Jeff Lawson
Abigail Stevenson | CNBC
Shares of cloud communications company Twilio fell as much as 17% on Wednesday after the company gave lower-than expected quarterly earnings and revenue guidance.
Here’s how the company did:
- Earnings: Excluding certain items, 3 cents per share, vs. 1 cent per share as expected by analysts, according to Refinitiv.
- Revenue: $295.1 million, vs. $287.8 million as expected by analysts, according to Refinitiv.
Twilio’s revenue grew 75% in the fiscal third quarter, which ended on September 30, according to a statement. The company said its net-dollar expansion rate, a measurement of revenue growth from for active customer accounts, in the quarter was 132%, below the 138% consensus estimate among analysts polled by FactSet.
The company called for 1 cent to 2 cents in earnings per share, excluding certain items, on $311 million to $314 million in fiscal fourth quarter revenue. Analysts polled by Refinitiv had expected an average of 7 cents in earnings per share, excluding certain items, and $322.0 million in revenue.
Piper Jaffray analysts led by Brent Bracelin assumed coverage of Twilio with the equivalent of a buy rating on Monday.
“Few cloud software franchises are at $1B+ run-rate, yet still growing organically by 50%-plus with a profitable model, large TAM opportunity, and strong leadership,” the analysts wrote.
In the fiscal third quarter Twilio announced a service for carriers and app makers that can prove the validity of phone calls, and a tool companies can use to have conversations with customers across multiple channels.
Twilio shares are up 22% since the start of 2019.
Executives will discuss the results with analysts on a conference call at 5 p.m. Eastern time.
This is breaking news. Please check back for updates.
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