
Speaker Change: Our customer success team received the top recognition for innovation in customer service for the second year in a row and our inaugural reverb user conference placed first for best customer engagement initiative.
Speaker Change: These awards are a clear reflection of our mission to put customers at the heart of everything we do, in summary.
Demand is solid
Our strategy is effective [inaudible]
Speaker Change: and we're committed to growing our core business through focused execution, innovation and delivering critical communications for our customers with a growing market, loyal customer base, strong competitive position. Thank you very much.
Speaker Change: profitable operations and a solid capital structure, we believe Bandwidth is well-positioned to drive long-term growth and profitability.
Speaker Change: I'll now turn it over to Daryl to walk through the details of our financial results and outlook.
Daryl Raiford: Thank you, David, and good morning everyone. We're pleased to report a strong first quarter, underscored by particular strength in our core offerings, demonstrating bandwidth's commitment to sustainable and profitable growth.
Daryl Raiford: Our team's execution led to revenue and adjusted Ibadah exceeding the high end of our guidance. This success was driven by continued growth in our enterprise and global voice customer categories, as well as the progress of our strategic initiatives.
Daryl Raiford: We are encouraged by this momentum and remain focused on balancing growth with disciplined financial management.
Daryl Raiford: As David remarked, our communication services are not currently subject to tariffs, and we do not anticipate that the current environment will materially affect our operating costs or service delivery.
Daryl Raiford: Our initial 2025 Outlook assumed a stable to moderating macroeconomic environment.
Daryl Raiford: and we're raising our full-year guidance to reflect that overperformance while continuing to retain contingency for macro volatility. Turning now to our first quarter, 2025 results, total revenue of $174 million increased 7% year-of-a-year year-of-a-year.
Daryl Raiford: Normalized for 2024 cyclical political campaign revenue of $8 million dollars.
Daryl Raiford: Included within that result, Cloud Communications Revenue reached $133 million, a 6% year-over-year increase, also normalized for 2024 political campaign revenue.
Daryl Raiford: non-GAAP Gross Profit of $79 million marked an increase of 8% year by year, or 11% normalized for 2024 political campaign. non-GAAP Gross Margin improved to 59%, a 2% point increase.
Daryl Raiford: Ebedaw Group by 40% to $22 million. This result was higher than our expectation, benefiting from higher revenue, stronger margin, and timing of operating expenses.
Focusing on our first quarter cloud communications revenue growth [inaudible]
Daryl Raiford: Enterprise voice revenue grew 26% year-of-a-year, driven by strong core platform demand from financial services and healthcare customers.
Daryl Raiford: Global Voice plans revenue grew 4% year-over-year, showing steady growth as long-term customers expand and channel partnerships drive new business.
Daryl Raiford: Programable messaging accounted for 19% of cloud communications revenue and saw a 9% year-to-year increase normalized for 2024 political campaign revenue
Daryl Raiford: Moving to operating metrics, net retention rate for the first quarter was 116%. Customer name retention remained well above 99%.
Average annual revenue per customer set another record at $228,000
Daryl Raiford: or a record $211,000 when excluding the political campaign benefit in 2024.
Daryl Raiford: In terms of our first quarter capital structure activities, capital expenditures were $10 million, somewhat higher than this time last year as we focus on our network expansion activities. We further strengthened our balance sheet with a repurchase of 2026 convertible nodes.
Daryl Raiford: Leaving only $7 million remaining of the original $400 million $1 million.
Daryl Raiford: and we ended the quarter with a cash and securities balance of $42 million and no borrowings under our $150 million line of credit.
Daryl Raiford: Looking ahead to the full year 2025, we remain focused on three key outcomes, double digit core platform growth, profit expansion, and strengthening our capital structure.
Daryl Raiford: and we are closely watching the volatility and macroeconomic uncertainty that was present in the first four months. Nevertheless, we are very encouraged with the $5 million overperformance in the first quarter, both in revenue and EBITDA.
Daryl Raiford: For that reason, we are raising the lower end of our revenue outlook to reflect the first quarters over performance and leaving the upper end of the range unchanged accounting for the continuing volatility.
Daryl Raiford: Accordingly, we have raised our full year revenue outlook to a range of $745 to $760 million.
Daryl Raiford: which now reflects an increased organic growth outlook of 10% at the midpoint [inaudible]
Daryl Raiford: First quarter EBITDA outperformance was partly due to expense timing, but we anticipate ongoing benefits from our operating leverage.
Daryl Raiford: Consequently, we've raised our full year EBITDA outlook to $87 million at the midpoint.
Daryl Raiford: In summary, our financial and operating performance in the first quarter represents a solid start to the year.
