Twilio forecasts quarterly revenue below estimates on weak enterprise spending

TWILIO forecast second-quarter revenue below Wall Street estimates on Tuesday, expecting a slowdown in demand as customers cut back on discretionary spending amid economic uncertainty.

Shares of the San Francisco-based cloud communications company fell more than 6 per cent in aftermarket trading.

Twilio, which makes products that help developers build communication features such as messaging and phone calls, is seeing slowing revenue growth as customers are cutting back discretionary spending.

The company expects second-quarter revenue to be between US$1.05 billion and US$1.06 billion, compared with analysts’ average estimate of US$1.08 billion, according to LSEG data.

Twilio expects adjusted profit per share to be between 64 cents and 68 cents, compared with analysts’ estimate of 62 cents.

The company said it has more than 313,000 active-customer accounts as of March 31, compared with more than 300,000 from a year earlier.

Twilio posted revenue of US$1.05 billion, for the first quarter ended March 31, beating an estimate of US$1.03 billion.

Its adjusted profit per share came in at 80 cents, also beating analysts’ estimate of 60 cents per share. REUTERS