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Twilio Shares Spike After Recording Sharp Increase in Revenue

Sales increased 57% year-over-year for the cloud communications company, although earnings estimates missed.

Shares of communications software company Twilio  (TWLO)  jumped after hours on Wednesday after it recorded a significant increase in revenues in the first quarter.

Twilio reported a loss of 68 cents a share on revenue of $364.9 million, versus estimates of a loss of 11 cents a share on revenue of $331 million.

Shares were rising 24% to $152.00 in after-hours trading on Wednesday. Heading into earnings, Twilio shares were up about 14% year to date. 

Twilio gave guidance for the second quarter of revenue between $365 million to $370 million and a non-GAAP loss per share of between 8 cents and 11 cents, ahead of consensus estimates of $337 million and a non-GAAP loss of 13 cents. But the company withdrew its full year 2020 guidance due to the ongoing impact of the coronavirus pandemic. 

"We delivered strong first quarter revenue growth of 57% year-over-year, as customers across industries turned to Twilio’s customer engagement platform to accelerate their digital transformation efforts," said Jeff Lawson, Twilio’s co-founder and CEO. "Our platform provides three things the world needs right now: digital engagement, software agility and cloud scale."

The company reported that it had more than 190,000 active customer accounts at the end of March, an increase of 23% year over year. Its dollar-based net expansion rate, calculated using total revenue, was 143% for the first quarter of 2020, compared to 142% for the first quarter of 2019.