Twilio (TWLO) Stock: Flying On Strong Earnings


Twilio TWLO STock NewsTwilio Inc (NYSE: TWLO) is having an incredibly strong start to the trading session in the pre-market hours this morning after reporting its financial results for the second quarter. Of course, the report proved to be positive, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:

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

TWLO Surges On Strong Earnings

As mentioned above, Twilio is having an incredibly strong start to the trading session this morning, working its way to record highs on strong earnings. Here’s what we saw from the report:

  • Earnings – In the report, TWLO said that net loss attributed to shareholders came in at $24 million. That works out to $0.25 per share. Adjusted for items like stock-based compensation, earnings came to $0.03 per share, comparing well to a loss of $0.05 per share one year ago. Analysts expected that the company would generate a loss of $0.06 per share.
  • Revenue – In terms of revenue, the company did overwhelmingly well. During the quarter, revenue came to $147.8 million. That proved to be strong growth on a year over year basis from $95.9 million and outpaced analyst expectations of $130.4 million.
  • Guidance – Finally, the company saidthat it expects to produce revenue in the range between $150 million and $152 milllion with earnings ranging between $0.02 and $0.03 per share in the current quarter.

In a statement, Jeff Lawson, Co-Founder and CEO at TWLO, had the following to offer:

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.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Twilio, the news proved to be overwhelmingly positive. After all, earnings and revenue came in well ahead of expectations while guidance proved to be strong. So, it comes as no surprise that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:16), TWLO is trading at $73.78 per share after a gain of $10.51 per share or 16.61% 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 continued growth as the company is showing some impressive figures at the moment. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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