Shares of Bandwidth fell after the company cut its adjusted earnings outlook for the year, despite raising its revenue guidance.

The stock tumbled 27%, to $38.30, in premarket trading Wednesday. Through Tuesday's close, shares have nearly quadrupled in value over the past year.

The cloud-communications software company said before the bell that it now expects full-year adjusted earnings of $1.71 to $1.79 a share, down from a prior outlook of $1.77 to $1.83 a share. It also lifted its revenue outlook to $900 million to $910 million, from $880 million to $900 million.

Analysts polled by FactSet are expecting adjusted earnings of $1.80 a share on revenue of $890.9 million.

For the current quarter, Bandwidth guided for adjusted earnings of 45 cents to 49 cents a share on revenue of $231 million to $235 million. That compares with analyst views for adjusted earnings of 56 cents a share on revenue of $223.6 million.

The outlooks came as the Raleigh, N.C., company narrowed its second-quarter loss to 7 cents a share, from 16 cents a share a year earlier. On an adjusted basis, Bandwidth logged quarterly earnings of 37 cents a share, a cent above Wall Street forecasts.

Revenue climbed 22% to $219.9 million, just ahead of analyst views for $217 million.

Chief Executive David Morken said artificial intelligence is reshaping how enterprises evaluate communications infrastructure, increasing demand for platforms that support mission-critical AI interactions.

"We are capitalizing on this shift to secure larger strategic customer wins across AI-native innovators," he added.