Daryl Raiford: We will continue to focus on what we can control, serving and delighting our customers every day, growing our margin, being disciplined with our costs, and becoming more profitable. With that, I'll now turn the call over to the operator for the question and answer portion of today's call.
Speaker Change: Thank you, sir. We will now begin the question and answer session. To ask a question, you may press star and in one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the star keys. To withdraw your question, please press star and in two.
The first question that we have today comes from [inaudible]
Arjun Bhatia of William Blair, please go ahead.
David Morken, David Morken, David Morken,
for Enterprise Voice, and then zooming out for a second.
Speaker Change: How do you effectively kind of go to market in that category? Are there partnerships? Is that mostly a direct motion? And how are you sourcing those opportunities? Thank you.
Thanks, Arjun. This is David.
Speaker Change: Our pipeline for enterprise voice customers is strong and I think best illustrated in.
Speaker Change: by the results in the quarter. We signed more million dollar plus annual revenue deals in that quarter than we ever have in our history.
Speaker Change: and we continue to believe that we'll build on that throughout the rest of the year so the pipeline is strong.
Speaker Change: MSPs and Channel Partners, and we're expanding those relationships with MSPs.
Speaker Change: Many of whom are doing major contact center builds, and so there are some examples that we've talked about in the past, like NWN, Carousel with Southwest Airlines and others, but we have both a robust direct motion enterprise as well as an emerging channel program.
[inaudible]
Speaker Change: Alright, perfect. And then maybe just one on the guidance.
Speaker Change: You know, I'm curious how you're just thinking about the back half of the year.
Speaker Change: Kylia, what we're hearing from a lot about the company uses a little bit more.
Speaker Change: I'll say muted, muted, and uncertain. But what gives you the confidence that volumes are usage won't slow in the back half of the year, particularly in verticals like e-commerce
Speaker Change: Or retail, and then I'm wondering if your confidence is maybe in part driven by just other growth drivers that can offset any sort of weakness or volatility in usage, perhaps, you know, like you're on an enterprise voice traction where it seems like it's relatively early still.
Daryl Raiford: Absolutely, hey, good morning, Arjun, this is Daryl. We did. We were encouraged with the first quarter performance.
Daryl Raiford: It's implied that we're raising our second half outlook. We're now calling for 10% double digit growth, organic growth at the midpoint for the full year.
Daryl Raiford: That's on the back of all three market offers. Enterprise, as David has already articulated, we feel really good about the pipeline. We're looking for our global voice plans to double its growth this year from last year in terms of percentage, and so that's going to contribute. And then we're expecting...
Daryl Raiford: continued core platform commercial growth in programmable messaging. To your point on risk and macro, we do watch that. We have, without a doubt, built contingency into our projections for the full year.
Speaker Change: If I had to look at one of our offers, and pick one that would be...
David Morken: You know that we would watch towards the macro that would likely be programmable messaging and commercial where that market
Speaker Change: Could be more exposed to retail, as you said, retail and digital engagement in marketing.
Speaker Change: Less exposed to macro volatility given the essential nature of the voice communications that we deliver for both our global voice playing customers and our enterprise customers.
All right, very helpful, thank you both [inaudible]
Thank you.
Mita Marshall: The next question we have comes from Meta Marshall of Morgan Stanley . Please go ahead.
Speaker Change: Hey, morning everyone. This is Jamie from Meta. Congrats on the strong results. I guess our first question is just, you know, great to see kind of the continued increase in average revenue per customer. I guess could you just give a bit more detail as to what's kind of driving that further expansion so far into 2025?
Speaker Change: Hey Jamie, this is David. As we mentioned in our script, over half now of our Enterprise Voice customers are using our Maestro platform.
Speaker Change: and expanding their business with us using Maestro or AI Bridge. So the increase spend and utilization is broad. It may be AI use cases with AI Bridge. It may be orchestration with hybrid contact center deployments, where you're bringing the benefit of cloud-based.
Speaker Change: Services down to your premise-based solution and extending that solution to the cloud, but ongoing spend can also include cross-cell upsell to messaging, and we are also encouraged and excited by that average annual spend.
Speaker Change: Great, thanks. And then just as a quick follow-up, just given the strong, gross margin performance, you saw this quarter, how should we think about the durability of that through the rest of the year?
Speaker Change: We are, hey, good morning, Jamie. It's nice to speak with you, this is Daryl. We are looking for, you know, quarter to quarter margins to vary.
Speaker Change: by a pointer. So, we are expecting implied in our guide for the full year margins for the full year that look pretty much like what we saw in the first quarter.
Speaker Change: And that's what gives us so much confidence as we talk about our 60% 60% plus medium-term targets achieved in 2026. We think that we're really on track even ahead of track in terms of getting to that medium-term target.
