Twilio Inc. (NYSE: TWLO) fell over 28 percent on Wednesday after the company forecast second-quarter revenue the fell short of analysts’ estimates.
The San Francisco-based Twilio said it now expects second-quarter revenue of $85.5-$87.5 million and full year revenue of $356-$362 million. Analysts had projected $87.8 million for the second quarter and $370 million for the year, according to FactSet.
Twilio Chief Executive Officer Jeff Lawson said the low-than-expected outlook is due to Uber Technologies, which account for about 12 percent of Twilio’s revenue. He said Uber’s contribution declined. The ride-hailing company will reduce usage of the Twilio’s communications services over the next year and move to its internally messaging system.
Uber and Facebook’s WhatsApp are Twilio’s biggest customers.
Twilio shares plunged 25 percent to $25.22 in the early trading.
The company’s total revenue rose 47 percent to $87.4 in the first quarter and base revenue rose 62 percent to $80.6 million.
“We made continued progress across a number of our key initiatives in the first quarter, delivering further product innovation and adding new customers of all types at a rapid pace around the globe,” said Jeff Lawson, “While we are seeing some changes in the relationship with our largest customer, our momentum across the business continues to be strong, with a 42% year over year growth in Active Customer Accounts and a 62% year over year growth in Base Revenue during the quarter.”