VoIP giant Bandwidth.com reported its third quarter earnings on Monday, bringing in a revenue of $131 million. But the company noted in another release that a recent DDoS attack will end up costing them “between $9 million and $12 million” for the full fiscal year.
While the company still beat expectations for Q3, the financial cost of the attack — which was first reported by The Record — illustrates how much damage DDoS incidents can cause.
The company filed a document with the SEC on October 26 explaining that the attack caused a “decrease of approximately $700,000 in third quarter 2021 revenue from lost transaction volume and customer credits.”
“Based on preliminary usage data and currently known information, the company estimates that the impact of the DDoS attack may reduce CPaaS revenue for the full year of 2021 by an amount between $9 million and $12 million, inclusive of the aforementioned $0.7 million revenue impact in the third quarter,” the company said in a filing.
On an earnings call on Monday, Bandwidth said many of the customers who left the company after the attack have already indicated they may return, and executives noted that they did not pay a ransom to address the