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Twilio To Report Earnings Tomorrow: Here Is What To Expect


Radek Strnad /
2022/02/08 6:17 am EST
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Cloud communications infrastructure company Twilio (NYSE:TWLO) will be reporting earnings tomorrow after the bell. Here's what to expect.

Last quarter Twilio reported revenues of $740.1 million, up 65.2% year on year, beating analyst revenue expectations by 8.19%. It was an impressive quarter for the company, with accelerating customer growth and an exceptional revenue growth.

Is Twilio buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Twilio's revenue to grow 36.9% year on year to $750.6 million, slowing down from the 65.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Loss is expected to come in at -$0.22 per share.

Twilio Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 10.8%.

Looking at Twilio's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Dynatrace (NYSE:DT) delivered top-line growth of 31.6% year on year, beating analyst estimates by 2.67% and F5 Networks (NASDAQ:FFIV) reported revenues up 10% year on year, exceeding estimates by 1.31%. Dynatrace traded down 21.8% on weak guidance, F5 Networks was down 8.53%. Read our full analysis of Dynatrace's results here and F5 Networks's results here.

Tech stocks have had a rocky start in 2022 and while some of the SaaS stocks have fared somewhat better, they have not been spared, with share price declining 6.46% over the last month. Twilio is down 13.5% during the same time, and is heading into the earnings with analyst price target of $464.7, compared to share price of $196.65.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.