Twilio reports lower-than-expected earnings, stock price falls

The software company's outlook came in below Wall Street expectations after a reported beat in the previous quarter, but the stock price of Twilio Inc. fell in the extended session Thursday.

Twilio TWLO reported a second-quarter loss of $322.8 million, or $1.77 a share, compared to $227.9 million, or $1.31 a share, in the year-ago period. The adjusted earnings, which exclude stock-based compensation expenses and other items, were 11 cents a share, compared to 11 cents a share in the year-ago period.

Revenue rose to $943.4 million from $668.9 million in the year-ago quarter. According to analysts surveyed by FactSet, a loss of 19 cents a share of revenue of $921.6 million was due to Twilio's forecast of a loss of 23 cents to 20 cents a share on revenue of $912 million to $922 million. After hours, the company's outlook fell below Wall Street estimates, the shares declined by as much as 5%. Twilio shares finished the regular session up 0.5% at $98.19. According to Jeff Lawson, co-founder and chief executive of Twilio's Customer Engagement Platform, we remain confident in our growth trajectory as customers continue to turn to Twilio s Customer Engagement Platform to build direct relationships with their customers, based on our results and what we are currently seeing. We are closely following the macroeconomic environment and are taking proactive steps that will allow us to remain focused on our customers and executing against our top priorities. For the third quarter, Twilio predicted a loss of 43 cents to 37 cents a share on revenue of $965 million to $975 million. For the year, Twilio shares are down 63%, compared with a 13% fall in the S&P 500 index SPX and a 19% drop in the tech-heavy Nasdaq Composite Index COMP,