What happened

Shares of Twilio (NYSE:TWLO) jumped 76% in May, according to data from S&P Global Market Intelligence. The stock soared after the company published impressive first-quarter results early in the month.

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Twilio released its first-quarter results on May 6 and posted results that far exceeded the market's expectations. The company delivered adjusted earnings per share of $0.06 on sales of $364.87 million, while the average analyst estimate had called for an adjusted loss per share of $0.11 on revenue of $331.88 million.

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So what

First-quarter revenue rose 57% year over year, with growth driven by new client additions and spending increases by organizations already using its services. The company's active customer accounts climbed 23% over the prior-year period to reach 190,000, and its dollar-based net expansion rate came in at an impressive 143%. The coronavirus pandemic helped spur demand for video and other digital communications services in the company's first quarter, and major client additions and service expansions created business momentum that helped Twilio's valuation reach a record high last month. 

Now what

Twilio stock has continued to climb early in June's trading, with shares up roughly 2% in the month so far. 

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Twilio withdrew the full-year guidance that it issued when it reported fourth-quarter results in February, but it did provide a performance outlook for the current quarter. The company is targeting second-quarter revenue between $365 million and $370 million, representing year-over-year growth between 33% and 35%. Management is expecting an adjusted loss per share between $0.08 and $0.11 for the period.

Twilio is valued at roughly 18.5 times the average analyst target for this year's sales.