Twilio (TWLO) shares surged 5.88% in after-hours trading following the company's impressive third-quarter earnings report and raised full-year guidance. The cloud communications platform provider demonstrated strong financial performance and growth across various customer segments, boosting investor confidence.

Twilio reported third-quarter revenue of $1.3 billion, marking a 15% year-over-year increase and surpassing analyst expectations of $1.25 billion. The company's adjusted earnings per share (EPS) of $1.25 also beat the consensus estimate of $1.08. CEO Khozema Shipchandler highlighted "broad-based strength across customer segments, ranging from startups to enterprises to ISVs," as a key driver of the revenue increase.

In addition to the strong quarterly results, Twilio raised its full-year 2025 revenue growth forecast to 12.4%-12.6%, up from the previous projection of 10%-11%. The company also increased its non-GAAP income from operations guidance to $900-$910 million and its free cash flow projection to $920-$930 million. Furthermore, Twilio announced plans to acquire Stytch, Inc., an identity platform for AI agents, expected to close in mid-November, potentially contributing to future growth prospects.