"I take responsibility for choosing to grow our team faster... And now, I also own the decision to become more focused - resulting in this layoff," says CEO Jeff Lawson.
Twilio sales exploding but company is operating at a net loss
Although Twilio sales have been soaring over the past year - on pace to generate well over $3.5 billion in 2022 - the company continues to operate at a net loss.
Twilio revenue jumped 41 percent year over year during its recent second quarter 2022, capturing $943 million in sales. During its first quarter, revenue increased 48 percent year over year to $875 million.
However, Twilio reported a total operating loss of $312 million in its second quarter 2022, compared to a loss of $202 million in second quarter 2021.
Twilio's operating expenses for sales and marketing, and R&D grew significantly from second quarter 2021 to second quarter 2022.
In 2021, Twilio reported annual sales of $2.84 billion, but an operating net loss of $915 million.
In 2020, Twilio acquired customer data analytics specialist Segment for a whopping $3.2 billion and spent hundreds of millions on several other acquisitions since 2020.
In an SEC filing this week, Twilio provided financial guidance for its current third quarter.
Twilio expects to generate around $970 million in its third quarter, which would represent about 31 percent sales growth year over year. However, the company projects a total loss from operations of between $60 million and $70 million in the third quarter.
"We are builders. This is all part of the complicated, difficult and at times emotional journey as builders," said Lawson to employees. "No doubt, it will be a hard few months as we change the shape of our company for the opportunity ahead."
The publicly traded company currently has a market cap of over $14.3 billion.
This article originally appeared on Computing's sister site, CRN.com
