Twilio (NYSE:TWLO) shares dropped more than 15% intra-day today after the company reported a soft Q2 revenue outlook. Despite posting better-than-expected Q1 EPS of $0.47 and revenue of $1.01 billion (up 15% year-over-year), Q2 guidance failed to meet investor expectations.

Twilio CEO Jeff Lawson stated that the company had structured its business to operate profitably in any financial climate, as evidenced by the strong Q1 non-GAAP income from operations. However, for Q2/23, Twilio expects EPS in the range of $0.27-$0.31 and revenue between $980 million and $990 million, missing the Street estimates.

Following the results announcement, several Wall Street firms cut their price target on the stock, including Morgan Stanley with a new target of $65.00 (from $82.00), and JPMorgan with a new target of $80.00 (from $95.00).