Why Twilio Is One of Tuesday’s Big Earnings Winners
Twilio posting a surprise second-quarter profit sent its share price sharply higher on Tuesday.
When Twilio Inc. (NYSE: TWLO) released its second-quarter financial results after the markets closed on Monday, the company reported $0.03 in earnings per share (EPS) and $147.8 million in revenue. That compares to the consensus estimates that called for a net loss of $0.06 per share and $130.4 million in revenue, as well as the net loss of $0.05 per share and $95.9 million in revenue posted in the same period of last year.
The company recorded 57,350 active customer accounts at the end of the quarter, up from to 43,431 in the second quarter last year.
At the same time, the dollar-based net expansion rate was 137%, compared to 131% last year.
Twilio also expanded its presence on the east coast of the United States with the launch of its new Atlanta office, with plans to add more than 50 employees over the next few years, including sales, human resources and engineering roles.
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Looking ahead to the third quarter, the company expects to see EPS in the range of $0.02 to $0.03 and revenues between $150 million and $152 million. The consensus estimates from Thomson Reuters call for $0.02 in EPS and $150.25 million in revenue for the quarter.
Jeff Lawson, Twilio’s co-founder and chief executive, commented:
Our core voice and messaging products grew rapidly once again, and the positive customer response to Flex further reinforces our Engagement Cloud strategy. Our go-to-market investments are driving growth in companies of all shapes and sizes, and we’re excited to unveil our newest set of innovations and gather our customers at our upcoming SIGNAL conference in October.
Shares of Twilio were last seen up about 19% at $75.26, with a consensus analyst price target of $58.16 and a 52-week trading range of $23.25 to $77.31.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
