11:00 AM EDT, 05/08/2024 (MT Newswires) -- Twilio's ( TWLO ) Q1 results potentially marked the start of a "long and winding" road to recovery, Macquarie said Wednesday.

Late Tuesday, the company reported Q1 revenue of $1.05 billion, up from $1.01 billion a year earlier. Analysts surveyed by Capital IQ expected $1.03 billion.

The better-than-expected revenue was one of the positives of the quarter, Macquarie analysts, including Frederick Havemeyer, said in a note. "With segment restructuring just underway and volume inflection yet to come, we aren't surprised by the 7% aftermarket selloff," they said.

The brokerage reduced its 2024 sales outlook for Twilio ( TWLO ) by 0.7% to $4.38 billion while lifting its non-GAAP per-share earnings expectation by $0.42 to $3.31, according to the note.

The company's shares were down over 5% in recent Wednesday trading.

Price: 60.06, Change: -3.32, Percent Change: -5.23