{
  "id": 17123396,
  "title": "Twilio Sees Slower Q4 Growth and Lower Profit: Rapid Earnings Reaction",
  "url": "https://urgent.news/2026/10/29/twilio-sees-slower-q4-growth-and-lower-profit-rapid-earnings-reaction",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-29T20:51:53.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/29/twilio-sees-slower-q4-growth-and-lower-profit-rapid-earnings-reaction/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Twilio (TWLO) experienced slower growth and reduced profits in Q4, with investors reacting quickly to the earnings report. The company reported a 16% increase in organic revenue for the third quarter, but now anticipates a deceleration to 11% to 12% in the fourth quarter. This caused Twilio's shares to drop by approximately 14% in after-hours trading. Despite turning growth into profit in the quarter, Twilio's outlook indicates a decline in both growth and operating profit by year-end. The company's earnings were driven by existing customers, who send more texts and calls, leading to revenue growth without additional sales efforts. Twilio's pricing model means that customers' increased use results in revenue growth without extra sales. The expansion rate, which measures how much more customers spend than they did a year earlier, directly tracks revenue growth. However, carrier fees, which accounted for about $53 million of revenue, did not contribute to profit. The profit increase was primarily due to cost control, with operating costs rising by less than 4%, allowing most of the new gross profit to directly impact the bottom line. The company's guidance for the fourth quarter is a weak point, as adjusted operating income is expected to be between $300 million and $310 million, which is lower than the third quarter's level, even as revenue continues to rise. Investors should monitor whether fourth-quarter organic growth remains at the anticipated 11% to 12% level and whether management provides an explanation for the slowdown. Additionally, it will be important to see if the expansion rate remains above 110%.",
  "summary": "Twilio’s profit jumped last quarter as its operating margin rose to 10% from 3%, but its guidance calls for slower growth and lower operating profit at year-end. Here’s what the release doesn’t explain.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "ServiceNow Guides to Slower Backlog Growth: Rapid Earnings Reaction",
        "url": "https://urgent.news/2026/10/29/servicenow-guides-to-slower-backlog-growth-rapid-earnings-reaction",
        "published": "2026-10-29T17:46:10.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}