In This Article:
Investing.com - Shares in Twilio (NYSE:TWLO) sank by more than 8% in premarket U.S. trading on Friday after the cloud communications platform unveiled weaker than anticipated first-quarter income guidance.
The company said it anticipates adjusted earnings per share in the first quarter of $0.88 to $0.93 on revenue of $1.13 billion to $1.14 billion. Analysts polled by Investing.com had expected per-share income of $0.98 and revenue of $1.14 billion.
For 2025, Twilio sees adjusted income from operations coming in at $825 million to $850 million, reiterating a prior projection given at an investor meeting in January. Analysts at Jefferies flagged that "the most optimistic investors" had been hoping for an upward revision, although they argued that the decision to maintain the estimate was "prudent of management."
In the three months ended December 31, Twilio reported adjusted per-share earnings of $1.00 and sales of $1.19 billion, compared with Wall Street expectations of $1.03 and $1.18 billion. The Jefferies analysts said the results "brought no surprises" as the firm had announced the results prior to the investor day.
Twilio executives highlighted confidence in the firm's growth outlook, citing multiple potential performance engines like international expansion plans and a service allowing clients to build communications systems to answer customer questions. The group's artificial intelligence innovations have also put it in a position to win over more clients, CEO Khozema Shipchandler told analysts in a post-earnings call.
However, the Jefferies analysts flagged that Twilio's customer data platform, Segment, has shown signs of struggling, with its active customer count falling for the fifth straight quarter.
(Yasin Ebrahim contributed reporting.)
Related Articles
Twilio slumps in premarket trading after guidance falls short of estimates
South Korea fines JPMorgan, Morgan Stanley for short-selling breaches