Cloud communications infrastructure company Twilio (NYSE:TWLO) will be reporting earnings tomorrow afternoon. Here's what to look for.
Last quarter Twilio reported revenues of $943.3 million, up 41% year on year, beating analyst revenue expectations by 2.43%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth. The company added 7,000 customers to a total of 275,000.
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 31.4% year on year to $972.9 million, slowing down from the 65.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.35 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards revisions over the last thirty days. 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 9.27%.
Looking at Twilio's peers in the software development segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Bandwidth delivered top-line growth of 13.5% year on year, beating analyst estimates by 5.32% and F5 Networks reported revenues up 2.64% year on year, exceeding estimates by 1.17%. F5 Networks was down 1.13%, and Bandwidth was up 5.51%. Read our full analysis of Bandwidth's results here and F5 Networks's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 2.98% over the last month. Twilio is up 8.97% during the same time, and is heading into the earnings with analyst price target of $122.90, compared to share price of $75.40.
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The author has no position in any of the stocks mentioned.