Q4 2025 Bandwidth Inc Earnings Call
Daryl Raiford: Thank you, David, and good morning, everyone. I'll begin with a brief update on the Q4, then touch on the full year 2025, before spending the majority of my time on our outlook for 2026 and the fundamentals of Bandwidth's business model. In the Q4 of 2025, strong execution drove solid revenue and record levels of profitability and free cash flow. Total revenue saw a 12% year-over-year increase on an organic basis. This organic growth metric excludes the cyclical revenue generated from political campaign messaging in 2024, providing a clearer view of our core business strength. Both our voice and messaging segments were key contributors, each achieving healthy double-digit growth. In voice, our 11% year-over-year growth was fueled by increased voice usage, rising adoption of voice-based AI applications, and growing contributions from software services revenue.
Daryl Raiford: Thank you, David, and good morning, everyone. I'll begin with a brief update on the Q4, then touch on the full year 2025, before spending the majority of my time on our outlook for 2026 and the fundamentals of Bandwidth's business model. In the Q4 of 2025, strong execution drove solid revenue and record levels of profitability and free cash flow. Total revenue saw a 12% year-over-year increase on an organic basis. This organic growth metric excludes the cyclical revenue generated from political campaign messaging in 2024, providing a clearer view of our core business strength. Both our voice and messaging segments were key contributors, each achieving healthy double-digit growth. In voice, our 11% year-over-year growth was fueled by increased voice usage, rising adoption of voice-based AI applications, and growing contributions from software services revenue.
Speaker #1: David, and good morning, everyone. I'll begin with a brief update on the fourth quarter, then touch on the full-year 2025 before spending the majority of my time on our Outlook for 2026 and the fundamentals of bandwidth's business model.
Speaker #1: In the fourth quarter of 2025, strong execution drove solid revenue and record levels of profitability and free cash flow, total revenue saw a 12% year-over-year increase on an organic basis, this organic growth metric excludes the cyclical revenue generated from political campaign messaging in 2024.
Speaker #1: Providing a clearer view of our core business strength. Both our voice and messaging segments were key contributors, each achieving healthy double-digit growth. In voice, our 11% year-over-year growth was fueled by increased voice usage, rising adoption of voice-based AI applications, and growing contributions from software services revenue.
Speaker #1: Messaging organic growth of 12% year-over-year was driven by robust holiday messaging demand. EBITDA margin reached 17%, reflecting improved pricing and mix, and continued progress on profitability, providing a strong close to the year.
Daryl Raiford: Messaging organic growth of 12% year-over-year was driven by robust holiday messaging demand. EBITDA margin reached 17%, reflecting improved pricing, mix, and continued progress on profitability, providing a strong close to the year. Looking at the full year 2025, we delivered another year of disciplined performance, where we generated total revenue of $754 million, up 10% organically year-over-year, non-GAAP gross margin of 58%, adjusted EBITDA of $93 million, and free cash flow of $57 million. Durable customer relationships drove accelerated growth in our largest voice customer category, Global Voice Plans, where 8% revenue growth more than doubled compared to 2024. Our enterprise voice customer category also delivered strong full-year results, growing 21%, supported by a record number of million-dollar plus deals.
Daryl Raiford: Messaging organic growth of 12% year-over-year was driven by robust holiday messaging demand. EBITDA margin reached 17%, reflecting improved pricing, mix, and continued progress on profitability, providing a strong close to the year. Looking at the full year 2025, we delivered another year of disciplined performance, where we generated total revenue of $754 million, up 10% organically year-over-year, non-GAAP gross margin of 58%, adjusted EBITDA of $93 million, and free cash flow of $57 million. Durable customer relationships drove accelerated growth in our largest voice customer category, Global Voice Plans, where 8% revenue growth more than doubled compared to 2024. Our enterprise voice customer category also delivered strong full-year results, growing 21%, supported by a record number of million-dollar plus deals.
Speaker #1: Looking at the full-year 2025, we delivered another year of disciplined performance where we generated total revenue of $754 million up 10% organically year-over-year, non-GAAP gross margin of 58%, adjusted EBITDA of $93 million and free cash flow of $57 million.
Speaker #1: Durable customer relationships drove accelerated growth in our largest voice customer category, global voice plans. We're 8% revenue growth more than doubled compared to 2024.
Speaker #1: Our enterprise voice customer category also delivered strong full-year results, growing 21%, supported by a record number of million-dollar-plus deals. While large enterprise customers typically have extended onboarding cycles, these customers are experiencing a faster time-to-value realization after launching on bandwidth's communications cloud.
Daryl Raiford: While large enterprise customers typically have extended onboarding cycles, these customers are experiencing a faster time to value realization after launching on Bandwidth's Communications Cloud. In fact, the enterprise cohort of customers added in 2025 already represents 15% of total enterprise revenue, making it the second highest contributing annual cohort in our history. Notably, more than 40% of 2025 enterprise voice growth came from accounts added in the past 3 years, one of the strongest proof points that our enterprise cohort expansion continues to compound over time. Programmable messaging achieved 7% organic year-over-year growth in line with our expectations. Beyond the numbers, 2025 reinforced critical themes, the durability of our customer relationships, growing deal sizes, and improving profitability driven by operating leverage and an expanding mix of higher value software services.
Daryl Raiford: While large enterprise customers typically have extended onboarding cycles, these customers are experiencing a faster time to value realization after launching on Bandwidth's Communications Cloud. In fact, the enterprise cohort of customers added in 2025 already represents 15% of total enterprise revenue, making it the second highest contributing annual cohort in our history. Notably, more than 40% of 2025 enterprise voice growth came from accounts added in the past 3 years, one of the strongest proof points that our enterprise cohort expansion continues to compound over time. Programmable messaging achieved 7% organic year-over-year growth in line with our expectations. Beyond the numbers, 2025 reinforced critical themes, the durability of our customer relationships, growing deal sizes, and improving profitability driven by operating leverage and an expanding mix of higher value software services.
Speaker #1: In fact, the enterprise cohort of customers added in 2025 already represents 15% of total enterprise revenue, making it the second-highest contributing annual cohort in our history.
Speaker #1: Notably, more than 40% of 2025 enterprise voice growth came from accounts added in the past 3 years, one of the strongest proof points that our enterprise cohort expansion continues to compound over time.
Speaker #1: Programmable messaging achieved 7% organic year-over-year growth in line with our expectations. Beyond the numbers, 2025 reinforced critical themes: the durability of our customer relationships, growing deal sizes, and improving profitability driven by operating leverage and an expanding mix of higher-value software services.
Speaker #1: As we look ahead, we expect 2026 to be a year of continued growth and margin expansion. First, we expect continued accelerating revenue growth in voice, supported by higher usage demand including usage influenced by AI-driven call flows, large deal activity, increasing software services contribution, and geographic expansion.
