Twilio’s guidance for the third quarter also beat estimates. The company said it expects earnings per share of 2 cents to 3 cents, excluding certain items, on revenue of $150 million to 152 million. Analysts had expected Twilio to break even in terms of earnings on $135.9 million in revenue in the third quarter, according to Thomson Reuters.
Twilio, whose cloud software lets businesses create secure messaging platforms, competes with companies including Avaya and Cisco. Generally Twilio looks to take on small parts of companies’ workloads rather than first replacing all the on-premises software from competitors, Kirkpatrick said.
PiperJaffray started coverage of Twilio on June 25, and Rosenblatt Securities initiated coverage on June 27.
“Twilio’s market expansion from enabling communications for apps economy companies to driving a communications platform revolution for the global business market puts it on track to see strong growth for years to come,” Rosenblatt’s Ryan Koontz wrote in a note at the time.
The company’s stock has more than doubled in the past year. Twilio debuted on the New York Stock Exchange in 2016.