Twilio Inc. (TWLO - Get Report) did everything a company could do to boost its share price. After beating estimates on both the top and bottom lines, and raising its full-year guidance, shares were up more than 17% on Tuesday, Aug. 7, to above $74.
The software-as-a-service company beat second-quarter earnings estimates, reporting adjusted earnings of 3 cents per share, beating expectations that called for a loss of 5 cents. Revenue came in at $147.8 million, blowing the expected $131.1 million out of the water.
Twilio raised revenue guidance for the full year to between $585.5 million and $589.5 million, while earnings guidance was raised to 2 cents to 4 cents a share.
Twilio is in expansion mode, and clearly executing its sales strategy.
"The strong performance during the quarter was primarily driven by the overall growth across the company's different products, customers, and geographies," William Blair analyst Bhavan Suri wrote in a note to clients on Tuesday. "The company continues to win new logos with base customers increasing 32% during the quarter," he added.
JP Morgan analyst Mark Murphy raised his price target on Twilio from $60 to $75. Murphy is a believer in management's upped guidance for the year. "Twilio's forecasts are now likely to be more accurate, likely translating to less hyperbolic magnitude of beat-and-raise in future quarters," he wrote.