Daryl Raiford: As we look ahead, we expect 2026 to be a year of continued growth and margin expansion. First, we expect continued accelerating revenue growth in voice, supported by higher usage demand, including usage influenced by AI-driven call flows, large deal activity, increasing software services contribution, and geographic expansion. Second, we remain focused on operating leverage and platform investments, which we expect will continue to support margin expansion and profit growth. Based on these factors, our 2026 full year guidance shows total revenue growth of approximately 16% year-over-year, including cloud communications growth of approximately 10%. Adjusted EBITDA improvement of nearly 30% year-over-year, in line with our aim to achieve a 20% full year adjusted EBITDA margin and non-GAAP earnings per share of approximately $1.66 to $1.74, representing growth of approximately 19%.
Daryl Raiford: As we look ahead, we expect 2026 to be a year of continued growth and margin expansion. First, we expect continued accelerating revenue growth in voice, supported by higher usage demand, including usage influenced by AI-driven call flows, large deal activity, increasing software services contribution, and geographic expansion. Second, we remain focused on operating leverage and platform investments, which we expect will continue to support margin expansion and profit growth. Based on these factors, our 2026 full year guidance shows total revenue growth of approximately 16% year-over-year, including cloud communications growth of approximately 10%. Adjusted EBITDA improvement of nearly 30% year-over-year, in line with our aim to achieve a 20% full year adjusted EBITDA margin and non-GAAP earnings per share of approximately $1.66 to $1.74, representing growth of approximately 19%.
Speaker #1: Second, we remain focused on operating leverage and platform investments. Which we expect will continue to support margin expansion and profit growth. Based on these factors, our 2026 full-year guidance shows: total revenue growth of approximately 16% year-over-year, including cloud communications growth of approximately 10%, adjusted EBITDA improvement of nearly 30% year-over-year, in line with our aim to achieve a 20% full-year adjusted EBITDA margin and non-GAAP earnings per share of approximately $1.66 to $1.74, representing growth of approximately 19%.
Speaker #1: We're excited that our execution and investments position us now to achieve our 3-year goals around gross margin adjusted EBITDA margin and cash flow goals.
Daryl Raiford: We're excited that our execution and investments position us now to achieve our three-year goals around gross margin, Adjusted EBITDA margin, and cash flow goals. Beyond 2026, we anticipate delivering sustained double-digit growth in cloud communications revenue, independent of the political campaign cycle, while driving further growth in gross margin, EBITDA, and Free Cash Flow. Now, I want to spend time on what we believe is the most important point, the quality of Bandwidth's business model. Our view is simple. Bandwidth is a durable cloud communications platform with software-like expansion economics. There are five principal reasons we believe this is true. First, our customer relationships are highly durable. We set the industry standard for customer satisfaction rates. We see the direct outcome of that with ultra-low customer churn and strong retention across customer categories.
Daryl Raiford: We're excited that our execution and investments position us now to achieve our three-year goals around gross margin, Adjusted EBITDA margin, and cash flow goals. Beyond 2026, we anticipate delivering sustained double-digit growth in cloud communications revenue, independent of the political campaign cycle, while driving further growth in gross margin, EBITDA, and Free Cash Flow. Now, I want to spend time on what we believe is the most important point, the quality of Bandwidth's business model. Our view is simple. Bandwidth is a durable cloud communications platform with software-like expansion economics. There are five principal reasons we believe this is true. First, our customer relationships are highly durable. We set the industry standard for customer satisfaction rates. We see the direct outcome of that with ultra-low customer churn and strong retention across customer categories.
Speaker #1: And beyond 2026, we anticipate delivering sustained double-digit growth in cloud communications revenue, independent of the political campaign cycle, while driving further growth in gross margin, EBITDA, and free cash flow.
Speaker #1: Now, I want to spend time on what we believe is the most important point: the quality of bandwidth's business model. Our view is simple: bandwidth is a durable cloud communications platform with software-like expansion economics.
Speaker #1: There are five principal reasons we believe this is true. First, our customer relationships are highly durable. We set the industry standard for customer satisfaction rates.
Speaker #1: We see the direct outcome of that with ultra-low customer churn and strong retention across customer categories. Our customer name retention rate remains above 99%, and our organic net retention of 107% reflects ongoing expansion, as customers grow their usage with us over time.
Daryl Raiford: Our customer name retention rate remains above 99%, and our organic net retention of 107% reflects ongoing expansion as customers grow their usage with us over time. Our top 20 accounts have a median tenure of 12 years. Within Enterprise Voice, we again in 2025 realized a 100% customer name retention, which means zero churn. In fact, we recognized a 98% customer retention rate from our Enterprise Voice customer cohort of 3 years ago, a remarkable demonstration of outstanding customer durability. In addition, our average annual revenue per customer continues to increase, driven by larger deployments, deeper integrations, and expanding use cases. We ended 2025 with average annual customer revenue of $232,000, a record and up from $171,000 3 years ago....
Daryl Raiford: Our customer name retention rate remains above 99%, and our organic net retention of 107% reflects ongoing expansion as customers grow their usage with us over time. Our top 20 accounts have a median tenure of 12 years. Within Enterprise Voice, we again in 2025 realized a 100% customer name retention, which means zero churn. In fact, we recognized a 98% customer retention rate from our Enterprise Voice customer cohort of 3 years ago, a remarkable demonstration of outstanding customer durability. In addition, our average annual revenue per customer continues to increase, driven by larger deployments, deeper integrations, and expanding use cases. We ended 2025 with average annual customer revenue of $232,000, a record and up from $171,000 3 years ago....
Speaker #1: Our top 20 accounts have a median tenure of 12 years. Within enterprise voice, we again in 2025 realized a 100% customer name retention, which means zero churn.
Speaker #1: In fact, we recognized a 98% customer retention rate from our enterprise voice customer cohort of 3 years ago, a remarkable demonstration of outstanding customer durability.
Speaker #1: In addition, our average annual revenue per customer continues to increase, driven by larger deployments, deeper integrations, and expanding use cases. We ended 2025 with average annual customer revenue of $232,000—a record, and up from $171,000 three years ago.
Speaker #1: All these metrics underscore the long-term value of our customer base and the mission-critical role our platform plays. Second, Bandwidth owns and operates a scaled, infrastructure-based global cloud communications platform.
Daryl Raiford: All these metrics underscore the long-term value of our customer base and the mission-critical role our platform plays. Second, Bandwidth owns and operates a scaled, infrastructure-based global cloud communications platform. In contrast to others, we do not market a thin application layer underpinned by reselling commodity third-party carrier access. Bandwidth's ownership model supports structurally higher margins that expand with usage and create durable operating leverage over time. Our margin performance is fueled by scale, voice AI adoption, growing software services contribution, global coverage, and operational efficiencies. Our incremental gross profit yield of 82% in 2025 demonstrates that each incremental cloud communications revenue dollar converts at highly attractive economics. This is the foundation of our operating leverage, driving long-term profitability and creating a meaningful competitive advantage for large enterprises that require consistent quality at scale. Third, we continue to see strong traction in large deals.
