Twilio (TWLO) Shares Explode on Strong Results, Analysts Raises Price Target to Reflect Improved Organic Growth Profile and Profitability Outlook
Shares of Twilio (NYSE: TWLO) surged nearly 18% in premarket trading on Thursday after the company reported better-than-expected Q4 2021 earnings and revenue numbers.
The software company reported a loss of 20 cents per share in the quarter, compared to the consensus estimates of 22 cents per share, according to Refinitiv. Revenue came in at $842.7 million, topping the analyst consensus of $767.8 million, and up 54% from the year-ago quarter.
The company expects an adjusted net loss in the range of 26 cents to 22 cents per share in Q1 2022 and revenue in the range of $855 million to $865 million. This compares to the consensus estimates of an adjusted loss of 5 cents per share on $802.9 million in revenue for the first quarter.
Twilio CFO Khozema Shipchandler said current market conditions could bring “some attractive opportunities, and we’ll be on the lookout.”
KeyBanc analyst Steve Enders raised the price target to $320.00 per share from the prior $283.00.
“While concerns of sustained 30% growth likely abated NT (32-34% y/y 1Q organic guide), concerns around GM could return with 4Q21 GM down 2.7pts q/q yet will likely be offset by a renewed commitment to profitability in CY23. Given the improved organic growth profile and profitability outlook, we raise our PT to $320 on 11x CY23 EV/rev and reiterate our OW rating.”
Mizuho analyst Siti Panigrahi praised the company for delivering “strong results and guidance.” The analyst raised the price target to $300.00 per share from the prior $250.00.
“Organic rev growth of 34% Y/Y exceeded market expectations and long term company target. Q1 revenue guidance was well above consensus on strong organic growth of 32-34% as Twilio continues to address the large customer engagement opportunity and its international G2M investments continue to pay off. Also, we are encouraged by Segment's progress in Q4 and see further momentum ahead as we believe there is greater urgency from companies to shift to first-party data (via a CDP) due to privacy regulations and Apple's IDFA changes,” Panigrahi wrote in his report.
By Senad Karaahmetovic | [email protected]