Why Twilio, Inc. Shares Rose as Much as 22% Today

Red charting arrow on the rise, set against a backdrop of growing bar charts and stock-chart squiggles.

What happened

Shares of Twilio (NYSE: TWLO) jumped as much as 22.1% higher on Tuesday, following the release of the company's strong second-quarter results. As of 12:20 EDT, the stock had cooled down somewhat to a 19.4% gain.

So what

The cloud communications platform saw second-quarter revenue rise 54% year over year, landing at $147.8 million. On the bottom line, Twilio swung from a $0.05 adjusted net loss to earnings of $0.03 per share. Wall Street analysts had been expecting an adjusted net loss of $0.05 per share on sales near $131 million. For the record, the midpoints of Twilio's own guidance ranges pointed to a non- GAAP net loss of $0.06 per share on revenue in the neighborhood of $130 million.

Looking ahead, Twilio also provided third-quarter and full-year guidance targets well ahead of the current Street views. Twilio sees non-GAAP profits for the full fiscal year (analysts had expected a modest net loss) and the bottom end of full-year revenue guidance landed 8% above the current analyst consensus estimates.

Now what

The Twilio Flex development platform for cloud communications tools, which the company introduced in the first quarter, is already finding a foothold in the market. During the second quarter, Twilio integrated this tool with the Google Cloud Contact Center, boosting Flex's customer appeal by providing a simple way to use it together with Google's solutions.

Twilio investors can now look back at a 52-week return of 158%. It's no surprise to see share prices rising as the company continues to exceed Wall Street's expectations.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anders Bylund owns shares of GOOGL. The Motley Fool owns shares of and recommends GOOGL, GOOG, and Twilio. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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