Twilio (TWLO) Q4 2020 results

Twilio stock rose more than 10% in extended trading on Wednesday after the cloud communications company reported better-than-expected fourth-quarter results, including surprise adjusted earnings.

Here’s how the company did it:

• Earnings: 4 cents per share, adjusted, compared to a loss of 8 cents per share as expected by analysts, according to Refinitiv.
• Returned: $ 548.1 million, compared to $ 454.8 million as expected by analysts, according to Refinitiv.

Revenue increased 65% on an annualized basis in the quarter, according to a statement, compared to growth of 52% in the previous quarter.

Twilio added 13,000 active customer accounts in the fourth quarter, bringing the total to 221,000, up from an increase of 8,000 in the third quarter. The company provides tools that developers can use to add text messages, voice and video calls, emails, and other functions in apps. Twilio also offers cloud-based contact center software that businesses can rely on for their agents’ interactions with customers.

Political activity contributed $ 23 million in revenue in the quarter, Khozema Shipchandler, the company’s chief financial officer, said in a conference call with analysts.

As for the forecast, Twilio sees an adjusted loss of 12 cents to 9 cents per share on revenue of $ 526 to $ 536 million in the first quarter, implying revenue growth of around 44% to 47%. Analysts polled by Refinitiv were expecting an adjusted loss of 2 cents per share on revenue of $ 492.1 million.

Despite the after-hours move, Twilio stock has risen about 22% year-to-date, compared to a gain of less than 5% for the S&P 500 over the same period.

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