Twilio Stock Dives As Quarterly Earnings Beat, Chief Operating Officer Departs

 Twilio Stock Dives As Quarterly Earnings Beat, Chief Operating Officer Departs

Twilio stock fell after it reported a narrower-than-expected loss for its third quarter while gross margins were in line with estimates amid its acquisition spree. Revenue growth topped analyst estimates in the Twilio earnings report.




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Twilio (TWLO) said it earned 1 cent per share on an adjusted basis vs. a 4-cent profit in the year-earlier period. Revenue jumped 65% to $740.2 million, including acquisitions, the communications software maker said.

Analysts had estimated Twilio would report a 14-cent loss on revenue of $681 million.

Twilio reported earnings after the market close on Wednesday. The company also said Chief Operating Officer George Hu is leaving.

Twilio Earnings: Gross Margins In-Line

Twilio stock fell 11% to near 306 on the stock market today.

The software maker said adjusted gross margin came in at 54%, in line with estimates. Twilio said it had more than 250,000 active customer accounts, up from 208,000 in the year-earlier period.

For the December quarter, Twilio said it expects revenue of $765 million at the midpoint of its guidance. Analysts had projected revenue of $745 million.

Heading into the Twilio earnings report, shares had advanced nearly 4% in 2021, lagging most software growth stocks. Twilio stock hit an all-time high of 457.30 on Feb. 18.

Twilio Stock: Acquisition Spree Crimps Profits

Twilio’s tools enable app developers to embed voice, text messaging and video into their products. In addition, Twilio’s software makes it easier for cloud-based applications to communicate.

Twilio acquired Segment in November for $3.2 billion in stock. It bought SendGrid in 2018 for $2 billion.

In March, Twilio agreed to buy India’s ValueFirst. In May, Twilio bought ZipWhip.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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