RALEIGH, NC – Bandwidth Inc. (NASDAQ:BAND), a prepackaged software services company, has announced significant changes to its executive team, including the departure of its Chief Operating Officer, Anthony F. Bartolo, and the appointment of Devesh Agarwal as the Interim COO, effective July 1, 2024.
According to the company’s recent 8-K filing with the SEC, Mr. Bartolo's resignation was previously disclosed on May 7, 2024. As part of his departure, an agreement was reached to accelerate the vesting of 62,630 restricted stock units (RSUs) that were due to Mr. Bartolo, with the remaining 73,626 RSUs being forfeited upon his exit.
Moreover, Mr. Bartolo will receive an immediate award of RSUs, set to be released on March 14, 2025, or within 30 days of his death should it occur before this date, contingent upon his adherence to the terms of his existing employment contracts.
The value of this award is calculated at $1,107,760, based on the closing price of Bandwidth’s Class A common stock on the last trading day before March 14, 2025. Moreover, Mr. Bartolo is entitled to a monthly healthcare stipend for twelve months post-employment.
The company has also detailed the terms of the Employment Agreement with Mr. Agarwal, who has been serving as the Chief Software Strategy Officer since July 12, 2022. His new role as Interim COO comes with an annual base salary of $350,000 and a target incentive of 50% of his salary under the company’s annual cash incentive program.
In the event of a termination without cause or resignation for good reason, Mr. Agarwal will be eligible for severance equivalent to his annual base salary and cash incentive bonus, along with a healthcare stipend for twelve months. Certain equity awards may vest upon such a qualifying termination or in the event of a change in control of the company.
Mr. Agarwal will also be subject to non-competition and non-solicitation clauses effective for 12 months post-termination. Further details of these agreements will be included in the company’s upcoming Quarterly Report on Form 10-Q for the quarter ending June 30, 2024.
This executive reshuffling comes as Bandwidth continues to navigate the competitive landscape of the software services industry. The information for this article is based on a press release statement.
In other recent news, Bandwidth Inc. has been the subject of multiple analyst reports following a robust first-quarter performance. Morgan Stanley downgraded Bandwidth stock from Equalweight to Underweight, reducing the price target to $15.00 from the previous target of $18.00, citing revenue growth expectations due to pass-through surcharges.
Concurrently, KeyBanc increased the price target for Bandwidth shares to $32, maintaining an Overweight rating, after the company reported significant growth in its Messaging business.
Baird raised its price target for Bandwidth to $25, maintaining a Neutral rating, while Canaccord Genuity maintained its Buy rating and increased its stock price target to $40 due to record quarterly revenue. These recent developments are based on the company's strong financial performance, including record quarterly revenue and the highest first quarter adjusted EBITDA in Bandwidth's history.
The company has also raised its full-year outlook for both revenue and profitability, attributing the positive financial performance to significant growth in its direct-to-enterprise customer category, particularly through its Maestro platform.
Despite these positive developments, Bandwidth announced the departure of Chief Operating Officer Anthony Bartolo. The company's ongoing focus is on expanding gross margins and free cash flow.
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