Chegg, Everbridge, Fastly, Twilio soar on Q1 results

Dan Rosensweig, CEO, Chegg

Scott Mlyn | CNBC

Some technology companies have shown signs of growth in the face of the coronavirus pandemic. This week, investors rewarded several small tech companies specializing in communication, emergency response, online content delivery and textbooks, after companies specializing in these fields reported good results. Their actions have surpassed even the biggest tech companies, like Facebook.

Here are some of the small businesses that are doing well right now.


Jeff Lawson CEO, Twilio

Scott Mlyn | CNBC

The shares of cloud communications software company Twilio have risen the most in a single day since its IPO in 2016.

The decision comes a day after the company released its first quarter results and forecasts. “Monster beat, monster move. Finally, a clean quarter where we least expected it, “wrote Canaccord Genuity analysts David Hynes Jr. and Luke Morison in the title of their note recommending clients to buy the stocks. Stocks closed at a record level, levels not seen since July.

Twilio’s technology can help businesses send text messages, send emails, and make video calls. CEO Jeff Lawson said in the company’s earnings call that, in some cases, the projects clients planned for the future suddenly became essential after the pandemic hit.

Twilio’s title has almost doubled in the past month, while the S&P 500 is up about 8% over the period. The biggest tech companies are also lagging behind Twilio. In comparison, Facebook has grown 25% in the past month, surpassing Alphabet, Amazon, Apple and Microsoft.


Fastly, whose content distribution network quickly delivers videos and other data to websites in apps, also had its best trading day on Thursday to return to its IPO last year.

“The structural changes we anticipate following this pandemic will help our business in the short and long term,” CEO Joshua Bixby said on Thursday after the company surpassed analyst estimates for the first quarter and increased its range by forecast full-year revenues of $ 25 million. , easily exceeding expectations.

The company has gained more e-commerce and has seen increased traffic following the implementation of social distancing measures, said Bixby.

“Fastly is the only company in our coverage universe (to date) to have increased its forecasts for 2020, at a time when most companies are reducing or withdrawing their forecasts for 2020, which we consider an impressive feat”, said DA Davidson analysts Rishi Jaluria and Hannah Rudoff. in their purchase recommendation.


David Meredith, CEO, Everbridge

Scott Mlyn | CNBC

Shares of Everbridge, a company that helps governments and businesses cope with emergencies, rose about 24% on Wednesday and 6% on Thursday, hitting a record high since the first public offering in 2016. The gains came after Everbridge’s first quarter results showed a better than expected acceleration in revenue growth and revenue forecasts.

“As you would expect, we saw an increase in interest from new customers during the quarter,” CEO David Meredith told analysts on a call on Tuesday. “Many of these customers had already evaluated our platform, and the Covid-19 crisis accelerated the completion of certain transactions that we expected to conclude later in the year.”

The company expanded its activities with the New York City Council and won new contracts with the NYC Education Department, in addition to new business customers.

“In a larger economy where growth will be harder and harder to find, Everbridge’s model should be fairly resilient, which means the stock can likely maintain premium valuation longer than expected,” wrote Canaccord Genuity analysts David Hynes and Luke Morison in a note on Tuesday. with a purchase rating on the stock,


On-site shelter orders have forced schools to try to quickly implement distance education tools. Chegg, which sells digital and physical textbooks and provides educational services such as homework help, announced Monday accelerated revenue growth in the first quarter. The company’s second quarter revenue forecasts have exceeded estimates, with subscription renewal rates increasing and cancellations declining.

“As students had to leave campus and learn from home, we began to see remarkable trends,” said Chegg CEO Dan Rosensweig during Monday’s quarterly conference call. “We have seen a substantial increase in the number of new subscribers, both nationally and globally. We have seen a marked increase in engagement from our existing subscribers, and we are seeing a significant increase in the take-up rate of our new Chegg study pack, much earlier than expected. “The Chegg Study pack is a set that includes tools to check students’ writing and help them solve math problems.

A few hours after the call to the results of the firm, Aaron Kessler, analyst of Raymond James, raised his note on Chegg shares to the equivalent of the purchase of the equivalent of the holding. On Tuesday, Chegg’s stock rose 32% unprecedented, taking the company to a new high since its IPO in 2013.

WATCH: Chegg CEO on first quarter results, the future of higher education after the pandemic

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