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Twilio (TWLO) Stock Up Following Q3 Preliminary Results


Trades from $3

Shares of Twilio Inc. (TWLO - Snapshot Report) rebounded less than 1% to close at $52.44 on Oct 11, after the company announced its preliminary third-quarter 2016 financial results. Shares had plunged 14.1% on Oct 10, after the company announced additional secondary stock offering worth $400 million on Oct 7.

On a year-to-date basis, Twilio shares are up almost 82.2%. The company is slated to release its third-quarter 2016 results on Nov 3.

New Guidance

Twilio now estimates revenues to be in the range of $70.25 million to $71.25 million, up from the previous guidance of $63 million to $65 million. The company had reported revenues of $44.3 million in the year-ago quarter.

The company now expects its non-GAAP gross profit to be in the range of $39.75 million to $40.25 million compared with the year-ago quarter figure of $24.7 million.

Non-GAAP gross margin is estimated to remain flat year over year at 56%.

Twilio now expects non-GAAP net loss per share to be 4 cents to 5 cents compared with non-GAAP net loss of 7 cents in the year-ago quarter. In this regard, we note that the Zacks Consensus Estimate stands at a loss of 15 cents.

Secondary Stock Offering       

Twilio announced that some of its executive officers and directors are selling shares of Class A common stock. The company intends to sell stocks worth $50 million initially. Another $350 million worth of stocks are to be sold by other selling stockholders, totaling $400 million worth of common stocks.

Zacks Rank & Key Picks

At present, Twilio has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology space are Hewlett Packard Enterprise Company (HPE - Snapshot Report) , Box, Inc. (BOX - Snapshot Report) and Workiva Inc. (WK - Snapshot Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, earnings estimates for Hewlett Packard for the current year and the next have remained stable at $1.92 and $2.05, respectively, over the last 7 days. 

Estimates for Box for the current year have narrowed from a loss of $1.32 to $1.29 over the last 7 days. Similarly, estimates for the next year have narrowed down to a loss of $1.06 from $1.08 over the last 7 days.

On the other hand, estimates remained steady for Workiva for the current year and the next at a loss of $1.33 and $1.22, respectively over the last 7 days.

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