Twilio Stock Slides On Mixed Q4 Earnings

Twilio Inc TWLO reported fourth-quarter financial results after the market close on Thursday. Here’s a look at the key details from the quarter.

• Q4 Revenue: $1.19 billion, versus estimates of $1.183 billion

• Q4 EPS: $1.00, versus estimates of $1.04

Fourth-quarter revenue was up 11% year-over-year, Communications revenue came in at $1.12 billion, up 12% year-over-year, and Segment revenue totaled $74.1 million, down 1% year-over-year.

Twilio had more than 325,000 active customer accounts as of Dec. 31, up from 305,000 at the end of 2023.

Twilio generated $108.4 million in operating cash flow and $93.5 million in free cash flow during the fourth quarter. The company ended the quarter with $421.3 million in cash and cash equivalents.

“Twilio’s focus on financial discipline, operational rigor, and innovation is paying off as we delivered a second consecutive quarter of double digit growth and our first ever quarter of GAAP operating profitability,” said Khozema Shipchandler, CEO of Twilio. “I’m energized by the momentum in our business as we deliver on our vision to ensure every digital interaction between businesses and consumers is amazing.”

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Outlook: Twilio expects first-quarter revenue to be between $1.13 billion and $1.14 billion versus estimates of $1.143 billion, per Benzinga Pro. The company anticipates first-quarter adjusted earnings of 88 cents to 93 cents per share versus estimates of 99 cents per share.

Twilio expects full-year 2025 organic revenue growth of 7% to 8%. The company expects to generate $825 million to $850 million in free cash flow in 2025.

Twilio said it completed its previous share repurchase program before the end of 2024. The company authorized a new buyback of up to $2 billion in January with an expiration of Dec. 31, 2027.

Twilio executives will discuss the quarter on a conference call with investors scheduled for 5 p.m. ET.

Price Action: Twilio shares were down 5.37% after hours, trading at $139.37 at the time of publication Thursday, according to Benzinga Pro.

Photo: Shutterstock.