Daryl Raiford: All these metrics underscore the long-term value of our customer base and the mission-critical role our platform plays. Second, Bandwidth owns and operates a scaled, infrastructure-based global cloud communications platform. In contrast to others, we do not market a thin application layer underpinned by reselling commodity third-party carrier access. Bandwidth's ownership model supports structurally higher margins that expand with usage and create durable operating leverage over time. Our margin performance is fueled by scale, voice AI adoption, growing software services contribution, global coverage, and operational efficiencies. Our incremental gross profit yield of 82% in 2025 demonstrates that each incremental cloud communications revenue dollar converts at highly attractive economics. This is the foundation of our operating leverage, driving long-term profitability and creating a meaningful competitive advantage for large enterprises that require consistent quality at scale. Third, we continue to see strong traction in large deals.
Speaker #1: In contrast to others, we do not market a thin application layer underpinned by reselling commodity third-party carrier access. Bandwidth's ownership model supports structurally higher margins that expand with usage and create durable operating leverage over time.
Speaker #1: Our margin performance is fueled by scale, voice AI adoption, growing software services contribution, global coverage, and operational efficiencies. Our incremental gross profit yield of 82% in 2025 demonstrates that each incremental cloud communications revenue dollar converts at highly attractive economics.
Speaker #1: This is the foundation of our operating leverage, driving long-term profitability and creating a meaningful competitive advantage for large enterprises that require consistent quality at scale.
Speaker #1: Third, we continue to see strong traction in large deals. In 2025, we closed a record number of $1 million-plus deals. These larger deals not only contribute to near-term growth, but also create long-term expansion opportunities as customers increase usage and adopt additional services.
Daryl Raiford: In 2025, we closed a record number of $1 million+ deals. These larger deals not only contribute to near-term growth, but also create long-term expansion opportunities as customers increase usage and adopt additional services. Fourth, we see a growing opportunity to expand relationships through upsell and cross-sell. Software services are becoming a more meaningful part of our value proposition and our financial model. These solutions complement our Communications Cloud, deepen customer engagement, increase platform stickiness, and support continued progress toward margin expansion over time. We exited Q4 of 2025 with software services revenue at an approximate $15 million annualized run rate, driven by solutions that are increasingly attached to core voice usage, such as Maestro, Call Assure, and our Trust Services offerings. Our year-end annualized run rate was meaningfully ahead of the $10 million expectation that we expressed a few months ago.
Daryl Raiford: In 2025, we closed a record number of $1 million+ deals. These larger deals not only contribute to near-term growth, but also create long-term expansion opportunities as customers increase usage and adopt additional services. Fourth, we see a growing opportunity to expand relationships through upsell and cross-sell. Software services are becoming a more meaningful part of our value proposition and our financial model. These solutions complement our Communications Cloud, deepen customer engagement, increase platform stickiness, and support continued progress toward margin expansion over time. We exited Q4 of 2025 with software services revenue at an approximate $15 million annualized run rate, driven by solutions that are increasingly attached to core voice usage, such as Maestro, Call Assure, and our Trust Services offerings. Our year-end annualized run rate was meaningfully ahead of the $10 million expectation that we expressed a few months ago.
Speaker #1: Fourth, we see a growing opportunity to expand relationships through upsell and cross-sell. Software services are becoming a more meaningful part of our value proposition and our financial model.
Speaker #1: These solutions complement our communications cloud, deepen customer engagement, increase platform stickiness, and support continued progress toward margin expansion over time. We exited 4th quarter 2025 with software services revenue at an approximate $15 million annualized run rate driven by solutions that are increasingly attached to core voice usage such as Maestro, CallAssure, and our trust services offerings.
Speaker #1: Our year-end annualized run rate was meaningfully ahead of the $10 million expectation that we expressed a few months ago. Notably, software is now attached to all million-dollar-plus deals.
Daryl Raiford: Notably, software is now attached to all million-dollar plus deals. These solutions are embedded into customers' communication stacks, producing recurring high-margin revenue streams that scale with usage. Finally, our model is designed to grow profitably. We are focused on scaling the business in a disciplined way, balancing growth with operating leverage, margin expansion, and cash generation. As we continue to execute, we believe Bandwidth is positioned to deliver sustainable revenue growth, expanding margins, and increasing long-term value creation. Regarding capital allocation, our business is strong and set to generate continued meaningful free cash flow. After focusing since 2023 on reaching the 2026 margin metrics we previously outlined, we are pleased to announce, as David mentioned, that our board of directors has authorized an inaugural share repurchase program of up to $80 million in common stock.
Daryl Raiford: Notably, software is now attached to all million-dollar plus deals. These solutions are embedded into customers' communication stacks, producing recurring high-margin revenue streams that scale with usage. Finally, our model is designed to grow profitably. We are focused on scaling the business in a disciplined way, balancing growth with operating leverage, margin expansion, and cash generation. As we continue to execute, we believe Bandwidth is positioned to deliver sustainable revenue growth, expanding margins, and increasing long-term value creation. Regarding capital allocation, our business is strong and set to generate continued meaningful free cash flow. After focusing since 2023 on reaching the 2026 margin metrics we previously outlined, we are pleased to announce, as David mentioned, that our board of directors has authorized an inaugural share repurchase program of up to $80 million in common stock.
Speaker #1: These solutions are embedded into customers' communications stacks, producing recurring, high-margin revenue streams that scale with usage. Finally, our model is designed to grow profitably.
Speaker #1: We are focused on scaling the business in a disciplined way, balancing growth with operating leverage, margin expansion, and cash generation. As we continue to execute, we believe bandwidth is positioned to deliver sustainable revenue growth, expanding margins, and increasing long-term value creation.
Speaker #1: Regarding capital allocation, our business is strong and set to generate continued meaningful free cash flow. After focusing since 2023 on reaching the 2026 margin metrics we previously outlined, we are pleased to announce, as David mentioned, that our board of directors has authorized an inaugural share repurchase program of up to $80 million in common stock.
Speaker #1: Our balanced capital strategy involves both this new share repurchase program and our largest investment in research and development in company history this year, to accelerate innovation across our AI portfolio.
Daryl Raiford: Our balanced capital strategy involves both this new share repurchase program and our largest investment in research and development in company history this year to accelerate innovation across our AI portfolio. This dual approach gives Bandwidth the flexibility to capitalize on market opportunities when they arise, while actively managing dilution to enhance shareholder value. In closing, we believe our performance in 2025 and our outlook for 2026 demonstrate the strength and durability of Bandwidth's business. We are encouraged by continued voice growth, the incremental usage driven by AI-enabled applications, and the expanding contribution from software and services, all supported by the strength of our business model and sustained operational performance. We're also proud of how we're embracing AI across our business. Recently, Bandwidth was honored to be recognized by Gartner as a first mover in the deployment of AI for investor relations.
