Twilio Stock Rises as Monness, Crespi, and Hardt Call Findings “Worthy” of the Short-term Surge

Twilio Stock

Twilio Stock (NYSE:TWLO)

In premarket trading on Thursday, shares of Twilio (NYSE:TWLO) increased by more than 9% after the investment firm Monness, Crespi, Hardt said that the company’s performance and expectations for the fourth quarter were “worthy of a short-term rally.”

The decrease in revenue growth to 21% year-over-year, down from 32% in the third quarter and 34% in the year-ago period, is worrying, according to analyst Brian White, who has a neutral recommendation on Twilio stock. But, the firm is more focused on profitability.

According to a letter White sent out to Twilio’s customers, “the emphasis of the conversation was about Twilio finally getting religion around boosting profitability.” Twilio is anticipating an operating profit in 2023 that will range between $250 million and $350 million, coupled with yearly operational improvements that will range between 300 and 400 basis points over the medium term.

Twilio has said it anticipates turning a profit according to GAAP in 2027.

As the firm shifts its attention toward profitability, White revised his sales projections for 2023 downward, bringing the total to $4.48 billion. But, he increased his earnings-per-share projections to $1.47, up from 26 cents.

Twilio (NYSE:TWLO), which is managed by Jeff Lawson and has a market cap of $1.02 billion, reported a profit of 22 cents per share for the period that ended on December 31. This profit was calculated after excluding the impact of any one-time events.

The consensus among industry experts was for a recast loss of 8 cents per share on revenue of $1 billion.

By the conclusion of its financial year, it had more than 290,000 active client accounts. This is an increase of 256,000 from the same time last year.

Twilio (NYSE:TWLO) also had a net dollar growth rate of 110%, which is lower than the 126% rate it achieved during the previous year.

In comparison to the consensus estimate of $1.02 billion, Twilio said that it anticipates sales for the first quarter to fall between $995 million and $1.005 billion. In addition, it anticipates earnings of between 18 and 22 cents per share on an adjusted basis, surpassing the estimates of 1 cent per share made by market experts.

In line with the findings, Twilio also announced the launch of a share repurchase program worth $1 billion.

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