Twilio beats Q1 revenue expectations, lifts FY revenue growth forecast

Overview

• US customer engagement platform's Q1 revenue rose 20%, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company repurchased $253 mln in shares during Q1

Outlook

• Twilio sees Q2 revenue of $1.42 bln to $1.43 bln, up 15.5%-16.5% y/y

• Company expects Q2 non-GAAP EPS of $1.27 to $1.32

• Twilio raises 2026 revenue growth outlook to 14%-15%, up from 11.5%-12.5% previously

Result Drivers

• COMPANY TRANSFORMATION - Co attributed growth to multi-year changes in innovation, go-to-market efficiency, and financial discipline

• CUSTOMER EXPANSION - Dollar-based net expansion rate rose to 114% from 107% a year ago, reflecting increased revenue from existing customers

Company press release: ID:nBw4ByFPLa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Twilio Inc is $153.00, about 8.6% above its April 29 closing price of $140.91

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 26 three months ago

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