• by Ray Schultz , November 7, 2018

SendGrid, preparing for its takeover by Twilio, has reported a 31% increase in third-quarter revenue — to $37.2 million — compared with the same period last year

The Denver-baed email vendor saw its API revenue grow by 31% to $29.5 million, a figure that represents 79% of total revenue for the quarter.  

Marketing campaign revenue grew by 65% to $6.4 million.

The gross margin was up 75.9%, or 280 basis points, but GAAP net loss totaled $2.4 million compared with $1.6 million at this time last year. This net loss included $3.4 million of non-cash, stock-based compensation expense.

SendGrid, which ended the quarter with over 78,000 customers — a 35% increase over the third quarter of 2017. In addition, its delivered email volume rose by 23% to 141.7 billion.

The firm — which announced last month that it would be acquired by Twilio for $2 billion in an all-stock transaction — said it will provide a full-year 2018 outlook pending completion of the transaction, which is expected to take place in the first half of 2019.