Uber gets the blame as cloud software developer Twilio's outlook lags estimates

Shares in cloud-computing software group Twilio Inc (NYSE:TWLO) plunged by almost 30% today despite reporting strong first-quarter results after its full-year outlook lagged estimates, with its boss blaming key customer, Uber Technologies Inc for the disappointment.

In an earnings call following the after-hours results release, Reuters reported that Twilio’s chief executive officer Jeff Lawson said the taxi-hailing app firm will reduce usage of the company’s services over the next year.

Uber – which uses the company’s software to connect drivers and passengers without divulging personal information – accounted for more than 10 % of Twilio’s revenue in 2016.

The San Francisco-based firm’s other customers include Facebook Inc’s (NASDAQ:FB) WhatsApp, which accounted for about 9% of the company’s revenue in 2016.

Both full-year revenues, earnings seen below forecasts

Twilio forecast its full-year revenue to be US$356mln-US$362mln, below the average market estimate of US$370.1mln.

The company also forecast its full-year adjusted loss to be 27 US cents-30 US cents, well above the average estimate for a 16 US cents loss.

For the first quarter, Twilio’s revenue jumped by 47.2% to US$87.4mln, exceeding estimates for US$83.6mln.

Excluding exceptional items, the company’s first-quarter adjusted loss was 4 US cents per share, better than the expected loss of 6 US cents per share.

In pre-market New York trading, Twilio shares were 29% lower at US$24.05.

Story by ProactiveInvestors