— Finance

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

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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, said the communications software maker.

Analysts had estimated Twilio would report a 14-cent loss on revenue of $681 million. Twilio reported earnings after the market closed on Wednesday. The company also said Chief Operating Officer George Hu is leaving.

Twilio Earnings: Gross Margins In-Line

Twilio stock fell 6% to near 324.75 on the stock market today. The software maker said the adjusted gross margin came in at 54%, in line with estimates. Twilio said it expects revenue of $765 million at the midpoint of its guidance for the December quarter. Analysts had projected revenue of $745 million.

In 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 looking 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.

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About author
Tristan McCue is a 26-year-old junior programmer who enjoys reading, binge-watching boxed sets, and appearing in the background on TV. He is smart and friendly, but can also be very evil and a bit lazy.He is an Australian Christian. He has a post-graduate degree in computing.
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