A Look Back at Software Development Stocks’ Q2 Earnings: Twilio (NYSE:TWLO) Vs The Rest Of The Pack

October 13, 2025 at 23:30 PM EDT

TWLO Cover Image

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Twilio (NYSE: TWLO) and the best and worst performers in the software development industry.

As legendary VC investor Marc Andreessen says, "Software is eating the world", and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.

The 11 software development stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.8% on average since the latest earnings results.

Twilio (NYSE: TWLO)

Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE: TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels.

Twilio reported revenues of $1.23 billion, up 13.5% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and accelerating customer growth.

“The company’s focus and execution is paying off as Q2 marked another quarter of accelerated year-over-year revenue growth as well as record non-GAAP income from operations and free cash flow,” said Khozema Shipchandler, CEO of Twilio.

Unsurprisingly, the stock is down 9.9% since reporting and currently trades at $110.53.

Is now the time to buy Twilio? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: Fastly (NYSE: FSLY)

Taking its name from the core advantage it delivers to customers, Fastly (NYSE: FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.

Fastly reported revenues of $148.7 million, up 12.3% year on year, outperforming analysts’ expectations by 2.7%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 25.5% since reporting. It currently trades at $8.17.

Is now the time to buy Fastly? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q2: PagerDuty (NYSE: PD)

Born from the frustration of developers being woken up by unprioritized alerts, PagerDuty (NYSE: PD) is a digital operations management platform that helps organizations detect and respond to IT incidents, outages, and other critical issues in real-time.

PagerDuty reported revenues of $123.4 million, up 6.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ billings estimates.

PagerDuty delivered the weakest performance against analyst estimates in the group. The company added 75 customers to reach a total of 15,322. Interestingly, the stock is up 3% since the results and currently trades at $16.08.

Read our full analysis of PagerDuty’s results here.

GitLab (NASDAQ: GTLB)

With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ: GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.

GitLab reported revenues of $236 million, up 29.2% year on year. This number beat analysts’ expectations by 4%. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

GitLab scored the fastest revenue growth among its peers. The stock is down 5.7% since reporting and currently trades at $44.25.

Read our full, actionable report on GitLab here, it’s free for active Edge members.

Bandwidth (NASDAQ: BAND)

Powering communications for tech giants like Microsoft, Google, and Zoom, Bandwidth (NASDAQ: BAND) provides cloud-based communications software and APIs that enable businesses to embed voice, messaging, and emergency services into their applications and platforms.

Bandwidth reported revenues of $180 million, up 3.7% year on year. This result topped analysts’ expectations by 0.6%. Aside from that, it was a slower quarter as it produced revenue guidance for next quarter slightly missing analysts’ expectations and EBITDA guidance for next quarter missing analysts’ expectations significantly.

Bandwidth had the slowest revenue growth among its peers. The stock is down 6.2% since reporting and currently trades at $15.23.

Read our full, actionable report on Bandwidth here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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