Twilio (TWLO) Climbs 20% on Q3 Earnings, Upbeat Outlook

We recently published 10 Stocks With Easy 20-40% Gains. Twilio Inc. (NYSE:TWLO) is one of the last week's best-performing stocks.

Twilio shares jumped by 19.8 percent week-on-week, as investor sentiment was primarily fueled by an impressive earnings performance and a more bullish growth outlook for full-year 2025.

In an updated report, Twilio Inc. (NYSE:TWLO) said it swung to a net income attributable to shareholders of $37.2 million from a $9.7 million net loss in the same period last year after incurring a $40.95 million operating income, reversing a $4.89 million operating loss year-on-year. Revenues also grew by 15 percent to $1.30 billion from $1.13 billion.

Among its key growth metrics, Twilio Inc. (NYSE:TWLO) raised its revenue outlook to a range of 12.4 to 12.6 percent from the 10 to 11 percent previously.

Organic revenue growth was pegged at 11.3 to 11.5 percent, higher than the 9 to 10 percent targeted prior.

For the fourth quarter alone, revenues were targeted at $1.31 billion to $1.32 billion, or an expected jump of 9.5 percent to 10.5 percent year-on-year.

On Thursday, Twilio Inc. (NYSE:TWLO) also entered into a definitive agreement to acquire Stytch, Inc., an identity platform for AI agents built for developers. The transaction is expected to close in the middle of November, subject to closing conditions.

While we acknowledge the potential of TWLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.