Twilio's Earnings Outlook
Twilio (NYSE:TWLO) is preparing to release its quarterly earnings on Thursday, 2025-08-07. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Twilio to report an earnings per share (EPS) of $0.76.
Anticipation surrounds Twilio's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Past Earnings Performance
Last quarter the company beat EPS by $0.20, which was followed by a 2.28% increase in the share price the next day.
Here's a look at Twilio's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.94 | 1.04 | 0.85 | 0.70 |
| EPS Actual | 1.14 | 1 | 1.02 | 0.87 |
| Price Change % | 2.0% | -15.0% | 14.000000000000002% | 12.0% |
Market Performance of Twilio's Stock
Shares of Twilio were trading at $124.65 as of August 05. Over the last 52-week period, shares are up 109.78%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on Twilio
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Twilio.
Analysts have given Twilio a total of 4 ratings, with the consensus rating being Buy. The average one-year price target is $145.25, indicating a potential 16.53% upside.
Peer Ratings Overview
In this analysis, we delve into the analyst ratings and average 1-year price targets of MongoDB, GoDaddy and Okta, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for MongoDB, with an average 1-year price target of $267.96, suggesting a potential 114.97% upside.
- Analysts currently favor an Outperform trajectory for GoDaddy, with an average 1-year price target of $225.0, suggesting a potential 80.51% upside.
- Analysts currently favor an Neutral trajectory for Okta, with an average 1-year price target of $129.55, suggesting a potential 3.93% upside.
Peer Metrics Summary
The peer analysis summary provides a snapshot of key metrics for MongoDB, GoDaddy and Okta, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Twilio | Buy | 11.98% | $581.57M | 0.25% |
| MongoDB | Outperform | 21.85% | $390.97M | -1.29% |
| GoDaddy | Outperform | 7.74% | $753.80M | 49.23% |
| Okta | Neutral | 11.51% | $533M | 0.96% |
Key Takeaway:
Twilio ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity. Overall, Twilio's performance is strong in terms of revenue and profit, but lags behind in generating returns for shareholders.
Delving into Twilio's Background
Twilio is a cloud-based communications platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.
Twilio: Financial Performance Dissected
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Positive Revenue Trend: Examining Twilio's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 11.98% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Twilio's net margin is impressive, surpassing industry averages. With a net margin of 1.71%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 0.25%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Twilio's ROA excels beyond industry benchmarks, reaching 0.2%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.14.
To track all earnings releases for Twilio visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
