Twilio Inc TWLO shares are trading lower Friday after the company reported better-than-expected financial results, but issued guidance below analyst estimates. Several analysts also downgraded and cut price targets on the stock following the company’s results.
Twilio said second-quarter revenue jumped 41% year-over-year to $943.35 million, which beat the estimate of $919.66 million, according to data from Benzinga Pro. The company reported a net loss of 11 cents per share, which beat the estimate for a loss of 21 cents per share.
“Based on our results and what we’re currently seeing, we remain confident in our growth trajectory as our customers continue to turn to Twilio’s Customer Engagement Platform to help build direct relationships with their customers,” said Jeff Lawson, co-founder and CEO of Twilio.
Twilio said it expects third-quarter revenue to be between $965 million and $975 million versus the estimate of $977.88 million. The company expects a third-quarter adjusted earnings loss between 43 cents and 37 cents per share.
The company also announced that Miyuki Suzuki would be joining Twilio’s board of directors.
See Also: Recap: Twilio Q2 Earnings
- Stifel analyst Parker Lane downgraded Twilio from a Buy rating to Hold and lowered the price target from $200 to $90.
- Atlantic Equities analyst Peter Sazel downgraded Twilio from an Overweight rating to Neutral.
- Mizuho analyst Siti Panigrahi maintained Twilio with a Buy rating and lowered the price target from $200 to $125.
TWLO Price Action: Twilio has a 52-week high of $266.74 and a 52-week low of $77.14.
The stock was down 8.82% at $89.53 at press time.
Photo: Web Summit from Flickr.