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Twilio (TWLO) Q4 Loss Narrower Than Expected, Revenues Up Y/Y
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Twilio (TWLO - Free Report) delivered better-than-anticipated fourth-quarter 2021 results. The company reported a non-GAAP loss of 20 cents per share for the quarter, a penny lower than the Zacks Consensus Estimate of a loss of 21 cents per share. However, the bottom-line result compared unfavorably with the year-ago quarter’s non-GAAP earnings of 4 cents per share.
The cloud-based communications platform-as-a-service provider reported revenues of $842.7 million, which improved 54% year over year and surpassed the consensus mark of $768.9 million. Twilio Segment contributed $57.4 million to total revenues. The company’s newly acquired Zipwhip business contributed $31.8 million to total revenues.
Twilio has been benefiting from the constant expansion of its international business and the continuous acceleration of digital transformation projects across several industries. The top line was primarily driven by the enhancement of customer experiences across various product portfolios like Segment and Flex, which are its fastest-growing software-as-a-service products at present.
Twilio’s dollar-based net expansion rate was 126% in the reported quarter, down from 131% in the previous quarter and 139% in the year-ago quarter.
The company’s active customer accounts increased to 256,000 as of Dec 31, 2021 from 221,000 at the end of fourth-quarter 2020. Twilio Segment customer accounts were included in the active customer accounts.
Operating Results
Non-GAAP gross profit climbed 40.7% year over year to $432 million. However, non-GAAP gross margin contracted 500 basis points (bps) to 51%.
Twilio reported fourth-quarter non-GAAP operating loss of $27.2 million, far below the year-ago quarter’s operating income of $12.8 million. Non-GAAP operating margin contracted 500 bps to -3% from the year-earlier quarter’s 2%.
General & administrative expenses on a non-GAAP basis increased 18% to $78.5 million and accounted for 9% of the quarterly revenues.
Research & development expenses on a non-GAAP basis surged 46% year over year to $145.9 million and made up 17% of the quarterly revenues.
Non-GAAP sales & marketing expenses surged 84.2% to $234.8 million and represented 28% of the fourth-quarter revenues.
Balance Sheet
The company exited the October-December quarter with cash and cash equivalents plus short-term marketable securities of $5.36 billion, down from $5.39 billion at the end of the third quarter. As of December 31, 2021, Twilio’s long-term debt was $985.9 million.
In full-year 2021, the company used $58.2 million of cash from operational activities.
Full-Year Highlights
For full-year 2021, Twilio reported revenues of $2.84 billion, up 61% year over year. Twilio Segment contributed $200.9 million while Zipwhip contributed $55.4 million to total annual revenues.
For 2021, Twilio’s dollar-based net expansion rate was 131%. The company reported a non-GAAP loss of 25 cents per share compared with 2020 earnings of 23 cents per share.
Non-GAAP gross profit jumped 54.4% year over year to $1.52 billion. However, non-GAAP gross margin contracted 300 bps to 53% in 2021.
Geographically, 34% of revenues stemmed from outside of the United States in 2021, up from 27% in 2020.
Guidance
Twilio forecast non-GAAP loss per share between 22 cents and 26 cents for the first quarter of 2022. The Zacks Consensus Estimate for the same is pegged at a loss per share of 10 cents.
For the current quarter ending Mar 31, 2022, the company anticipates revenues between $855 million and $865 million, suggesting year-over-year growth of 45-47%. The Zacks Consensus Estimate is pegged at $808 million. Management estimates non-GAAP loss from operations in the range of $27 million to $32 million.
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Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 30.2% in the past year.
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Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 85.8% in the past year.
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Twilio (TWLO) Q4 Loss Narrower Than Expected, Revenues Up Y/Y
Twilio (TWLO - Free Report) delivered better-than-anticipated fourth-quarter 2021 results. The company reported a non-GAAP loss of 20 cents per share for the quarter, a penny lower than the Zacks Consensus Estimate of a loss of 21 cents per share. However, the bottom-line result compared unfavorably with the year-ago quarter’s non-GAAP earnings of 4 cents per share.