Great, thank you so much, I'll jump back in here Thank you.
Thank you.
Speaker Change: The next question we have comes from James Fish of Piper Sandler, please go ahead [inaudible]
Speaker Change: Hey guys, we're working actually off of Arjun's initial question. You guys really talked up the partnership side notably this quarter. I guess, how are you thinking about your partner ecosystem from here and where the contribution is today coming from partners
Speaker Change: Direct and where that partnership contribution can be over the next few years and sort of what it means to leverage over time.
Hey James, this is David.
Daryl Raiford, David Morken, Sarah Walas
Larger, and what we're excited about is the...
Speaker Change: Ability of our myestro platform to address some of the complexities with some of the pre-integrations, but let me pause. I've invited our Chief Product Officer John Bell to join us on the call. He's here, and I'd like him to also chime in here about the channel and how we're seeing product and channel contribute. Yeah, thank you.
Speaker Change: Right now, our core partners, we have a very well-defined shared value proposition.
Speaker Change: And as we look at other opportunities to expand, there's actually a number of dimensions we can expand, there are other platforms and ecosystems we can work with, channel partners on, vertical expansion we can look at, go to market expansion and
Speaker Change: and other geographies beyond where we're focused right now. So there's actually a number of dimensions we want to make sure that value proposition stays tightly aligned with the partners. So we're happy with the progress we're seeing but we see a number of dimensions we can expand those relationships in.
Speaker Change: So over the next three years, the last part of your question, James, while we haven't publicly spoken to the percentage of our sales that will be achieved through the channel but it is growing and growing very nicely.
Speaker Change: Understood. And look historically, you guys have been really excited about the messaging API opportunity. Obviously like political moves this one around, but if I sort of normalize things out, ex-political and fees, it grew, you know, I think you guys even said about 9% that this quarter and overall was obviously giving politicals, was down slightly, but
Speaker Change: It's now growing beneath the bigger player in the space that has larger scale so I guess really my question is how are you guys going to get more awareness or regain share for your messaging business? What are you working on for Cross Cell and does messaging accelerate as comes to become much easier in the remaining quarters? I know a lot in there I apologize. I apologize.
That's all right, I'll try to address it
Speaker Change: As you mentioned, 9% commercial messaging growth in Q1 and that's driven by demand from really...
Speaker Change: Broad set of customers, e-commerce, financial services, nonprofits, and civic engagement.
Speaker Change: We do expect commercial messaging will grow in the low double digits for the full year, which is in line with the market. But in Q1, the cohort of political messaging customers who are diversifying in the civic engagement and commercial, they did send fewer commercial and civic engagement messages.
Speaker Change: So, our focus is going to continue to be on driving deliverability at high scale for our customers.
Speaker Change: and the breadth of those customers is really important to us continuing to grow programmable messaging at 9% or above. So we're expanding our channels to include RCS RBM which is a more robust way of engaging consumers and end users and we think that that's significant to help with that.
So, the levers for growth. Good.
Speaker Change: We've got to win away from large senders that have outgrown their existing platforms and we're doing so. One of the examples we gave in our script illustrates that.
Speaker Change: And then the increased usage as enterprises grow with us will contribute. We've seen that year over a year once we scale with a good customer, how they build with us.
Speaker Change: and then last, it is really important for these larger enterprise messaging customers to offer the kind of premium support that we're famous for and that we win awards for and so that's another fundamental building block to continuing to grow the messaging business.
Bye. Bye.
Speaker Change: Thank you. The next question we have comes from the little power of bed. Please go ahead.
Will Power: Okay, great. Yeah, I may ask you direct a question to John since he's there. I know David in the prepare remarks, you know, you called out success and health care. I just
Technology, regulatory, etc. And I guess the second part is just, how do you replicate that? I get that success in other verticals and what's the path there?
Will Power: Yeah, great question. So when you look at healthcare and the needs of the healthcare systems we work with and different providers, they're incredibly complex environments and the beauty of my stroke is it allows them to easily bring innovation, innovation from the cloud into these complex environments without having to [inaudible]
and fully change those environments. So whether it's complexity, whether it's regulatory, whether it's opportunities for enterprises to differentiate on their customer experience.
Will Power: The Maestro platform works beautifully to help with that. So the complexity and the need to differentiate are wonderful places for us to bring the Maestro platform to help enterprise customers.
Will Power: What would you say are the next vertical, you know, opportunities, I mean, you know, whether it's financial services, I mean, what else, are you seeing, where are you seeing the most success and might show that maybe outside of healthcare, where's it going next?
Will Power: You know, we see it actually in a pretty broad set of time.
of other verticals, hospitality we've seen a lot of success.
