Twilio Shares Drop After Posting Disappointing Q2 Forecast
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Shares of Twilio fell by as much as 14 percent in after-hours trading on Tuesday after the software development company issued second-quarter forecasts that falls short of analysts' expectations. While Twilio reported better-than-expected earnings of 47 cents per share and revenue of $1.01 billion for the first quarter, it predicted adjusted earnings of 27 cents to 31 cents per share on revenue of $980 million to $990 million for the second quarter, indicating a growth rate of only 4 percent to 5 percent. The company cited moderating consumer-facing usage and budget-conscious customers as reasons for the forecast. However, Twilio did add 10,000 active customer accounts in Q1, bringing the total to over 300,000.