Twilio Stock Surges On Q3 Earnings Beat, Strong Guidance: 'Broad-Based Strength Across Customer Segments'

Core Insights - Twilio Inc reported strong third-quarter financial results, with revenue of $1.3 billion, surpassing analyst expectations of $1.25 billion, and adjusted earnings of $1.25 per share, exceeding estimates of $1.08 per share [2][3] Financial Performance - Total revenue increased by 15% year-over-year [2] - Operating cash flow for the quarter was $263.6 million, while free cash flow was $247.5 million [3] - The company ended the quarter with approximately $734.84 million in cash and cash equivalents [3] Customer Growth - Twilio had over 392,000 active customer accounts as of September 30, up from 320,000 year-over-year [2] Future Outlook - For the fourth quarter, Twilio expects revenue between $1.31 billion and $1.32 billion, compared to estimates of $1.29 billion, and adjusted earnings of $1.17 to $1.22 per share, against estimates of $1.14 per share [4] - The company anticipates full-year 2025 revenue growth of 12.4% to 12.6% and total free cash flow of $920 million to $930 million [4] Strategic Developments - Twilio announced a definitive agreement to acquire Stytch, Inc., an identity platform for AI agents, with the transaction expected to close in mid-November [5] - Following the earnings report, Twilio shares rose by 4.60% in after-hours trading, reaching $118.05 [5]