It wasn’t long ago that Twilio (NYSE:TWLO) looked like an attractive bet as it was trading at a relatively cheap valuation, but the company’s fiscal first-quarter results have sent the stock through the roof.
At the beginning of April, shares of the cloud communications specialist looked ripe for the picking in the aftermath of the March stock market crash caused by the novel coronavirus pandemic. There were concerns that Twilio’s business may take a hit as key customers such as Lyft, Uber, and eBay reduce the usage of its services, prompting downgrades on Wall Street and sending shares lower.
But Twilio’s latest results have put all those concerns to rest. First quarter revenue jumped 57% annually to $365 million, compared to consensus estimates of $328 million. What’s more, it delivered $0.06 per share in adjusted earnings as compared to the market’s expectation of an $0.11 loss. But the best part is that Twilio could get a shot in the arm thanks to COVID-19 and remain a top growth stock.
What’s driving Twilio’s growth?
Twilio’s business got a boost after shelter-in-place orders and lockdowns to contain the spread of COVID-19 were implemented across the globe. COO George Hu pointed out on the latest earnings conference call that Twilio’s average daily sign-ups jumped 25% from March 18 through March 30 as compared to the first 11 weeks of the quarter.
This bump in… Continue reading at The Motley Fool