Twilio stock gains 8% after Q2 beat-and-raise; analysts boost numbers

Twilio (NYSE:) shares surged about 8% premarket Wednesday after the company its Q2 results.

EPS of $0.54 came in better than the consensus estimate of $0.30. Revenue increased 10% year-over-year to $1.04 billion, beating the consensus estimate of $987.07 million.

Communications revenue was $913.1M, up 10% year-over-year, while Data & Applications revenue came in at $124.6M, representing a 12% year-over-year increase.

“We enter the second half of the year confident about our ability to generate meaningful levels of non-GAAP income from operations, and committed to our focus of driving efficient growth across our business,” said CEO Jeff Lawson.

For Q3/23, the company expects EPS in the range of $0.33-$0.37, compared to the consensus of $0.30, and revenue in the range of $0.98B-$0.99B, compared to the consensus estimate of $1.02B.

The company raised its full-year guidance for non-GAAP Income from Operations to $350M to $400M.

Barclays analysts hiked the price target by $10 to $60 per share.

“Messaging volume stabilization supports stronger revenue beat and improving FY24 outlook, but we would like to see more contribution from the Data & Applications segment,” the analysts said.

Bernstein analysts added:

“What might have looked like a beat and then a LARGE QoQ guide down, was actually a couple divestitures (worth ~$25MM in quarter) hiding what appears to be slightly optimistic guide: when taken in the context that on an adjusted basis it is the highest quarterly revenue guide they’ve ever had (above Q3-4’22 which were flat and Q1’23 that was down).”

(Additional reporting by Senad Karaahmetovic)