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What Twilio's Strong Quarter Means For Other Cloud-Based IPOs

AMZN, TWLO, NTNX, BL

Cloud seems to be the "in thing" now. Most technology companies are climbing onto the cloud bandwagon, convinced of the future it has in terms of both prospects and potential. Top tech companies such as Amazon.com, Inc. (NASDAQ: AMZN) are leveraging the cloud and reaping the benefit.

Against this backdrop and strong results reported by Twilio Inc (NYSE: TWLO), a look into some cloud companies, which have recently come out with IPOs, might help investors identify opportunities in the space.

Twilio's Stellar Q3 Results

The cloud communication PaaS company recently reported stellar quarterly results. In its very second earnings release as a public company, the company said third-quarter revenues climbed 62 percent year-over-year, and its loss narrowed, helped by a strong 45 percent jump in active customer accounts.

The stock initially reacted to the news with a strong move to the upside.

Twilio's IPO

Twilio offered its shares to the public in June, offering 10 million shares at $15 per share. The company raked in proceeds of $150 million, which was more than expected. At that time, many Silicon Valley private companies were carefully watching the IPO, especially as the IPO market has been lukewarm this year.

Following its listing at $23.99, it clocked in gains in excess of 91 percent from the IPO price before ending the debut session at $28.79. After hitting a closing high of $68.97 in late September, more than double its listing price, the stock has come off the highs.

Others Cloud Companies That Recently Went Public

  • Nutanix Inc (NASDAQ: NTNX), which listed its shares on the NASDAQ on September 30, closed its first session of trading as a public company at $37, up from the IPO price of $16 per share.
  • Blackline Inc (NASDAQ: BL), an accounting software company, saw its shares close at $23.70 on its debut on the NASDAQ on October 28, up strongly from the offer price of $17. The shares of the company are down moderately in Friday's session.

At Last Check

  • Blackline was down 0.89 percent at $21.78.
  • Nutanix was up 2.13 percent at $24.41.
  • Twilio was down 1.93 percent at $31.97.


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