Customer engagement platform Twilio (NYSE:TWLO) will be reporting results this Thursday after market hours. Here’s what to expect.
Twilio beat analysts’ revenue expectations last quarter, reporting revenues of $1.41 billion, up 20% year on year. It was an exceptional quarter for the company, with a significant improvement in its net revenue retention rate and a solid beat of analysts’ adjusted operating income estimates.
Is Twilio a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Twilio’s revenue to grow 16.2% year on year, improving from the 13.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Twilio has a history of exceeding Wall Street’s expectations.
Looking at Twilio’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bandwidth delivered year-on-year revenue growth of 22.2%, beating analysts’ expectations by 1.4%, and F5 reported revenues up 10.9%, topping estimates by 3.6%. Bandwidth traded down 25.7% following the results while F5 was also down 1.1%.
Read our full analysis of Bandwidth’s results here and F5’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 9.6% on average over the last month. Twilio is down 5.8% during the same time and is heading into earnings with an average analyst price target of $210.72 (compared to the current share price of $197.04).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.