It was reported today that TWLO has made a calculation error so it is reissuing its FY EPS guidance. It’s now $0.12-0.13 compared to previously issue guidance of $0.16-0.17. It’s shocking that their finance team got this wrong. They should be quadruple checking every number that goes into their financial results before releasing the results. Any reason to doubt TWLO.
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I just read this and pulled the trigger. I placed sell orders on every remaining share I had five minutes before the market opened.
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Saw that and if it doesn’t tell you something then nothing will. Good luck to those who are still with them, but it stinks.
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I was holding after earnings despite some of the well thought out and objective sell side views on the board. But, this “accounting error” is really pretty sketchy and hard to believe is simply honest oversight. Twiio knew they were reporting a less than stellar report and just happened to make a rather significant mistake that is revealed a few days later? Have to wonder how much worse the drop in share price would have been on day of earnings if this wide EPS gap had been revealed then.
TWLO’s “accounting error” appears to be pulling Saas companies down with it today. I imagine this is only temporary collateral damage.
Brian
It was reported today that TWLO has made a calculation error so it is reissuing its FY EPS guidance. It’s now $0.12-0.13 compared to previously issue guidance of $0.16-0.17. It’s shocking that their finance team got this wrong. They should be quadruple checking every number that goes into their financial results before releasing the results. Any reason to doubt TWLO.
I was still positive on TWLO but sold after earnings for two main reasons - it was still in a downward trend and I could use the tax loss.
Now I am very glad that I did.
This unforced error, more than anything else, is a red flag to me. There is now a pattern of recent missteps and this type of error is often the beginning of more trouble due to less than competent management.
So TWLO is in the penalty box. I would consider buying back in due to all the longer term positive but only after it starts to right the ship. I expect it to see the 80’s or even lower.
Dave
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It was an error adding all four quarter EPS(past three quarter actual plus next quarter guidance). While it stinks, I don’t think this is an accounting error, or further guidance cut. People make this kind of stupid mistake.
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“People make this kind of stupid mistake.”
Not Companies I want to be associated with.
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I have no confidence in TWLO after this. Presumably the CEO, CFO and several others saw these numbers before release.
Well that is an own goal of I’ve ever seen one. So let’s see.
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billing problem to the tune of 5 million maybe more, we shall see…ooops
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calculation error in eps…own goal
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organic twlo rev growth from 60s to 50s to 47%. Well that happened quickly.
4)sbc on the very high side and margins on the low side.
Hope isn’t a great investment strategy.
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This certainly reflects very badly on the CFO, especially given the billing issue they also experienced. Surely he reviewed the numbers before they were released.
(I was in the ‘hold’ camp, but now I’m re-considering.)