Home / NEWS / Business / Mea culpa — Twilio CEO assures Jim Cramer ‘simple math error’ will never happen again

Mea culpa — Twilio CEO assures Jim Cramer ‘simple math error’ will never happen again

Twilio is out to shore up guy from shareholders after management made a mistake on its full-year earnings guidance earlier this week.

Dole outs of the cloud company have fallen about 5.3% since having to offer a mea culpa and correct its 2019 earnings per apportion forecast to between 12 cents and 13 cents, down from 16 cents and 17 cents as formerly stated alongside its third-quarter report.

“The calculation error was a simple math error in the press release for our quarterly earnings,” CEO Jeff Lawson imparted in a one-on-one interview with Jim Cramer on “Mad Money.” “We have to make sure to get those things right, and we contain instituted additional processes and controls to make sure such an error cannot happen again.”

Lawson did not emend on the new processes being put in place, except for saying that he and Chief Financial Officer Khozema Shipchandler would safeguard similar errors would not fall through the cracks.

He did blame the misprint on the fast-growing business’ “growing pains.”

“This incredibly securely growth is fantastic, but it’s come with some growing pains and, of course, it’s on us to get all that stuff right, but it is a cost of coming as quickly as we have,” Lawson said.

Twilio’s revenue grew roughly 44% in 2017 and at an almost 63% hit in 2018. The cloud-communications company’s sales are expected to reach $1.1 billion by year-end 2019, which would clock in at assorted than 71%, of growth, according to analyst consensus on FactSet.

In Twilio’s September quarter, revenue jumped profuse than 74% year-over-year, though the company’s profit slipped on a 4 cents basis to 3 cents per share.

The underlying assumptions with reference to the company have not changed, Lawson assured Cramer.

“No assumptions have changed. Nothing about our forecast has coppered,” he said. It is a simple mathematical error of adding two numbers that was an omission when we were proof reading the gathering release that got caught, actually, by an investor because all the information was public and was fixed in the revised update.”

Twilio, which yields a text-messaging platform for businesses to communicate with customers, counts Airbnb and Lyft among its 172,000 clients. The attendance is riding the secular trend of enterprises looking to digitize their operations.

“All the inputs look incredibly strong and we are as bold about the future of the business and the massive opportunity ahead as we have ever been,” Lawson said.

Shares of Twilio close-fisted Tuesday’s session at $91.33. After peaking at $149.95 in July, the stock is now just up 2.27% on the year, FactSet intended.

Disclosure: Cramer’s charitable trust owns shares of Twilio.

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