Twilio 2025 Q1 Earnings Beats Expectations as Net Income Swings 136.2%
Friday, May 2, 2025 5:05 am ET
4min read Revenue
Earnings/Net Income
Twilio returned to profitability with an EPS of $0.13 in 2025 Q1, reversing from a loss of $0.31 per share in 2024 Q1, marking a 141.9% positive change. The company achieved a remarkable turnaround with a net income of $20.02 million in 2025 Q1, representing a 136.2% positive swing from the net loss of $-55.35 million in 2024 Q1. This quarter's EPS signifies a strong recovery and positive outlook for Twilio.
Price Action
Post-Earnings Price Action Review
Historically, earnings report metrics such as revenue, net income, and EPS have led to negative returns for Twilio's stock price. This trend is supported by backtesting results that indicate a negative impact on the overall market, with a maximum return of only -0.11% over the same period. Despite Twilio's strong financial performance, the stock price has often shown volatility post-earnings, reflecting investor caution or market conditions. This pattern highlights a complex relationship between Twilio's earnings announcements and its stock market performance, suggesting that investors might be influenced by broader market sentiments or other external factors beyond the company's fundamental performance.
CEO Commentary
"Twilio saw another quarter of revenue growth acceleration and double-digit growth, illustrating that our commitment to operating with more discipline, rigor, and focus is paying off," said Khozema Shipchandler, CEO of Twilio. He expressed encouragement about the momentum established to start the year and emphasized the company's focus on delivering further innovation for customers who rely on Twilio to create exceptional experiences for their end users.
Guidance
Twilio is raising its fiscal year 2025 organic revenue growth target to 7.5% - 8.5%, up from the previous range of 7% - 8%. For the second quarter of 2025, the company expects revenue between $1.180 billion and $1.190 billion, reflecting a year-over-year growth of 9% - 10%. Additionally, Twilio's non-GAAP income from operations target is increased to $850 million - $875 million, with free cash flow also projected within the same range.
Additional News
Twilio recently engaged in stock repurchase activities, buying back $130.2 million worth of its common stock in the first quarter. Furthermore, Twilio's stock surged by 9% on May 2, 2025, attributed to an earnings beat and raised guidance, highlighting strong investor confidence following the earnings announcement. The company continues to focus on strategic initiatives, such as enhancing its AI capabilities, which is expected to drive future growth and innovation. These developments underscore Twilio's proactive approach to enhancing shareholder value and its strategic focus on emerging technologies.
Ask Aime: What's the outlook for Twilio stock after impressive earnings?
