Twilio Tops Q1 Estimates, Morgan Stanley Sees Attractive Setup
2022.05.05 14:46
Twilio (TWLO) Tops Q1 Estimates, Morgan Stanley Sees Attractive Setup
Twilio (NYSE:TWLO) reported better-than-expected Q1 results, driving its shares up nearly 1% in pre-market Thursday.
The company reported Q1 adjusted EPS of $0, compared to 5c in the year-ago period, while analysts were expecting a loss per share of 22c. TWLO generated $875.4 million in revenue, up 48% YoY and beating the analyst consensus of $864.2 million.
Dollar-based net expansion rate stood at 127%, compared to the analyst consensus of 129%. The number of active customer accounts totaled 268,000, while analysts were looking for 263,968.
For Q2, Twilio expects adjusted loss per share in the range of 20c to 23c, compared to the estimated loss per share of 14c. Revenue is expected in the range of $912 million to $922 million, compared to the consensus projection of $917.9 million.
Morgan Stanley analyst Meta A Marshall reiterated an Overweight rating and a $240.00 per share price target on the TWLO stock.
“Twilio’s Q1 upside to both rev and GM expectations should help reset some of the investor conversation around LT profitability. Leadership in digital transformation, multitude of growth drivers and traction w/ software solutions keep us OW, w/ current val and 2H comps providing an attractive setup,” Marshall told clients.
UBS analyst Taylor McGinnis also weighed in positively. The analyst lowered the price target to $210.00 per share from the prior $310.00 on the Buy-rated TWLO stock.
“We’re positive on TWLO’s indication GMs could stay around 1QF22’s level (with variability), but the high-end 2Q organic revs growth guide of 29% fell short of expectations and this may lead some to question the 30% revs growth durability through 2024 despite TWLO’s reiteration and expectation for 2HF22 growth improvement off easier comps.”
By Senad Karaahmetovic
