Twilio (TWLO) couldn't keep its hot streak going on earnings Tuesday evening. The cloud-computing company's stock is cooling off in after-hours trading after not crushing it on quarterly earnings for the first time in a long time.
Shares were down 5.4% to $109.03 in after-hours trading as of 5:50 p.m. ET following Twilio's earnings release earlier in the afternoon. But that's only eating slightly into the run of a stock that's gone up more 300% in the past year.
The San Francisco-based company reported $0.04 in earnings per share, in-line with analysts' consensus estimates. Revenue came in at $204.3 million, easily besting analysts' $185 million estimate.
Overall, COO George Hu said he felt the results were "extraordinarily strong," but the stock's reaction Tuesday evening stands in sharp contrast to the more than 30% gain Twilio saw after-hours when it last reported earnings in November.
Executive Explanation
But for management, there's less of a concern at this point than in prior quarters over the company's customer "concentration," which saw revenues previously heavily reliant on Uber, Airbnb and WhatsApp (owned by Facebook (FB) ).
Uber once represented almost 20% of Twilio's revenue, but Tuesday's earnings didn't break out any specific customer's sales due to increased diversification.
"We've talked al ot about engaging new customers and diversifying our customer base," Hu explained. "We now have customers like E*Trade (ETFC) , U-Haul and more," he said, noting the growth outside of apps and tech specifically.
CEO Jeff Lawson added that this integration speaks to the overarching idea of the cloud reaching beyond tech.
"There are so many uses for what Twilio does," Lawson said. "When we look out at it, we see a once-in-a-lifetime opportunity."
As such, both executives were firm in their belief that Twilio will continue to grow at a rapid pace as the business world's transition to cloud-computing becomes the norm across industries.
"We see communications as a massive opportunity, and we believe that Twilio is the company that is the leader in this huge transformation," Hu concluded.
SendGrid Set Into Place
Hu and Lawson added that 2019 will be a year to maintain strength and growth for the company, and a key to that story is the recently acquired Denver-based email marketer SendGrid.
"We are excited to add email to our platform through the acquisition of SendGrid and look forward to helping our customers drive their customer engagement strategies across all of the important communication channels -- voice, messaging, video and now email," Lawson said in a statement alongside earnings.
He elaborated in the call that the acquisition will now be categorized into base revenue and should help the company guide to over $1 billion in revenue for the full year 2019.
But for now, Lawson and Hu put off any ideas about increasing M&A spend after the $2 billion buyout of SendGrid.
"Obviously we have a corporate dev team that is always looking at opportunities, but we're really focused on integrating SendGrid right now," Lawson said.
Finding Flexibility
Another portion of the company's efforts is the drive in Twilio Flex, a cloud-based contact center that was launched in October after some testing early last year.
Hu and Lawson noted that the enterprise pickup of the product is already showing strength, even outside of the company's tech home court. Notable customers so far include Shopify (SHOP) , Lyft and U-Haul.
"Our customers are really excited about Flex," Lawson said. "It's still very early days for our customers, but everything is looking fantastic."
For more information on the earnings result, listen in to the live webcast of results here.
(This article has been updated.)
