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.


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.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.

IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

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

How This IBD Tool Simplifies The Search For Top Stocks

Find Compelling Growth Stocks With IBD’s Stock Of The Day

Get A Free Trial Of IBD Leaderboard

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Related post