We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Twilio (TWLO) to Report Q1 Earnings: What's in the Offing?
Read MoreHide Full Article
Twilio (TWLO - Free Report) is slated to release first-quarter 2020 results on May 6.
For the first quarter of 2020, Twilio anticipates revenues between $335 million and $338 million. The Zacks Consensus Estimate is pegged at $328.3 million, indicating a 40.8% surge from the year-ago reported figure.
The company anticipates reporting non-GAAP loss per share between 9 cents and 11 cents. The Zacks Consensus Estimate is pegged at a loss per share of 11 cents, which compares unfavorably with the year-ago quarter reported figure. Notably, Twilio had posted earnings of 5 cents per share in the first quarter of 2019.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
Twilio’s first-quarter 2020 results are likely to have benefited from an increasing clientele and the Sendgrid buyout. Growing adoption of Twilio Flex is also expected to have been a tailwind.
The company’s expanding foothold among leading enterprises is also likely to have been a key catalyst. Notably, in the last reported quarter, the company had added 6,908 new clients taking the total active customer count to 179,000.
Moreover, Twilio’s commendable efforts to fortify its global footprint are expected to reflect on first-quarter results.
Further, the introduction of Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation API is anticipated to have been conducive to the company’s performance.
Nonetheless, Twilio’s rising investment in lower-margin international regions might be a lingering overhang on its profitability. Also, it is stepping up investments in its systems and infrastructure, go-to-market team and Flex, as well as in R&D, which is likely to have negatively impacted the company’s profitability in the first quarter.
What Our Model Says
Our proven model does not predict an earnings beat for Twilio this season.The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Twilio currently carries a Zacks Rank of 2 and has an Earnings ESP of -2.55%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +5.85% and currently carries a Zacks Rank of 2.
Okta, Inc. (OKTA - Free Report) has an Earnings ESP of +5.17% and carries a Zacks Rank of 3, at present.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Twilio (TWLO) to Report Q1 Earnings: What's in the Offing?
Twilio (TWLO - Free Report) is slated to release first-quarter 2020 results on May 6.
For the first quarter of 2020, Twilio anticipates revenues between $335 million and $338 million. The Zacks Consensus Estimate is pegged at $328.3 million, indicating a 40.8% surge from the year-ago reported figure.
The company anticipates reporting non-GAAP loss per share between 9 cents and 11 cents. The Zacks Consensus Estimate is pegged at a loss per share of 11 cents, which compares unfavorably with the year-ago quarter reported figure. Notably, Twilio had posted earnings of 5 cents per share in the first quarter of 2019.
Let’s see how things have shaped up for the upcoming announcement.
Factors at Play
Twilio’s first-quarter 2020 results are likely to have benefited from an increasing clientele and the Sendgrid buyout. Growing adoption of Twilio Flex is also expected to have been a tailwind.
Twilio Inc. Price and Consensus
Twilio Inc. price-consensus-chart | Twilio Inc. Quote
The company’s expanding foothold among leading enterprises is also likely to have been a key catalyst. Notably, in the last reported quarter, the company had added 6,908 new clients taking the total active customer count to 179,000.
Moreover, Twilio’s commendable efforts to fortify its global footprint are expected to reflect on first-quarter results.
Further, the introduction of Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation API is anticipated to have been conducive to the company’s performance.
Nonetheless, Twilio’s rising investment in lower-margin international regions might be a lingering overhang on its profitability. Also, it is stepping up investments in its systems and infrastructure, go-to-market team and Flex, as well as in R&D, which is likely to have negatively impacted the company’s profitability in the first quarter.
What Our Model Says
Our proven model does not predict an earnings beat for Twilio this season.The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Twilio currently carries a Zacks Rank of 2 and has an Earnings ESP of -2.55%.
Stocks With Favorable Combinations
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Inphi Corporation has an Earnings ESP of +20.04% and holds a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +5.85% and currently carries a Zacks Rank of 2.
Okta, Inc. (OKTA - Free Report) has an Earnings ESP of +5.17% and carries a Zacks Rank of 3, at present.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>