Twilio (TWLO: $49, up 3% today) released a third-quarter earnings and revenue forecast, Tuesday. The company expects total revenue of $70-71 million in the three months ended Sept. 30, compared to revenue of $44 million in the year-earlier period, a growth rate of 60%. It expects a loss per share of 4-5 cents, compared to a loss per share of 7 cents in the year-earlier period. Consensus expects a loss of 8 cents and revenue of $65 million. The company is saying they will beat consensus by a wide margin.
This is very positive news. We added the stock Monday at $52 after the stock dropped $8 from $60 on Friday of last week. As you can see, Twilio is a very volatile stock, so if you want a conservative investment, please move over to Microsoft. We are very early in the life of this powerful new force in the world of providing phone and text messaging services to app developers.
We will have more to say in our newsletter, to be published Sunday evening.