Twilio (TWLO) shares rose 6.5% in extended trading on Thursday after the communications software provider reported third-quarter results and guidance that topped Wall Street’s forecast.
For the period ending Sept. 30, Twilio said it earned an adjusted $1.25 per share as revenue rose 14.7% year-over-year to $1.3B. The company ended the period with more than 392,000 active customer accounts, up from 320,000 in the year-ago period. Dollar-based net expansion rate was 109% for the third-quarter, up from 105% in the year-ago period.
Analysts had expected Twilio to earn an adjusted $1.08 per share on $1.25B in revenue.
“Twilio saw another record quarter of revenue and non-GAAP income from operations and as a result, we’ve raised our revenue, profitability and free cash flow targets for the full year,” said Khozema Shipchandler, CEO of Twilio. “We saw broad-based strength across customer segments, ranging from startups to enterprises to ISVs, that continue to choose Twilio to power their customer engagement. Our team is looking to finish the year off strong by helping our customers build relationships that grow stronger and more meaningful with every engagement.”
Twilio also bought back $349.8M in stock during the period as part of its previously announced $2B share buy back program. It has approximately $1.3B left as part of its buy back.
Looking ahead to its fiscal fourth-quarter, Twilio expects to earn between $1.17 and $1.22 per share on an adjusted basis, above the $1.14 estimate. Sales are forecast to be between $1.31B and $1.32B, up between 9.5% and 10.5% year-over-year. Analysts were expecting $1.28B in sales.
Twilio also raised its full-year forecast, as it now expects revenue growth for fiscal 2025 to be between 12.4% and 12.6%, up from a prior view of 10% to 11%. Organic revenue growth is expected to be between 11.3% and 11.5% year-over-year, compared to a previous range of 9% to 10%. Twilio also expects adjusted income from operations to be between $400M and $410M, compared to a prior range of $850M to $875M. Free cash flow is now expected to be between $920M and $930M, up from a prior view of $875M to $900M.
The San Francisco-based Twilio also said it had acquired Stytch, an identity platform for AI agents, today.
The company will hold a conference call at 5 p.m. EST to discuss the results.