Twilio Stock Darts Higher On Better-Than-Expected Q1 Results, Raised Guidance: Operating Discipline Is 'Paying Off'

Twilio Inc TWLO reported first-quarter financial results after the market close on Thursday. Here’s a rundown of the report.

• Q1 Revenue: $1.17 billion, versus estimates of $1.14 billion

• Q1 EPS: $1.14, versus estimates of 94 cents

Total revenue was up 12% year-over-year; Communications revenue came in at $1.10 billion, up 13% year-over-year and Segment revenue totaled $75.7 million, up 1% year-over-year.

Twilio had more than 335,000 active customer accounts as of March 31, up from 313,000 in the comparable quarter last year.

Twilio generated $191 million in operating cash flow and $178.3 million in free cash flow during the first quarter. The company ended the quarter with approximately $467 million in cash and cash equivalents.

“Twilio saw another quarter of revenue growth acceleration and double-digit growth, illustrating that our commitment to operating with more discipline, rigor, and focus is paying off,” said Khozema Shipchandler, CEO of Twilio.

“I’m encouraged by the momentum we’ve established to start the year. Going forward, we’ll continue to focus on what’s in our control and will deliver further innovation on behalf of our customers who rely on Twilio to drive amazing experiences for their end users.”

Twilio noted that it repurchased $130.2 million worth of its common stock in the first quarter.

Outlook: Twilio expects second-quarter revenue to be between $1.18 billion and $1.19 billion versus estimates of $1.17 billion, per Benzinga Pro. The company expects second-quarter adjusted earnings of 99 cents to $1.04 per share versus estimates of $1.04 per share.

Twilio expects full-year 2025 organic revenue growth of 7.5% to 8.5%, up from prior guidance of 7% to 8%. The company expects to generate $850 million to $875 million in free cash flow in 2025, up from prior guidance of $825 million to $850 million.

TWLO Price Action: Twilio shares were up 8.33% after hours, trading at $106.03 at the time of publication on Thursday, according to Benzinga Pro.

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