Twilio Stock Is Tumbling Thursday: What's Going On?

Twilio Inc TWLO shares are trading lower Thursday on the heels of the company’s fourth-quarter results. Here’s what you need to know.

• Q4 Revenue: $1.08 billion, beat estimates of $1.04 billion

• Q4 EPS: 86 cents, beat estimates of 58 cents

Communications revenue came in at $1 billion, up 5% year-over-year. Segment (formerly Data & Applications) revenue totaled $75 million, up 4% year-over-year. Twilio noted that management is performing an operational review of its Segment business in order to determine the appropriate path forward for improved execution and profitable growth.

Twilio had more than 305,000 active customer accounts as of Dec. 31, up from more than 290,000 at the end of 2022.

"Twilio had a terrific fourth quarter to close out a strong 2023. It's a privilege to lead the Twilio team into its next chapter as we continue to make strides on our path to GAAP profitability," said Khozema Shipchandler, CEO of Twilio.

Twilio expects first-quarter revenue to be between $1.025 billion and $1.035 billion versus estimates of $1.05 billion. The company sees first-quarter adjusted earnings in the range of 56 cents to 60 cents per share versus estimates of 54 cents per share.

Twilio noted that it plans to provide full-year income from operations guidance and other updates to its financial framework after it completes its operational review in March.

Following the print, Northland Capital Markets analyst Michael Latimore downgraded Twilio from Outperform to Market Perform and announced a price target of $66.

Check This Out: HubSpot Analysts Increase Their Forecasts Following Upbeat Results

TWLO Price Action: Twilio shares were down 11.1% at $64.28 at the time of writing, according to Benzinga Pro.

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