Shares of Twilio TWLO, -2.22%   tumbled 25% on Wednesday after Twilio blamed client Uber’s distancing for a weaker-than-expected outlook. That’s prompted analysts to admit they were wrong about the severity of the threat set to weigh heavily on Twilio’s business.

On a call with analysts shortly after the company reported first-quarter earnings late Tuesday, Twilio CEO Jeff Lawson said Uber, which accounted for 12% of the company’s revenue during the quarter, would be moving some of the technology it uses to communicate with customers in-house.

Twilio makes cloud-based software that brands can use to reach out to customers: think in-app messaging services. While it has major brands on its books as clients, including Nordstrom JWN, +1.11%  , Airbnb Inc. and Inc.AMZN, +0.23%  , Uber and Facebook Inc.’s FB, -0.30%  WhatsApp are its two largest clients by far.

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