- Twilio increased its full-year free cash flow forecast to between $850 million and $875 million, up from the previous range of $825 million to $850 million, surpassing the $840.9 million estimate.
- Organic revenue growth is projected at 7.5% to 8.5%, compared to the earlier forecast of 7% to 8%.
- Adjusted operating income is expected to range from $850 million to $875 million, surpassing the estimate of $839.6 million.
- Second Quarter Forecast:
- Adjusted earnings per share (EPS) are expected to be between 99 cents and $1.04, with an estimate of $1.03.
- Revenue is forecasted to reach between $1.18 billion and $1.19 billion, exceeding the estimate of $1.17 billion.
- First Quarter Results:
- Adjusted EPS came in at $1.14, up from 80 cents year-over-year and above the 92-cent estimate.
- Revenue was reported at $1.17 billion, marking a 12% year-over-year increase and beating the $1.14 billion estimate.
- The dollar-based net expansion rate improved to 107% from 102% year-over-year, surpassing the estimate of 103.3%.
- Active customer accounts reached 335,000, exceeding the estimate of 327,130.
- Stock analysts have issued 21 buy ratings, 5 hold ratings, and 3 sell ratings for Twilio.
Twilio on Smartkarma
Analyst coverage of Twilio on Smartkarma reveals positive sentiments towards the company’s recent performance and strategic moves. In an analysis by Baptista Research titled “Twilio Inc.: How Is The Management Capitalizing On AI Integration & Product Cross-Selling Opportunities?” the company’s evolution and progress in the fourth quarter of 2024 were highlighted. Twilio reported $1.195 billion in revenue, an 11% increase year-over-year, achieving consecutive quarters of double-digit growth. This quarter was significant as Twilio attained GAAP operating profitability for the first time, showcasing a focus on balanced growth and profitability.
In another report from Baptista Research, titled “Twilio Inc.: Expansion into New Markets & International Growth As A Vital Tool For Growth! – Major Drivers,” Twilio’s robust performance in the third quarter of 2024 was emphasized. The company reported a revenue of $1.134 billion, a 10% year-over-year increase surpassing Q3 guidance. Non-GAAP income from operations was strong at $182 million, and free cash flow generated was significant at $189 million, highlighting Twilio’s effective cost management and operational efficiency. These positive assessments indicate a promising outlook for Twilio’s growth and market expansion strategies.
A look at Twilio Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Twilio presents a positive overall outlook for long-term investors. With a strong growth score of 5, the company demonstrates promising potential for expansion and value creation. Additionally, Twilio’s momentum score of 4 suggests that the company is on a favorable trajectory in the market. Although Twilio does not offer dividends, its resilience score of 3 indicates a moderate level of stability even in challenging market conditions. Overall, Twilio’s solid scores across key factors position it well for future success in the internet infrastructure solutions sector.
Twilio Inc. is a company that develops and provides Internet infrastructure solutions, offering a cloud computing platform that enables web developers to integrate various communication channels into their applications. With a global customer base, Twilio focuses on empowering developers to incorporate phone calls, voice communications, and text messages seamlessly across web, mobile, and phone platforms. The company’s high growth score of 5 reflects its innovative approach and potential for continued expansion in the industry, making it an attractive investment opportunity for those seeking exposure to the evolving digital communication landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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