Twilio (NYSE:TWLO), a leading cloud communications platform, saw its shares plunge over 7% in the last 24 hours, despite initially posting better-than-expected Q4 2024 revenue. The sharp sell-off was primarily driven by the company's weaker-than-anticipated guidance for the first quarter of 2025, which overshadowed its revenue beat and the achievement of its first-ever quarter of GAAP operating profitability.

For the fourth quarter, Twilio reported revenue of $1.19 billion, surpassing analysts' expectations of $1.18 billion and marking an 11% year-over-year increase. However, the company's adjusted earnings per share (EPS) of $1.00 fell short of the consensus estimate of $1.04. While Twilio's core communications business posted a 12% increase in revenue, its smaller Twilio segment witnessed a 1% decline.

Looking ahead to the first quarter of 2025, Twilio's guidance fell short of Wall Street's projections. The company expects revenue in the range of $1.13 billion to $1.14 billion, roughly in line with the consensus estimate of $1.14 billion. However, its anticipated adjusted EPS range of $0.88 to $0.93 missed analysts' expectations of $0.98, sparking concerns about slowing growth and profitability.