Twilio Inc. racked up its second straight $1 billion sales quarter Tuesday, but tepid sales guidance led investors to hammer the company’s stock more than 15% in after-hours trading.
Twilio forecast $980 million to $990 million in second-quarter sales. Analysts polled by FactSet are forecasting $1.05 billion.
The company did beat on revenue and earnings forecasts for its first quarter. “We’ve structured our business with the aim of enabling Twilio to operate profitably in any financial climate and our first quarter non-GAAP income from operations is a strong signal of our ability to do so,” Twilio Chief Executive Jeff Lawson said in a statement announcing the results.
In February, the company announced organizational and structural changes — including two business units, new leadership, a stock buyback, and layoffs — in a push to improve business execution on the road to profitability.
Twilio (TWLO)reported fiscal first-quarter a net loss of $342.1 million, or $1.84 a share, compared with a net loss of $221.6 million, or $1.23 a share, in the year-ago quarter. Adjusted earnings were 47 cents a share.
Revenue climbed 15% to $1.01 billion, compared with $875.4 million a year ago.
Analysts surveyed by FactSet had expected on average net earnings of 21 cents a share on revenue of $1 billion.
Shares of Twilio are up 14% so far this year, while the broader S&P 500 index has advanced 7%.