Daryl Raiford: Our balanced capital strategy involves both this new share repurchase program and our largest investment in research and development in company history this year to accelerate innovation across our AI portfolio. This dual approach gives Bandwidth the flexibility to capitalize on market opportunities when they arise, while actively managing dilution to enhance shareholder value. In closing, we believe our performance in 2025 and our outlook for 2026 demonstrate the strength and durability of Bandwidth's business. We are encouraged by continued voice growth, the incremental usage driven by AI-enabled applications, and the expanding contribution from software and services, all supported by the strength of our business model and sustained operational performance. We're also proud of how we're embracing AI across our business. Recently, Bandwidth was honored to be recognized by Gartner as a first mover in the deployment of AI for investor relations.
Speaker #1: This dual approach gives Bandwidth the flexibility to capitalize on market opportunities when they arise, while actively managing dilution to enhance shareholder value. In closing, we believe our performance in 2025 and our outlook for 2026 demonstrate the strength and durability of Bandwidth's business.
Speaker #1: We are encouraged by continued voice growth, the incremental usage-driven by AI-enabled applications, and the expanding contribution from software and services. All supported by the strength of our business model and sustained operational performance.
Speaker #1: We're also proud of how we're embracing AI across our business, recently bandwidth was honored to be recognized by Gartner as a "first mover" in the deployment of AI for investor relations.
Speaker #1: We believe this mindset combining innovation with operational excellence positions bandwidth well for the future. With that, I'll turn the call back to the operator for questions.
Daryl Raiford: We believe this mindset, combining innovation with operational excellence, positions Bandwidth well for the future. With that, I'll turn the call back to the operator for questions.
Daryl Raiford: We believe this mindset, combining innovation with operational excellence, positions Bandwidth well for the future. With that, I'll turn the call back to the operator for questions.
Speaker #2: Thank you. We'll now begin the question-and-answer session. To ask a question, you may press star than one on your telephone keypad. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys.
Operator: Thank you. We'll now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star then two. Our first question today comes from Arjun Bhatia with William Blair. Please go ahead.
Operator: Thank you. We'll now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star then two. Our first question today comes from Arjun Bhatia with William Blair. Please go ahead.
Speaker #2: If at any time your question has been addressed and you would like to withdraw your question, please press star than two. Our first question today comes from Arjun Badiya with William Blair.
Speaker #2: Please go ahead.
Speaker #3: Yes, perfect. Good morning. And thank you. Maybe if I can start off first, just I want to touch on the enterprise voice segment. It seems like you're clearly signaling you're getting good enterprise demand there.
Arjun Bhatia: Yes, perfect. Good morning, and thank you. Maybe, if I can start off first, just I want to touch on the enterprise voice segment. It seems like, you know, you're clearly signaling you're getting good enterprise demand there, and software services as a part of that is also ticking up. I was hoping you could just touch a little bit on what you saw in terms of Q4 trends, and the growth rate. I think if I'm backing into some sort of an implied Q4 growth rate for enterprise voice, specifically, there was a little bit of a tick down.
Arjun Bhatia: Yes, perfect. Good morning, and thank you. Maybe, if I can start off first, just I want to touch on the enterprise voice segment. It seems like, you know, you're clearly signaling you're getting good enterprise demand there, and software services as a part of that is also ticking up. I was hoping you could just touch a little bit on what you saw in terms of Q4 trends, and the growth rate. I think if I'm backing into some sort of an implied Q4 growth rate for enterprise voice, specifically, there was a little bit of a tick down.
Speaker #3: And software services is a part of that, is also taking up. I was hoping you could just touch a little bit on what you saw in terms of Q4 trends, and the growth rate.
Speaker #3: I think if I'm backing into some sort of an implied Q4 growth rate, for enterprise voice specifically, there was a little bit of a tick down.
Speaker #3: So I was hoping you could address that. And then talk about Outlook in 2026 as well, especially with those large deals starting to contribute, how much of a bump and tailwind could that be next year?
Arjun Bhatia: So I was hoping you could address that and then talk about outlook in 2026 as well, especially with those large deals starting to contribute, you know, how much of a bump in tailwind could that be next year?
Arjun Bhatia: So I was hoping you could address that and then talk about outlook in 2026 as well, especially with those large deals starting to contribute, you know, how much of a bump in tailwind could that be next year?
Speaker #2: Good morning, Arjun. This is Daryl. Thanks for joining the call. We appreciate the question. There was about 10 questions in there. So let me start with and I'm grateful for that.
Daryl Raiford: Good morning, Arjun. This is Daryl. Thank you for joining the call. We appreciate the question. There was about 10 questions in there, so let me start with. I'm grateful for that. Let me start with the growth rates in terms of enterprise for the fourth quarter. We did have acceleration last year with some deployments to customers, so we had a little bit of a lapping and tougher compare. For a quarter, we are real pleased with the annual rate of 21%. We again, with record number of million-plus deals, you know, we see that deployment and ramping into 2026, driving the growth that we've called for, for enterprise. So we're projecting a very healthy growth again, in enterprise going forward into the new year.
Daryl Raiford: Good morning, Arjun. This is Daryl. Thank you for joining the call. We appreciate the question. There was about 10 questions in there, so let me start with. I'm grateful for that. Let me start with the growth rates in terms of enterprise for the Q4. We did have acceleration last year with some deployments to customers, so we had a little bit of a lapping and tougher compare. For a quarter, we are real pleased with the annual rate of 21%. We again, with record number of million-plus deals, you know, we see that deployment and ramping into 2026, driving the growth that we've called for, for enterprise. So we're projecting a very healthy growth again, in enterprise going forward into the new year.
Speaker #2: Let me start with the growth rates in terms of enterprise for the fourth quarter. We did have a we did have acceleration last year with some deployments of customers.
Speaker #2: So, we had a little bit of a lapping and tougher compare for a quarter. We are real pleased with the annual rate of 21%.
Speaker #2: We again, with a record number of million-plus deals, we see that deployment and ramping into 2026, driving the growth that we've called for for enterprise.
Speaker #2: So we're projecting a very healthy growth, again, in enterprise going forward into the new year. In terms of software services contribution, absolutely. As we said, each of the $1 million-plus deals and really nearly every deal includes software services now as a upsell, cross-sell, add-in feature.
Daryl Raiford: In terms of software services contribution, absolutely. As we said, each of the $1 million-plus deals, and really nearly every deal, includes software services now as a upsell, cross-sell add-in feature. We think that it's becoming critical for the customer in terms of the value that it provides. The value proposition is just dramatically clear to them. The benefits that we accrue as a company are, as I articulated it previously, which is around stickiness as well, durability, and as well as allowing us to continue to expand and cross-sell and upsell. So, did I capture the bulk of your questions, Arjun? Is there something that I might have missed?
