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Jeff Lawson, CEO, Twilio
Scott Mill | CNBC
twilio Shares fell as much as 14% in extended trading Tuesday after the telecoms software developer released a second-quarter forecast that missed analyst estimates.
Here’s how the company did:
- Earnings: 47 cents a share, adjusted, versus 21 cents a share as expected by analysts, according to Refinitiv.
- he won: $1.01 billion, versus $1.00 billion as expected by analysts, according to Refinitiv.
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Twilio said second-quarter adjusted earnings will be 27 cents to 31 cents per share on revenues of $980 million to $990 million, which means growth of 4% to 5%. Analysts polled by Refinitiv were looking for a 29-cent gain in adjusted earnings per share on revenue of $1.05 billion.
Consumer usage has been moderate, though Twilio isn’t losing market share, Twilio co-founder and CEO Jeff Lawson said on a conference call with analysts. Twilio CFO Aidan Viggiano said Twilio continues to see weakness in social media, e-commerce, and cryptocurrency.
Viggiano said clients are aware of their budget and scrutinize their spending carefully because of the larger economy.
At the same time, Twilio has been preoccupied with increasing the effectiveness of its salespeople, said Elena Donio, Twilio’s head of data and applications.
But it doesn’t mean business is down. Twilio sold its verification service to a “very large AI company” to a quarter, Lawson said.
Revenue in the first quarter increased nearly 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 about 17% of its workforce. The company too He said It will buy back up to $1 billion of its shares.
Its operating losses included $121.9 million in severance pay and other expenses related to layoffs and $21.8 million in rent impairment charges related to office closures. Research and development, sales and marketing, general and administrative costs are all dropping year on year.
During the quarter, Twilio gained nearly 10,000 active customer accounts, reaching a total of more than 300,000, above the consensus of 295,400 among analysts polled by StreetAccount.
Before the after-hours move, Twilio shares are up 14% in 2023, while the S&P 500 is up 7% this year.
He watches: We’re focused on really looking at our investments,” says Jeff Lawson, CEO of Twilio
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