Twilio Inc. (TWLO), a leading provider of cloud communications and customer engagement solutions, reported impressive third-quarter results for fiscal 2024, surpassing analysts' expectations across key financial metrics. The company's strong performance was driven by robust demand for its communications platform and strategic investments in artificial intelligence (AI) capabilities.
For the quarter ended September 30, 2024, Twilio posted revenue of $1.134 billion, up 10% year-over-year, surpassing the consensus estimate of $1.09 billion. The company's core Communications segment, which provides APIs and software solutions for optimizing customer interactions, saw revenue growth of 10% to $1.06 billion.
Twilio's profitability also demonstrated significant improvement, with non-GAAP income from operations reaching $182 million, up 34% compared to the same period last year. This figure exceeded the company's guidance range of $160 million to $170 million. Adjusted earnings per share came in at $1.02, well above the expected range of $0.81 to $0.86.
The company's solid financial results were underpinned by continued customer growth, with active customer accounts increasing to over 320,000 from 306,000 a year ago. Twilio's Dollar-Based Net Expansion Rate, a key metric measuring revenue growth from existing customers, improved from 101% to 105%, reflecting the company's ability to expand its relationships with existing clients.
Twilio's strategic focus on leveraging AI and machine learning through its CustomerAI initiative has been a driving force behind its success. The company aims to provide predictive insights and intelligent automation to enhance customer engagement, aligning with its vision of becoming a leader in AI-enabled communication platforms.
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