Jeff
Lawson,
CEO
of
Twilio.

Scott
Mlyn
|
CNBC



Twilio

shares
fell
as
much
as
14%
in
extended
trading
Tuesday
after
the
developer
of
communications
software
issued
a
forecast
for
the
second
quarter
that
trailed
analysts’
estimates.

Here’s
how
the
company
did:


  • Earnings:

    47
    cents
    per
    share,
    adjusted,
    versus
    21
    cents
    per
    share
    as
    expected
    by
    analysts,
    according
    to
    Refinitiv.

  • Revenue:

    $1.01
    billion,
    versus
    $1.00
    billion
    as
    expected
    by
    analysts,
    according
    to
    Refinitiv.

Twilio
said
adjusted
earnings
in
the
second
quarter
will
be
27
cents
to
31
cents
per
share
on
$980
million
to
$990
million
in
revenue,
implying
4%
to
5%
growth.
Analysts
polled
by
Refinitiv
had
been
looking
for
29
cents
in
adjusted
earnings
per
share
on
$1.05
billion
in
revenue.

Consumer-facing
usage
has
been
moderating,
although
Twilio
is
not
losing
market
share,
said
Jeff
Lawson,
Twilio’s
co-founder
and
CEO,
on
a
conference
call
with
analysts.
Twilio
is
still
seeing
weakness
in
social
media,
e-commerce
and
cryptocurrency,
said
Aidan
Viggiano,
Twilio’s
chief
financial
officer.

Customers
are
being
conscious
of
their
budget
and
carefully
examining
their
spending
because
of
the
larger
economy,
Viggiano
said.

At
the
same
time,
Twilio
has
been
busy
increasing
the
effectiveness
of
its
salespeople,
said
Elena
Donio,
Twilio’s
president
of
data
and
applications.

But
it’s
not
that
business
is
stalled.
Twilio
sold
its
Verify
authentication
service
to
“a
very
large
AI
company,”
Lawson
said.

Revenue
in
the
first
quarter
increased
almost
15%
year
over
year,
according
to
a

statement
.
The
company’s
net
loss
widened
to
$342
million,
or
$1.84
per
share,
from
$222
million,
or
$1.23
per
share,
in
the
year-ago
quarter.

Twilio

said

in
February
it
would
cut
about
1,500
employees,
or
around
17%
of
its
workforce.
The
company
also

said

it
would
buy
back
up
to
$1
billion
of
its
shares.

Its
operating
loss
included
$121.9
million
in
severance
and
other
expenses
related
to
the
layoffs,
plus
$21.8
million
in
lease
impairment
charges
tied
to
office
closures.
Research
and
development,
sales
and
marketing
and
general
and
administrative
costs
were
all
lower
year
over
year.

During
the
quarter,
Twilio
gained
about
10,000
active
customer
accounts,
reaching
a
total
of
over
300,000,
above
the
295,400
consensus
among
analysts
polled
by
StreetAccount.

Prior
to
the
after-hours
move,
Twilio
shares
were
up
14%
in
2023,
while
the
S&P
500
index
is
up
7%
this
year.


WATCH:


We’re
focused
on
really
looking
at
our
investments
says
Twilio
CEO
Jeff
Lawson

We're focused on really looking at our investments says Twilio CEO Jeff Lawson


watch
now