Twilio (TWLO) reported earnings on Tue 6 Nov 2018 (a/h)

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Twilio beats by $0.05, beats on revs; guides Q4 EPS, revs above consensus

• Reports Q3 (Sep) earnings of $0.07 per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $0.02; revenues rose 68.0% year/year to $168.9 mln vs the $151.62 mln S&P Capital IQ Consensus.
• 61,153 Active Customer Accounts as of September 30, 2018, compared to 46,489 Active Customer Accounts as of September 30, 2017.
• Co issues upside guidance for Q4, sees EPS of $0.03-0.04, excluding non-recurring items, vs. $0.02 S&P Capital IQ Consensus; sees Q4 revs of $183-185 mln vs. $160.64 mln S&P Capital IQ Consensus.
• Pending acquiree SendGrid (SEND) also announced earnings:
  • Q3 EPS of $0.05 vs $0.03 S&P Capital IQ Consensus Estimate; revs $37.20 mln vs $36.06 mln S&P Capital IQ Consensus Estimate...Due to the pending transaction with Twilio, Inc., the company is not providing a full-year 2018 outlook.

SendGrid (SEND) to be acquired by Twilio (TWLO) for $2 billion

Twilio (TWLO) said it has agreed to buy the Denver-based email platform company for $2 billion in an all-stock deal. Under the terms of their agreement, a Twilio subsidiary will be merged with and into SendGrid, with SendGrid surviving as a wholly owned subsidiary of San Francisco-based Twilio, the companies said.

  

At the closing, expected for the first half of 2019, each share of SendGrid stock will be converted into the right to receive 0.485 shares of Twilio stock, representing a per-share price for SendGrid stock of $36.92 based on Twilio's closing price on Monday. Both boards will have to approve the deal. The companies will report third-quarter results on Nov. 6, but they said Monday they both have exceeded their guidances provided earlier in the year. Guidance for a combined company will be provided after the deal is closed, the companies said.

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SendGrid Moves From 'Pipe To Application'

"Growth drivers for SendGrid are fairly straight forward — it's adding customers and getting those customers to send more emails through SendGrid pipes," Piper Jaffray analyst Alex Zukin said in a note to clients.

Zukin added that Sendgrid is moving from "pipe to application." That means adding more value-add marketing services to a business that sends over a billion emails a day. Customers include Uber, Yelp, eBay, Spotify, Airbnb and Glassdoor.

"Future products, much like Marketing today, should come with higher prices and margin profiles," Zukin said. "Cost per email for the company's marketing application are 3 times to 4 times that of core Email API. The company believes that at scale marketing has the potential to be more profitable than Email API."

Other companies that use cloud-based APIs include digital payments startup Stripe and Twilio, the latter of which sells communications messaging software.

Following its IPO, SendGrid stock moved up steadily, closing around 31 on March 9. SendGrid stock fell 10% on May 2, the day after it reported first-quarter results as investors were disappointed.

But SendGrid's second-quarter results, which came on July 31, sparked a rally. Profit climbed to 5 cents per share from 2 cents a year earlier. Revenue jumped 32% to $35.7 million.

Twilio (TWLO) reported earnings on Mon 6 Aug 2018 (a/h)

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Twilio beats by $0.09, beats on revs; guides Q3 above consensus; raises FY18 EPS and revenue above consensus 

• Reports Q2 (Jun) earnings of $0.03 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus of ($0.06); revenues rose 54.1% year/year to $147.8 mln vs the $130.39 mln Capital IQ Consensus. 57,350 Active Customer Accounts as of June 30, 2018, compared to 43,431 Active Customer Accounts as of June 30, 2017. Dollar-Based Net Expansion Rate was 137% for the second quarter of 2018
• Co issues upside guidance for Q3, sees EPS of $0.02-0.03, excluding non-recurring items, vs. $0.00 Capital IQ Consensus Estimate; sees Q3 revs of $150-152 mln vs. $134.82 mln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY18, sees EPS of $0.02-0.04, excluding non-recurring items, vs. ($0.09) Capital IQ Consensus Estimate; sees FY18 revs of $585.5-589.5 mln vs. $543.04 mln Capital IQ Consensus Estimate.

