Cloud communications infrastructure company Twilio (NYSE:TWLO) will be reporting earnings tomorrow after market close. Here’s what investors should know.

Twilio beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $1.13 billion, up 9.7% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. It added 4,000 customers to reach a total of 320,000.

Is Twilio a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Twilio’s revenue to grow 9.4% year on year to $1.18 billion, improving from the 5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Twilio has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Twilio’s peers in the software development segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cloudflare delivered year-on-year revenue growth of 26.9%, beating analysts’ expectations by 1.8%, and F5 reported revenues up 10.7%, topping estimates by 7.2%. Cloudflare traded up 17.7% following the results while F5 was also up 11.4%.

Read our full analysis of Cloudflare’s results here and F5’s results here.

There has been positive sentiment among investors in the software development segment, with share prices up 9.2% on average over the last month. Twilio is up 32.8% during the same time and is heading into earnings with an average analyst price target of $130.03 (compared to the current share price of $143.48).

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