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Twilio Q2 Tops Revenue, EPS Estimates

By Eric Volkman – Aug 4, 2020 at 6:50PM

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Yet the shares traded down in after-hours action on Tuesday.

Formerly hot digital communications specialist Twilio (TWLO -1.11%) cooled down Tuesday night following the release of its Q2 of fiscal 2020 results, which were published after market hours.

For the quarter, the tech company's total revenue grew by 46% on a year-over-year basis to $400.8 million, as the number of active customer accounts rose by 24% to hit the 200,000 mark. On the bottom line, non-GAAP (adjusted) net income zoomed 189% higher to just over $14 million, or $0.09 per share.

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Image source: Getty Images.

Those results were well ahead of analyst estimates. Collectively, prognosticators tracking the stock had estimated a top-line result of $368.2 million and an adjusted net loss of $0.09 per share.

Although the results were encouraging, Twilio has posted higher revenue growth rates in the past; for Q1, the company's year-over-year improvement came in at 57%.

Nevertheless, it clearly feels momentum -- aided by the coronavirus outbreak, which has increased the need for, and awareness of, advanced digital solutions -- is still on its side. "We are just scratching the surface of this huge opportunity, and we believe the solutions being built today using our customer engagement platform will be the standard for digital engagement in the future," CEO Jeff Lawson was quoted as saying.

Twilio proffered guidance for its current Q3, which ends on Sept. 30. The company estimates that it will rake in $401 million to $406 million of revenue, but post an adjusted net loss of $10 million to $15 million ($0.05 to $0.09).

Although roughly in line with analyst expectations, the net loss guidance -- following the profitable Q2 adjusted result -- could be engendering disappointment. In after hours trading on Tuesday, Twilio shares were down by almost 4.8%.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Twilio. The Motley Fool has a disclosure policy.

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