The cloud-based communications platform-as-a-service provider reported revenues of $842.7 million, which improved 54% year over year and surpassed the consensus mark of $768.9 million. Twilio Segment contributed $57.4 million to total revenues. The company’s newly acquired Zipwhip business contributed $31.8 million to total revenues.
Twilio has been benefiting from the constant expansion of its international business and the continuous acceleration of digital transformation projects across several industries. The top line was primarily driven by the enhancement of customer experiences across various product portfolios like Segment and Flex, which are its fastest-growing software-as-a-service products at present.
Twilio Inc. Price, Consensus and EPS Surprise
Twilio Inc. price-consensus-eps-surprise-chart | Twilio Inc. Quote
Quarterly Details
Twilio’s dollar-based net expansion rate was 126% in the reported quarter, down from 131% in the previous quarter and 139% in the year-ago quarter.
The company’s active customer accounts increased to 256,000 as of Dec 31, 2021 from 221,000 at the end of fourth-quarter 2020. Twilio Segment customer accounts were included in the active customer accounts.
Operating Results
Non-GAAP gross profit climbed 40.7% year over year to $432 million. However, non-GAAP gross margin contracted 500 basis points (bps) to 51%.
Twilio reported fourth-quarter non-GAAP operating loss of $27.2 million, far below the year-ago quarter’s operating income of $12.8 million. Non-GAAP operating margin contracted 500 bps to -3% from the year-earlier quarter’s 2%.
General & administrative expenses on a non-GAAP basis increased 18% to $78.5 million and accounted for 9% of the quarterly revenues.
Research & development expenses on a non-GAAP basis surged 46% year over year to $145.9 million and made up 17% of the quarterly revenues.
Non-GAAP sales & marketing expenses surged 84.2% to $234.8 million and represented 28% of the fourth-quarter revenues.
Balance Sheet
The company exited the October-December quarter with cash and cash equivalents plus short-term marketable securities of $5.36 billion, down from $5.39 billion at the end of the third quarter. As of December 31, 2021, Twilio’s long-term debt was $985.9 million.
In full-year 2021, the company used $58.2 million of cash from operational activities.
Full-Year Highlights
For full-year 2021, Twilio reported revenues of $2.84 billion, up 61% year over year. Twilio Segment contributed $200.9 million while Zipwhip contributed $55.4 million to total annual revenues.
For 2021, Twilio’s dollar-based net expansion rate was 131%. The company reported a non-GAAP loss of 25 cents per share compared with 2020 earnings of 23 cents per share.
Non-GAAP gross profit jumped 54.4% year over year to $1.52 billion. However, non-GAAP gross margin contracted 300 bps to 53% in 2021.
Geographically, 34% of revenues stemmed from outside of the United States in 2021, up from 27% in 2020.
Guidance
Twilio forecast non-GAAP loss per share between 22 cents and 26 cents for the first quarter of 2022. The Zacks Consensus Estimate for the same is pegged at a loss per share of 10 cents.
For the current quarter ending Mar 31, 2022, the company anticipates revenues between $855 million and $865 million, suggesting year-over-year growth of 45-47%. The Zacks Consensus Estimate is pegged at $808 million. Management estimates non-GAAP loss from operations in the range of $27 million to $32 million.
Zacks Rank & Other Key Picks
Twilio currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past 30 days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 30.2% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.1%. Shares of ADI have gained 9.7% in the past year.
The Zacks Consensus Estimate for Axcelis’ first-quarter 2022 earnings has been revised upward by a penny to 87 cents per share over the past 60 days. For 2022, earnings estimates have moved north by 1.4% to $3.60 per share in the last seven days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 30.3%. Shares of ACLS have rallied 85.8% in the past year.