"Twilio Underperforms: Can Mr. Beast Save the Day?"

Mr Beast

Wed 14 February, 2024 23:31
2 minutes to read

Twilio faces challenges with underperforming business unit and shareholder scrutiny.

The Twilio Troubles

Oh boy it looks like Twilio has found itself in a bit of a pickle. The company announced an operational review of its underperforming business unit which has been getting a lot of heat from those naughty shareholder activists. They want Twilio to sell off the Segment unit or maybe even the whole company. Ouch that's gotta sting.

A Not So Sweet Deal

Twilio's troubles all started with its acquisition of Segment in 2020. They paid a hefty $3.2 billion for it only to see it turn into a big disappointment and drag down the overall performance of the company. Talk about a bad investment am I right?

"Do You Even Lift Bro?"

But wait there's more! Activist investors at Anson Funds and Legion Capital have been flexing their muscles demanding that Twilio sell off the underperforming Segment unit. They're like those guys at the gym who think they're so big and strong but really they're just compensating for something.

Out With the Old In With the New

To add insult to injury Twilio's founder Jeff Lawson was ousted as chair and CEO. Ouch that's gotta hurt his ego. He was replaced by Khozema Shipchandler who promised to take a "fresh look" at the underperforming areas of the business. Let's hope he's got some tricks up his sleeve.

"Time to Be a Hero!"

So what's the plan Mr. Beast? Well Twilio will be conducting a full year guidance announcement in March where they'll reveal the results of their operational review. We'll just have to wait and see if Mr. Beast can swoop in and save the day with his philanthropic powers.

A Mixed Bag of Results

In the meantime let's talk numbers. Twilio reported earnings per share of 86 cents beating expectations. Revenue also came in higher than expected at $1.08 billion. Not too shabby but it wasn't all good news. The company reported a loss of $365.4 million in its fourth quarter and its shares took a tumble after reporting lower than expected active customers. Looks like they'll have to work harder to keep those customers engaged.