Twillo Inc [NYSE: TWLO] reported its Q2 results yesterday, and they were much better than what analysts were expecting. The company announced that for the first time, its annual revenues had crossed the billion-dollar mark. Its net income also stood at about 3 cents per share, a major leap considering that it reported losses of 3 cents a share last year. Revenues also shot up by roughly 86%, to hit $275 million this year. The company also announced that its customer numbers are on the rise, and now stand at around 161,000 up from 57k a year ago. Analysts were expecting earnings per share of about 2 cents and revenues of $264 million. Its revenue guidance for the year, also hit around $1.113 billion against expectations of $1.106 billion.
In spite of these strong numbers, the company dropped by 7% in the day. This is due to a Fed announcement that sent shockwaves in the market. The Fed announced that it was cutting interest rates by 25 basis points, and this sent the markets south. The S&P 500, the Dow, and the NASDAQ all closed the day with losses. The Fed’s move was driven by the need to protect the U.S economy from a downturn. It is a move that has drawn mixed reactions from different quarters. President Trump criticized it saying it was not big enough, while others felt the economy is healthy and there was no need for a rate cut.
That said, Thursday’s session will be an interesting one for Twillo. If the markets rebound today, this stock could make a strong showing based on its Q2 results. Traders will also be keeping an eye on the $142.90 price level, which is a major resistance in the day. If it pushes above this level, it could make a move north if it holds.