Twilio Beats on Revenue, Misses on EPS
The cloud communications specialist's fourth-quarter revenue came in just above expectations, but it missed on earnings.
Twilio (NYSE:TWLO), operator of a prominent cloud communications platform, released its fourth-quarter earnings results on Feb. 13. The highlight of the period was that it achieved GAAP operating profitability for the first time. However, its non-GAAP earnings per share (EPS) of $1.00 was slightly below analysts' consensus estimate of $1.03, while revenue stood at $1.195 billion, marginally ahead of estimates of $1.183 billion. Overall, the quarter showcased progress in revenue and financial discipline, but challenges remain regarding cash flow and its smaller "Twilio segment" business unit.
Source: Analysts' estimates provided by FactSet.
Twilio operates a diverse platform that combines communications APIs and customer data management, empowering businesses to personalize their customer engagements through messaging, voice, and email services. Its business is divided into two main units: communications and Twilio segment. Communications, by far the larger unit, focuses on providing APIs for messaging, voice, and user authentication. The Twilio segment business offers customer data capabilities enabling businesses to utilize first-party data for tailored interactions.