Daryl Raiford: In terms of software services contribution, absolutely. As we said, each of the $1 million-plus deals, and really nearly every deal, includes software services now as a upsell, cross-sell add-in feature. We think that it's becoming critical for the customer in terms of the value that it provides. The value proposition is just dramatically clear to them. The benefits that we accrue as a company are, as I articulated it previously, which is around stickiness as well, durability, and as well as allowing us to continue to expand and cross-sell and upsell. So, did I capture the bulk of your questions, Arjun? Is there something that I might have missed?
Speaker #2: We think that it's becoming critical for the customer in terms of the value that it provides, the value proposition. It's just dramatically clear to them.
Speaker #2: The benefits that we accrue as a company are, as I articulated, previously, which is around stickiness as well, durability, and as well as allowing us to continue to expand and cross-sell and upsell.
Speaker #2: So did I capture the bulk of your questions, Arjun? Is there something that I might have missed?
Speaker #3: Yeah, no, that's super helpful. You touched on all of it. Thank you. And then actually, Daryl, a follow-up for you just in terms of 2026.
David Morken: Yeah. No, that's super helpful. You touched on, you touched on all of it. Thank you. And then actually, Daryl, follow-up for you, just in terms of 2026, can you just help us understand how you're thinking through political contribution, and you should be comp that to 2022, or what, what's the kinda right cadence?
David Morken: Yeah. No, that's super helpful. You touched on, you touched on all of it. Thank you. And then actually, Daryl, follow-up for you, just in terms of 2026, can you just help us understand how you're thinking through political contribution, and you should be comp that to 2022, or what, what's the kinda right cadence?
Speaker #3: Can you just help us understand how you're thinking through political contribution? Should we comp that to 2022? Or what's the kind of right cadence?
Speaker #2: Yeah. I'm not glad I'm glad you asked. We are we've guided to 15% revenue growth, 10% cloud communications growth. The midterm elections are different from the presidential elections in the term since that the presidential elections, the caucuses and the early primaries would have already started two years ago.
Daryl Raiford: Yeah.
Daryl Raiford: Yeah.
David Morken: Uh, for-
David Morken: Uh, for-
Daryl Raiford: I'm glad. Yeah, I'm glad you asked. We are, you know, we've guided to 15% revenue growth, 10% cloud communications growth. The midterm elections are different from the presidential elections in the term, since that the presidential elections, the caucuses and the early primaries would have already started 2 years ago, and we would have more visibility. The midterms are more state local. They don't really have the presidential primaries. They start later in the season, say, mid-summer-ish timeframe, is where we may see benefit. Based on what we're seeing and speaking and hearing from our customers, we think that the political campaign contribution this year will be roughly 2.5% of cloud communications revenue. And we will keep monitoring that.
Daryl Raiford: I'm glad. Yeah, I'm glad you asked. We are, you know, we've guided to 15% revenue growth, 10% cloud communications growth. The midterm elections are different from the presidential elections in the term, since that the presidential elections, the caucuses and the early primaries would have already started 2 years ago, and we would have more visibility. The midterms are more state local. They don't really have the presidential primaries. They start later in the season, say, mid-summer-ish timeframe, is where we may see benefit. Based on what we're seeing and speaking and hearing from our customers, we think that the political campaign contribution this year will be roughly 2.5% of cloud communications revenue. And we will keep monitoring that.
Speaker #2: And we would have more visibility. The midterms are more state-local. They don't really have the presidential primaries. They start later in they start later in the season, say, summer-ish timeframe.
Speaker #2: It's where we may see benefit. Based on what we're seeing and speaking and hearing from our customers, we think that the political campaign contribution this year will be roughly 2.5% of cloud communications revenue, and we will keep monitoring that.
Speaker #2: We don't really experience don't plan to experience anything in the first half of the year. But we'll keep monitoring that. It's good to say that two-year four years ago, we were making the remark that our political campaign customers were beginning to diversify.
Daryl Raiford: We don't really plan to experience anything in the first half of the year, but we'll keep monitoring that. You know, it's good to say that two year, four years ago, we were making the remark that our political campaign customers were beginning to diversify. That they weren't really just appearing for like a cicada, and then going back into the ground, that they were beginning to diversify their business models. Four years on, they truly have. So these customers are really durable for us in terms of civic engagement and other commercial types of messaging business, as well as they scale up and down for the political content.
Daryl Raiford: We don't really plan to experience anything in the first half of the year, but we'll keep monitoring that. You know, it's good to say that two year, four years ago, we were making the remark that our political campaign customers were beginning to diversify. That they weren't really just appearing for like a cicada, and then going back into the ground, that they were beginning to diversify their business models. Four years on, they truly have. So these customers are really durable for us in terms of civic engagement and other commercial types of messaging business, as well as they scale up and down for the political content.
Speaker #2: That they weren't really just appearing for like a cicada. And then going back into the ground, that they were beginning to diversify their business models.
Speaker #2: Four years on, they truly have. So these customers are really durable for us in terms of civic engagement and other commercial types of messaging business, as well as they scale up and down for the political content so we're really happy with that.
Daryl Raiford: So we're really happy with that, and we'll see maybe about 2.5%, but we'll update you again next quarter as we get better visibility into the year.
Daryl Raiford: So we're really happy with that, and we'll see maybe about 2.5%, but we'll update you again next quarter as we get better visibility into the year.
Speaker #2: And we'll see maybe about 2.5%. But we'll update you again next quarter as we get better visibility into the year.
Speaker #3: All right. Perfect. Very helpful. Thank you.
David Morken: All right. Perfect. Very helpful. Thank you.
David Morken: All right. Perfect. Very helpful. Thank you.
Speaker #2: Thank you. And our next question comes from Eric Seppinger with B Riley Securities. Please go ahead.
Operator: Thank you. Our next question comes from Eric Spitzer with B. Riley Securities. Please go ahead.
Operator: Thank you. Our next question comes from Eric Spitzer with B. Riley Securities. Please go ahead.
Speaker #4: Yeah. Thanks for taking the question. First, could you just discuss or give us some context around the dynamics between the cloud communication growth outlook for 10% and the total revenue growth of 15%?
Eric Spitzer: Yeah, thanks for taking the question. First, can you just, just discuss or give us some context around the dynamics between the, the cloud communications growth outlook for 10% and the total revenue growth of 15%? Why, why is there a, a significant difference between those two?
Eric Spitzer: Yeah, thanks for taking the question. First, can you just, just discuss or give us some context around the dynamics between the, the cloud communications growth outlook for 10% and the total revenue growth of 15%? Why, why is there a, a significant difference between those two?
