An analyst day presentation from Twilio (TWLO -1.62%), a provider of cloud-based communication tools and services for developers, has investors looking up on Friday. The stock was up 15% as of 1:08 p.m. EDT.
The company's announcement that its third-quarter revenue would be above its previous guidance range for the period likely helped fuel the growth stock's move higher. In addition to updating its view for its just-ended third quarter, management provided an optimistic forecast for its revenue growth potential over the next four years.
Management "expects that the Company's total revenue for the quarter ended September 30, 2020 will be ahead of the Company's previously issued guidance of $401 million to $406 million," the company disclosed in an 8-K filing along with its investor presentation on Thursday.
Analysts were modeling for revenue of $407.9 million, implying 42% year-over-year growth. But given Twilio's move to go out of its way to let investors know it will beat its guidance range, a revenue beat is likely in the cards.
Twilio also said at its presentation on Thursday that it expects 30%-plus organic annualized revenue growth rates over the next four years.
Analysts loved the investor presentation and have been rushing to reiterate buy ratings on the stock, with many raising their price targets. Analysts from Wells Fargo, Piper Sandler, JMP Securities, Cowen, Baird, RBC Capital, and D.A. Davidson all raised their 12-month price targets for the stock after the event.