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For the third quarter, the company anticipates revenues between $980 million and $990 million. The Zacks Consensus Estimate for fiscal third-quarter revenues stands at $985 million, indicating a marginal improvement of 0.2% from the year-ago quarter’s revenues of $983 million.
Twilio anticipates non-GAAP earnings between 33 cents and 37 cents per share. The consensus mark for earnings is pegged at 35 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of 27 cents per share.
Twilio’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 149.1%.
Twilio’s third-quarter results are likely to reflect gains from continued digital transformation initiatives as organizations continue to reconfigure their setup for a hybrid operational environment. The strong uptake of Segment, the growing adoption of Twilio Flex and an increasing clientele base are likely to have favored the third-quarter performance.
In the last reported quarter, Twilio added around 4,000 new clients, taking the total active customer count to 304,000 as of Jun 30, 2023. In the third quarter, the company’s increasing scope among leading enterprises is likely to have acted as a key tailwind. Our estimates suggest that TWLO is expected to end the third quarter with 308,214 customers, indicating a year-over-year improvement of 10.1%.
Solutions like Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to the third-quarter performance. The company’s efforts to fortify its global footprint are likely to be reflected in the to-be-reported quarter's results.
However, softening IT spending, as customers are pushing or postponing their large IT investment plans in the ongoing uncertain macroeconomic environment and geopolitical issues, is likely to have weighed on the to-be-reported quarter’s top line.
Our estimates suggest that the company’s International revenues are likely to have declined 0.5% year over year to $331 million in the third quarter. Meanwhile, revenues from the United States are expected to have marginally grown by 0.2% year over year to $651.9 million.
However, Twilio’s bottom line is likely to have benefited from its cost-saving initiatives, which include headcount reduction and the closure of several offices. The company ended the second quarter with 6,428 employees, down 24.5% from the year-ago quarter’s 8,510 staff. Our estimates suggest that Twilio is likely to have ended the third quarter with 6,437 employees.
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.
Though TWLO currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. 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, Synopsys (SNPS - Free Report) , Dell Technologies (DELL - Free Report) and Snowflake (SNOW - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Synopsys sports a Zacks Rank #1 and has an Earnings ESP of +0.94%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 29. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ fourth-quarter earnings is pegged at $3.04 per share, indicating a year-over-year increase of 59.2%. The consensus mark for revenues stands at $1.58 billion, suggesting a year-over-year surge of 23.3%.
Dell sports a Zacks Rank #1 and has an Earnings ESP of +1.14%. The company is scheduled to report third-quarter fiscal 2024 results on Nov 30. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 39.5%.
The Zacks Consensus Estimate for Dell’s third-quarter earnings stands at $1.47 per share, indicating a year-over-year decline of 36.1%. It is estimated to report revenues of $22.93 billion, which suggests a decrease of approximately 7.2% from the year-ago quarter.
Snowflake is slated to report third-quarter fiscal 2024 results on Nov 29. The company has a Zacks Rank #2 and an Earnings ESP of +15.71% at present. Snowflake’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 244.5%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 15 cents per share, suggesting an increase of 36.4% from the year-ago quarter’s earnings of 11 cents. Snowflake’s quarterly revenues are estimated to grow 27.6% year over year to $710.5 million.
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Twilio (TWLO) Set to Report Q3 Earnings: What's in Store?
Twilio Inc. (TWLO - Free Report) is slated to report third-quarter 2023 results on Nov 8.
For the third quarter, the company anticipates revenues between $980 million and $990 million. The Zacks Consensus Estimate for fiscal third-quarter revenues stands at $985 million, indicating a marginal improvement of 0.2% from the year-ago quarter’s revenues of $983 million.
Twilio anticipates non-GAAP earnings between 33 cents and 37 cents per share. The consensus mark for earnings is pegged at 35 cents per share, suggesting a strong improvement from the year-ago quarter’s loss of 27 cents per share.
Twilio’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 149.1%.
Twilio Inc. Price and EPS Surprise
Twilio Inc. price-eps-surprise | Twilio Inc. Quote
Factors at Play
Twilio’s third-quarter results are likely to reflect gains from continued digital transformation initiatives as organizations continue to reconfigure their setup for a hybrid operational environment. The strong uptake of Segment, the growing adoption of Twilio Flex and an increasing clientele base are likely to have favored the third-quarter performance.
In the last reported quarter, Twilio added around 4,000 new clients, taking the total active customer count to 304,000 as of Jun 30, 2023. In the third quarter, the company’s increasing scope among leading enterprises is likely to have acted as a key tailwind. Our estimates suggest that TWLO is expected to end the third quarter with 308,214 customers, indicating a year-over-year improvement of 10.1%.
Solutions like Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation application programming interface are likely to have contributed to the third-quarter performance. The company’s efforts to fortify its global footprint are likely to be reflected in the to-be-reported quarter's results.
However, softening IT spending, as customers are pushing or postponing their large IT investment plans in the ongoing uncertain macroeconomic environment and geopolitical issues, is likely to have weighed on the to-be-reported quarter’s top line.
Our estimates suggest that the company’s International revenues are likely to have declined 0.5% year over year to $331 million in the third quarter. Meanwhile, revenues from the United States are expected to have marginally grown by 0.2% year over year to $651.9 million.
However, Twilio’s bottom line is likely to have benefited from its cost-saving initiatives, which include headcount reduction and the closure of several offices. The company ended the second quarter with 6,428 employees, down 24.5% from the year-ago quarter’s 8,510 staff. Our estimates suggest that Twilio is likely to have ended the third quarter with 6,437 employees.
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.
Though TWLO currently carries a Zacks Rank of 3, it has an Earnings ESP of 0.00%. 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, Synopsys (SNPS - Free Report) , Dell Technologies (DELL - Free Report) and Snowflake (SNOW - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Synopsys sports a Zacks Rank #1 and has an Earnings ESP of +0.94%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 29. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ fourth-quarter earnings is pegged at $3.04 per share, indicating a year-over-year increase of 59.2%. The consensus mark for revenues stands at $1.58 billion, suggesting a year-over-year surge of 23.3%.
Dell sports a Zacks Rank #1 and has an Earnings ESP of +1.14%. The company is scheduled to report third-quarter fiscal 2024 results on Nov 30. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 39.5%.
The Zacks Consensus Estimate for Dell’s third-quarter earnings stands at $1.47 per share, indicating a year-over-year decline of 36.1%. It is estimated to report revenues of $22.93 billion, which suggests a decrease of approximately 7.2% from the year-ago quarter.
Snowflake is slated to report third-quarter fiscal 2024 results on Nov 29. The company has a Zacks Rank #2 and an Earnings ESP of +15.71% at present. Snowflake’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 244.5%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 15 cents per share, suggesting an increase of 36.4% from the year-ago quarter’s earnings of 11 cents. Snowflake’s quarterly revenues are estimated to grow 27.6% year over year to $710.5 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.