What happened
Shares of Twilio (NYSE: TWLO) have fallen today, down by 3% as of 12:45 p.m. EDT, after the company reported third-quarter results. The stock was down as much as 5% earlier in the morning.
So what
Revenue in the third quarter jumped 52% to $448 million, well ahead of the $407.2 million in sales that analysts were modeling for. That led to adjusted earnings per share of $0.04, also beating the Street's expectation of an adjusted net loss per share of $0.04.
Image source: Twilio.
Investors were already expecting strong results after the communications technology company updated its guidance earlier this month and said it would beat its guidance. Twilio now has over 208,000 customers and reported a dollar-based net expansion rate of 137%.
"Great digital engagement is becoming more critical to differentiate the customer experience, and companies across industries and around the world are choosing Twilio's customer engagement platform to build these solutions," CEO Jeff Lawson said in a statement. "Our performance in the third quarter is further evidence that Twilio's platform provides three things that every company needs today -- digital communications, software agility, and cloud scale."
Now what
After expecting a revenue beat in the third quarter, investors were more focused on guidance for the fourth quarter, which was mixed. Revenue in the fourth quarter is forecast at $450 million to $455 million, ahead of the consensus estimate of $432.1 million. That should result in an adjusted net loss per share of $0.08 to $0.11, which is worse than the $0.01 per share in red ink that the Street is expecting.
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 tripled the market.*
David and Tom just revealed what they believe are the ten 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.
*Stock Advisor returns as of October 20, 2020
Evan Niu, CFA owns shares of Twilio. The Motley Fool owns shares of and recommends 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.
