Twilio Reports Strong Q3 Results, Shares Rise in After-Hours Trading
Twilio Inc. (TWLO) reported better-than-expected financial results for the third quarter, sending its shares higher in Tuesday's after-hours session.
The company's third-quarter revenue grew 10% year-over-year, with communications revenue reaching $1.06 billion and Segment revenue remaining flat at $73.4 million. Twilio also boasted over 320,000 active customer accounts as of September 30th.
Twilio generated $204.3 million in operating cash flow and $189.1 million in free cash flow during the quarter. CEO Khozema Shipchandler attributed this success to the company's "financial discipline, operating rigor, and focused innovation."
Looking ahead, Twilio expects fourth-quarter revenue between $1.15 billion and $1.16 billion, exceeding analyst estimates of $1.15 billion. The company also anticipates adjusted earnings of 95 cents to $1 per share.
For the full year, Twilio projects organic revenue growth of 7.5% to 8% and free cash flow of $650 million to $675 million. Additionally, the company has repurchased $2.7 billion of its stock since its board approved a buyback program earlier this year and plans to complete the remaining repurchases under the $3 billion authorization by year-end.
Following the earnings release, Twilio shares surged 9.11% in after-hours trading, reaching $77. This positive response reflects investor confidence in the company's continued growth and profitability.