Speaker #4: Why is there a significant difference between those two?
Speaker #2: Well, that would be the difference is surcharge growth rate from carrier messaging surcharges. Last year, you will have noticed in our reported results that surcharge growth was relatively tame.
Daryl Raiford: Well, that would be the difference is the surcharge growth rate from carrier messaging surcharges. Last year, you will have noticed in our reported results that surcharge growth was relatively tame, very, very moderate. It was dampened by the carrier pricing environment, where there was really only one noticeable price increase by a carrier on surcharges last year. So surcharge growth last year for us on a reported basis was simply due to our continued messaging volume growth. This year-
Daryl Raiford: Well, that would be the difference is the surcharge growth rate from carrier messaging surcharges. Last year, you will have noticed in our reported results that surcharge growth was relatively tame, very, very moderate. It was dampened by the carrier pricing environment, where there was really only one noticeable price increase by a carrier on surcharges last year. So surcharge growth last year for us on a reported basis was simply due to our continued messaging volume growth. This year-
Speaker #2: Very moderate. It was dampened by the carrier pricing environment, where there was really only one noticeable price increase by a carrier on surcharges last year.
Speaker #2: So surcharge growth last year for us on our reported basis was simply due to our continued messaging volume growth. This year, and just one note, I think this is David.
David Morken: And just one note, I think this is David. Sorry to interrupt, Daryl. I think you mentioned-
David Morken: And just one note, I think this is David. Sorry to interrupt, Daryl. I think you mentioned-
Speaker #2: Sorry to interrupt, Daryl. I think you mentioned top-line total growth at 15. It's actually 16%.
Eric Spitzer: Mm-hmm.
Eric Spitzer: Mm-hmm.
David Morken: Top line total growth at 15%. It's actually 16%.
David Morken: Top line total growth at 15%. It's actually 16%.
Speaker #4: Yeah. Oh, okay. Sorry. Sorry. Yeah. Yeah. Correct that. 16 and 10. 16 and 10.
Daryl Raiford: Yeah. Oh, okay. Sorry, sorry. Yeah.
Daryl Raiford: Yeah. Oh, okay. Sorry, sorry. Yeah.
Eric Spitzer: Okay.
Eric Spitzer: Okay.
Daryl Raiford: You have to correct that, 16 and 10- 16 and 10. This year, preceding our guide that we just released, we've all... Two carriers, I won't go to the effort to name them, but two major carriers have already announced price increases that have gone into effect and will be going into effect in the next month or so. So we've taken those price increases into account in our guide.
Daryl Raiford: You have to correct that, 16 and 10- 16 and 10. This year, preceding our guide that we just released, we've all... Two carriers, I won't go to the effort to name them, but two major carriers have already announced price increases that have gone into effect and will be going into effect in the next month or so. So we've taken those price increases into account in our guide.
Speaker #2: This year, preceding our guide that we just released, we've all two carriers I won't go to the effort to name them, but two major carriers have already announced price increases that have gone into effect and will be going into effect in the next month or so.
Speaker #2: So we've had to we've taken those price increases into account in our guide.
Speaker #4: And just critically, those are pass-through surcharges, so they aren't margin-important at all for us. And CloudCom's, importantly, has become, as Daryl mentioned, so durable that we're projecting forward to achieve double-digit cloud communications growth irrespective of political seasons altogether.
David Morken: Just critically, those are passed through surcharges, so they aren't margin important-
David Morken: Just critically, those are passed through surcharges, so they aren't margin important-
Eric Spitzer: Mm-hmm.
Eric Spitzer: Mm-hmm.
David Morken: At all for us. Cloud comms, importantly, has become, as Daryl mentioned, so durable that we're projecting forward to achieve double-digit cloud communications growth, irrespective of political seasons altogether.
David Morken: At all for us. Cloud comms, importantly, has become, as Daryl mentioned, so durable that we're projecting forward to achieve double-digit cloud communications growth, irrespective of political seasons altogether.
Speaker #4: Okay. Second question, Twilio had noted a significant increase in their voice traffic. I'm wondering if you're seeing evidence of them getting more competitive in the voice side of the CPaaS market.
Eric Spitzer: Okay. Second question, Twilio had noted a significant increase in their voice traffic. I'm wondering if you're seeing evidence of them getting more competitive on the voice side of the CPaaS market.
Eric Spitzer: Okay. Second question, Twilio had noted a significant increase in their voice traffic. I'm wondering if you're seeing evidence of them getting more competitive on the voice side of the CPaaS market.
Speaker #2: You know, we're not. The customer examples we cited in our script were Winaway's from Verizon and two of the cases from AT&T and one of the cases and from a smaller carrier in the final case.
Daryl Raiford: You know, we're not. The customer examples we cited in our script were winaways from Verizon in two of the cases, from AT&T in one of the cases, and from a smaller carrier in the final case, and none of those was Twilio relevant.
Daryl Raiford: You know, we're not. The customer examples we cited in our script were winaways from Verizon in two of the cases, from AT&T in one of the cases, and from a smaller carrier in the final case, and none of those was Twilio relevant.
Speaker #2: And none of those was Twilio relevant.
Speaker #4: Very good. Thank you.
Eric Spitzer: Very good. Thank you.
Eric Spitzer: Very good. Thank you.
Speaker #2: Thank you. And our next question today comes from Patrick Walravens at Citizens. Please go ahead.
Operator: Thank you. And our next question today comes from Patrick Walravens at Citizens. Please go ahead.
Operator: Thank you. And our next question today comes from Patrick Walravens at Citizens. Please go ahead.
Patrick Walravens: ... Oh, great! And congratulations, you guys. Hey, Dave, can you actually, I have two que-- Hi. I actually have two questions, but the first one is, can you talk a little bit more about the insurance example that you gave us? And you said that you were working with Google Conversational AI on that. Can you just explain what exactly they were doing, what you do, and what the potential is to do more of those kinds of deals with Google?
Patrick Walravens: ... Oh, great! And congratulations, you guys. Hey, Dave, can you actually, I have two que-- Hi. I actually have two questions, but the first one is, can you talk a little bit more about the insurance example that you gave us? And you said that you were working with Google Conversational AI on that. Can you just explain what exactly they were doing, what you do, and what the potential is to do more of those kinds of deals with Google?
Speaker #5: Oh, great. And congratulations, you guys. Hey, Dave, can you actually have two hi. Hi. I actually have two questions. But the first one is, can you talk a little bit more about the insurance example that you gave us?
Speaker #5: And you said that you were working with Google Conversational AI on that. Can you just explain what exactly they were doing, what you do, and what the potential is to do more of those kinds of deals with Google?
Speaker #2: So absolutely. The most important aspect of that customer case is the complex preexisting Cisco environment for their contact center. And the need that this very large household name insurance company had to integrate Google's AI solution within that environment.
