Twilio Reported Stronger-Than-Expected Q3 Financial Results

Twilio Inc. (NYSE: TWLO) reported its third quarter financial results after market close on Tuesday. The Company topped analysts’ estimates and provided stronger-than-expected guidance, sending shares 12% higher. Despite the results, shares quickly fell into the red, falling by 1.05% from the closing price.

For the third quarter, Twilio reported revenue of USD 168.9 Million, increasing 68% year over year and topping estimates of USD 150.4 Million. The Company reported earnings per share of USD 7 cents, compared to an earnings per share loss of USD 8 cents last year, and surpassing estimates of USD 2 cents per share.

Base revenue increased by 63% to USD 154.3 Million in the quarter year over year and 14% from the second quarter this year. Twilio reported 61,153 Active Customer Accounts, increasing from 46,489 the same quarter last year.

Within the third quarter, Twilio signed an agreement to acquire SendGrid back in mid-October. The agreement adds Twilio’s email API platform to SendGrid’s cloud communications platform, offering various and diverse communication channels such as voice, messaging, voice and now email.

SendGrid’s shares rose by 9% following Twilio’s earnings before also falling 1.38% after the closing bell on Tuesday.

For the fourth quarter, Twilio is forecasting revenue in the range of USD 183 Million and USD 185 Million. Adjusted earnings per share is expected to be in the range of USD 3 cents to USD 4 cents. Analysts are projecting earnings per share of USD 2 cents on revenue of USD 161.4 Million.

For the full year, Twilio forecasts revenue to be in the range of USD 629 Million to USD 631 Million, while adjusted earnings per share is expected to be in between USD 10 cents to USD 11 cents.

Twilio’s Chief Financial Officer Lee Kirkpatrick said in the conference call that the Company will not disclose revenue figures, excluding Uber. Uber presented 4% of Twilio’s third quarter revenue, falling from 8% in 2017.

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