Twilio tops Q1 estimates, lowers guidance for fiscal year

The lower-than-expected revenue guidance sent Twilio's shares down as much as 27 percent in after market trading.

Cloud-based communications provider Twilio reported better-than-expected first quarter financial results Tuesday.

The company delivered a Q1 net loss of $14.2 million, or 16 cents per share.

Twilio's non-GAAP earnings were a loss of four cents a share on revenue of $87.4 million, up 47 percent year over year. Wall Street was bracing for a loss of 6 cents a share on revenue of $83.6 million.

In a prepared statement, Twilio CEO Jeff Lawson noted that the company has experienced "some changes in the relationship" with its largest customer. He doesn't state the customer by name but he's likely referring to WhatsApp.

In its pre-IPO S-1 form filed last year, Twilio noted that it generates significant revenue from the Facebook-owned messaging app and warned investors that changes to the relationship could negatively impact revenue.

Lawson offered no further details on the WhatsApp relationship, and instead highlighted that Twilio is "adding new customers of all types at a rapid pace around the globe." Twilio says it now has 40,696 active customer accounts, up from the 36,606 accounts it had at the end of fiscal 2016.

Still, Twilio lowered its revenue estimate for the full year from a range of $364 million to $372 million down to a range of $356 million to $362 million. Shares fell as much as 27 percent in after market trading.

Looking to the current quarter, Twilio expects between $85.5 million to $87.5 million with an adjusted earnings loss per share of 10 cents to 11 cents.

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