Shares in Twilio Inc. fell nearly 7% in late trading today after the communications tool provider came up short on guidance after reporting quarterly results roughly in line with analysts’ expectations.

For its fiscal 2024 fourth quarter, which ended on Dec. 31, Twilio reported adjusted earnings per share of $1, up from 86 cents in the same quarter of 2023, on revenue of $1.195 billion, up 11% year-over-year. The $1 per share was dead on what analysts had expected, while the revenue was slightly ahead of an expected $1.17 billion.

Twilio saw communications revenue of $1.121 billion in the quarter, up 12% year-over-year, and segment revenue of $74 million, down 1%. The company’s dollar-based net expansion rate, a metric that measures revenue growth from existing customers over a specific period, came in at 106% in the quarter, the highest level hit by the company over the last five quarters.

Top customer acquisitions in the quarter included a leading online rug retailer, which rapidly scaled up its SMS marketing campaign with Twilio, sending 1.5 million messages over Cyber Week. Additionally, a seven-figure deal was secured with a global investment adviser to consolidate its authentication solution under Twilio, integrating its Verify and Lookup services for global coverage.

The company also strengthened partnerships with E.ON Next UK Ltd. through a three-year Voice commitment and expanded messaging services for a leading European bank. Other wins included SMS deals with Klaviyo Inc. in Europe and a Voice contract with Australia’s O’Brien Glass Industries Ltd., the latter delivering cost reductions and scalability for operations.

For its full fiscal year 2024, Twilio reported adjusted earnings per share of $3.67, up from $2.45 per share in 2023, on revenue of $4.458 billion, up 7% year-over-year.

“Twilio’s focus on financial discipline, operational rigor and innovation is paying off as we delivered a second consecutive quarter of double-digit growth and our first-ever quarter of GAAP operating profitability,” Chief Executive Khozema Shipchandler said in the company’s earnings release.

For its fiscal 2025 first quarter, Twilio expects to see adjusted earnings per share of 88 to 93 cents on revenue of $1.13 billion to $1.14 billion. The earnings-per-share outlook was short of the 98 cents expected by analysts, while the revenue outlook at the midpoint fell just shy of the $1.14 billion expected.

For the full year, the company expects adjusted income from operations of $825 million to $850 million and free cash flow of $825 million to $850 million.

Photo: Twilio