Twilio beat analyst expectations and made a sizable profit in Q3 2020. The cloud communications vendor’s revenue is up 52% while customers surged by 21%, taking the total customer accounts to 208,000.
Cloud communications provider Twilio surprised market analysts with its Q3 2020 numbers. As it turns out, the company beat analyst revenue estimates and posted strong net profits in the third quarter of the year.
Twilio’s revenue surged 52% to $448 million, beating the $409.9 million estimate according to Refinitiv. It also beat expectations of losses of 3 cents per share by posting a profit of 4 cents per share. The company’s non-GAAP income from operations hovered at $7.3 million in Q3 2020, compared to the Q3 2019 losses of $3.6 million.
The positive numbers are indicative of strong COVID-19-driven momentum for cloud-based services. According to Centrify, 48% of enterprises accelerated cloud migration plans to support remote working. The quarter also saw Twilio add more than 43,000 new customers (21%), taking the total to 208,000. Jeff Lawson, co-founder and CEO at Twilio, said, “Our performance in the third quarter is further evidence that Twilio’s platform provides three things that every company needs today — digital communications, software agility, and cloud scale.â€
But it seems the strong performance did not resonate with the market sentiments, due to which Twilio’s shares were down 1.2% in extended trading on Monday.
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More recently, the San Francisco-based company made moves to bolster customer engagement and experience. It confirmed a $3.2 billion deal, Twilio’s biggest yet, to acquire customer data infrastructure company Segment. “Great digital engagement is becoming more critical to differentiate the customer experience, and companies across industries and around the world are choosing Twilio’s customer engagement platform to build these solutions,†adds Lawson.
Twilio expects its Q4 2020 revenue between $450 to $455 million and a loss of 8 cents to 11 cents per share as opposed to analyst expectations of a profit of 2 cents.
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