Twilio Shatters All Market Expectations



Cloud computing software vendor Twilio (NYSE:TWLO) has been on a roll. It continues to deliver financial results that outpace all market expectations, driving its stock higher. The stock has witnessed a 220% growth rally during the year.

Twilio’s Financials

For the second quarter of the year, Twilio’s revenues grew 54% to $147.8 million, significantly ahead of the market’s forecast of $131 million. Twilio reported a net loss of $22 million in the quarter, compared with a loss of $7.1 million recorded a year ago. Non GAAP EPS came in at $0.03, compared with a non GAAP net loss of $0.05 per share a year ago. The Street was looking for a non GAAP loss of $0.05 per share for the quarter.

Among key metrics, Twilio ended the quarter with more than 57,350 active customer accounts, compared with 43,430 customers a year ago. The metric is important given the low customer base the company had till a few years ago. In 2015, Twilio earned 32% of its revenue from 10 accounts, and 26% of its revenues from WhatsApp and Uber alone. During the quarter, Twilio’s base revenues grew 54% to $135 million; and excluding Uber, base revenues grew at 61% over the year. Today, the top 10 accounts account for a more modest 18% of total revenues with no single customer contributing for more than 10% of company revenue.

Twilio’s net expansion rate, which measures how much more Twilio’s active customers spent on its services in comparison to the same clients’ year-ago orders, came in at 137%, compared with 132% a year ago. Excluding Uber, that number grew to 145% from 137%.

For the current quarter, Twilio forecast revenues of $150-$152 million, and an adjusted EPS pf $0.02-$0.03. The market was forecasting revenues of $135.9 million with a break-even third quarter. Twilio expects to end the year with revenues of $585.5-$589.5 million, with an adjusted EPS of $0.02-$0.04. The outlook is significantly higher than the previous guidance of $538-$544 million. The market was looking for revenues of $543 million for the year.

1 2 3
View single page >> |

Disclosure: More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book,  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.