Twilio’s third-quarter revenue climbs 52% to £344.03 million

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Written on Oct 26, 2020

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Twilio’s third-quarter revenue climbs 52% to £344.03 million.
The San Francisco-based company reports a net loss of £89.79 million.
Twilio records a 21% annualised increase in active customer accounts.

Twilio Inc. (NYSE: TWLO) said on Monday that its revenue in the fiscal third quarter came in stronger than Wall Street expectations. The company attributed higher revenue in Q3 to the Coronavirus pandemic that made businesses resort to work from home arrangements and resulted in increased demand.

COVID-19 has so far infected more than 8.9 million people in the United States and caused over 230 thousand deaths. In an earlier announcement in October, Twilio expressed plans of acquiring San Francisco-based customer data infrastructure company, Segment, for £2.46 billion.

Twilio said that it concluded the third quarter with £89.79 million of loss that translates to 60.68 pence per share. In comparison, it had reported a much lower £67.36 million of loss in the same quarter last year or 49.16 pence per share. Twilio launched an app for frontline workers in the first week of October.

Twilio’s Q3 financial results versus analysts’ estimates

On an adjusted basis, the cloud communications platform posted a per-share loss of 3.07 pence in Q3. In terms of revenue, Twilio recorded a 52% annualised growth in the fiscal third quarter to £344.03 million versus the year-ago figure of £226.67 million.

CFO Khozema Shipchandler attributed the increase in Q3 revenue primarily to vertical markets, including financial services and health care. As of 30^th September, Twilio had over 208 thousand active customer accounts, representing a year over year growth of 21%.

According to FactSet, experts had forecast the company to print £312.62 million of revenue in the recent quarter. Their estimate for per-share loss stood at 3.07 pence.

CEO Jeff Lawson’s comments on Monday

According to CEO Jeff Lawson:

“Great digital engagement is becoming more critical to differentiate the customer experience, and companies across industries and around the world are choosing Twilio’s customer engagement platform to build these solutions. Our performance in the third quarter is further evidence that Twilio’s platform provides three things that every company needs today – digital communications, software agility, and cloud scale.”

Shares of the company tanked about 1.5% in after-hours trading on Monday. On a year to date basis, Twilio is still roughly 200% up. It also performed upbeat in the stock market last year with an annual gain of close to 20%. At the time of writing, the San Francisco-based cloud communications platform as a service company has a market capitalisation of £34.37 billion.