Post Earnings Coverage as Twilio Showed 60% Total Revenue Growth for Q4 FY16

Upcoming AWS Coverage on salesforce.com Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 27, 2017 / Active Wall St. announces its post-earnings coverage on Twilio Inc. (NYSE: TWLO). The Company released its fourth quarter and fiscal 2016 earnings results on February 07, 2017. The Cloud Communications Company surpassed top- and bottom-line expectations. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Twilio’s competitors within the Application Software space, salesforce.com, inc. (NYSE: CRM), announced on February 07, 2017, that its Q4 and full year fiscal 2017 results will be released on Tuesday, February 28, 2017, after the close of the market. AWS will be initiating a research report on salesforce.com in the coming days.

Today, AWS is promoting its earnings coverage on TWLO; touching on CRM. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended on December 31 2016, Twilio reported total revenue of $81.95 million with growth of 60% compared to Q4 FY15 revenue of $51.34 million, and Base revenue of $75.2 million with growth of 73% compared to Q4 FY15. The Company’s revenue numbers surpassed analysts’ consensus of $74.2 million.

For FY16, Twilio reported total revenue of $277.34 million, up by 66% compared to FY15 revenue of $166.92 million, and Base revenue of $245.5 million, up by 79% on a y-o-y basis.

For Q4 FY16, Twilio reported GAAP net loss per share attributable to common stockholders of $0.15 compared to GAAP net loss per share attributable to common stockholders of $0.48 in Q4 FY15. The Company posted non-GAAP net income per share attributable to common stockholders of $0.00 in Q4 FY16 compared to non-GAAP net loss per share attributable to common stockholders of $0.07 based in Q4 FY15. The Company’s adjusted earning numbers were better than market expectations of a loss of $0.05 per share.

Account Details

Twilio has increased its active customer accounts from 25,347 FY15 to 36,606 in FY16 with some major new contributors such as Capital One, Atlassian, and PaymentSense in the UK. The Company stated that these figures include eight variable customer accounts in Q4 2016 compared to nine in Q4 2015.

Twilio’s wallet share within its existing active accounts last year same quarter which is reported as The Dollar-Based Net Expansion Rate was 155% for Q4 FY16 compared to 172% for Q4 FY15.

Twilio’s top 10 customer accounts contributed 29% of total revenue in Q4 FY16 and their largest customer organization contributed 17% of the total revenue in the reported quarter. Additionally, WhatsApp generated 6% of the Company’s total revenue in Q4 FY16.

Twilio enhanced its technical capability by introducing dualChannel recording; extended Twilio Interconnect to support Twilio Client; introduced the Twilio Porting API; and allowed SIP-enabled devices or softphones to connect directly to our Programmable Voice offerings. Twilio has strengthened its super network capabilities post the acquisition of Beepsend a Sweden-based Application to Person (A2P) messaging provider.

Margin Matters

On a GAAP basis, Twilio’s GAAP loss from operations was $41.3 million for FY16 compared to $35.4 million for FY15; non-GAAP loss from operations was $12.2 million for FY16 compared to non-GAAP loss from operations of $22.9 million for FY15. For Q4 FY16, Twilio’s loss from operations was $12.8 million versus $8.1 million in Q4 FY15.

For Q4 FY16, Twilio’s non-GAAP operating expenses were $48.2 million which is 59% of its total revenue compared to $34 million in Q4 FY15 which was 66% of total revenue. As a result of increase in revenue and gross margin, Twilio’s non-GAAP operating profit was $100,000 in Q4 FY16 compared to non-GAAP operating loss of $5 million in Q4 FY15 and better than the Company’s original guidance of non-GAAP operating loss in the range of $4.5 million to $5.5 million.

Liquidity and Capital Resources

For FY16, Twilio generated $10.09 million in cash from operations compared to net cash used in operating activities of $18.76 million in FY15. The Company ended the fiscal year with $305.67 million in cash and investments.

Outlook

For Q1 FY17, Twilio expects total revenue to be in the range of $82 million to $84 million and Base revenue to be in the band of from $78.0 million to $79.0 million. For FY17, the Company expects to generate total revenue of $364 million to $372 million and Base revenue of $351.0 million to $355.0 million. Twilio is looking to add both the key accounts and new business teams in an effort to expand their reach, penetrate existing accounts and also invest in both the builders’ platform and the hiring of sales team at the beginning of FY17.

Stock Performance

At the close of trading session on Friday, February 24, 2017, Twilio’s stock price rose 1.86% to end the day at $32.26. A total volume of 2.33 million shares were exchanged during the session. The Company’s share price has gained 11.05% in the past one month and 11.82% on YTD basis. The stock currently has a market cap of $2.76 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 456017