Twilio Inc (TWLO) shares experienced a decline in trading on Wednesday following the company’s report on first-quarter financial results and the issuance of soft guidance for the second quarter. Twilio disclosed that first-quarter revenue had increased by 4% year-over-year to $1.05 billion, surpassing the consensus estimate of $1.03 billion. The cloud-based customer engagement company also reported that quarterly earnings stood at 80 cents per share, exceeding analyst predictions of 60 cents per share. Communication revenue reached $972 million, up by 4% year-over-year, with segment revenue totaling $75 million, reflecting a 2% increase compared to the previous year. Twilio noted that it had over 313,000 active customer accounts as of March 31, a rise from the previous year.
CEO of Twilio, Khozema Shipchandler, highlighted the company’s focus on financial discipline, operational excellence, and innovation, expressing satisfaction with the first quarter’s performance. Shipchandler emphasized the commitment to making strategic investments to drive growth acceleration in the future while maintaining profitability and generating significant free cash flow. Twilio provided guidance for the second quarter, expecting revenue to range between $1.05 billion and $1.06 billion, with projected earnings per share of 64 to 68 cents. The company also outlined its full-year 2024 revenue growth forecast of 5% to 10%.
In response to the reported results, Baird analyst William Power retained a Neutral rating for Twilio and adjusted the price target from $70 to $65. Twilio shares were down by 7.05% at $58.90 at the time of publication. The company’s performance and future outlook are being closely monitored by investors and market analysts as they evaluate the implications of the recent financial disclosures on Twilio’s stock movement and overall trajectory in the market.