What happened

Shares of Twilio Inc. (NYSE:TWLO) jumped 30.2% last month, according to data provided by S&P Global Market Intelligence, after the company reported stellar sales growth in its fourth quarter. 

Chart with arrows going up on green background.

Image source: Getty Images.

So what

The company's total revenue for Q4 was up 41% year over year to $115.2 million. That jump was impressive, but investors were even more excited because the growth came nearly a year after Uber announced that it would be reducing its reliance on Twilio for its cloud communications needs. Uber had formerly accounted for about 14% of Twilio's top line, but provided just 8% of 2017 revenues. 

The company managed to make its gains via a raft of customer additions. Twilio's customer count at the end of 2017 reached 48,979, up from 36,606 at the end of 2016. That helped the company improve its top line by 44% for the year to $399 million.

Investors were also pleased to see that Twilio's non-GAAP net loss was only $0.03 per share for Q4, which was better than the consensus analyst estimate for a loss of $0.06 per share. 

Now what

Management estimates that sales for the first quarter will be $116 million at the midpoint, with a non-GAAP operating loss of $6.5 million. That would translate to a loss per share of about $0.065 in the first quarter.

Investors will likely want to keep a close eye on Twilio's ability to keep adding new customers, but Q4 demostrated that Twilio is able to adapt even when a large customer shifts some business elsewhere.

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