- Twilio produced an adjusted profit, surprising analysts.
- The cloud communications company's revenue growth accelerated in the fourth quarter, as did the number of active customers Twilio added.
Twilio shares rose more than 10% in extended trading on Wednesday after the cloud communications company reported better-than-expected fourth-quarter results, including a surprise adjusted profit.
Here's how the company did:
- Earnings: 4 cents per share, adjusted, vs. loss of 8 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $548.1 million, vs. $454.8 million as expected by analysts, according to Refinitiv.
Revenue grew 65% on an annualized basis in the quarter, according to a statement, compared with 52% growth in the prior quarter.
Twilio added 13,000 active customer accounts in the fourth quarter, bringing the total to 221,000, compared with an increase of 8,000 in the third quarter. The company provides tools developers can use to add text messaging, voice and video calls, emails and other functions into applications. Twilio also offers cloud-based contact center software that companies can rely on for their agents' interactions with customers.
With respect to guidance, Twilio sees an adjusted loss of 12 cents to 9 cents per share on $526 million to $536 million in revenue in the first quarter, implying about 44% to 47% revenue growth. Analysts polled by Refinitiv had expected an adjusted loss of 2 cents per share on $492.1 million in revenue.
Notwithstanding the after-hours move, Twilio shares have risen about 22% since the start of the year, compared with an increase of less than 5% for the S&P 500 index over the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. Eastern time.
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