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Markets News

UPDATE 2-Twilio sees third-quarter sales above its forecast on remote-work boost

(Adds background, updates shares)

Oct 1 (Reuters) - Twilio Inc on Thursday estimated third-quarter sales above its previous forecast, as a switch to remote working and learning due to the coronavirus crisis boosted demand for cloud services.

Shares of the cloud communications platform provider climbed about 10% in extended trade, adding to their 161.5% gain this year.

Total revenue for the three months ended Sept. 30 is expected to be above an earlier forecast of $401 million to $406 million, the company said in a filing here.

Analysts expect Twilio to report revenue of $407.9 million, according to IBES data from Refinitiv.

Cloud companies have seen a surge in demand this year as more businesses use their services to meet the demands of the switch to work from home.

“Twilio is a beneficiary of pandemic-catalyzed digital transformation acceleration,” brokerage JP Morgan said in a note earlier on Thursday, raising its price target by $20 to $230.

The company’s shares closed at $256.96 in regular trading.

Reporting by Akanksha Rana in Bengaluru; Editing by Amy Caren Daniel and Sriraj Kalluvila

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