Twilio (TWLO) Q4 Earnings: What To Expect

Adam Hejl /
2024/02/13 2:02 am EST

Cloud communications infrastructure company Twilio (NYSE:TWLO) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter Twilio reported revenues of $1.03 billion, up 5.2% year on year, beating analyst revenue expectations by 4.5%. It was a decent quarter for the company, with revenue exceeding analysts' expectations. Its gross margin improved and the company produced strong free cash flow. The company added 2,000 customers to a total of 306,000.

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 1.8% year on year to $1.04 billion, slowing down from the 21.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 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 3.3%.

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. F5's revenues decreased 1.1% year on year, beating analyst estimates by 1.1% and Dynatrace reported revenues up 22.7% year on year, exceeding estimates by 2.1%. F5 traded up 0.7% on the results, and Dynatrace was down 11.3%.

Read our full analysis of F5's results here and Dynatrace's results here.

There has been positive sentiment among investors in the software development segment, with the stocks up on average 7.8% over the last month. Twilio is down 1.2% during the same time, and is heading into the earnings with analyst price target of $73.9, compared to share price of $71.16.

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.

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