Overview
Customer engagement platform's Q4 revenue grew 14% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations
Company repurchased $198 mln worth of shares in Q4
Outlook
Twilio expects Q1 2026 revenue between $1.335 bln and $1.345 bln
Company forecasts FY26 revenue growth of 11.5% to 12.5%
Twilio anticipates FY26 non-GAAP income from operations of $1.04 bln to $1.06 bln
Result Drivers
REVENUE GROWTH - Twilio's Q4 revenue increased 14% yr/yr, with organic growth at 12%, attributed to balanced execution and AI innovation, per CEO Khozema Shipchandler
CUSTOMER BASE EXPANSION - Active customer accounts grew to over 402,000, up from 325,000, contributing to revenue growth
CASH FLOW IMPROVEMENT - Free cash flow increased significantly to $256.1 mln in Q4, reflecting improved financial efficiency
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $1.37 bln | $1.32 bln (23 Analysts) |
Q4 Adjusted EPS | Beat | $1.33 | $1.24 (23 Analysts) |
Q4 EPS | -$0.30 | ||
Q4 Adjusted Operating Income | $255.60 mln | ||
Q4 Gross Profit | $662.35 mln | ||
Q4 Operating Income | $56.78 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Twilio Inc is $147.50, about 33.6% above its February 11 closing price of $110.44
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 25 three months ago
Press Release: ID:nBwMm9hga
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)