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Twilio (TWLO) to Report Q4 Earnings: What's in the Cards?
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Twilio Inc. (TWLO - Free Report) is scheduled to report its fourth-quarter 2022 results on Feb 15.
Twilio anticipates revenues in the range of $995 million-$1.005 billion for the fourth quarter. The Zacks Consensus Estimate for the same is pegged at $998.9 million, indicating an improvement of 18.5% from the year-ago quarter. Our estimate projects Twilio’s revenues to be $999.7 million.
The cloud-based communications platform-as-a-service provider expects a non-GAAP loss between 6 cents and 11 cents per share. The consensus mark for the non-GAAP loss stands at 9 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of 20 cents. We expect Twilio to report a loss of 11 cents per share in the fourth quarter of 2022.
Twilio’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 45.1%.
Twilio’s fourth-quarter results are likely to reflect gains from accelerated digital transformation projects across several industries while the world economy is rebounding. Organizations are continuing to reconfigure their setup for a hybrid operational environment.
The company’s revenues are likely to have witnessed contributions from its Zipwhip and Segment buyouts. Since the buyout in 2020, Segment has been aiding TWLO in enhancing its capabilities in the cloud-based communications platform space and gaining significant customers. The strong uptake of Segment, the growing adoption of Twilio Flex and an increasing clientele base are likely to have favored fourth-quarter performance.
Solutions like Journeys, Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to fourth-quarter performance. The company’s efforts to fortify its global footprint are likely to get reflected in the to-be-reported quarter's results.
In the last reported quarter, Twilio added around 5,000 new clients, taking the total active customer count to 280,000. In the fourth quarter, the company’s increasing scope among leading enterprises is likely to have acted as a key tailwind.
However, increased spending, investments in enhancing the product portfolio and expansion across newer markets are likely to have negatively impacted Twilio’s profitability. Also, elevated expenses for enhancing sales capabilities are likely to have weighed on the fourth quarter’s bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Although TWLO has an Earnings ESP of +34.00% at present but it carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, OneSpaWorld (OSW - Free Report) , American Eagle Outfitters (AEO - Free Report) and Inspired Entertainment (INSE - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
OneSpaWorld has an Earnings ESP of +23.08% and sports a Zacks Rank #1. The company is expected to report its fourth-quarter 2022 results on Mar 1. OneSpaWorld’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 84.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSW’s fourth-quarter earnings is pegged at 10 cents per share, indicating a 1100% surge from the year-ago quarter’s loss of a penny. The consensus mark for revenues stands at $166.8 million, suggesting a year-over-year increase of 94.7%.
American Eagle has an Earnings ESP of +1.40% and currently flaunts a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2023 results on Mar 1. AEO’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters, missing twice and matching once, the average surprise being negative 5%.
The Zacks Consensus Estimate for AEO’s fiscal fourth-quarter earnings stands at 30 cents per share, implying a year-over-year decline of 14.3%. The company is estimated to report revenues of $1.47 billion, which suggests a fall of 2.5% from the year-ago quarter.
Inspired Entertainment has an Earnings ESP of +17.72% and flaunts a Zacks Rank #1 at present. The company is likely to report fourth-quarter 2022 results on Mar 10. INSE’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 19%.
The Zacks Consensus Estimate for INSE’s quarterly earnings is pegged at 26 cents per share, suggesting a year-over-year increase of 620%. Its quarterly revenues are estimated to increase 3.6% year over year to $69.4 million.
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Twilio (TWLO) to Report Q4 Earnings: What's in the Cards?
Twilio Inc. (TWLO - Free Report) is scheduled to report its fourth-quarter 2022 results on Feb 15.
Twilio anticipates revenues in the range of $995 million-$1.005 billion for the fourth quarter. The Zacks Consensus Estimate for the same is pegged at $998.9 million, indicating an improvement of 18.5% from the year-ago quarter. Our estimate projects Twilio’s revenues to be $999.7 million.
The cloud-based communications platform-as-a-service provider expects a non-GAAP loss between 6 cents and 11 cents per share. The consensus mark for the non-GAAP loss stands at 9 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of 20 cents. We expect Twilio to report a loss of 11 cents per share in the fourth quarter of 2022.
Twilio’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 45.1%.
Twilio Inc. Price and EPS Surprise
Twilio Inc. price-eps-surprise | Twilio Inc. Quote
Factors to Note
Twilio’s fourth-quarter results are likely to reflect gains from accelerated digital transformation projects across several industries while the world economy is rebounding. Organizations are continuing to reconfigure their setup for a hybrid operational environment.
The company’s revenues are likely to have witnessed contributions from its Zipwhip and Segment buyouts. Since the buyout in 2020, Segment has been aiding TWLO in enhancing its capabilities in the cloud-based communications platform space and gaining significant customers. The strong uptake of Segment, the growing adoption of Twilio Flex and an increasing clientele base are likely to have favored fourth-quarter performance.
Solutions like Journeys, Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to fourth-quarter performance. The company’s efforts to fortify its global footprint are likely to get reflected in the to-be-reported quarter's results.
In the last reported quarter, Twilio added around 5,000 new clients, taking the total active customer count to 280,000. In the fourth quarter, the company’s increasing scope among leading enterprises is likely to have acted as a key tailwind.
However, increased spending, investments in enhancing the product portfolio and expansion across newer markets are likely to have negatively impacted Twilio’s profitability. Also, elevated expenses for enhancing sales capabilities are likely to have weighed on the fourth quarter’s bottom line.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Although TWLO has an Earnings ESP of +34.00% at present but it carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, OneSpaWorld (OSW - Free Report) , American Eagle Outfitters (AEO - Free Report) and Inspired Entertainment (INSE - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
OneSpaWorld has an Earnings ESP of +23.08% and sports a Zacks Rank #1. The company is expected to report its fourth-quarter 2022 results on Mar 1. OneSpaWorld’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 84.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OSW’s fourth-quarter earnings is pegged at 10 cents per share, indicating a 1100% surge from the year-ago quarter’s loss of a penny. The consensus mark for revenues stands at $166.8 million, suggesting a year-over-year increase of 94.7%.
American Eagle has an Earnings ESP of +1.40% and currently flaunts a Zacks Rank #1. The company is slated to report its fourth-quarter fiscal 2023 results on Mar 1. AEO’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters, missing twice and matching once, the average surprise being negative 5%.
The Zacks Consensus Estimate for AEO’s fiscal fourth-quarter earnings stands at 30 cents per share, implying a year-over-year decline of 14.3%. The company is estimated to report revenues of $1.47 billion, which suggests a fall of 2.5% from the year-ago quarter.
Inspired Entertainment has an Earnings ESP of +17.72% and flaunts a Zacks Rank #1 at present. The company is likely to report fourth-quarter 2022 results on Mar 10. INSE’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 19%.
The Zacks Consensus Estimate for INSE’s quarterly earnings is pegged at 26 cents per share, suggesting a year-over-year increase of 620%. Its quarterly revenues are estimated to increase 3.6% year over year to $69.4 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.