Why Twilio Stock Is Trading Higher Today

Twilio Inc TWLO shares are trading higher Wednesday after the company reported better-than-expected financial results. 

What Happened: Twilio said second-quarter revenue increased 10% year-over-year to $1.04 billion, which beat the consensus estimate of $984.52 million, according to Benzinga Pro. Communications revenue came in at $913.1 million. Data and applications revenue totaled $124.6 million.

The company reported quarterly earnings of 54 cents per share, which beat analyst estimates of 29 cents per share.

Twilio said it had more than 304,000 active customer accounts as of June 30, up from 275,000 year-over-year. 

"We closed a strong second quarter, delivering record quarterly revenue, non-GAAP income from operations and free cash flow," said Jeff Lawson, co-founder and CEO of Twilio.

"We enter the second half of the year confident about our ability to generate meaningful levels of non-GAAP income from operations, and committed to our focus of driving efficient growth across our business."

Twilio expects third-quarter revenue to be between $980 million and $990 million, versus estimates of $1.02 billion. Third-quarter earnings are expected to be between 33 and 37 cents per share.

Following the company's quarterly results, Needham analyst Ryan Koontz maintained Twilio with a Buy rating and raised the price target from $65 to $75.

See Also: Why Rivian Shares Look Set To Extend Rally Today

TWLO Price Action: Twilio shares were up 6.16% at $62.01 at the time of publication, according to Benzinga Pro.

Photo: Jernej Furman from Flickr.