San Francisco-based Twilio Inc. (TWLO – Free Report) is a company that provides cloud communications platforms, two of which are the Programmable Communications Cloud and the Super Network. Twilio enables developers to build, scale, and operate real-time communications within its software applications.

It went public back in 2016, and was that year’s hottest tech IPO.

2018 has also been a good year for the cloud communications company so far, and despite the recent volatility that hit tech stocks and the overall U.S. markets last week, shares of Twilio have had no problem marching higher.

Impressive Q2 Earnings

One can look to better-than-expected results in Twilio’s second quarter that gave shares a nice break out. Revenues jumped 54% to $148 million, and earnings came in at three cents per share, well above the Zacks Consensus Estimate of a loss of six cents per share.

Existing customers grew, surging 32%, and Twilio saw an increase in first-time deals with new customers as well. This was a result in the company’s continued focus on introducing new products and its go-to-market sales strategy.

The company also provided upbeat guidance for Q3, and revenue is now expected in the range of $150 million and $152 million and earnings between two and three cents per share.

In its earnings release, co-founder and CEO Jeff Lawson said “Our core voice and messaging products grew rapidly once again, and the positive customer response to Flex further reinforces our Engagement Cloud strategy…Our go-to-market investments are driving growth in companies of all shapes and sizes, and we’re excited to unveil our newest set of innovations and gather our customers at our upcoming SIGNAL conference in October.”

Twilio Inc. Price and Consensus

Year-to-date, TWLO stock has skyrocketed well over 200%, and shares are up nearly 130% over the past 12 months.

Estimates have been rising lately too, pushing the stock towards a Zacks Rank #1 (Strong Buy).