Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Thanks to AI, this cloud stock has stepped on the gas and is attractively valued right now. Though shares of Twilio (TWLO 1.81%) have underperformed the broader market so far in 2024 with gains of 19%, compared to the 23.6% gains clocked by the S&P 500 index, a closer look at the recent stock price action will tell us that investors have become incredibly bullish about the company of late. More specifically, Twilio stock has gone parabolic since releasing its third-quarter results on Oct. 30, jumping 28% in ...

Both companies are focused on integrating AI tools into their platforms to boost their growth rates.The rapid adoption of artificial intelligence (AI) has given technology stocks a big boost in the past couple of years, which is evident from the 77% gains clocked by the Nasdaq-100 Technology Sector index during this period. But not all tech stocks have benefited from the AI-powered surge in the tech sector.Zoom Video Communications (ZM -0.08%) and Twilio (TWLO 3.13%) are two such names. While Zoom stock is ...

Core Viewpoint - Twilio's stock has shown significant performance, increasing by 21.7% over the past month and reaching a 52-week high of $83.3, outperforming both the Zacks Computer and Technology sector and the Zacks Internet - Software industry year-to-date [1][2]. Financial Performance - Twilio has consistently exceeded earnings expectations, reporting an EPS of $1.02 against a consensus estimate of $0.87 in its latest earnings report [2]. - For the current fiscal year, Twilio is projected to achieve earnings of $3.40 per share on revenues of $4.37 billion, reflecting a 39.18% increase in EPS and a 5.18% increase in revenues [3]. - The forecast for the next fiscal year indicates expected earnings of $3.88 per share on $4.67 billion in revenues, representing year-over-year changes of 14.08% and 6.88%, respectively [3]. Valuation Metrics - Twilio's current valuation metrics show a Price-to-Earnings (P/E) ratio of 23.7X for the current fiscal year, below the peer industry average of 30.5X [7]. - On a trailing cash flow basis, Twilio trades at 98.7X compared to the peer group's average of 25.7X, and it has a PEG ratio of 0.72, indicating it is not among the top value stocks [7]. Zacks Rank - Twilio holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts, suggesting potential for further stock price appreciation [8]. - The combination of a Zacks Rank of 2 and a VGM Score of B indicates that Twilio aligns well with investment strategies focused on growth and momentum [6][8].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, par value $0.001 per share TWLO New York Stock Exchange FORM 10-Q _____________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION ...

Core Insights - Twilio's shares surged by as much as 18% following a strong earnings report, ultimately closing with a 16% gain [1] - The company exceeded analyst expectations with third-quarter earnings of $1.02 per diluted share on revenues of $1.13 billion, marking a 10% year-over-year revenue increase and a 76% rise in adjusted earnings [2] - Twilio has been focusing on fiscal discipline and cost controls, resulting in improved profit margins, while benefiting from a stronger economy and successful feature launches [3] - Sales and cash flows are rebounding after a period of stagnation, although the stock remains down 82% from its all-time highs in 2021, currently trading at 24 times trailing earnings and 3 times sales [4]

Twilio Inc. (TWLO) reported third-quarter 2024 non-GAAP earnings of $1.02 per share, which surpassed the Zacks Consensus Estimate of 87 cents and came above management’s guidance of 81-86 cents.The bottom line also witnessed a robust improvement from the year-ago quarter’s earnings of 58 cents. The strong year-over-year growth in earnings was primarily driven by increased revenues and cost discipline.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The cloud-based communications platfo ...

| --- | --- | --- | --- | |------------------|-------|-------|---------------------------------------| | Q3 2024 | | | | | | | | | | Earnings Results | | | | | | | | | | October 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | ©2024 TWILIO INC. ALL RIGHTS RESERVED | Legal Disclaimer This presentation and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, including statements about our future performance and goals. These statements inv ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $1.134 billion, up 10% year-over-year [6] - Non-GAAP income from operations was $182 million, up 34% year-over-year [6] - Free cash flow for the quarter was $189 million, with $775 million generated over the last 12 months [6][40] - Dollar-based net expansion rate was 105%, the best performance since Q1 2023 [32] - Non-GAAP gross profit was $600 million, up 9% year-over-year, with a gross margin of 52.9% [33] Business Line Performance - Twilio Communications revenue was $1.06 billion, up 10% year-over-year, driven by strength in messaging and email [13][29] - Segment revenue was $73 million, flat year-over-year, with improvements in win rates and reduced churn [21] - AI and machine learning integration in products like Verify and SMS Pumping Protection drove growth [14][30] Market Performance - U.S. market continued to show strength, while international volumes and revenue trends improved for the second straight quarter [69] - Political traffic contributed 90 basis points to revenue growth in Q3 but is expected to be immaterial in Q4 [31][66] Company Strategy and Industry Competition - The company is focused on integrating AI and machine learning across its platform to drive personalization and automation [7][8] - Twilio differentiates itself by combining communications with contextual data, enabling deeper customer engagement [10] - The company is well-positioned to capitalize on the AI-driven CPaaS market due to its unique data integration capabilities [9][10] Management Commentary on Operating Environment and Future Outlook - Management highlighted the importance of AI and contextual data in driving future growth and customer engagement [7][10] - The company expects full-year 2025 revenue growth in the range of 7% to 8%, assuming a neutral macro environment [45] - Twilio aims to achieve GAAP operating profitability by 2025 and continues to focus on margin expansion and free cash flow growth [39][45] Other Important Information - The company repurchased over $2.7 billion of shares under its $3 billion share repurchase program, with plans to complete the remaining balance by year-end [41] - Segment infrastructure migration is expected to be completed in Q4, leading to improved gross margins [35] Q&A Session Summary OpenAI Partnership - The partnership with OpenAI is initially focused on voice-based applications but is expected to expand across all channels over time [51] - Revenue impact from AI integrations is not expected to materialize significantly in the near term [51] ISV Channel Growth - The ISV channel is growing faster than the consolidated revenue base and carries higher gross margins [55] - The company has not disclosed the exact contribution of ISVs to overall revenue [55] RCS Adoption - RCS adoption is expected to grow, particularly in industries like airlines, but is not anticipated to significantly impact overall revenue or margins [56][77] Self-Service Journey - The company continues to improve its self-service platform, focusing on reducing friction for developers while maintaining trust and compliance [59][60] Free Cash Flow and Margin Expansion - Free cash flow is expected to track closely with non-GAAP operating income over time, with some variability due to prepayments [64] - Margin expansion is expected to continue, driven by segment breakeven, automation, and workforce optimization [72] 2025 Revenue Guidance - The preliminary 2025 revenue growth guidance of 7% to 8% is based on stabilization in the communications business and progress in segment operations [45][76] AI and Contextual Data - The company sees significant potential in combining AI with contextual data to drive personalized customer interactions across all products [87][88] Flex and AI Integration - Flex performance is strong, with AI integration expected to enhance customer outcomes, particularly in contact center applications [95]

For the quarter ended September 2024, Twilio (TWLO) reported revenue of $1.13 billion, up 9.7% over the same period last year. EPS came in at $1.02, compared to $0.58 in the year-ago quarter. The reported revenue represents a surprise of +3.93% over the Zacks Consensus Estimate of $1.09 billion. With the consensus EPS estimate being $0.87, the EPS surprise was +17.24%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...