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Twilio (TWLO) to Post Q4 Earnings: What's in the Offing?
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Twilio (TWLO - Free Report) is slated to release fourth-quarter 2019 results on Feb 5.
For the fourth quarter of 2019, Twilio anticipates revenues between $311 million and $314 million. The Zacks Consensus Estimate is pegged at $312.19 million, indicating a rise of 52.8% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings stands at a penny, suggesting a drop of 75% from the year-earlier reported number.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Twilio’s fourth-quarter 2019 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’s expansion deal wins snapped up more than 50 global 2000 accounts.
Moreover, its commendable efforts to fortify its global footprint are expected to reflect on fourth-quarter results.
Further, the introduction of Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation API is also anticipated as a positive.
Howewer, on the last earnings call, management mentioned that robust political traffic coupled with the gain of a large international customer, which led to 10% growth in the fourth quarter of 2018, is likely to induce a tough year-over-year comparison this earnings season.
Moreover, errors in the company’s billing processes compelling the company to issue onetime credits of around $5 million to customers in the third quarter might continue to plague the quarter to be reported.
Additionally, though higher margin revenues from SendGrid are a boon, Twilio’s rising investment in lower-margin international regions might be a lingering overhang on its profitability.
The proven Zacks model does not conclusively predict an earnings beat for Twilio this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 carries a Zacks Rank #3 and an Earnings ESP of -100.00%.
Last Earnings Report and Surprise Record
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, matching it once. The positive surprise is delivered at 162.5%, on average.
In the last reported quarter, it delivered non-GAAP earnings per share of 3 cents, which topped the Zacks Consensus Estimate of a cent. However, the bottom line was lower than the year-ago figure of 7 cents.
Meanwhile, the company’s third-quarter revenues soared 75% year over year to $295.1 million and also surpassed the Zacks Consensus Estimate of $287 million.
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
CEVA (CEVA - Free Report) has an Earnings ESP of +27.06% and is Zacks #1 Ranked.
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +5.88% and is #1 Ranked.
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 Post Q4 Earnings: What's in the Offing?
Twilio (TWLO - Free Report) is slated to release fourth-quarter 2019 results on Feb 5.
For the fourth quarter of 2019, Twilio anticipates revenues between $311 million and $314 million. The Zacks Consensus Estimate is pegged at $312.19 million, indicating a rise of 52.8% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings stands at a penny, suggesting a drop of 75% from the year-earlier reported number.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Twilio’s fourth-quarter 2019 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’s expansion deal wins snapped up more than 50 global 2000 accounts.
Moreover, its commendable efforts to fortify its global footprint are expected to reflect on fourth-quarter results.
Further, the introduction of Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation API is also anticipated as a positive.
Howewer, on the last earnings call, management mentioned that robust political traffic coupled with the gain of a large international customer, which led to 10% growth in the fourth quarter of 2018, is likely to induce a tough year-over-year comparison this earnings season.
Moreover, errors in the company’s billing processes compelling the company to issue onetime credits of around $5 million to customers in the third quarter might continue to plague the quarter to be reported.
Additionally, though higher margin revenues from SendGrid are a boon, Twilio’s rising investment in lower-margin international regions might be a lingering overhang on its profitability.
Twilio Inc. Price and EPS Surprise
Twilio Inc. price-eps-surprise | Twilio Inc. Quote
What Our Model Says
The proven Zacks model does not conclusively predict an earnings beat for Twilio this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. 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 carries a Zacks Rank #3 and an Earnings ESP of -100.00%.
Last Earnings Report and Surprise Record
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, matching it once. The positive surprise is delivered at 162.5%, on average.
In the last reported quarter, it delivered non-GAAP earnings per share of 3 cents, which topped the Zacks Consensus Estimate of a cent. However, the bottom line was lower than the year-ago figure of 7 cents.
Meanwhile, the company’s third-quarter revenues soared 75% year over year to $295.1 million and also surpassed the Zacks Consensus Estimate of $287 million.
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Advanced Energy Industries, Inc. (AEIS - Free Report) has an Earnings ESP of +10.80% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
CEVA (CEVA - Free Report) has an Earnings ESP of +27.06% and is Zacks #1 Ranked.
Silicon Motion Technology Corporation (SIMO - Free Report) has an Earnings ESP of +5.88% and is #1 Ranked.
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 >>