Will Power: Travel, we've seen success, manufacturing, we've seen success. Really I'd say the larger enterprise where we're focused with the global 2000, there's complexity across a lot of different
Will Power: Really, I'd say the size of enterprise that we're focusing on and the global nature of theirs, there's a lot of verticals where we're seeing success and opportunity. So while we're talking about a couple of verticals, there's actually a lot that we're seeing with our team.
Speaker Change: The Global Voice Business Growth Rate, I think, to double year-over-year. Just be great to get a little more color as to the key drivers and visibility around that.
Speaker Change: Yes, certainly, hey, Jeff, we are implanted in our guide for the year, we are expecting our global voice to...
Speaker Change: Global Voice Plan Category to Double is Growth Rate to 6, Approximately 6%.
Speaker Change: The seeds were planted over the last 12 and 18 months. As we've onboarded customers we've been expanding we've been expanding with our
Speaker Change: Resail Customers through their new initiatives and their AI initiatives that bring us more volume and usage on our platform as well as our channel partnerships.
Speaker Change: that we've talked about, and David has already mentioned, but for example, IndoVN care so, and with a handful of very large enterprises that we are going to partner to market with our channel partners. Thank you very much.
Okay. Great. Thank you.
Speaker Change: Thank you. The final question we have comes from Patrick Walravens of Citizens. Please go ahead.
Oh, great, thank you, and congratulations.
Speaker Change: David, can you just sort of high level for us for a second? Can you just tell us how AI is serving as a growth driver in each of those three categories of products, just sort of the one-liner?
and Global Voice Enterprise Voice and Programmable Messaging.
David Morken, David Morken, David Morken, David Morken
Speaker Change: Hey Pat, I sure can, and what I'll start with is
Speaker Change: I'll illustrate the effectiveness and power and accuracy of AI voice generally. We didn't read the investor script that you just heard.
Speaker Change: Daryl has a voice agent. That was Daryl's voice agent reading his section. I read my voice agent, read my section. If you go to the website and see the investor deck that we've just posted, the voice over in that deck was done by our voice agents.
Speaker Change: And so we have a firm conviction that the next new 100 million voice users in the business customer base we serve are going to be voice agents and we're already a company that supports over a hundred million phone numbers.
Speaker Change: of the 600 million phone numbers supported in the North American dialing plan and globally and so when you ask for how is AI voice?
Speaker Change: going to benefit Bandwidth among the customers in R3 product categories, the effectiveness, the accuracy, the compelling nature of AI voice agents is becoming more and more manifest every day and we wanted to illustrate that again today on the call. We've used our own voice agents in Q&A.
but in programmable messaging and voice.
Speaker Change: You have a lot of different approaches. The first I want to talk about is
Speaker Change: is Maestro. And the reason I want to talk about that is because it's an open strategy.
Speaker Change: that allows orchestration of myriad AI solutions and implementations. And that's vital to the large enterprise. You've got to support multiple LLM-based agents. You've got to do it in a creative and open way. You can't try to lock in. We're not in a world yet where you've got...
Speaker Change: A single ecosystem that offers all the benefits. So for our enterprise voice customers, Maestro and AI Bridge are critical for global voice plans, whether it's UCAS or Conferencing.
These customers are old
Building Extraordinary AI Voice Experiences [inaudible]
Speaker Change: that make IVRs, like press one for sales, press two for ops
seem like a prison camp. [inaudible]
Speaker Change: And so, if you replace IVRs with really intelligent voice agents, the conversations become
Speaker Change: Resolution Conversations and Creative Conversations with a customer or a prospect and so the call durations go up, the resolutions go up and so we're excited about the underlying customers in our global voice plans business.
Speaker Change: and what they're building and how that's benefiting us and how they want their voice agents to be proximate to a low latency global
Voice Platform
Speaker Change: And then the third, the programmability of all these things is vital because your agents are going to go in the background and do tons of sub-agent magic. And so you've got to be able to engage and avoid abandonment in conversations with voice and messaging by having very, very fast response times and low latency response times.
Speaker Change: Are coming or are already here and we are seeing already the impact of that and we think that the long lasting nature of this technology moment is much more durable for example than the demand pull through that happened
Speaker Change: during lockdowns in the past that we saw when business decision-makers had to really scramble to support work from home in this case.
Speaker Change: You've got to have AI applied to your goods and services and you've got to do it quickly or else you're going to fall behind. And so we're seeing a similar inflection point or demand moment around AI voice in all three categories.
It's super helpful. Thank you.
Speaker Change: Thank you, sir. Ladies and gentlemen, that was the final question of today's question and answer session. Thank you for joining us on today's conference call. You may now disconnect your lines.
Speaker Change: . . . . . . . . . . . . . . . . . . . .