Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Twilio Drops on Big Miss for Profit Outlook, Earns Multiple Downgrades

Stock Markets Aug 05, 2022 09:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters Twilio (TWLO) Drops on Big Miss for Profit Outlook, Earns Multiple Downgrades

By Senad Karaahmetovic

Shares of Twilio (NYSE:TWLO) are down over 8% in premarket trading after the software company offered a light forecast.

For the second quarter, Twilio delivered an adjusted loss per share of $0.11 on revenue of $943.4 million to top the analyst consensus of a loss of $0.20 on revenue of $918.2 million. Revenue soared 41% on a YoY basis as Twilio reported 275,000 active customer accounts, although slightly lower than the 275,697 consensus.

However, TWLO shares were hit after company said it sees an adjusted loss per share of between $0.37 and $0.43, much worse than the analyst estimate of a loss of $0.11. Revenue is expected to be between $965 million and $975 million, again lower than the consensus of $975.6 million.

“Based on our results and what we’re currently seeing, we remain confident in our growth trajectory,” the company said in a statement before adding that it is “closely following the macroeconomic environment and are taking proactive steps.”

A Stifel analyst downgraded TWLO stock to Hold from Buy with a $90 per share price target from $200.

“We are moving to the sidelines until we get a clearer picture on the progress towards 60%-plus G.M. and O.M. leverage,” the analyst said in a note.

Similarly, an Atlantic Equities analyst downgraded Twilio from Overweight to Neutral with a $100.00 per share price target.

"We are downgrading Twilio to Neutral on a longer than anticipated transition to higher-margin products and a worsening macro environment. Our positive stance had been predicated on faster adoption of higher-margin products while the core business continued to grow over 30% organically. However, visibility into the trajectory for higher-margin products has not improved as expected, and the ongoing deterioration in gross margin suggests traction has been limited,” the analyst told clients.

Twilio Drops on Big Miss for Profit Outlook, Earns Multiple Downgrades
 

Related Articles

SoftBank steps up asset sales from sinking portfolio
SoftBank steps up asset sales from sinking portfolio By Reuters - Aug 09, 2022

By Sam Nussey TOKYO (Reuters) - SoftBank Group Corp is accelerating asset sales after its flagship Vision Fund unit booked nearly $50 billion in losses in just six months, but...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email