Twilio Inc. shares plunged late Wednesday after it projected a holiday loss double what analysts expected and announced the departure of its chief operating officer, even as the software company continued to post strong sales gains. For the fiscal fourth quarter, Twilio
projected an adjusted loss of between 23 cents and 26 cents a share on sales of $760 million to $770 million. Analysts on average were projecting an adjusted loss of 10 cents a share on sales of $745 million, according to FactSet.
The company also announced COO George Hu is leaving. Khozema Shipchandler, who has served as chief financial officer since late 2018, will add the COO role to his duties. The news overshadowed solid third-quarter results. Twilio reported a loss of $224.1 million, or $1.26 a share, on sales of $740.2 million, up from $448 million a year ago. After adjusting for stock compensation and other factors, Twilio reported a profit of a penny a share, worse than adjusted earnings of 4 cents a share a year ago. Analysts on average were expecting an adjusted loss of 14 cents a share on sales of $681 million, according to FactSet. Shares plunged 13% in after-hours trading following the announcement, after closing with a 2.3% loss at $345.77. Despite the after-hours stock hit, Twilio continues to pile up healthy sales as more companies rely on Twilio to own their data and build direct relationships with customers when tech giants are making it more difficult and expensive to do so. Commission fees from Apple Inc.
and Google parent Alphabet Inc.
grew 9.3%. Still, shares have grown more than 850% since the company went public in 2016. “We think of the long-term view and not the short-term,” Lawson said of Wednesday’s stock plunge.