Twilio Expected To Deliver A Top- And Bottom-Line Beat In Its Q4 Report

Twilio Inc TWLO is scheduled to report its Q4 2016 results on February 7. The company would likely announce a top-line beat, “driven by strong base revenue growth,” William Blair’s Bhavan Suri said in a report. He maintains an Outperform rating on the company.

Top-Line Expectations

Twilio could beat the consensus expectations for total revenue, which are currently at $74.1 million, by about $3 million, analyst Suri mentioned. The current estimate represents 44 percent growth.

Twilio seems to have continued to gain developer market share and the usage for its products appears to be growing at a healthy rate.

“We believe Twilio continues to dominate the developer community, often benefiting from its first-mover advantage, while also providing the best quality and performance in the market, particularly for its voice product (e.g., offering dual channel call recording capabilities),” Suri wrote.

Conversations with customers had indicated that many find it difficult to replace automated business processes that were created using Twilio’s platform, increasing the stickiness of the platform, the analyst added.

Bottom-Line Expectations

Suri also expects the company to marginally beat the current consensus expectations for the Q4 bottom-line results.

“We expect the company to issue initial first quarter and full year 2017 revenue guidance that is in line with or slightly above consensus expectations,” the analyst said.