David Morken: So absolutely. The most important aspect of that customer case is the complex pre-existing Cisco environment for their contact center, and the need that this very large household name insurance company had to integrate Google's AI solution within that environment. And so orchestration among chosen best-of-breed AI solutions is vital, was vital for them, and Maestro from us is perfect. And that's, that's what facilitated that opportunity. And in the other cases, if some of our other customers chose differently to go with Google or to go with someone else, again, Maestro is ideally situated to give flexibility at scale for these enterprise customers to navigate what is the most fluid and dynamic changing AI environment imaginable.
David Morken: So absolutely. The most important aspect of that customer case is the complex pre-existing Cisco environment for their contact center, and the need that this very large household name insurance company had to integrate Google's AI solution within that environment. And so orchestration among chosen best-of-breed AI solutions is vital, was vital for them, and Maestro from us is perfect. And that's, that's what facilitated that opportunity. And in the other cases, if some of our other customers chose differently to go with Google or to go with someone else, again, Maestro is ideally situated to give flexibility at scale for these enterprise customers to navigate what is the most fluid and dynamic changing AI environment imaginable.
Speaker #2: And so orchestration among chosen best-of-breed AI solutions is vital was vital for them. And Maestro from us is perfect. And that's what facilitated that opportunity.
Speaker #2: And in the other cases, if some of our other customers chose differently to go with Google or to go with someone else, again, Maestro is ideally situated to give flexibility at scale for these enterprise customers to navigate what is the most fluid and dynamic changing AI environment imaginable.
Speaker #5: All right. Great. Thank you. And my second question is, for every stock that we cover, really, it's become all about: Is the incredibly rapid increase in AI good or bad for this business?
Patrick Walravens: All right, great. Thank you. And my second question is, you know, for every stock that we cover, really it's become all about, is the incredibly rapid increases in AI, good or bad for this business? And what are the moats that the business has to prevent larger, you know, new AI companies from coming in and somehow disrupting their business? What would you - How would you explain that to shareholders? What are your moats?
Patrick Walravens: All right, great. Thank you. And my second question is, you know, for every stock that we cover, really it's become all about, is the incredibly rapid increases in AI, good or bad for this business? And what are the moats that the business has to prevent larger, you know, new AI companies from coming in and somehow disrupting their business? What would you - How would you explain that to shareholders? What are your moats?
Speaker #5: And what are the moats that the business has to prevent larger new AI companies from coming in and somehow disrupting their business? What would you how would you explain that to shareholders?
Speaker #5: What are your moats?
Speaker #2: So the first part of your question is as interesting, and I will get to moats. As to the relevance of AI for bandwidth as a tailwind, we are deeply convicted that the need for intelligent voice agents to communicate across every imaginable channel with the empathy and intelligence to answer questions of all kinds means that, for us, and we're already seeing this in our voice growth and acceleration, for us, it's an amazing moment.
David Morken: So the first part of your question is as interesting, and I, I will get to moats. As to the relevance of AI for Bandwidth as a tailwind, we are deeply convicted that the need for intelligent voice agents to communicate across every imaginable channel with the empathy and intelligence to answer questions of all kinds, means that for us, and we're already seeing this in our voice growth and acceleration, for us, it's an amazing moment. It may not manifest as fast as the work-from-home dynamic that occurred back in the early 2020s, but it will ultimately be far more durable and persistent as the next billion users of the global PSTN that we have a footprint for, are voice agents acting on our behalf in wonderful, delightful ways. What kind of a moat do we have?
David Morken: So the first part of your question is as interesting, and I, I will get to moats. As to the relevance of AI for Bandwidth as a tailwind, we are deeply convicted that the need for intelligent voice agents to communicate across every imaginable channel with the empathy and intelligence to answer questions of all kinds, means that for us, and we're already seeing this in our voice growth and acceleration, for us, it's an amazing moment. It may not manifest as fast as the work-from-home dynamic that occurred back in the early 2020s, but it will ultimately be far more durable and persistent as the next billion users of the global PSTN that we have a footprint for, are voice agents acting on our behalf in wonderful, delightful ways. What kind of a moat do we have?
Speaker #2: It may not manifest as fast as the work-from-home dynamic that occurred back in the early 2020s, but it will ultimately be far more durable and persistent as the next billion users of the global PSTN that we have a footprint for our voice agents acting on our behalf in wonderful, delightful ways.
Speaker #2: What kind of a moat do we have? We have a moat that is a mile wide filled with oil and lit on fire. Very difficult to cross because you have to cross it at the speed of government across 80-plus countries.
David Morken: We have a moat that is a mile wide, filled with oil, and lit on fire. Very difficult to cross because you have to cross it at the speed of government across 80+ countries. We have interconnections with all the global incumbents necessary to provide immediate footprint, again, to the next billion voice agents. We own and operate this infrastructure. It's across the globe. That gives us a structural margin and cost advantage, which is why we've grown gross margins from 47% to now 60% during the time that we've been a public company. Our ARPU per customer is exploding because of their adoption of our different software services. And again, we're focused on the enterprise and the agents that are lining up to be able to engage globally in use cases that are awesome.
David Morken: We have a moat that is a mile wide, filled with oil, and lit on fire. Very difficult to cross because you have to cross it at the speed of government across 80+ countries. We have interconnections with all the global incumbents necessary to provide immediate footprint, again, to the next billion voice agents. We own and operate this infrastructure. It's across the globe. That gives us a structural margin and cost advantage, which is why we've grown gross margins from 47% to now 60% during the time that we've been a public company. Our ARPU per customer is exploding because of their adoption of our different software services. And again, we're focused on the enterprise and the agents that are lining up to be able to engage globally in use cases that are awesome.
Speaker #2: We have interconnections with all the global incumbents necessary to provide immediate footprint, again, to the next billion voice agents. We own and operate this infrastructure.
Speaker #2: It's across the globe. That gives us a structural margin and cost advantage, which is why we've grown gross margins from 47% to now 60% during the time that we've been a public company.
Speaker #2: Our ARPU per customer is exploding because of their adoption of our different software services. And again, we're focused on the enterprise and the agents that are lining up to be able to engage globally in use cases that are awesome.
Speaker #5: Fantastic. Thank you.
Patrick Walravens: Fantastic. Thank you.
Patrick Walravens: Fantastic. Thank you.
Speaker #2: Thank you, Pat. Thank you. And our next question comes from Joshua Riley at Needham. Please go ahead.
David Morken: Thank you, Pat.
David Morken: Thank you, Pat.
Operator: Thank you. And our next question comes from Joshua Riley at Needham. Please go ahead.
Operator: Thank you. And our next question comes from Joshua Riley at Needham. Please go ahead.
Speaker #4: Yeah. Thanks for taking my questions. How should we think about the pipeline for voice AI relative to other voice opportunities here heading into '26?
