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Twilio Inc. (TWLO - Free Report) is scheduled to report first-quarter 2022 results on May 4.

In the first quarter of 2022, Twilio anticipates revenues in the range of $855 million-$860 million. The Zacks Consensus Estimate for the same is pegged at $861.6 million, indicating an improvement of 46% from the year-ago quarter.

The cloud-based communications platform-as-a-service provider expects a non-GAAP loss of between 22 cents and 26 cents per share. The consensus mark for the non-GAAP loss stands at 23 cents per share, suggesting a drastic increase from the year-ago quarter’s loss of 5 cents.

Twilio’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 70.7%.

Let’s see how things have shaped up before this announcement.
 

Twilio Inc. Price and EPS Surprise

Twilio Inc. price-eps-surprise | Twilio Inc. Quote
 

Factors to Note

Twilio’s first-quarter results are likely to reflect gains from accelerated digital transformation projects across several industries amid the ongoing pandemic. Organizations have been reconfiguring their set-up for a work-from-home operational environment to make nearly 100% e-commerce a reality.

The company’s revenues are likely to reflect the contributions of its latest buyouts, including Zipwhip and Segment. Since the buyout, Segment has been aiding TWLO in enhancing its capabilities in the cloud-based communications platform space and gaining significant customers. The strong uptake of Segment, the growing adoption of Twilio Flex, and an increasing clientele base might have favored the first-quarter performance.

In the last reported quarter, Twilio added around 6,000 new clients, taking the total active customer count to more than 256,000. In the first quarter, the company’s increasing scope among the leading enterprises is likely to have acted as a key tailwind.

Solutions like Journeys, Twilio Conversations, SendGrid Ads, and SendGrid’s Email Validation API might have contributed to the first-quarter performance. The company’s efforts to fortify its global footprint may get reflected in the to-be-reported quarter's results.

However, increased spending and investments in enhancing the product portfolio and expanding across newer markets might have negatively impacted Twilio’s profitability. Also, elevated expenses for enhancing sales capabilities might have weighed on the first quarter’s bottom line.
 

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Though Twilio currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%.