Twilio’s revenues for the third quarter increased by 52% to £344.03 million.
The San Francisco-based company reported a net loss of 89.79 million pounds sterling.
Twilio reports an annualized increase in active customer accounts of 21%.
Twilio Inc. (NYSE: TWLO) said Monday that its third quarter revenues for the fiscal year were stronger than Wall Street expected. The company attributed the higher revenues in the third quarter to the coronavirus pandemic that prompted companies to work from home, resulting in increased demand.
COVID-19 has so far infected more than 8.9 million people in the United States and caused over 230 thousand deaths. In an earlier announcement in October, Twilio announced plans to acquire the San Francisco-based customer data infrastructure company Segment for £2.46 billion.
Twilio said it closed the third quarter with a loss of £89.79 million, or 60.68 pence per share. This compares to a much smaller loss of 67.36 million pounds sterling or 49.16 pence per share in the same quarter last year. Twilio launched an app for front line workers in the first week of October.
Twilio’s financial results for the 3rd quarter compared to analysts’ estimates
On an adjusted basis, the cloud communications platform posted a loss per share of 3.07 pence in Q3. In terms of revenues, Twilio recorded annualized growth of 52% to £344.03 million in the third quarter of the fiscal year compared to £226.67 million in the same period last year.
CFO Khozema Shipchandler attributed the revenue increase in the third quarter primarily to vertical markets, including financial services and healthcare. As of September 30, Twilio had over 208 thousand active customer accounts, an increase of 21% year-on-year.
According to FactSet, experts had predicted that the company would generate revenues of £312.62 million in the final quarter. Their estimate of the loss per share was 3.07 pence.
The comments from CEO Jeff Lawson on Monday
According to CEO Jeff Lawson:
“Strong digital engagement is becoming increasingly important to differentiate the customer experience, and companies in all industries and around the world are choosing Twilio’s customer loyalty platform to develop these solutions. Our performance in the third quarter is further proof that the Twilio platform offers three things that every business needs today – digital communication, software flexibility and cloud scale”.
The company’s shares fell by approximately 1.5% in Monday’s post close of trading. So far this year, Twilio has still risen by about 200%. The company also performed well on the stock market last year, with an annual profit of almost 20%. At the time of writing, the San Francisco-based cloud communications platform is a service company with a market capitalization of £34.37 billion.