Cloud communications firm Twilio this afternoon reported Q3 revenue that topped Wall Street’s expectations, and a surprise profit, and an outlook for this quarter’s revenue that was higher as well.
The one apparent blemish in the quarter was that the company’s Dollar-Based Net Expansion Rate was 131%. That was down from 137% in the prior-year period.
The report sent Twilio shares down over 5% in late trading.
CEO and co-founder Jeff Lawson called the results “another quarter of strong growth at scale in the third quarter as companies continue to turn to Twilio in this digital-first world.”
Added Lawson, “We are extremely excited about the next generation of our customer engagement platform, and our newest pillar, Twilio Engage, which will allow companies of all sizes and in any industry to build and optimize hyper-personalized marketing campaigns on every channel for customer acquisition, conversion and retention.”
Revenue in the three months ended in September rose 65%, year over year, to $740.2 million, yielding a net profit of a penny a share.
Twilio’s own forecast had been $670 million to $680 million in revenue and negative 14 cents to negative 17 cents per share.
Analysts had been modeling $681 million and a net loss of 14 cents per share.
Also: Twilio beats Q2 expectations with 67% revenue growth
Twilio said it added 42,000 “active” customers for 250,000 in total at quarter’s end.
For the current quarter, the company sees revenue of $760 million to $770 million, and net loss in a range of 23 cents to 26 cents. That compares to consensus for $745 million and a 10-cent net loss per share.
