Twilio Q3 revenue rises 20% on costumer expansion

Overview

• Customer engagement platform's Q3 revenue rose 20%, beating analyst expectations

• Adjusted EPS for Q3 was $1.65, beating analyst expectations

• Company repurchased $127.2 mln in shares during Q3

Outlook

• Twilio sees Q4 revenue between $1.595 bln and $1.605 bln

• Company expects Q4 non-GAAP income from operations of $300 mln to $310 mln

• Twilio forecasts Q4 non-GAAP diluted EPS of $1.48 to $1.53

Result Drivers

• PRODUCT PORTFOLIO STRENGTH - Co attributed Q3 performance to broad-based strength across its product portfolio, per CEO Khozema Shipchandler

• AI INFRASTRUCTURE DEMAND - Co said increased adoption of AI is driving demand for its infrastructure products

• CUSTOMER EXPANSION - Co reported higher dollar-based net expansion rate, indicating increased spending by existing customers

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Twilio Inc. is $275.00, about 8.4% above its October 28 closing price of $253.77

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads

• Oct 29 - Software stocks slide as Fortinet, ServiceNow fail to meet lofty investor expectations

• Oct 28 - Tenable Q3 revenue beats estimates; raises FY outlook

• Oct 28 - Cybersecurity firm Fortinet's Q3 revenue rises 20%, adj EPS beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)