A number of stocks jumped in the afternoon session after cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.
Cloud communications infrastructure company Twilio (NYSE:TWLO) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 13.5% year on year to $1.23 billion. On top of that, next quarter’s revenue guidance ($1.25 billion at the midpoint) was surprisingly good and 3% above what analysts were expecting. Its non-GAAP profit of $1.19 per share was 13.3% above analysts’ consensus estimates.
Shares of cloud communications infrastructure company Twilio (NYSE:TWLO)
fell 18.3% in the afternoon session after the company reported second-quarter results that beat expectations but provided a weaker-than-expected earnings forecast for the third quarter. The cloud communications company reported second-quarter adjusted earnings of $1.19 per share on revenue of $1.23 billion, surpassing analyst expectations. However, this was overshadowed by a disappointing profit forecast for the upcoming period. For the third quarter, Twilio projected adjusted earnings of approximately $1.04 per share, below the consensus estimate of $1.15. This weaker profit guidance suggested potential pressure on profitability, which was also reflected in a year-over-year decline in its gross profit margin for the second quarter. Concerns about slowing demand were further highlighted by analyst projections for decelerating revenue growth over the next 12 months, contributing to the negative investor sentiment.
Cloud communications infrastructure company Twilio (NYSE:TWLO) announced better-than-expected revenue in Q2 CY2025, with sales up 13.5% year on year to $1.23 billion. On top of that, next quarter’s revenue guidance ($1.25 billion at the midpoint) was surprisingly good and 3% above what analysts were expecting. Its non-GAAP profit of $1.19 per share was 13.3% above analysts’ consensus estimates.
