Companies such as Twilio and GoDaddy posted strong results for the first quarter due to increased digital interaction, while Equinix and Fortinet also posted solid results.
As businesses and employees step up their efforts to participate in digital interaction in response to the COVID-19 pandemic, the businesses that drive these initiatives are faring fairly well. On Wednesday, Twilio, Equinix, GoDaddy and Fortinet all posted strong first-quarter results.
Since meeting analyst forecasts, Twilio, the cloud messaging network, saw share rise in after-hours trading. The adjusted non-GAAP net profit per share hit 6 cents. Revenue was $364.9 million, up year-over-year by 57 per cent.
Wall Street predicted a net loss of 11 cents on a $331.88 million revenue
More than 190,000 active customer accounts were also registered by the company as of March 31, up 23 per cent year-over-year.
“We generated 57 percent year-over-year strong first-quarter revenue growth as consumers across industries switched to Twilio’s customer engagement platform to accelerate their digital transformation efforts,” CEO Jeff Lawson said in a statement. “Our platform is offering three items the world needs right now: digital interaction, mobile agility and cloud scale.” Twilio expects revenue from $365 million to $370 million for the second quarter.
Regardless of the uncertainty created by the pandemic the organization is withdrawing its full year 2020 guidance.
Domain registry service GoDaddy saw shares up after meeting estimates of sales in Q1. Total revenue was $792.0 million, up year-over-year by 11.5 per cent.
Wall Street was hoping for 17 cents earnings on $789.86 million in sales.
“GoDaddy yielded good first-quarter results,” said CEO Aman Bhutani in a statement. “We are focused on innovating for our consumers in this time of uncertainty for small companies, as their digital presence is now more important than ever. We believe that our emphasis on consumer satisfaction remains the best way to build satisfaction for our shareholders as well.”
Total bookings came to $951.1 million, up year-over-year by 9.3 per cent. Revenue from domains was $355.9 million, up year-over-year by 11.4 per cent. Revenue from hosting and presence was $297.2 million, up 10.5 per cent year on year. Revenue from software applications was $138.9 million, up 14.3 per cent.
GoDaddy estimates gross sales for the second quarter to be about $790 million.