UPDATED 21:20 EDT / NOVEMBER 08 2017

INFRA

Twilio shares rally as it surpasses $100M in quarterly revenue for the first time

Cloud communications company Twilio Inc. made investors happy Thursday after posting third-quarter earnings results that blew past Wall Street analysts’ forecasts.

The company, which builds web service application programming interfaces for software developers to make and receive phone calls and send and receive text messages in an automated fashion, surpassed $100 million in quarterly revenues for the first time in its history. Total revenues came in at $100.5 million, up 5 percent from the previous quarter and 41 percent from a year ago.

Twilio’s still losing money, reporting a loss after certain costs such as stock compensation of 8 cents per share. Wall Street was expecting a loss of 8 cents on revenues of $92.55 million. Still, the results clearly pleased shareholders, who drove the company’s stock price up by 3.5 percent in after-hours trading to almost $29 a share.

In a conference call, Twilio Chief Executive Officer Jeff Lawson (pictured) also spoke of the company’s other achievements in the quarter, including its first enterprise licensing agreement for higher-level software products and the introduction of its visual editor software Twilio Studio.

“With Twilio Studio, the visual builder for Twilio, we can accelerate our customers’ roadmaps and help an even larger set of users build on our platform,” Lawson said. “We are excited by the size, scale and diversity of what new and existing customers are creating with Twilio.”

Twilio also reported 46,489 active customer accounts at the end of the quarter. That’s up from the 34,457 active accounts it reported a year ago. Active accounts server as an indicator of how users are responding to its platform and future revenues, the company said.

The company also provided guidance for its fourth quarter, saying it expects a loss of between 5 and 6 cents per share on revenues of $102.5 million to $104 million. That’s above Wall Street’s estimated $98.67 million in revenue. For the full year, Twilio said it expects revenues to fall in a narrow range of $386 million to $388 million.

Image: Web Summit/Flickr

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