Twilio on Thursday issued earnings guidance for the current quarter that fell short of estimates, while the second-quarter results topped Wall Street expectations, underpinned by continued strength in its customer engagement platform and AI-driven innovation.
Twilio Inc (NYSE:TWLO) sank more than 12% in premarket trading Friday.
For the three months ended June 30, 2025, Twilio posted non-GAAP diluted earnings per share of $1.19 on revenue of $1.23 billion, exceeding analyst estimates for EPS of approximately $1.05 and revenue of about $1.19B.
Gross margins of 50.7% came in below the 52.3% consensus, while gross profit of $623 million was broadly in line with expectations of $620.9 million.
Gross profit (GP$) grew 7.9% year-on-year, up from 6.4% in the first quarter; however, "the growth rate in absolute terms does not reflect that TWLO is a massive AI winner today," Jefferies analysts said.
For Q3, adjusted EPS was forecast in a range of $1.01 to $1.06, missing estimates of $1.15.
Revenue for Q3 was expected between $1.245B and $1.255B, beating estimates of $1.21B.
Non-GAAP income from operations was guided between $205M and $215M.
Twilio raised the midpoint of its full-year 2025 organic revenue growth forecast to 9.5% year-on-year from 8% previously. The guidance implies fourth-quarter organic revenue growth of 5.2% and a full-year total of 6.8%.
"If we flow through the incremental 50 bps headwind to gross margins, it implies a significant decel in GP$ growth as we progress through the year. We now model a GP$ growth decel from +7.9% y/y in 2Q25 to +3.1% y/y in 4Q25," Jefferies analysts added.
Source :
https://www.investing.com/news/earnings/twilio-q3-earnings-guidance-miss-estimates-shares-fall-4178351
