Twilio raises annual revenue growth forecast on AI-driven demand, shares jump
The logo of communication company Twilio is displayed at the Collision conference in Toronto, Ontario, Canada June 23, 2022. Picture taken June 23, 2022. REUTERS/Chris Helgren
April 30 : Twilio raised its full-year forecast on Thursday and posted stronger-than-expected first-quarter results, signaling sustained demand for its cloud communications tools as companies invest in customer engagement and AI-driven services.
The company's shares surged 18 per cent in extended trading.
Twilio, which provides messaging, voice and email tools used by companies to communicate with customers, has been working to boost profitability after years of prioritizing growth.
The company has also been repositioning itself around AI-powered customer engagement, aiming to embed more automation and data-driven capabilities into its platform.
For 2026, Twilio raised its forecast for revenue growth to 14 per cent to 15 per cent, from 11.5 per cent to 12.5 per cent previously. It also lifted its expectations for operating income and free cash flow to between $1.08 billion and $1.10 billion.
The San Francisco-based company reported revenue of $1.41 billion for the first quarter, up 20 per cent from a year earlier and above Wall Street estimates of about $1.34 billion, according to data compiled by LSEG.
Adjusted earnings per share of $1.50 also beat expectations of $1.27.
Twilio projected second-quarter revenue of $1.42 billion to $1.43 billion, ahead of analysts' estimates, pointing to continued momentum in its core communications business.
The company reported first-quarter net income of $90 million, or 57 cents per share, compared with $20 million, or 12 cents per share, a year earlier.
