William Blair: Twilio Off To A Great Start As Public Company

William Blair has maintained its Outperform rating on Twilio Inc TWLO following the company's strong second quarter results and upbeat guidance.

Twilio's revenue rose 70 percent to $64.5 million, $6.3 million above consensus expectations, and non-GAAP loss per share was $0.08, well above the Street's estimate of $0.15.

Twilio saw strong demand across all of its product lines during the quarter, including voice, messaging, and two-way authentication.

Related Link: Big Beat For Twilio: JMP's Patrick Walravens Touts Its Defining Characteristic

"We estimate voice and messaging make up the majority of total revenue, and messaging is growing at a faster clip than the overall business," analyst Bhavan Suri wrote in a note.

Twilio issued full year 2016 revenue guidance of $253 million to $257 million (52 to 54 percent growth), which came in above the Street mean of $242.5 million (45 percent growth). Suri raised his estimate to $255.2 million (53 percent growth) from $240.6 million.

The company expects 2016 non-GAAP loss per share between $0.28 and $0.30. Consensus expectations were $0.36. The analyst narrowed his loss per share estimate to $0.31 from $0.38.

"We expect Twilio to sustain 30%-plus top-line growth for the next few years, and the company is expected to reach non-GAAP operating profitability by the fourth quarter of 2017," Suri noted.

Further, Suri's Buy thesis is centered on the company's above-average growth rate, leading market position, attractive industry dynamics, and effective self-service, usage-based business model.