As expected, expenses continue to increase for Twilio as it is focusing on investing on product development, expand its presence, and beef up its marketing and sales efforts. R&D expenses increased nearly 42% and sales and marketing costs jumped 55.4%. Increasing expenses might hurt profits, but it’s going to augur well for the company in the long-term to expand its customer base. New product roll outs would increase revenues from new and existing customers.
Based on the strong first quarter results, Twilio is raising its outlook for second quarter and full year. The company expects second quarter revenues to be in the range of $129 million of $131 million, and adjusted loss per share between $0.06 and $0.05. For the full year, revenue is expected to come in at the range of $538 million to $544 million, and loss per share, on adjusted basis, is expected in the $0.10 to $0.07 range.