Cloud communications company Twilio Inc TWLO revised its full-year earnings guidance lower due to a "simple math error," and CEO Jeff Lawson promised investors it can't happen again.
What Happened
Twilio revised its full-year earnings guidance Monday just days after announcing it to the Street. The company lowered its EPS outlook from a range of 16- 17 cents to a new range of 12-13 cents.
It wasn't due to any new business developments, but rather to "growing pains," Lawson said on CNBC's "Mad Money" Tuesday .
"It's on us to get all that stuff right, but it is a cost of growing as quickly as we have," the CEO said.
Why It's Important
A simple calculation error naturally raises some eyebrows from some investors, and Lawson was in damage control mode after "Mad Money" host Jim Cramer said the error is "not something I expect from you."
The CEO owned up to the error and said it is "on us to get the simple calculations correct." No assumptions about its forecast and outlook have changed, he said.
Tthe error was first caught by an investor, and new but unspecified controls were put in place to ensure a mistake of this nature never happens again, Lawson said.
"It's on us to give investors the best and most accurate information," he said. "We take that to heart."
What's Next
Twilio is modeled to reach $1.1-billion annual revenue mark in 2019, which would imply growth of more than 71%, according to CNBC.
"All the inputs look incredibly strong and we are as confident about the future of the business and the massive opportunity ahead as we have ever been," Lawson said.
Twilio shares were up 1.35% at $92.54 at the time of publication.
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