Twilio Inc on Tuesday forecast second-quarter revenue below estimates on shrinking demand for cloud services, sending the company’s shares tumbling nearly 13% in extended trading
The San Francisco-based cloud service provider had benefited during the pandemic on strong demand from businesses looking to operate amid lockdowns, but its growth has inched lower as customers look to optimize cloud spending amid economic turbulences.
In February, the company said it was eliminating about 17% of its workforce and closing some offices as part of a restructuring effort to focus on profitability.
It expects second-quarter revenue in the range of $980 million to $990 million, compared with analysts’ average estimate of $1.05 billion, as per Refinitiv data. However, it reported a rise in active customer accounts, more than 300,000 in the first quarter ended March 31, 2023, compared with over 268,000 a year earlier. It reported adjusted net income of $0.47 per share, beating analysts’ average estimate of $0.21.
Revenue rose 15% to $1.01 billion.
