Twilio earnings and revenue for the March quarter topped expectations as recently acquired Segment boosted the top line. Twilio stock dipped as the company announced the departure of its chief product officer and issued mixed guidance.
Maker of communications software Twilio said it earned 5 cents per adjusted share in the first quarter while revenue jumped 62% to $590 million from a year earlier. Segment provided $44.6 million in sales for Twilio in the quarter.
Analysts expected Twilio (TWLO) to report a 10-cent loss on revenue of $534.5 million. A year earlier, Twilio earnings were 6 cents a share on revenue of $365 million.
For the current June quarter, Twilio forecast revenue of $596 million at the midpoint of its guidance vs. analyst estimates of $577.1 million. Amid a reorganization of research and development, Twilio said it expects a loss in a range of 13 cents to 16 cents vs. analyst estimates for a 5-cent loss.
The software maker said Chief Product Officer Chee Chew will be leaving the company.
Twilio Stock: More Acquisitions Coming?
Twilio acquired Segment in November for $3.2 billion in stock. One headwind for Twilio stock is investor concerns over whether its acquisition spree will continue amid recent cash raises.
The company also released a less-known financial metric related to growth from existing customers. Twilio said its dollar-based net expansion rate was 133% in the first quarter vs. 139% in the December quarter.
The software maker’s tools enable app developers to embed voice, text messaging and video into their products. Furthermore, Twilio’s software makes it easier for cloud-based applications to communicate.
Twlio’s customers include Uber Technologies (UBER), Lyft (LYFT), Instacart, DoorDash (DASH), Grubhub (GRUB) and Robinhood. Heading into the Twilio earnings report, the software stock had a Relative Strength Rating of 76 out of a possible 99.
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