Twilio Shares Plunge 18.9% Despite Earnings Beat as Guidance Disappoints
Twilio's stock plummeted nearly 19% Friday after the cloud communications platform issued weaker-than-expected guidance, overshadowing strong Q2 results. The company posted $1.23 billion in revenue (up 13% YoY) and $1.19 adjusted EPS, both beating estimates. Customer growth metrics remained robust with 10% YoY client expansion and 108% dollar-based net retention.
Investors balked at management's forecast for just 10-11% Q3 revenue growth, marking a two-point deceleration. The projected $210 million in adjusted operating income WOULD represent a sequential decline from Q2's $221 million. While trading at just 22x forward earnings - cheap by SaaS standards - concerns linger about Twilio's $149 million quarterly stock-based compensation burden.
