Twilio shares plummet on pessimistic outlook
Updated
US software firm Twilio delivered strong third-quarter revenue results Wednesday but still saw its share price plummet.
Twilio’s stock was down more than 12% in after-hours trading Wednesday in New York after the company’s pessimistic fourth-quarter outlook contradicted analysts' expectations.
Twilio forecast a fourth-quarter adjusted loss of $0.23 to $0.26 per share, according to the financial report. But analysts polled by Dow Jones projected a per-share loss of $0.13.
Revenue increase
The larger anticipated loss contrasted with Twilio’s 65% year-over-year revenue increase to $740.2m.
“We delivered another quarter of strong growth at scale in the third quarter as companies continue to turn to Twilio in this digital-first world,” said Jeff Lawson, Twilio’s co-founder and CEO in a news release accompanying the earnings results.
Based on generally accepted accounting principles (GAAP), Twilio’s loss from operations increased 106.86% to $232.3m from $112.3 million a year earlier.
COO parting company
Meanwhile, Twilio announced that COO George Hui is leaving the company. Hui’s resignation took effect Wednesday but he will remain with the company as an advisor until early January.
CFO Khozema Shipchandler will add the COO role to his portfolio.
Twilio had more than 250,000 active customer accounts as of 30 September, compared to 208,000 active customer accounts as of the same time in 2020.
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