Twilio (TWLO) Surges On Solid Q4 Results And Optimistic View
Zacks Investment Research | Feb 13, 2018 08:29PM ET
Shares of Twilio Inc. (NYSE:TWLO) jumped more than 6% during yesterday’s after-hours trade after the company reported splendid fourth-quarter results, wherein its revenues topped the Zacks Consensus Estimate as well as management’s guidance range. Also, the top line marked solid year-over-year growth.
Talking about the company’s bottom-line results, though it posted a loss per share, the figure was much lower than the consensus estimate and management’s guidance range as well. However, it has an unfavorable comparison when compared with the year-ago quarter results.
Let’s discuss the fourth-quarter results in detail.
Revenues
The company’s fourth-quarter revenues surged 40.6% year over year to $115.2 million and surpassed the Zacks Consensus Estimate of $104 million. Also, it came ahead of management’s previously guided range of $102.5-$104.5 million. Furthermore, the company’s base revenues jumped 40% year over year to $105.3 million.
The robust top-line performance was mainly driven by remarkable year-over-year growth in active customer account which was a result of the company’s continued focus on introducing products as well as its go-to-market sales strategy.
The company registered a whopping 33.8% surge in active customer accounts, adding more than 12,373 accounts over the last 12 months, bringing the total count to 48,979 as of Dec 31, 2017. During the fourth quarter alone, Twilio added more than 2,490 active customer accounts.
Operating Results
Non-GAAP gross profit climbed approximately 27.5% year over year to $61.6 million. However, gross margin contracted 550 basis points (bps) to 53.5%, as elevated cost of goods sold more than offset the benefit of higher revenues.
Non-GAAP operating expenses flared up 35.8% year over year to $65.5 million. The year-over-year surge was mainly due to increased investment in research and development, and sales to capitalize on the market opportunity. However, as a percentage of revenues, the figure decreased to 56.9% from 58.9% in the year-ago quarter.
Furthermore, the company reported non-GAAP operating loss of $3.9 million. In the year-ago quarter, Twilio had posted an operating income of $80,000. Non-GAAP net loss came in at $2.6 million or 3 cents per share. In the year-ago quarter, the company had reported net income of $0.3 million or almost breakeven earnings per share. The year-over-year widened loss was mainly due to elevated costs and operating expenses which more than offset the benefit of sturdy top-line growth.
Nevertheless, non-GAAP loss per share came way below management’s guided range of a loss of 5-6 cents. Also, the quarterly loss was narrower than the Zacks Consensus Estimate of a loss of 6.
Twilio Inc. Price, Consensus and EPS Surprise
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