Twilio Shares Drop Following Weak Fourth-Quarter Growth Guidance
Twilio (TWLO) reported third-quarter revenue of approximately $1.56 billion, representing a 20% year-over-year increase driven by strong organic growth and improved cost controls. The company successfully converted revenue into profit, with GAAP operating margins rising to 10% from 3% in the prior year, supported by free cash flow of roughly $370 million. Despite these gains, investor sentiment turned negative due to a cautious fourth-quarter outlook. Twilio projected organic revenue growth to slow to between 11% and 12%, down from the current 16%. Additionally, guided adjusted operating income for Q4 is expected to decrease compared to the third quarter, causing shares to fall approximately 14% in after-hours trading.
Tickers: $TWLO
Topics: free cash flow guidance operating margin revenue growth