Twilio posts surprise profit on remote-work boost

FILE PHOTO: A banner for communications software provider Twilio Inc., hangs on the facade of the New York Stock Exchange (NYSE) to celebrate the company's IPO in New York City, U.S., June 23, 2016. REUTERS/Brendan McDermid

(Reuters) - Twilio Inc TWLO.N on Monday posted a surprise third-quarter profit and forecast sales above estimates for the fourth, as a switch to remote working and learning due to the COVID-19 pandemic boosted demand for cloud services.

The cloud communications company, however, expects to post a loss of 8 cents to 11 cents per share for the current quarter. Analysts on average were expecting a profit of 2 cents.

Shares of the company were down 1.2% in extended trading.

Excluding items, Twilio posted a profit of 4 cents per share for the third quarter, while analysts had expected a loss of 3 cents per share.

The company’s revenue jumped over 50% to about $448 million in the third quarter and beat estimates of $409.9 million, according to IBES data from Refinitiv.

Twilio’s active customer accounts rose 21% to 208,000 as of Sept. 30.

Twilio, which earlier this month said it would buy customer data platform Segment for $3.2 billion in an all-stock deal, expects sales for the current quarter in the range of $450 million to $455 million. Analysts were expecting $437.4 million.

Reporting by Akanksha Rana in Bengaluru; Editing by Maju Samuel