Cloud communications provider Bandwidth (NASDAQ: BAND) will be reporting earnings this Thursday before market hours. Here’s what investors should know.

Bandwidth beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $180 million, up 3.7% year on year. It was a slower quarter for the company, with revenue guidance for next quarter slightly missing analysts’ expectations and EBITDA guidance for next quarter missing analysts’ expectations significantly.

Is Bandwidth a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Bandwidth’s revenue to decline 2% year on year to $190 million, a reversal from the 27.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bandwidth has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.3% on average.

Looking at Bandwidth’s peers in the software development segment, only F5 has reported results so far. It beat analysts’ revenue estimates by 2%, delivering year-on-year sales growth of 8.5%. The stock was down 7.9% on the results.

Investors in the software development segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Bandwidth’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $21.50 (compared to the current share price of $17.28).

P.S. While everyone's chasing Nvidia, we found a hidden AI semiconductor winner trading at a fraction of the price. See our #1 pick before Wall Street catches on.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.