Twilio forecasts slower Q4 organic growth despite Q3 results beat
TWLO•Twilio's third-quarter revenue rose 20% to $1.56 billion and adjusted earnings per share were $1.65, beating analyst expectations. The company expects fourth-quarter organic revenue growth of 11%-12%, down from 16% in Q3, and shares fell about 17% in after-hours trading.
1. Quarterly results
Twilio reported third-quarter revenue of $1.56 billion, above the $1.51 billion analyst consensus, and adjusted earnings per share of $1.65, versus expectations of $1.47. The company repurchased $127.2 million in shares during the quarter.
2. Fourth-quarter outlook
Twilio expects organic revenue growth of 11%-12% in Q4, compared with 16% in Q3. It forecast revenue of $1.595 billion to $1.605 billion, non-GAAP operating income of $300 million to $310 million, and non-GAAP diluted EPS of $1.48 to $1.53.
3. Growth drivers
CEO Khozema Shipchandler attributed Q3 performance to broad-based strength across the product portfolio. Twilio said increased AI adoption is driving demand for its infrastructure products and reported a higher dollar-based net expansion rate, indicating increased spending by existing customers.
