Twilio (NYSE:TWLO) shares trade 17% down in premarket as the company offered a soft Q2 revenue outlook.
While Q1 EPS of $0.47 and revenue of $1.01 billion (up 15% year-over-year) came in better than the consensus estimates of $0.21 and $1B, respectively, Q2 guidance disappointed investors.
“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,” said CEO Jeff Lawson.
For Q2/23, the company expects EPS in the range of $0.27-$0.31, compared to the consensus of $0.29. Revenue is seen at $980B-$990B, missing the consensus estimate of $1.05B.
For the full year, the company expects non-GAAP income from operations in the range of $275 million-$350 million.
Oppenheimer analysts cut the target to $75 per share as Twilio continues to face headwinds. However, the analysts remain Buy-rated as "the risk/reward is positively skewed."
Bernstein analysts also cut the target as they went to $58 per share.
"A lot of the Twilio story remains years out, both on the margin and realized promise of the broader platform. And management's super voting shares go away in June, possibly adding pressures from activist shareholders (who might re-prosecute the strategy). At this point we remain on the sidelines while waiting for more clarity on the rebound and future."
(Additional reporting by Senad Karaahmetovic)