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Twilio (NYSE:TWLO) shares sank more than 10% during early post-market trading Thursday after its second quarter fiscal 2025 financial results featured a third quarter earnings per share forecast that was weaker than the market expected.
Twilio shares had already shed 6% by the closing bell. However, the stock has more than doubled over the past year.
For the quarter ended June 30, the communications platform reported adjusted earnings per share of $1.19, which was more than the consensus estimate of $1.05. The San Francisco-based company reported GAAP EPS of $0.14 versus the estimate of $0.12.
Revenue for the quarter increased 13% year-over-year to total $1.23B, which surpassed the estimate of $1.19B.
Twilio also increased its active customer account year over year from 316,000 in June 2024 to 349,000 by June 2025.
For the quarter in progress, Twilio expects revenue to range from $1.25B to $1.26B, which is well above the estimate of $1.22B. However, it projects adjusted EPS to range from $1.01 to $1.06 compared to the estimate of $1.14.
Twilio also reiterated its fiscal 2025 non-GAAP income from operations target of $850M to $875M, and raised its free cash flow target to $875M to $900M, compared to a prior forecast of $850M to $875M.
“The company’s focus and execution is paying off as Q2 marked another quarter of accelerated year-over-year revenue growth as well as record non-GAAP income from operations and free cash flow,” said Twilio CEO Khozema Shipchandler. “During the quarter, Twilio showcased our latest innovations at our user conference, Signal, further cementing our place in the ecosystem as the infrastructure layer for customer experience.”