Categories Earnings, Technology
Twilio (TWLO) Q3 profit beats estimates but provides weak Q4 outlook
Twilio Inc. (NYSE: TWLO) reported a wider loss in the third quarter of 2019 due to higher costs and expenses. Despite the results exceeding analysts’ expectations, the company guided fourth-quarter earnings and revenue below consensus estimates.
Net loss was $87.7 million or $0.64 per share compared to a loss of $27.1 million or $0.28 per share in the previous year quarter. Adjusted earnings plunged by 57% to $0.03 per share.
Revenue soared by 75% to $295.1 million. This is driven by the growth of active customers. Base revenue surged by 79% to $275.5 million. The latest quarter’s results included revenue from Twilio SendGrid starting on February 1, 2019, which is the date of acquisition.
For the fourth quarter, the company expects revenue in the range of $311 million to $314 million and adjusted earnings in the range of 1 to 2 cents per share. For fiscal 2019, the company tightened its top-line outlook to the range of $1.114 billion to $1.117 billion from the prior range of $1.113 billion to $1.119 billion. The adjusted EPS guidance is lowered to the range of 16 to 17 cents from the previous range of 17 to 18 cents.
Base revenue is predicted to be in the range of $300 million to $302 million for the fourth quarter and $1.053 billion to $1.055 billion for the full year 2019. The adjusted income tax rate is projected to be 25% for both periods.
As of September 30, 2019, active customer accounts soared by 181% to 172,092, which include the contribution from Twilio SendGrid customer accounts. The dollar-based net expansion rate fell to 132% from 145% in the previous year quarter as the SendGrid results do not impact the calculation.
During the quarter, the company introduced Twilio Conversations that allowed developers to leverage a unified API to engage with their customers in group conversations across multiple messaging channels, including SMS, MMS, WhatsApp, and Chat. Also, Twilio announced SendGrid Ads, Media Streams API, and Verified by Twilio.
Most Popular
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
Target (TGT): A look at some of the challenges faced by the retailer in 3Q24
Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and
Comments
Comments are closed.