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Stock Market Analysis

Q3 Earnings Confirm That Twilio Is A Great Cloud Investment

As cloud stocks continue to boom amid the coronavirus pandemic, Twilio’s latest earnings prove that it’s the stock to buy right now.

If you haven’t been investing in cloud computing in 2020, then you haven’t been reading the room very well. The coronavirus pandemic has opened up the floodgates for cloud stocks to boom during this time of turmoil, mostly due to our reliance on this technology for seemingly everyday things we take for granted. Everything from your Netflix algorithm to phone storage is run on cloud technology. 

One of the growth pioneers in this revolution is Twilio (NYSE: TWLO), one of the world’s leading cloud communications platforms, which just reported its Q3 earnings last night.

Twilio’s Q3 earnings report highlights

You can find the main highlights from Twilio’s most recent quarter below: 

Company Q3 PerformanceAnalyst ExpectationsQ4 Forecast
Revenue: $448 millionRevenue: $409.8 millionRevenue: $450 million to $455 million
Non-GAAP income: $0.04Non-GAAP incom: $0.03Non-GAAP income: $0.11 to $0.08 
Customer accounts: 208,000 (+21% YoY)Active customer accounts: N/AActive customer accounts: N/A

“Great digital engagement is becoming more critical to differentiate the customer experience, and companies across industries and around the world are choosing Twilio’s customer engagement platform to build these solutions,” said Twilio CEO Jeff Lawson. “Our performance in the third quarter is further evidence that Twilio’s platform provides three things that every company needs today — digital communications, software agility, and cloud-scale.”

So, looks like a pretty good quarter all-round. However, if you want to take a deeper look at Twilio’s finances, you can dive into their official earnings deck here. And, if you’re not too sure about how to properly follow earnings reports, check out our earnings season cheat sheet! It’ll answer everything you need to know about earnings.  

How much has Twilio grown this year?

As of close-of-business on Monday, October 26, Twilio stock has grown 191% year-to-date (YTD) and is worth $300.62 per share. 

Who are Twilio’s competitors?

Twilio’s top competitors include Genesys, Agora, OpenMarket, IMImobile, RingCentral, Cisco, Avaya, Plivo, Cincinnati Bell, Bandwidth, and Infobip.

Is Twilio a good long-term investment?

Twilio is a high-quality business with good leadership and effective execution and has clearly shown ambition to grow through its recent acquisition of ‘Segment’ for $3.2 billion. The company is also benefiting from what appears to be multi-year tailwinds and has beaten expectations four quarters in a row. Without a doubt, competition and the company’s valuation may cause investors to question an investment in Twilio; however, it appears to be well-positioned to grow significantly in the coming years.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.

Jamie Adams
Jamie Adams
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.