After the software company’s projection came in below Wall Street estimates following a reported beat in the prior quarter, Twilio Inc. shares declined during the extended session on Thursday.
Twilio (NYSE: TWLO) reported a loss of $322.8 million, or $1.77 per share, in the second quarter, up from a loss of $227.9 million, or $1.31 per share, in the same quarter last year.
In comparison to the same time last year, adjusted earnings, which don’t include stock-based compensation costs and other items, were 11 cents per share.
In the most recent quarter, revenue increased from $668.9 million to $943.4 million.
Based on Twilio’s prediction of a loss of 23 to 20 cents a share on revenue of $912 million to $922 million, analysts surveyed by FactSet predicted a loss of 19 cents a share on revenue of $921.6 million.
However, after hours, shares plummeted by 7% as the company’s outlook was below Wall Street expectations. The regular session of Twilio stock ended with a 0.5% gain, closing at $98.19.
For the third quarter, Twilio projected a loss of 43 cents to 37 cents per share on revenue between $965 million and $975 million.
Analysts predicted a loss of 10 cents per share on third-quarter revenue of $978.8 million and a loss of 36 cents per share on the annual revenue of $3.86 billion.
Twilio shares have dropped 63% this year. The S&P 500 index (SPX) and the tech-heavy Nasdaq Composite Index have fallen by 13 and 19%, respectively (COMP).
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