Last week, Twilio's shares fell after they failed to meet shareholder expectations, offering up a weak quarterly earnings report. Following the call, the stock crashed by seven percent. Higher numbers have also been reported. So what was so underwhelming about what Twilio said on the call? According to a report by CNBC, 'earnings, excluding certain items, were three cents per share and not one cent per share, which is what analysts forecasted. When it came to revenue, Twilio reported they earned $295.1 million, not the $287.8 million analysts anticipated.
Twilio reported revenue growth of 75 percent during the third quarter, according to a company press release. They even reported its net-dollar expansion rate was 132 percent, six percentage points under what analysts had predicted. As a result, the measurement of revenue growth fell short of expectations.
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Thanks to CNBC - click to enlarge[/caption]
Twilio CEO, Jeff Lawson, appeared on Jim Cramer's Mad Money last week to defend the company's lower-than-expected numbers, telling Cramer Twilio's seen a lot of success because of its focus on CX. Regarding the earnings report, Lawson told Cramer "we just focus on the long-term," remaining optimistic throughout the interview.
'Simple Math Error’ Will Never Happen Again
This week, CNBC reported, Twilio made a mistake on its earnings report, which led to the stock decline. Lawson again appeared on Mad Money where he shared:
"We've instituted extra processes so this does not happen again, adding "this is one of the growing pains we've experienced as we've grown so quickly"
Analysts predict the CPaaS leader will reach a milestone this year, $1.1 billion in revenue by the end of 2019. Lawson added, “No assumptions have changed. Nothing about our forecast has changed."
Irwin Lazar, Nemertes[/caption]
