Jeff Lawson CEO, Twilio
Scott Mlyn | CNBC
Twilio shares rose more than 10% in expanded trading on Wednesday after the cloud communications company reported better-than-expected fourth-quarter results, including a surprise adjusted gain.
Here’s how the business fared:
- Earnings: 4 cents per share, adjusted against the loss of 8 cents per share, as expected by analysts, according to Refinitiv.
- Income: According to Refinitiv, $ 548.1 million is up against $ 454.8 million, as expected by analysts.
According to a statement, revenue grew by 65% year-on-year, compared to 52% in the previous quarter.
Twilio added 13,000 active customer accounts in the fourth quarter, bringing the total to 221,000, compared to an increase of 8,000 in the third quarter. The company provides tools that developers can use to add text messages, voice and video calls, emails, and other features to applications. Twilio also offers cloud-based contact center software that companies can rely on for their interaction with customers.
“The pandemic accelerated the change overnight,” Jeff Lawson, a co-founder of Twilio and its chief executive, said in a conference call with analysts. “Healthcare had to accelerate the adoption of telemedicine and e-commerce businesses accelerated their e-commerce plans. Companies that hired more developers and increased their digital game during the pandemic are not going back.”
Political activity contributed $ 23 million to revenue during the quarter, said Khozema Shipchandler, the company’s chief financial officer.
In terms of pricing, Twilio sees an adjusted loss of 12 cents to 9 cents per share on $ 526 million to $ 536 million in revenue in the first quarter, implying revenue growth of approximately 44% to 47%. Analysts surveyed by Refinitiv expected an adjusted loss of 2 cents per share to $ 492.1 million in revenue.
Despite the shift to the hours, Twilio shares have risen about 22% since the beginning of the year, compared to a rise of less than 5% for the S&P 500 index during the same period.
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