Twilio (NYSE: TWLO) shares surged 10.86% in after-hours trading on Thursday, following the release of its first-quarter 2025 financial results that exceeded analyst expectations and an optimistic outlook for the year ahead.

The cloud communications platform provider reported adjusted earnings per share of $1.14, significantly outperforming the analyst consensus estimate of $0.94. This represents a 21.28% beat and a 42.5% increase from the same period last year. Twilio's revenue for the quarter came in at $1.17 billion, surpassing the expected $1.14 billion by 2.84% and marking an 11.94% year-over-year growth. The company's strong performance was further underscored by its operating income of $23.082 million and adjusted operating income of $213 million.

Looking ahead, Twilio raised its organic revenue growth target for 2025 to 7.5% - 8.5% year-over-year, signaling confidence in its future performance. For the second quarter, the company provided a robust outlook, projecting adjusted earnings per share between $0.99 and $1.04, with revenue expected to range from $1.18 billion to $1.19 billion. This positive forecast, combined with the strong Q1 results, appears to have fueled investor enthusiasm, driving the stock's significant after-hours rally.