Twilio (TWLO) Stock: Climbing On Earnings

Twilio Inc (NYSE: TWLO) reported its earnings for the third quarter this morning, smashing expectations. As you could imagine, the positive earnings report excited investors who are pushing the stock on a run for the top. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from TWLO stock as a result; and
  • what we’ll be watching for ahead.

TWLO Smashes Earnings Expectations

As mentioned above, Twilio is having an incredibly strong start in the pre-market hours this morning after the company reported its third quarter earnings. Here’s what we saw from the report:

  • Revenue – In terms of revenue, TWLO did incredibly well. During the quarter, the company generated revenue in the amount of $169 million. Not only is that figure well ahead of the $150.5 million analysts expected to see, it represents 68% year over year growth.
  • Earnings – Non-GAAP earnings also proved to be a positive point. During the quarter, the company said that non-GAAP earnings came to $4.3 million, which works out to $0.07 per share. Not only did this figure beat expectations, it also showed a strong year over year gain from the loss of $7.7 million reported in the third quarter last year.
  • Guidance – Finally, TWLO boosted its fourth quarter revenue guidance. The company is now expecting for Q4 revenue to come in between $183 million and $185 million.

In the report, the company made it clear that the recent takeover of SendGrid, WhatsApp and Uber Technologies played a key role in the growth seen in the quarter.

What We’re Seeing From The Stock 

One of the first lessoons that we learn when we start to work in the market is that the news leads to moves. In the case of Twilio, the news proved to be overwhelmingly positive. After all, earnings not only showed strong growth from the company, the report blew analyst expectations out of the water. So, it comes as no surprise to see that excited investors are pushing the stock on a run for the top. Currently (8:05), TWLO is trading at $82.97 per share after a gain of $11.95 per share or 16.93% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on TWLO. In particular, we’re interested in following the company to see how recent acquisitions continue to lead to strong growth. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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