Twilio Inc ( TWLO ) shares are trading lower Wednesday after the company reported first-quarter financial results and issued soft guidance for the second quarter.

What Happened: Twilio ( TWLO ) said first-quarter revenue was up 4% year-over-year to $1.05 billion, which beat the consensus estimate of $1.03 billion. The cloud-based customer engagement company reported quarterly earnings of 80 cents per share, which beat analyst estimates of 60 cents per share, according to Benzinga Pro.

Communications revenue came in at $972 million, up 4% year-over-year. Segment revenue totaled $75 million, up 2% year-over-year. Twilio ( TWLO ) said it had more than 313,000 active customer accounts as of March 31, up from 300,000 year-over-year. 

"We are operating with greater financial discipline, operational rigor, and focus on innovation than ever before. Our solid first quarter results build on the momentum that we've delivered over the last several quarters, demonstrating continued progress on profitability and significant free cash flow," said Khozema Shipchandler, CEO of Twilio ( TWLO ). 

"Moving forward, we'll continue to drive further leverage, while also making focused investments that we expect will re-accelerate growth over time."

Guidance: Twilio ( TWLO ) expects second-quarter revenue to be between $1.05 billion and $1.06 billion versus estimates of $1.08 billion. The company anticipates second-quarter earnings of 64 cents to 68 cents per share versus estimates of 62 cents per share. Twilio ( TWLO ) also said it expects full-year 2024 revenue growth of 5% to 10%.

Following the print, Baird analyst William Power maintained Twilio ( TWLO ) with a Neutral rating and lowered the price target from $70 to $65.

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TWLO Price Action: Twilio ( TWLO ) shares were down 7.05% at $58.90 at the time of publication, according to Benzinga Pro.