Twilio Inc (NYSE:TWLO) shares traded 13% lower on Thursday after it reported weaker-than-expected sales growth guidance its first update since its long-serving chief executive stepped down.
Sales are expected to reach US$1.03 billion for the quarter ending in March, lower than the market consensus of US$1.05 billion.
Adjusted operating income is predicted to remain in line with Wall Street guidance at between US$120 million and US$130 million.
A full-year outlook has been delayed until next month as the company undergoes an “operational review” of its Segment business, which includes both its applications and data divisions.
Anson Funds, an activist investor, has been calling for the company to sell one or both arms.
New CEO Khozema Shipchandler acknowledged that the business wasn’t performing as well as the company had hoped, pointing out that 93% of revenue came from its communications business last year.
Twilio is also ending smaller areas of its business including video products, as it aims to do “fewer things better”.
In January, Twilio boss and co-founder Jeff Lawson left the company after receiving criticism from activist investors.
Analysts believe more C-suite changes could come as Shipchandler looks to reorganise operations and reignite growth in the company’s share price.