Twilio Q4 earnings top estimates, Q1 revenue outlook disappoints
Twilio (TWLO) reported better-than-expected fourth-quarter adjusted earnings per share of $0.86, topping Wall Street expectations of $0.56. Revenue of $1.08 billion was about in line with estimates of $1.04 billion. However, its first-quarter revenue guidance fell a little short of the analysts were expecting.
Yahoo Finance's Josh Lipton and Alexandra Canal break down the report.
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Editor's note: This article was written by Stephanie Mikulich.
Video Transcript
JOSH LIPTON: Taking a look at Twilio, as its fourth quarter results hit the wire, Ally. So Twilio reports and investors not happy, or at least initially in the after hours. Let's talk Q4 first, because that looks actually good relative to consensus. Adjusted EPS $0.86 versus $0.56, that's a beat. Revenue $1.08 billion versus the $1.04 that analysts had modeled. So beats on the, on the bottom and top.
I think like Cisco though, which we just broke, I think there are issues with the forecast. Q1 revenue, they're calling for 103 to 104, and the street was close to the 105, so, so that's a miss.
ALEXANDRA CANAL: Yeah. This has been another company just dealing with deceleration in sales growth. The expectation though, is that the fourth quarter would be the bottom of this trend, so I do agree with you that the guidance there is a bit disappointing. HSBC recently downgraded the stock to reduce from hold, citing it has a, quote, "Low growth profile." So it's really just one of those names where the story is going to have to continue to improve for investors moving forward.
JOSH LIPTON: Yeah. It's one of those pandemic stories. Such strong growth and demand during the pandemic, but then you saw that slow post pandemic and weaken further in 2023. There's been some big changes in this company c-suite. You saw CEO Jeff Lawson, he did step down. I don't think that surprised a lot of people given some of the struggles the company was having. And then another exec, Khozema Shipchandler stepped in, take the reins. So we'll see where we go from here. But at least initially investors aren't happy, and the stock was already down about 7% this year heading into the [? print. ?]
