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Twilio (TWLO) to Report Q4 Earnings: What's in the Cards?

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Twilio Inc. (TWLO - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 9.

For fourth-quarter 2021, Twilio anticipates revenues in the range of $760 million to $770 million. The Zacks Consensus Estimate for the same is pegged at $768.9 million, indicating an improvement of 40.3% from the year-ago quarter.

The cloud-based communications platform-as-a-service provider expects non-GAAP loss per share between 23 cents and 26 cents. The consensus mark for non-GAAP loss stands at 21 cents per share, suggesting a drastic decline from the year-ago quarter’s earnings of 4 cents.

Twilio’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 107%.

Twilio Inc. Price and EPS Surprise Twilio Inc. Price and EPS Surprise

Twilio Inc. price-eps-surprise | Twilio Inc. Quote

Factors to Note

Twilio’s fourth-quarter results are likely to reflect gains from the accelerated digital transformation projects across a number of industries amid the ongoing pandemic crisis. Organizations have been reconfiguring their set-up for a work-from-home operational environment in a bid to make nearly 100% e-commerce a reality.

The company’s revenues are likely to reflect contributions from its latest buyout of the leading provider of toll-free messaging, Zipwhip. During its last earnings call, Twilio’s management stated that the fourth-quarter results will include contributions from Segment, the customer-data startup acquired in November 2020.

Since the buyout, Segment has been aiding Twilio in enhancing its capabilities in the cloud-based communications platform space and gaining significant customers. Strong uptake of Segment, growing adoption of Twilio Flex, and an increasing clientele base might have favored the fourth-quarter performance.

In the last reported quarter, Twilio had added around 10,000 new clients, taking the total active customer count to more than 250,000. In the fourth quarter, the company’s increasing scope among leading enterprises is likely to have acted as a key tailwind.

Solutions like Journeys, Twilio Conversations, SendGrid Ads and SendGrid’s Email Validation API might have contributed to the fourth-quarter performance. The company’s efforts to fortify its global footprint may get reflected in the to-be-reported quarter's results.

Nonetheless, increased spending and investment toward enhancing product portfolio and expanding across newer markets might have negatively impacted Twilio’s profitability. Also, elevated expenses toward enhancing sales capabilities might have weighed on the fourth quarter’s bottom-line performance.

What Our Model Unveils

Our proven model predicts an earnings beat for Twilio this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Twilio currently has a Zacks Rank #2 and an Earnings ESP of +90.48%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Other Stocks With Favorable Combinations

Per our model, Cushman & Wakefield (CWK - Free Report) , STAAR Surgical (STAA - Free Report) and Jones Lang LaSalle (JLL - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.

Cushman & Wakefield has a Zacks Rank #1 and an Earnings ESP of +6.45%. The company is scheduled to report fourth-quarter 2021 results on Feb 24. Its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 110.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the fourth-quarter earnings of Cushman & Wakefield is pegged at 62 cents per share, suggesting year-over-year growth of 44.2%. The consensus mark for revenues stands at $2.66 billion, indicating a decrease of 17.1% year over year.

STAAR Surgical is slated to report fourth-quarter 2021 results on Feb 23. The stock has a Zacks Rank #2 and an Earnings ESP of +9.68%. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 306.1%.

The Zacks Consensus Estimate for STAAR Surgical’s quarterly earnings stands at 16 cents per share, suggesting a year-over-year improvement of 14.3%. Its quarterly revenues are estimated to increase 28.9% year over year to $59.3 million.

Jones Lang LaSalle has a Zacks Rank #2 and an Earnings ESP of +9.23%. The company is scheduled to report fourth-quarter 2021 results on Feb 28. Its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 128.7%.

The Zacks Consensus Estimate for Jones Lang LaSalle s’ fourth-quarter earnings is pegged at $6.68 per share, suggesting year-over-year growth of 26.3%. The consensus mark for revenues stands at $5.51 billion, indicating a year-over-year improvement of 13.7%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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