Twilio Inc. TWLO is scheduled to report third-quarter 2024 earnings after market close on Oct. 30, 2024.
For the third quarter, the company anticipates revenues between $1.085 billion and $1.095 billion. The Zacks Consensus Estimate for revenues is pinned at $1.09 billion, indicating an improvement of 5.52% from the year-ago quarter’s revenues of $1.03 billion.
Twilio anticipates non-GAAP earnings per share between 81 cents and 86 cents. The consensus mark for third-quarter earnings has remained unchanged at 87 cents per share over the past 60 days, suggesting an improvement of 50% from the year-ago quarter’s 58 cents.
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TWLO’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 43.12%.
Let’s see how things are shaping up for this announcement.
Twilio Inc. Price and EPS Surprise
Twilio Inc. price-eps-surprise | Twilio Inc. Quote
Factors at Play for TWLO
Twilio’s third-quarter results are likely to reflect gains from sustained digital transformation efforts as enterprises continue to reconfigure their setup for a hybrid operational environment. TWLO’s initiatives in expanding the network with independent software vendors and its global partners are likely to have favored the third-quarter performance.
New product launches, including rich communication services and AI enhancements, particularly with the integration of OpenAI’s Realtime API into Twilio’s platform, are expected to positively impact the quarter's results. Previous enhancements of Twilio’s Segment and Flex platforms with new products like Agent Colpilot, Linked Audiences and the Segment Data Graph are likely to have attracted more customers in the third quarter as well.
In the last reported quarter, Twilio added around 3,000 new clients, taking the total active customer count to 316,000 as of June 30, 2024. The trend in the growth of the customer base is likely to have continued in the to-be-reported quarter.
Solutions like Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to the third-quarter performance. Moreover, the company’s integration of artificial intelligence in several communication and segment products is likely to have favored its third-quarter 2024 performance.
TWLO’s bottom line is likely to have benefited from its cost-saving initiatives, which include workforce reduction and the closure of several offices. The company ended the second quarter with 5,507 employees, down from the previous quarter’s 5,582 staff and the year-ago quarter’s 6,428 personnel.
However, Twilio’s third-quarter 2024 results are likely to be affected by the discontinuation of a particular software component Zipwhip business that kept the top line restrained in the previous quarter as well. Moreover, the looming geopolitical tension is likely to have hurt TWLO’s top line in the to-be-reported quarter.
Enterprises are postponing their large IT spending plans amid the still-high interest rates and protracted inflationary conditions. This factor is likely to have hurt Twilio’s top-line growth in the to-be-reported quarter.
What Our Model Says About TWLO
Our proven model does not conclusively predict an earnings beat for TWLO 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 TWLO currently carries a Zacks Rank #2, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Reddit RDDT has an Earnings ESP of +37.55% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Reddit shares have surged 61.3% year to date. RDDT is slated to report third-quarter 2024 results on Oct. 29.
Garmin GRMN has an Earnings ESP of +1.03% and a Zacks Rank of 2 at present.
Garmin shares have gained 26.3% year to date. GRMN is scheduled to report third-quarter 2024 results on Oct. 30.
Cognizant Technology Solutions CTSH has an Earnings ESP of +2.86% and carries a Zacks Rank #3 at present.
Cognizant shares have lost 0.9% year to date. Cognizant is slated to report third-quarter 2024 results on Oct. 30.
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