Twilio Stock Drops As Earnings Top Estimates Amid Buying Spree

Twilio stock dropped in extended trading Thursday as June-quarter earnings fell from a year earlier but topped views amid its acquisition spree. Revenue growth handily beat analyst estimates in the Twilio earnings report.

Amid recent acquisitions, Twilio‘s (TWLO) organic growth has been an issue for investors.

Twilio said it lost 11 cents per share in the quarter ended June 30 vs. a 9-cent profit in the year-earlier period. Revenue jumped 67% to $669 million, said the communications software maker.

Analysts had estimated Twilio would report a 13-cent loss on revenue of $598.4 million.

Twilio stock was up initially, but dropped in extended trading by 1.3% near 387 on the stock market today. Heading into the Twilio earnings report, shares had advanced 16% in 2021. Twilio stock hit an all-time high of 457.30 on Feb. 18.

Shares then swooned along with most software growth stocks. Twilio stock rebounded after its March-quarter earnings report.

For the September quarter, San Francisco-based Twilio said it expects a loss in a range of 14 cents to 17 cents per share on revenue of $675 million. Analysts had projected  a 7-cent loss on revenue of $636.4 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.

Heading into the Twilio earnings report, the company had a Relative Strength Rating of 69 out of a best-possible 99, according to IBD Stock Check-up.

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

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William Murphy

William Murphy

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