Twilio (TWLO) Q4 Earnings And Revenues Surpass Estimates
Zacks Investment Research | Feb 06, 2020 06:34AM ET
Twilio Inc. (NYSE:TWLO) reported fourth-quarter 2019 non-GAAP earnings of 4 cents per share, which topped the Zacks Consensus Estimate of a penny and was in line with the year-ago figure.
Meanwhile, the company’s fourth-quarter revenues soared 62% year over year to $331.2 million and also surpassed the Zacks Consensus Estimate of $315 million, driven by increase in clientele and the Sendgrid buyout. Growing adoption of Twilio Flex is also a tailwind.
Quarterly Details
The company’s base revenues jumped 65% year over year to $306.6 million.
Organic base revenues of $253 million soared 36% year over year. SendGrid revenues of $54 million grew 30% year over year.
Twilio’s top 10 active customer accounts contributed to 14% of its total revenues, down from 20% in the year-ago period but up from 13% sequentially. WhatsApp represented approximately 6% of revenues in the quarter.
The company’s dollar-based net expansion rate was 124% in the reported quarter, down from 147% in the prior-year period.
The company’s active customer accounts increased to 179,000 as of Dec 31, 2019 from 64,286 on Dec 31, 2018. In the fourth quarter, Twilio added 6,908 active customer accounts.
During the quarter, PayPal, which has more than 300 million customers, selected Twilio as its SMS delivery platform. The company also entered into new deals as well as expanded relations with many other customers.
Operating Results
Non-GAAP gross profit skyrocketed approximately 71.5% year over year to $189.1 million. Further, gross margin expanded 300 basis points (bps) to 57%. However, it was down sequentially due to some increased international usage, customer, product and country mix, carrier fees, FX and others.
Non-GAAP research and development as a percentage of revenues expanded 500 bps to 23%.
The company reported non-GAAP operating loss of $3.01 million against operating income of $2.37 million in the prior-year quarter.
Balance Sheet
The company exited the reported quarter with cash and cash equivalents plus short-term marketable securities of $1.85 billion, down from $1.88 billion sequentially.
As of Dec 31, 2019, the company generated $14.05 million of cash from operational activities.
Twilio Inc. Price, Consensus and EPS Surprise
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