Twilio (NYSE:TWLO) shareholders are still up 98% over 1 year despite pulling back 8.7% in the past week

Twilio Inc. (NYSE:TWLO) shareholders have seen the share price descend 16% over the month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 98% in that time.

While the stock has fallen 8.7% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

View our latest analysis for Twilio

Because Twilio made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Twilio grew its revenue by 7.3% last year. That's not great considering the company is losing money. In keeping with the revenue growth, the share price gained 98% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Twilio is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think Twilio will earn in the future (free analyst consensus estimates)

A Different Perspective

It's good to see that Twilio has rewarded shareholders with a total shareholder return of 98% in the last twelve months. That gain is better than the annual TSR over five years, which is 0.5%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Twilio better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Twilio you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.