Twilio Inc. (NYSE:TWLO) shares are trending on Friday.
TWLO shares surged 18.84% to $175.96 in overnight trading on Thursday after the customer engagement platform posted first-quarter results, beating analyst estimates on both earnings per share and revenue.
What Does Q1 Data Show
On Thursday, Twilio reported revenue of $1.41 billion, up 20% year-over-year, beating the analyst estimate of $1.34 billion by 4.86%, with organic revenue growth of 16%. GAAP income from operations jumped 366% year-over-year to $107.7 million.
Non-GAAP diluted EPS of the California-based company rose to $1.50, beating the analyst estimate of $1.13 by 32.74%.
According to Twilio, the Dollar-Based Net Expansion Rate, which measures revenue growth from existing customers, accounting for upgrades, cross-sells, downgrades and churn, expanded to 114% from 107% a year ago, signaling stronger customer monetization.
CEO Khozema Shipchandler said, “Q1 was a milestone quarter for Twilio, marked by our highest revenue and gross profit growth rates in more than three years.” Twilio has “become a foundational infrastructure layer in the era of AI,” he added.
What Investors Need To Know
Twilio raised its outlook for the financial year, increasing its reported revenue growth forecast to 14%–15%, up from the earlier range of 11.5%–12.5%.
The company also lifted its full-year non-GAAP operating income guidance to $1.08 billion–$1.10 billion.
Free cash flow guidance was similarly raised to $1.08 billion–$1.10 billion, compared with the prior range of $1.04 billion–$1.06 billion.
For the second quarter of the financial year 2026, Twilio projected revenue in the range of $1.42 billion to $1.43 billion, representing reported growth of 15.5% to 16.5%.
Separately, a Securities and Exchange Commission filing on Thursday shows Vanguard Capital Management disclosing a beneficial stake of 8.11 million shares, or approximately 5.35% of Twilio’s outstanding common stock, held in the ordinary course of business with no intent to influence control of the company.
Trading Metrics, Technical Analysis
The Relative Strength Index (RSI) of TWLO stands at 63.87.
With a market capitalization of $22.47 billion, Twilio has a 52-week high of $149.90 and a low of $86.81.
Over the past 12 months, the large-cap company has gained 53.10%.
With a strong Momentum in the 80th percentile, Benzinga’s Edge Stock Rankings indicate that TWLO stock has a positive price trend across all time frames.
Photo courtesy: Tada Images/Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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