Twilio reported solid first-quarter results and raised its guidance for 2025. The company’s revenue grew 12% year-over-year to $1.17 billion, beating estimates by 2-3%. Non-GAAP earnings per share of $1.14 were about 20% above consensus, and the operating margin expanded by nearly 300 basis points to 18.2%.
HSBC upgraded Twilio from “Reduce” to “Hold” and raised its target price to $99 from $77. The firm highlighted encouraging customer adoption trends and product traction, including growing demand for AI-focused offerings like ConversationRelay. Twilio’s dollar-based net expansion rate improved to 107%, up from 102% a year ago.
Despite the upgrade, HSBC expressed skepticism over Twilio’s long-term margin targets. The firm expects a lower operating margin than the company’s guidance and noted that Twilio trades at a higher GAAP P/E multiple compared to peers. Twilio’s growth has accelerated thanks to the adoption of its AI-focused cloud communications tools.
The company now offers solutions like Conversation Relay, which allows clients to integrate voice-enabled AI into their customer service applications. With a massive base of over 335,000 active customer accounts, Twilio has a significant opportunity to cross-sell its AI offerings and drive stronger revenue and earnings growth.
Solid earnings lift Twilio forecasts
The company boosted its full-year organic revenue growth guidance to a range of 7.5% to 8.5% and expects stronger growth in non-operating income. Analysts have raised their earnings forecasts for Twilio, with a 12-month median price target of $130, indicating a 30% potential increase from current levels. Riot Platforms, Inc.
(RIOT) has been attracting investor attention lately. The company’s shares have returned +6.3% over the past month, compared to the S&P 500’s +11.3% change and the Financial – Miscellaneous Services industry’s 15.8% gain. Analysts expect Riot Platforms to post a loss of $0.26 per share for the current quarter, an improvement of +18.8% from the year-ago quarter.
For the current fiscal year, the consensus earnings estimate of -$1.52 suggests a significant decline of -547.1% from the prior year. The company’s revenue is expected to grow by 103.9% year-over-year in the current quarter and by 66% for the current fiscal year. Riot Platforms reported revenues of $161.39 million in the last quarter, surpassing the consensus estimate of $160.48 million.
However, the company’s earnings per share of -$0.90 missed estimates. According to the Zacks Value Style Score, Riot Platforms is graded F, indicating it is trading at a premium to its peers.