Shares of software company Twilio (TWLO) surged by 28% before paring back gains to 19% during extended trading hours Wednesday after it reported earnings and sales that beat Wall Street analyst estimates.
"Our fourth quarter capped off an amazing year of results as we delivered more than $2.8 billion in revenue for the year, growing 61% year-over-year,” Twilio CEO Jeff Lawson said in a statement.
An adjusted loss of 20 cents a share on revenue of $773 million was the estimate from analysts on average, according to FactSet.
Twilio estimates first quarter revenue guidance of $855 million to $865 million.
The company reported a fourth quarter loss of $291.4 million or $1.63 a share. Revenue for the company posted at $842.7 million, an increase of 54% from $548.1 million a year ago.
The company reported a loss of 20 cents a share after making adjustments for stock compensation and other factors.
Twilio's stock plunged 53% during the past 12 months due to worries about its growth rates in the second half of 2021. The S&P 500 gained 17% in 2021.
The company's software allows companies to communicate with customers via text messages and added over 35,000 new active customers for the full year. Twilio's customer growth was impressive, said Futurum Research analyst Daniel Newman, MarketWatch reports.
He added that he plans to focus on the company's losses as it makes additional significant investments.
