Twilio is slated to release its Q3 results after the close today, with a conference call scheduled for 5 PM ET to discuss the report. Last quarter, the company's report hit the wires at 4:05 PM ET. 

For Q3, current street estimates call for EPS of ($0.08) on revs of $70.85 mln (+60% y/y). 

This compares to the company's latest guidance for EPS of ($0.05-0.04) on revs of $70.25-71.25 mln. In early October, the company offered prelim Q3 results, which exceeded the guidance given when it reported Q2 results.

  • Highlights from Last Quarter
  • Reported Q2 (Jun) loss of $0.08 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of ($0.15); revenues rose 70.0% year/year to $64.5 mln vs the $58.23 mln Capital IQ Consensus.
  • Base revenue of $56.4 million for the second quarter of 2016, up 84% from the second quarter of 2015 and 13% sequentially from the first quarter of 2016.
    • 30,780 Active Customer Accounts as of June 30, 2016, compared to 21,226 Active Customer Accounts as of June 30, 2015.

Analyst Commentary

  • On Tuesday, shares were initiated with an Outperform at Oppenheimer and given a $50 price target
  • In late October, shares were initiated with a Neutral at Mitsubishi UFJ

Options Activity

  • Based on TWLO options, the current implied volatility stands at ~ 80%, which is 7% higher than historical volatility (over the past 30 days). Based on the TWLO Weekly Nov04 $33.5 straddle, the options market is currently pricing in a move of ~4% in either direction by weekly expiration (Friday).