December 6, 2023

Amplitude shareAirbnb and Twilio fell sharply this morning after reporting earnings yesterday.

It might seem odd to group these companies together, given their disparate industries: Amplitude does analytics for digital products, Airbnb offers a marketplace for consumer accommodation rentals, and Twilio sells communication services for software products through APIs. What do they have in common?

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The answer appears to be their growth forecast for this year, which is below Wall Street expectations.

While we’re not happy with how slowly America’s largest tech companies have expanded their revenues, we don’t seem to be dealing with an issue that only affects big tech companies. Their smaller peers have encountered similar headwinds.

This morning we’ll review each company’s performance, then we’ll hear from the CEO of Amplitude Spencer skates, who we talked to yesterday. Finally, we’ll look at the broader index of growth rates for modern software companies and put it all together to glean lessons for startups.

The (financial) road ahead

Airbnb needs no introduction, we can jump look directly at the numbers. Company News better than expected income And its first GAAP profit for the quarter, while also generating a lot of cash. That certainly feels like a good result, especially considering that in this economy, revenue has grown 20% in the Airbnb era.

However, Airbnb expects second-quarter revenue growth of 12% to 16% year-over-year. This is well below the 58% growth rate in the second quarter of 2022 and the 20% growth rate in the first quarter of 2023.investor done no like that prediction.

As for Twilio, it Report better than expected profits and income Q1, but its second-quarter revenue forecast of $980 million to $990 million, or just 4% to 5% growth, left investors unsatisfied, especially as analysts see expect Revenue of $1.05 billion is much higher.