Twilio stock popped Thursday after the communications software maker reported third-quarter earnings and revenue that topped estimates and raised its full-year revenue outlook.
The San Francisco-based company reported earnings after the market close on Wednesday.
"Twilio appears to be turning a corner and is beginning to see sustained improvements across the business, primarily fueled by product innovation in areas like personalization, real-time data analytics, and message deliverability," said William Blair analyst Arjun Bhatia in a report.
At TD Cowen, analyst Derrick Wood said in a report: "We're encouraged by strengthening volume trends and traction from developing go-to-market avenues."
Twilio earnings for the September quarter came in at $1.02, up 76% from a year earlier, on an adjusted basis Revenue rose 10% to $1.134 billion, the communications software maker said.
Analysts had predicted adjusted profit of 86 cents per share on revenue of $1.094 billion.
For the current quarter ending in December, Twilio said it expects revenue in a range of $1.15 billion to $1.16 billion. Analysts had projected revenue of $1.15 billion. Also, Twilio hiked its full year 2024 organic revenue growth guidance to 7.5% to 8%, compared with 6% to 7% previously.
"Management provided an encouraging preliminary 2025 revenue outlook of 7% to 8% year-over-year growth, above consensus expectations. We believe investors are viewing this outlook as a floor for 2025 growth, suggesting possible acceleration," said Mizuho analyst Siti Panigrahi in a report.
Twilio Stock: New Management
On the stock market today, Twilio stock popped 15.6% to 80.10 in morning trading.
Heading into the Twilio earnings report, TWLO stock had retreated 6% in 2024.
Twilio's tools enable app developers to embed voice, text messaging and video into their products. In addition, Twilio's software makes it easier for cloud-based applications to communicate.
Meanwhile, Twilio cofounder Jeff Lawson stepped down as chief executive and board chairman in early 2024 amid pressure from activist investors. The company Twilio named Shipchandler, the president of Twilio Communications, as its new CEO.
Further, Twilio's acquisitions include SendGrid in 2018 and Segment in 2020.
Activist investor Anson Fund has been pushing for a sale of part or all of the company, according to reports.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