Joshua Riley: Yeah, thanks for taking my questions. How should we think about the pipeline for voice AI relative to other voice opportunities here heading into 2026? And does that remain a relatively low overall mix of voice revenue today? And is 2026 maybe kind of the inflection point where voice AI use cases are ramping in the marketplace and your overall revenue base?
Joshua Riley: Yeah, thanks for taking my questions. How should we think about the pipeline for voice AI relative to other voice opportunities here heading into 2026? And does that remain a relatively low overall mix of voice revenue today? And is 2026 maybe kind of the inflection point where voice AI use cases are ramping in the marketplace and your overall revenue base?
Speaker #4: And does that remain a relatively low overall mix of voice revenue today? And is 2026 maybe kind of the inflection point where voice AI use cases are ramping and the marketplace and your overall revenue base?
Speaker #2: It's a really good question, Josh. It's AI as a component of all enterprise conversations with Maestro attaching to almost to actually to every enterprise deal.
David Morken: It's a really good question, Josh. It's AI is a component of all enterprise conversations with Maestro attaching to almost, to actually to every enterprise deal. So it's really a degree question. It's not whether or not AI is germane to these enterprise conversations; it's to what extent does the revenue of that motion manifest? And your primary question is, when is the inflection point in voice growth driven by AI, disproportionately or more heavily? And what we believe, having for two years, been focused on this moment, what we believe is that we are seeing whether it's the developer channel that's quadrupled, as we talked about on our script, or the enterprise use cases that are proliferating, this year is a vital year to watch and observe and see the results from AI adoption and voice hit the top and bottom line.
David Morken: It's a really good question, Josh. It's AI is a component of all enterprise conversations with Maestro attaching to almost, to actually to every enterprise deal. So it's really a degree question. It's not whether or not AI is germane to these enterprise conversations; it's to what extent does the revenue of that motion manifest? And your primary question is, when is the inflection point in voice growth driven by AI, disproportionately or more heavily? And what we believe, having for two years, been focused on this moment, what we believe is that we are seeing whether it's the developer channel that's quadrupled, as we talked about on our script, or the enterprise use cases that are proliferating, this year is a vital year to watch and observe and see the results from AI adoption and voice hit the top and bottom line.
Speaker #2: So it's really a degree question. It's not whether or not AI is germane to these enterprise conversations. It's to what extent does the revenue of that motion manifest?
Speaker #2: And your primary question is, when is the inflection point in voice growth driven by AI? Disproportionately or more heavily? And what we believe, having for two years been focused on this moment, what we believe is that we are seeing whether it's the developer channel that's quadrupled as we talked about on our script, or the enterprise use cases that are proliferating, this year is a vital year to watch and observe and see the results from AI adoption and voice hit the top and bottom line.
Speaker #2: That's the year that we're in. We've captured that in our projection for 16% top-line growth and 10% cloud communications growth. And again, we're disciplined as a team.
David Morken: That's the year that we're in. We've captured that in our projection for 16% top-line growth and 10% cloud communications growth. And again, we're disciplined as a team, so 20% EBITDA margins render our overall business plan, I think, very strong. But we think this is a vital year for AI adoption to go from experimenting to real scale and deployment.
David Morken: That's the year that we're in. We've captured that in our projection for 16% top-line growth and 10% cloud communications growth. And again, we're disciplined as a team, so 20% EBITDA margins render our overall business plan, I think, very strong. But we think this is a vital year for AI adoption to go from experimenting to real scale and deployment.
Speaker #2: So 20% EBITDA margins render our overall business plan, I think, very strong. But we think this is a vital year for AI adoption to go from experimenting to real scale and deployment.
Speaker #4: Got it. Very helpful. And then you mentioned reaching a record number of million-plus deals. I think that was for the year of 2025, not the quarter.
Joshua Riley: Got it. Very helpful. And then you mentioned reaching a record number of, million-plus deals. I think that was for the year, of 2025, not the quarter. Correct me if I'm wrong there. Could you just share a bit more about the composition of some of these newer G, Global 2000 deals? Is there functionality that they're asking for today that they weren't a couple of years ago? And maybe, is that one of the key reasons that's helping you win against some of the legacy, telcos?
Joshua Riley: Got it. Very helpful. And then you mentioned reaching a record number of, million-plus deals. I think that was for the year, of 2025, not the quarter. Correct me if I'm wrong there. Could you just share a bit more about the composition of some of these newer G, Global 2000 deals? Is there functionality that they're asking for today that they weren't a couple of years ago? And maybe, is that one of the key reasons that's helping you win against some of the legacy, telcos?
Speaker #4: Correct me if I'm wrong there. Could you just share a bit more about the composition of some of these newer global 2000 deals? Is there functionality that they're asking for today that they weren't a couple of years ago?
Speaker #4: And maybe is that one of the key reasons that's helping you win against some of the legacy telcos?
Speaker #2: Terrific question. We closed more million-dollar-plus deals in all of '25 than we did in '23 and '24 combined, precisely for the reason that you're asking about.
David Morken: ... Terrific question. We closed more $1 million-plus deals in all of 2025 than we did in 2023 and 2024 combined, precisely for the reason that you're asking about. The product portfolio has expanded to really answer the key questions on value prop, and we've got here with us our Chief Product Officer, John Bell, and I'll just invite him to add to my answer.
David Morken: ... Terrific question. We closed more $1 million-plus deals in all of 2025 than we did in 2023 and 2024 combined, precisely for the reason that you're asking about. The product portfolio has expanded to really answer the key questions on value prop, and we've got here with us our Chief Product Officer, John Bell, and I'll just invite him to add to my answer.
Speaker #2: The product portfolio has expanded to really answer the key questions on value prop. And we've got here with us our chief product officer, John Bell.
Speaker #2: And I'll just invite him to add to my answer.
Speaker #6: Yeah. With the Maestro has been very it had a strong enterprise value proposition around integration, supporting move to the cloud. In all of these conversations we have with enterprises, it is really about now to move to AI.
John Bell: Yeah. With the Maestro has had a strong enterprise value proposition around integration, supporting the move to the cloud. In all of these conversations we have with enterprises, it is really about now the move to AI, and so the move to AI is reinforcing the value proposition and showing up in these customer conversations.
John Bell: Yeah. With the Maestro has had a strong enterprise value proposition around integration, supporting the move to the cloud. In all of these conversations we have with enterprises, it is really about now the move to AI, and so the move to AI is reinforcing the value proposition and showing up in these customer conversations.
Speaker #6: And so the move to AI has reinforcing the value proposition and showing up in these customer conversations.
Speaker #4: Awesome. Thank you, guys.
Joshua Riley: Awesome. Thank you, guys.
Joshua Riley: Awesome. Thank you, guys.
Operator: Thank you. That concludes today's question and answer session and today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Operator: Thank you. That concludes today's question and answer session and today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.