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A Twilio (TWLO) Profits and turnover were up for the first quarter, and the company's higher forecast for the full year still left some investors choosing to take profits Wednesday. Twilio's shares fell as investors took into account the company's updated guidance, including the acquisition of SendGrid last year.
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Twilio's adjusted earnings were 5 cents per share, comparable to the previous year, with sales up 81% to $ 233.1 million. Profits include a 5-cent interest gain. Analysts expect Twilio to report a profit of 1 cent on a turnover of $ 223 million for the period ended March 31.
"As quarterly rates begin to contract, we still see a clear improvement over consensus expectations until fiscal year 2020," said Alex Zukin, Piper Jaffray analyst, in a report to clients .
The main product of Twilio is a software platform that allows application developers to integrate voice, text and video messaging into their products. Acquired for $ 2 billion, SendGrid operates a cloud-based email marketing platform.
Twilio defines its international expansion
In addition, Twilio updated its own forecasts for the year 2019. It included 11 months of SendGrid contribution.
The company forecast revenues of $ 1.106 billion at mid-term, up 70 percent from the previous year. Analysts estimate sales at $ 1.075 million.
"We expect a slight improvement in gross margin in 2019, as the benefits of the inclusion of SendGrid will be partially offset by continued investments in international regions with low gross margins," said Bhavan Suri, an analyst with William Blair. , in his note to customers. He added that "the company continues to prioritize growth and reinvestment rather than maximizing margins".
For the current quarter at the end of June, Twilio was forecasting revenues of $ 262 million to $ 265 million. This exceeded estimates by $ 251.5 million.
The Twilio stock has fallen 3.1% to 132.86 on the stock market today. Despite the gain on Twilio, the title did not exceed the entry point of 136.10. The stock of Twilio has increased by more than 200% compared to a year ago.
Follow Reinhardt Krause on Twitter @reinhardtk_tech.
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