Twilio (TWLO) Q1 Earnings And Revenues Surpass Estimates
Zacks Investment Research | Apr 30, 2019 10:52PM ET
Twilio Inc. (NYSE:TWLO) reported first-quarter 2019 non-GAAP earnings of 5 cents per share, which topped the Zacks Consensus Estimate of a penny and also reversed the company’s loss of 4 cents in the year-ago quarter.
The company’s first-quarter revenues soared 81% year over year to $233.1 million and also surpassed the Zacks Consensus Estimate of $224 million. Its core products, voice, messaging and e-mail were key growth drivers. Moreover, results were driven by the acquisition of Sendgrid, completed in February.
Quarterly Details
The company’s base revenues also jumped 88% year over year to $220.9 million. Organic growth for Twilio's base revenues was more than 60% year over year while the same for Twilio SendGrid during the sub-period (Since Feb 1) was 30% year over year.
Twilio’s top 10 active customer accounts contributed to 14% of its total revenues, down from 18% in the year-ago period and 20% in the earlier reported quarter.
Moreover, multiple Twilio Flex deals signed in the first quarter are key catalysts. Gaining adoption of new products is driving the company’s dollar-based net expansion rate, which stood at 146% in the reported quarter.
The company’s active customer accounts increased to 154,797 as of Mar 31, 2019 from 53,985 on Mar 31, 2018. Alone in the first quarter, Twilio added more than 90,511 active customer accounts. Twilio SendGrid contributed more than 84,000 to the count.
Operating Results
Non-GAAP gross profit climbed approximately 92% year over year to $136.9 million. Gross margin expanded 300 basis points (bps) to 58%. Higher margin revenues from Twilio SendGrid are a tailwind.
The company reported non-GAAP operating income of $3.4 million against non-GAAP operating loss of $4.7 million in the prior-year quarter.
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