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Twilio (TWLO) to Report Q2 Earnings: What's in the Cards?

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Twilio (TWLO - Free Report) is slated to release second-quarter 2020 results on Aug 4.

For the second quarter of 2020, Twilio anticipates revenues between $365 million and $370 million. The Zacks Consensus Estimate is pegged at $367.6 million, indicating a 33.6% jump, year over year.

The company expects to report non-GAAP loss per share between 8 cents and 11 cents. The Zacks Consensus Estimate is pegged at a loss per share of 9 cents. Notably, Twilio had posted earnings of 3 cents per share in the second quarter of 2019.

Let’s see how things have shaped up for the upcoming announcement.

Factors at Play

Twilio’s second-quarter performance is likely to have benefited from an increasing clientele and the Sendgrid buyout. Growing adoption of Twilio Flex is also expected to have been a tailwind.

The company’s expanding foothold among leading enterprises is also likely to have been a key catalyst. Remarkably, in the last reported quarter, the company had added 11,000 new clients, taking the total active customer count to 190,000.

Twilio Inc. Price and Consensus

Twilio Inc. Price and Consensus

Twilio Inc. price-consensus-chart | Twilio Inc. Quote

Moreover, Twilio’s solid efforts to fortify its global footprint will likely reflect on the quarterly results.

Further, the introductions of Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation API are anticipated to have been conducive to the company’s performance.

Nonetheless, Twilio’s rising investments in lower-margin international regions might have dampened its profitability. Also, the firm is stepping up investments in its systems and infrastructure, go-to-market team and Flex, as well as in R&D, which is likely to have clipped the company’s profitability in the April-June period.

What Our Model Says

Our proven model does not predict an earnings beat for Twilio this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Twilio currently carries a Zacks Rank of 2 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

TakeTwo Interactive Software (TTWO - Free Report) has an Earnings ESP of +5.35% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMETEK Inc. (AME - Free Report) has an Earnings ESP of +3.96% and carries a Zacks Rank of 2, currently.

KLA Corporation (KLAC - Free Report) has an Earnings ESP of +0.67% and currently carries a Zacks Rank of 2.

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