Twilio Shares Surge 6% Following Third Quarter Earnings Beat and Upgraded Forecasts

SAN FRANCISCO - Shares of customer engagement platform Twilio Inc. (NYSE: TWLO) surged 6.29% in after-hours trading on Wednesday following the announcement of third-quarter earnings that surpassed analyst estimates and an increase in full-year guidance. The company reported a diluted earnings per share of $1.02 for the quarter ending September 30, exceeding the consensus estimate of $0.86. Revenue increased 10% year-over-year to $1.13 billion, surpassing expectations of $1.09 billion. CEO Khozema Shipchandler stated, “Twilio continues to operate with financial discipline, operational rigor, and focused innovation. This has allowed us to generate double-digit revenue growth and solid free cash flow in a strong third quarter.” Twilio projects fourth-quarter revenue of $1.15 to $1.16 billion, with adjusted earnings per share of $0.95 to $1.00. Both forecasts exceed analyst expectations. The company also raised its full-year 2024 organic revenue growth forecast from the previous range of 6-7% to 7.5-8%. Twilio’s non-GAAP operating income for the third quarter rose to $182.4 million from $136.4 million in the same period last year. The company generated $189.1 million in free cash flow, representing a margin of 17%. As of September 30, active customer accounts increased to over 320,000, up from over 306,000 in the same period last year. Twilio’s dollar-based net expansion rate rose from 101% in the third quarter of 2023 to 105%.