Twilio's results, forecast beats estimates on strong demand
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A banner for communications software provider Twilio Inc., hangs on the facade of the New York Stock Exchange (NYSE) to celebrate the company's IPO in New York City, U.S., June 23, 2016. REUTERS/Brendan McDermid
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By Rishika Sadam
(Reuters) - Twilio Inc, a developer-focused messaging and voice services provider, posted a bigger-than-expected 70 percent jump in quarterly revenue and forecast current-quarter revenue above analysts' estimates due to strong demand.
Twilio's shares were up 1.1 percent in extended trading on Monday after the company also posted a smaller-than-expected quarterly loss in its first report since going public in June.
"We expect to add new customers in the coming quarters. As our customers are growing their businesses and they have more end-users to communicate with ... that also grows Twilio's opportunity and revenue," Chief Executive Jeff Lawson told Reuters.
Twilio's software is used by large companies such as Netflix Inc, WhatsApp and Uber, allowing them to speak with and text customers without exchanging contact information.
The company said it added New York Times Co and Salesforce.com Inc to its customer list in the second quarter, while its active customer accounts rose 45 percent to 30,780 as of June 30.
That helped Twilio's total revenue soar to $64.51 million from $37.95 million a year earlier and easily beat analysts average estimate of $58.22 million, according to Thomson Reuters I/B/E/S.
Some analysts had expresses concern about the concentration of revenue coming from key clients. WhatsApp accounted for about 15 percent of Twilio's revenue in the first quarter.
Twilio third-quarter revenue forecast of between $63 million and $65 million was also higher than analysts estimates of $60.55 million.
San Francisco-based Twilio's net loss attributable to common shareholders widened to $10.99 million in the second quarter from $9.58 million a year earlier.
On a per share basis, its loss fell to 45 cents per share from 52 cents due a rise in the count of its outstanding shares.
Excluding items, it lost 8 cents per share, less than analysts' estimates of 14 cents.
Twilio's IPO on June 23 was the first offering in 2016 from a technology "unicorn", private companies valued at more than $1 billion. The stock had nearly tripled from its IPO price of $15 through Monday's close of $42.50.
They rose to $43 in after-hours trading on Monday.
(Reporting by Rishika Sadam in Bengaluru; Editing by Savio D'Souza)
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