Twilio shares rose as much as 25 percent in after hours session on Wednesday after the company posted first-quarter results and quarterly guidance that surpassed Wall Street's expectations.
Shares in the sector beat the previous close of $149.95 from July 2019. The company posted an earnings of 6 cents a share, adjusted, and sales of $365 million, which increased 57 percent on an annualized basis, down from the previous quarter's 62 percent rise.
Twilio has posted a loss of $94.8 million, or 68 cents per share, compared to a loss of $36.5 million, or 31 cents per share, in the same period last year.
Analysts polled by FactSet had predicted a $331 million loss of 11 cents a share on sales. In the past year, Twilio shares have fallen 7 percent, while the larger S&P 500 has dropped 1.1 percent over the past four quarters.
For the second quarter of sales, shares of the communications software firm provided guidance between $365 million and $370 million and a non-GAAP loss per share of between 8 cents and 11 cents, ahead of consensus forecasts of $337 million and a non-GAAP loss of 13 Cents.
But due to the continuing effects of the coronavirus pandemic the organization withdrew its full year 2020 guidance. The stock market advance faded into the final bell for a second consecutive session, although tech companies and other growth stocks continued to outperform.
The Cloud communications platform's stock have gapped up 25 percent to 152. That would push it above a buy region from either a three-month consolidation or a long pattern tracing back to June last year.
As businesses and workers step up their efforts to participate in digital interaction in response to the COVID-19 pandemic, the businesses that drive these initiatives are faring fairly well. On Wednesday, Twilio, Equinix, GoDaddy and Fortinet all posted strong first-quarter results.
More than 190,000 active customer accounts were registered by Twillio as of March 31, up 23 per cent year-over-year. Twilio is a Cloud-based communications platform headquartered in San Francisco, California. It allows software developers to make and receive phone calls, text messages, and perform other communication functions using its web service APIs.
According to chief executive officer Jeff Lawson, the company delivered solid revenue growth of 57 percent year-over-year in the first quarter, as clients across industries turned to Twilio's customer engagement platform in software and Cloud to fast-track their digital innovation measures.
Given the stability of its balance sheet, as well as the size of opportunity that lies in front of the company, its goal is to continue investing through the cycle, Khozema Shipchandler, Twilio's finance chief, disclosed.
