Cloud communications infrastructure company Twilio (NYSE:TWLO) announced better-than-expected revenue in Q2 CY2025, with sales up 13.5% year on year to $1.23 billion. On top of that, next quarter’s revenue guidance ($1.25 billion at the midpoint) was surprisingly good and 3% above what analysts were expecting. Its non-GAAP profit of $1.19 per share was 13.3% above analysts’ consensus estimates.
Cloud communications infrastructure company Twilio (NYSE:TWLO)
will be reporting earnings this Thursday after market hours. Here’s what you need to know.
A number of stocks jumped in the pre-market session after the Software as a Service (SaaS) sector rebounded following the sell-off in the previous trading session as a weaker-than-expected U.S. jobs report increased the probability of a Federal Reserve interest rate cut.
Shares of cloud communications infrastructure company Twilio (NYSE:TWLO)
fell 4.3% in the morning session after the stock took a breather following a significant rally in the previous trading session.
Shares of cloud communications infrastructure company Twilio (NYSE:TWLO)
jumped 7.4% in the afternoon session after the company announced the launch of new platform features.
Twilio trades at $118.45 and has moved in lockstep with the market. Its shares have returned 5.4% over the last six months while the S&P 500 has gained 5.4%.
Shares of cloud communications infrastructure company Twilio (NYSE:TWLO)
jumped 4.3% in the afternoon session after an analyst at Piper Sandler raised the price target on the shares and named the company a top pick. Piper Sandler analyst James Fish boosted the firm's price target on Twilio to $140 from $121, while maintaining an "Overweight" rating on the stock. The new target suggests a potential upside of over 23% from the stock's previous closing price. The analyst cited increased confidence in the company's ability to achieve "durable, double-digit growth." This positive outlook is supported by expected benefits from artificial intelligence integrations and a likely price increase in U.S. messaging services. The move reflects growing optimism on Wall Street for the cloud communications platform.
From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility.
Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 1.9%. This performance was disheartening since the S&P 500 gained 5.6%.
Twilio’s first quarter results were shaped by robust demand for its AI-enabled communications platform and continued expansion in international messaging. Management attributed the quarter’s revenue acceleration to increased adoption across its largest industry verticals, including financial services, technology, and retail, with notable progress in multi-product usage and cross-selling. CEO Khozema Shipchandler highlighted new customer wins and the company’s success in landing competitive takeout deals with independent software vendors, stating, “Recent conversations validate that during these uncertain times, our customers are leaning on the Twilio platform to drive revenue and recognize further operating efficiencies.”
