Personal Finance

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.

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

Image source: Getty Images.

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.

10 stocks we like better than Twilio

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Twilio wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 6, 2018

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.

In This Story

TWLO

Other Topics

Stocks

Latest Personal Finance Videos

    #TradeTalks: A Holistic Financial Picture to Give a True Indicator of your Financial Health

    Harvest Founder Nami Baral joins Jill Malandrino on Nasdaq #TradeTalks to discuss the Harvest PRO Index, holistic financial picture to give a true indicator of your financial health, not just a credit score.

    Oct 9, 2020

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More