Shares of communications platform company Twilio (NYSE:TWLO) rallied by 10% on Monday after the company delivered a second-quarter earnings report that beat most analyst estimates.
The San Francisco, California-based company known for providing customer service software to companies that gives them access to voice, video, and messaging interactions to their customers anonymously posted smaller net losses during the second quarter. The company currently has millions of developers who are using its platform in developing features for applications such as WhatsApp, Airbnb, and previously Uber.
For the quarter that ended last June 30, the company’s losses stood at $0.05 versus most analyst expectations of $0.11 in losses per share. During the same quarter last year, the company posted a loss of $0.08 cents per share. Twilio’s losses for the second quarter is currently standing at around $7.1 million compared to their losses worth $11 million for the same period one year ago.
Twilio’s revenue for the second quarter came at around $95.9 million. This beats most analyst forecasts by $13.66 million. Last year, the company delivered sales of $64.5 million during the same period. The company predicted that its revenue for the second quarter might come at around $85.5 million to $87.5 million last May after Uber Technologies relieved the company of the services it availed.
The stocks of the company which rallied by as much as 12% during Monday’s session experienced huge losses before after Uber Technologies which happens to be one of the company’s biggest clients decided to dispose of Twilio Inc services. Uber previously relied on Twilio as their principal communications infrastructure provider. Despite losing Uber, the company’s customers are still considerablehigh this year at around 43,431 active customers compared to the previous year’s number of 30,781 representing a rise of 41% in their customers.
Twilio Inc then predicted that its revenue would lose around $356 million to $362 million this year which is lower than most analyst estimates of $370 million. During its first quarter earnings report, the company posted a loss of $0.04 per share on a revenue of $87.4 million slightly beating most analyst estimates.
The cloud communications company which then struggled during the absence of Uber, is now up by almost 12% at $34 per share during Monday’s after-hours trading. It closed during the trading session 4.6% higher at $30.53.
Twilio also posted a third quarter earnings guidance along with a full year guidance raising its forecasted third quarter revenue from $91 million previously to $93 million and $375 million in revenue for the whole year but on losses per share $0.24 higher than their previous forecast.