Categories Analysis, Technology

Earnings Preview: Will Twilio continue the bullish trend after Q3 results?

Cloud communications platform Twilio (TWLO) is slated to report its third quarter financial results on November 6 after the bell. Analysts expect the company to report profit of 2 cents compared to last year third quarter’s loss of 8 cents per share. Wall Street also expects revenue to be $151 million, which represents a year-over-year growth of about 50%.

When announcing the second quarter results, the San Francisco-based firm said that it expects to achieve non-GAAP EPS of 2-3 cents and revenue of $150-152 million for the third quarter. Last month, Twilio commented that it had exceeded the third quarter guidance provided on August 6.

Twilio second quarter 2018 earnings
Twilio Q2 2018 Earnings Infograph

For the second quarter, Twilio surpassed Street’s views by posting adjusted profit per share of 3 cents wherein analysts had expected the company to report a loss for the quarter. On the upbeat earnings and strong outlook, the stock climbed 19% the next day. The recent product innovation initiatives and expansions are expected to benefit the company and Twilio is estimated to continue its bullish trend following the Q3 earnings announcement.

The company had a recently appointed Khozema Shipchandler as CFO with effect from November 12. Shipchandler, who recently served GE Digital’s Chief Commercial Officer, will be replacing Lee Kirkpatrick.

You may also like: Twilio acquires SendGrid

Last month, Twilio acquired the bulk email sender SendGrid (SEND) in an all-transaction that is valued about $2 billion. Apart from the current voice, video and chat platforms, this deal will help Twilio to expand its presence in the email category. The Denver-based SendGrid sends transactional and marketing emails on behalf of the companies to their customers through a cloud-based solution.

The investing community will look out for the growth in the active customer accounts for the recently ended quarter. The company has been growing its active customer accounts continuously for several quarters. More details on the SendGrid acquisition is also expected during the earnings conference call.

Shares of Twilio, which closed down 3.01% at $74.32 on Friday, were up slightly during the pre-market trading hours on Monday. The company has tripled its share value in this year and in the past 52 weeks the stock has jumped 145%.


Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight