Twilio’s CEO and co-founder, Jeff Lawson, has announced his resignation from the company, along with his seat on the board. This move follows persistent pressure from activist investors and a period of slowing revenue growth for the company. Khozema Shipchandler, Twilio’s president and a former GE executive, will be taking over as the new CEO.
Key Takeaway
Jeff Lawson, co-founder and CEO of Twilio, steps down amidst investor pressure and slowing revenue growth, with Khozema Shipchandler set to take over as the new CEO.
Investor Response and Company Performance
Following the announcement, Twilio’s shares surged by nearly 7%, indicating a positive response from investors. The company also stated that it would surpass its previous forecasts for fourth-quarter revenue, adjusted income, and full-year adjusted income. This news further contributed to the favorable market reaction.
Twilio’s recent performance has been a cause for concern among investors. In the third quarter, the company reported a 5% increase in revenue to $1.03 billion compared to the previous year. Despite Lawson’s positive remarks on the results, investors remained focused on the company’s sluggish revenue growth, leading to dissatisfaction among stakeholders.
Implications of Lawson’s Departure
Lawson’s resignation underlines the impact of activist pressure on companies, indicating that board reshuffles and operational adjustments may not always address underlying issues. Furthermore, it serves as a reminder that the tenure of CEOs at tech companies is not immune to the influence of activist investors, even in cases where the CEO has weathered previous challenges.
