Twilio forecasts slower Q4 organic growth despite Q3 results beat
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
Shares of Twilio were down about 17% in after-hours trading
Outlook
Twilio expects Q4 organic revenue growth to slow to 11%-12% from 16% in Q3
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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.56 bln | $1.51 bln (24 Analysts) |
Q3 Adjusted EPS | Beat | $1.65 | $1.47 (24 Analysts) |
Q3 EPS | $1 | ||
Q3 Adjusted Operating Income | $326 mln | ||
Q3 Gross Profit | $760.53 mln | ||
Q3 Operating Income | $148.63 mln |
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
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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.)