During the fourth quarter of 2020, Communications-Platform-as-a-Service (CPaaS) leader Twilio outperformed expectations amid rising demand for communication software.
According to the research data analyzed and published by ComprarAcciones.com, Among the contributors to its strong performance was an increase of 13,000 users to its active customer base in Q4. During the previous quarter, its active users had increased by 8,000. At the end of 2020, the total number stood at 221,000, up from 179,000 at the end of 2019.
As of March 11, 2021, one share was trading at $377 according to Marketwatch. Over the trailing 12-month period, the share price has surged by 367.87%.
Twilio Revenue Surged by 55% in 2020 to $1.76 Billion, 10 Times the 2015 Total
The company also added $23 million to its Q4 2020 revenue from political activity. It projects an increase of 47% in Q1 2021 revenue to $536 million. Refinitiv analysts estimate a significantly lower figure, at $492.1 million.
Twilio’s revenue has been growing by double digits over the past few years. It rose by 44% in fiscal 2017, 68% in 2018 and 75% in 2019. In the first nine months of 2020, it grew by 51% to $1.21 billion. Full-year 2020 revenue surged by 55% to $1.76 billion, more than 10 times the $167 million recorded five years prior.
However, the company remains unprofitable, with its net loss for fiscal 2020 hitting $491 million, up from $307 million in 2019. Stock-based compensations (SBC) are to blame for a huge part of the loss. In 2020, SBC expenses and related taxes soared by 47% YoY to $389.3 million or 22% of Twilio’s top line. The company is also heavily dependent on stock bonuses. This pushed outstanding shares to 146.7 million by the end of 2020 from 86.1 million in 2016.
