What To Expect From Twilio's (TWLO) Q3 Earnings

Customer engagement platform Twilio (NYSE:TWLO) will be announcing earnings results this Thursday after market hours. Here’s what investors should know.

Twilio beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $1.23 billion, up 13.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and accelerating customer growth. It added 14,000 customers to reach a total of 349,000.

Is Twilio a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Twilio’s revenue to grow 10.5% year on year to $1.25 billion, in line with the 9.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.07 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Twilio has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.8% on average.

Looking at Twilio’s peers in the software development segment, only F5 has reported results so far. It beat analysts’ revenue estimates by 2%, delivering year-on-year sales growth of 8.5%. The stock was down 7.9% on the results.

Investors in the software development segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Twilio is up 8.8% during the same time and is heading into earnings with an average analyst price target of $131.36 (compared to the current share price of $113.50).

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