Bandwidth.com, the VoIP titan, announced its third-quarter profits on Monday, raking in $131 million in sales. However, according to another press release, a recent DDoS operation would cost the corporation “between $9 million and $12 million” for the whole fiscal year.
While the corporation nevertheless exceeded projections in the third quarter, the financial impact of the strike — which was initially reported by The Record — demonstrates the extent of the harm caused by DDoS attacks.
On October 26, the business informed the SEC that the incident resulted in a loss of approximately $700,000 in third quarter 2021 revenue due to missed transaction volume and customer credits.
Based on early use statistics and currently available information, the business anticipates that the DDoS attack will lower CPaaS revenue by $9 million to $12 million for the entire year of 2021, including the $0.7 million revenue impact in the third quarter, the company stated in a filing.
Bandwidth officials stated on a Monday earnings conference that many of the customers who absconded following the incident have already signaled that they may return. They also didn’t pay a ransom to resolve the incident.
After allegations surfaced that the business was coping with a DDoS attack, Bandwidth CEO David Morken stated that it was experiencing difficulties in September.
Other VoIP providers, such as Accent, RingCentral, Twilio, DialPad, and Phone.com, were suffering outages and blaming an upstream supplier.
According to a source who begged to remain anonymous, customers were experiencing severe issues with their transferred phone numbers, and they couldn’t make any modifications like forwarding phones.
The firm is a downstream reseller of Bandwidth-hosted goods and claims to be aware of a large telecoms company that is “in emergency mode” due to the Bandwidth crisis.
Even though the hack caused days of disruptions and the firm announced its projected losses, Morken maintained the attack had minimal influence on its successful quarter.
Over the previous several months, multiple VoIP firms have reported DDoS attacks, and Cloudflare analysts have seen several “record-setting HTTP DDoS attacks,” as well as the introduction of ransom DDoS attacks against VoIP service providers.
VoIP.ms, a Canadian VoIP operator, says it was hit by a large ransom DDoS attack earlier this year that lasted for a week. To finish the episode, the REvil ransomware organization asked for a $4.5 million ransom.