2023-11-07 12:20:03 ET
Cloud communications platform Twilio ( NYSE: TWLO ) is set to report its third-quarter results on Wednesday, November 8th, after market open.
Analysts expect earnings per share of $0.36 on revenues of $989.46 million, which would mark a jump of 0.7%.
The San Francisco, California-based company is expected to post third-quarter results largely in line with estimates, although concerns persist around growing competition pressuring gross margins. Observers also remained worried about the company's fourth-quarter guidance.
Investment firm Monness, Crespi, Hardt believes Twilio is still searching for a bottom. "Twilio proved a major beneficiary of the digital initiatives ushered in during the pandemic; however, growth decelerated sharply thereafter," the brokerage added.
Barclays noted that Twilio may see "softer" bookings in the third-quarter than seen in the second-quarter, as its contact-center-as-a-service businesses is "more mixed."
In late August, Twilio unveiled several new artificial intelligence tools , including new generative AI tools that boost engagement in Twilio Engage, Flex and Segment, and a new customer data platform.
According to Seeking Alpha analyst Julian Lin, "Generative AI may even help to bolster the value proposition of their products, though it is too early to say if it is a friend or foe."
Over the last three months, the company has seen substantial changes to its estimates in the past three months. Earnings per share estimates have been revised upwards 22 times vs. one downward move, while revenue estimates have seen one upward move, compared to 24 downward revisions.
Seeking Alpha analysts at large consider Twilio a Buy. This compares with average Wall Street rating of Buy and SA Quant rating of Strong Buy.
More on Twilio
- Twilio: Deep Value Tech Stock With 30% Net Cash, Expanding Margins, And Share Buybacks
- Twilio: An Underappreciated Value Opportunity
- Twilio: A Micro-Microsoft
- Twilio looks to find bottom with Q3 results on tap, Monness, Crespi, Hardt says
- Twilio, Concentrix, Zoom could see 'softer' CCaaS bookings in Q3: Barclays
For further details see:
Twilio Q3 earnings preview: Can Twilio fend off the competition?