Twilio Stock Surges As Revenue Growth Blows Past Estimates

Twilio stock surged Wednesday afternoon on fourth-quarter revenue that blew past estimates as the company also projected profitability on an adjusted basis by 2023. The March-quarter revenue guidance of TWLO stock also came in well above expectations.

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As a result, Twilio (TWLO) shares surged 24% to near 250 in extended trading on the stock market today.

Amid an acquisition spree, Twilio said it lost 20 cents per adjusted share vs. a 4-cent profit in the year-earlier period. But revenue jumped 54% to $842.7 million, including acquisitions, the communications software maker said. Excluding acquisitions, revenue jumped 39%.

Twilio stock analysts estimated the company would report a 21-cent loss on revenue of $773.4 million. The San Francisco-based company reported earnings after the market close on Wednesday.

For the current quarter ending in March, Twilio said it expects revenue of $860 million at the midpoint of its guidance. Analysts had projected revenue of $806.4 million.

Twilio Stock Retreats Heading Into Earnings

In addition, Chief Executive Jeff Lawson outlined a roadmap to profitability in a letter to shareholders.

“We’ve continued to invest over the last several years to fuel our ability to address the market opportunity ahead of us,” Lawson said. “We’ve consistently delivered strong top-line growth, and we are now starting to reap the benefits of our scale and investments. In that context, I’m excited that beginning in 2023, our goal is to deliver annual non-GAAP operating profitability consistently, in addition to the revenue growth we’ve committed.”

Heading into the Twilio earnings report, TWLO stock had retreated 24% in 2022.

Twilio’s tools enable app developers to embed voice, text messaging and video into their products. In addition, Twilio’s software makes it easier for cloud-based applications to communicate.

Twilio’s acquisitions include SendGrid in 2018, Segment in 2020 and ZipWhip last year. In 2021, it also invested $750 million in Syniverse (SYNV).

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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