Twilio (TWLO) reported earnings on Wed 8 Nov 2017 (a/h)

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Twilio reports EPS in-line, beats on revs; guides Q4 EPS in-line, revs above consensus 

• Reports Q3 (Sep) loss of $(0.08) per share, excluding non-recurring items, in-line with the Capital IQ Consensus of ($0.08) and in-line with prior guidance of $(0.08)-(0.07); revenues rose 40.6% year/year to $100.54 mln vs the $92.5 mln Capital IQ Consensus and vs prior guidance of $91-93 mln.
• Co issues guidancefor Q4, sees EPS of $(0.06)-(0.05), excluding non-recurring items, vs. ($0.06) Capital IQ Consensus Estimate; sees Q4 revs of $102.5-104.5 mln vs. $98.7 mln Capital IQ Consensus Estimate.
• "We hit a number of exciting milestones in Q3, including our first $100 million revenue quarter, our first enterprise license agreement for our higher level software products, and the launch of Twilio Studio...With Twilio Studio, the visual builder for Twilio, we can accelerate our customers' roadmaps and help an even larger set of users build on our platform. We are excited by the size, scale and diversity of what new and existing customers are creating with Twilio." 

Twilio (TWLO) reported earnings on Tue 2 May 2017 (a/h)

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Twilio beats by $0.03, beats on revs; guides Q2 below consensus; lowers FY17 guidance below consensus  :

• Twilio ($TWLO) is raising a flag to caution shareholders about a potential impact on future revenue. During the company’s first quarter earnings call, chief executive Jeff Lawson warned about a change with one of Twilio’s largest customers: Uber. He said that contributions from the on-demand ride hailing service has started to decrease, from 17 percent last quarter to 12 percent this quarter, and Twilio “expects contributions to decline further” — it expects the associated revenue to drop sequentially and year over year.
• Reports Q1 (Mar) loss of $0.04 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of ($0.07); revenues rose 47.4% year/year to $87.4 mln vs the $83.51 mln Capital IQ Consensus.
• Co issues downside guidance for Q2, sees EPS of ($0.11)-(0.10), excluding non-recurring items, vs. ($0.08) Capital IQ Consensus Estimate; sees Q2 revs of $85.5-87.5 mln vs. $87.70 mln Capital IQ Consensus Estimate.
• Co issues downside guidance for FY17, lowers EPS to ($0.30)-(0.27) from ($0.19-0.15), excluding non-recurring items, vs. ($0.17) Capital IQ Consensus; revs to $356-362 mln from $364-372 mln vs. $369.60 mln Capital IQ Consensus Estimate. 
• "While we are seeing some changes in the relationship with our largest customer, our momentum across the business continues to be strong, with a 42% year over year growth in Active Customer Accounts and a 62% year over year growth in Base Revenue during the quarter."
• 40,696 Active Customer Accounts as of March 31, 2017, compared to 28,648 Active Customer Accounts as of March 31, 2016.
• Dollar-Based Net Expansion Rate was 141% for the first quarter of 2017, compared to 170% for the first quarter of 2016.

TWLO — is it a buy?

• Apr. 11: fin15; Is TWLO a buy?

• 4 weeks later: 

• After earnings: 

TWLO — is it a buy?

• Dec 20:  #20;  Is TWLO a buy?

Next day, Dec. 21:

Dec. 22:

 

Great trade : TWLO +50% (8/16)

• b:  Aug 5 @ $40.50
• s: Aug 15 @ $60  (+50%)

Twilio (TWLO) began trading on the NYSE on 23 June 2016

Jeff Lawson, (C) Founder, CEO, & Chairman of Communications software provider Twilio Inc., rings the opening bell to celebrate his company's IPO at the New York Stock Exchange in New York City, June 23, 2016.