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Twilio surges 35 percent after earnings blowout

Key Points
  • Twilio outshined analyst expectations on earnings, revenue and guidance for the third-quarter.
  • SendGrid, an email marketing company Twilio said last month it was acquiring for $2 billion, also surged over 35 percent Wednesday on the news.
  • Twilio said it grew its revenue 68 percent compared to last year.
Jeff Lawson, CEO, Twilio
Scott Mlyn | CNBC

Twilio surged more than 35 percent Wednesday after crushing third-quarter expectations on earnings, revenue and guidance. The cloud software company has already more than tripled in value since its this year.

Twilio grew its revenue 68 percent compared to last year, it said in a statement. The company reported revenue of $168.9 million compared to analyst expectations of $150.4 million, per Refinitiv. It also beat earnings expectations by 5 cents per share, coming in at 7 cents per share.

The company's fourth-quarter guidance also beat analyst expectations of 2 cents earnings per share on $161.4 million in revenue, per Refinitiv. Twilio, a software provider that helps companies manage different forms of communications like text messages and videos, said it expects earnings of 3 to 4 cents per share, excluding certain items, on $183 to $185 million in revenue.

Last month, Twilio announced it would acquire email marketing company SendGrid for $2 billion. SendGrid also reported better-than-expected earnings, and its stock rose more than 35 percent on Wednesday as well.

-CNBC's Jordan Novet contributed to this report.

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