Is this company our next TEN BAGGER
?
AN UNDER-THE-RADAR stock, up 150% since March lows
in the same league as $TWLO $API
SALES ARE GROWING at 35% YoY
up from 28% and 18% in prev. Qs.
Will this $ 3.5B company reach $TWLO
$ 33B market cap?
Here is a SHORT thread

AN UNDER-THE-RADAR stock, up 150% since March lows

SALES ARE GROWING at 35% YoY

Will this $ 3.5B company reach $TWLO

Here is a SHORT thread

Bandwidth $BAND is a CPaaS founded by David Morken, the current CEO in 1999 and IPOed in 2017
It enables customers to create
scale
and operate
voice or messaging communications services across any mobile application or connected device
It enables customers to create






Cloud communications
to replace telecom lines 
What happened with COVID? You went home and worked using $ZM
& Teams 
What happened behind the scenes? A Tier-1 Network
enabled by a Session Initiation Protocol
supported your voice and messaging communications


What happened with COVID? You went home and worked using $ZM


What happened behind the scenes? A Tier-1 Network






What will happen after COVID? 
Will you go back to use that expensive land lines to make your calls?
Or will you rely on Zoom, Teams and any other Internet communication tool?



You’ve guessed it! You’ll stick to voice and messaging over the internet 
In fact, the market for CPaaS is set to boom to $ 17B by 2023 according to IDC - up from $ 3B in 2018
This is boosted by 2 key arguments

In fact, the market for CPaaS is set to boom to $ 17B by 2023 according to IDC - up from $ 3B in 2018
This is boosted by 2 key arguments












Here is an extract from Mordor Intelligence on how internet communications are helping Staples drive sales 
“Staples used CPaaS as part of its Easy System, a smart-ordering platform, leveraging an IoT-driven virtual assistant that helps organisations manage office supplies.”

“Staples used CPaaS as part of its Easy System, a smart-ordering platform, leveraging an IoT-driven virtual assistant that helps organisations manage office supplies.”
You know what is best? $BAND is the only API platform that owns a Tier 1 Network
and provides SIP trunking
As a network carrier it is able to undercut $TWLO on pricing - Remember that this was first a disadvantage as $TWLO as able to expand further


Bandwidth has built and operates its OWN nationwide IP voice network
rather then relying on third party carriers like $TWLO
Meaning the company CONTROLS rather than OUTSOURCE its network

Meaning the company CONTROLS rather than OUTSOURCE its network






As explained by Bandwidth
“If you equate choosing your API to buying a new car, not only do we own the car dealership, we also built the engine, control the quality of the gas and oil, and can even give you a GPS to find the best route. The other guys are just dealerships [...]”
“If you equate choosing your API to buying a new car, not only do we own the car dealership, we also built the engine, control the quality of the gas and oil, and can even give you a GPS to find the best route. The other guys are just dealerships [...]”
So… $TWLO is the big fish here right? Well they do not target the same customers 
$TWLO targets mobile application developers that just need to integrate voice and messages into their apps



Their business model is apart as $BAND places itself as the network of the future 
$TWLO works with over 1,000 mobile carriers in over 150 countries
$BAND owns the network undercutting $TWLO on price by up to 50% and delivering better reliability



Increasing revenue growth and stable margins 
Revenue grew 35.2% to $76.8m in Q2 ’20 YoY (vs 28.5% in Q2 ’20 YoY)
Gross margins at 46% (stable QoQ)
EBITDA at $5.5m and positive FCF of $2.7m












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Here is a review for $BAND - A $TWLO alternative that might catch your attention - would love to hear your take the matter 
@adventuresinfi
@maddenifico
@richard_chu97
@kghufran
@dhaval_kotecha
@JonahLupton
@StackInvesting

@adventuresinfi
@maddenifico
@richard_chu97
@kghufran
@dhaval_kotecha
@JonahLupton
@StackInvesting
Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ https://www.gin.ntt.net/about/our-network/
✑ https://www.forbes.com
✑ https://elite.net.uk/
✑ Investor presentation
✑ Company website
✑ https://www.mordorintelligence.com/
✑ https://www.gin.ntt.net/about/our-network/
✑ https://www.forbes.com
✑ https://elite.net.uk/
✑ Investor presentation
✑ Company website
✑ https://www.mordorintelligence.com/