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.
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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