Cloud-based communications expert Twilio (NYSE:$TWLO) saw its shares increase today. After the San Francisco-based company posted a strong Q2 earnings report, as well as solid next-period guidance, the company’s shares increased as much as 13.8%.
What Does This Mean?
In the Q2 earnings report, Twilio posted an adjusted net loss of $0.05 per share and top-line sales of $95.9 million. Analysts would have been happy with a $0.11 loss per share on revenue close to $84 million. Moving into the future, Twilio set Q3 targets ahead of the current Street view and increased its 2017 guidance projections across the board.
What Does The Future Hold?
It seems that Uber – Twilio’s largest customer – has continued to distance itself from the cloud-computing software tool maker. In the second quarter, Uber accounted for 9% of Twilio’s sales, which is down from about 12% in each of the last two quarters. While Uber sales remained steady year over year, Twilio went on to build new business elsewhere.
Year over year, Twilio’s operating model is expanding rapidly across a massive number of small clients. In the second quarter, Twilio added more than 2,700 new accounts, coming to a grand total of 43,400 active customers.
As one might have guessed, this was a promising report. Therefore, it should not come as a total surprise to hear that Twilio’s share prices are increasing today. All in all, this is significant news for anyone interested in application software.
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