Twilio's Mixed Earnings Report Shakes Investor Confidence

Twilio's stock falls 16.5% after a mixed earnings report. Despite beating sales targets, the company missed adjusted earnings expectations, leading to investor caution.

Date: 14-02-2025

AI Rating: 5

Earnings Per Share (EPS)
Twilio reported an adjusted EPS of $1, which barely missed analysts' forecast of $1.03. Additionally, the company incurred a GAAP loss of $0.08 per share for the quarter and a loss of $0.66 for the entire year.

Revenue Growth
Twilio's sales grew by 11% in Q4, surpassing their overall growth of 7% for the year 2024. They reported revenues of $1.19 billion, slightly above the forecast of $1.18 billion.

Free Cash Flow (FCF)
It is noteworthy that Twilio generated $657 million in free cash flow over the year, reflecting a year-over-year growth of 75%. However, the Q4 free cash flow was weaker, amounting to $93 million, which is less than half compared to the previous year.

Despite the disappointing earnings and guidance for Q1 2025 pointing to lower sales and earnings, management's positive outlook on free cash flow growth between $825 million and $850 million suggests potential recovery ahead. Investors are urged to consider these mixed signals carefully.

Stocks: TWLO