Twilio stock falls after giving soft earnings guidance

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Twilio's net dollar expansion rate was soft for the fiscal third quarter, and earnings for the next quarter was also lighter than expected.

fell as much as 17% on Wednesday after the company gave lower-than expected quarterly earnings guidance.Excluding certain items, 3 cents per share, vs. 1 cent per share as expected by analysts, according to Refinitiv.Twilio's revenue grew 75% in the fiscal third quarter, which ended on September 30, according to a.

The company called for 1 cent to 2 cents in earnings per share, excluding certain items, on $311 million to $314 million in fiscal fourth quarter revenue. Analysts polled by Refinitiv had expected an average of 7 cents in earnings per share, excluding certain items, and $322.0 million in revenue. Piper Jaffray analysts led by Brent Bracelin assumed coverage of Twilio with the equivalent of a buy rating on Monday.

"Few cloud software franchises are at $1B+ run-rate, yet still growing organically by 50%-plus with a profitable model, large TAM opportunity, and strong leadership," the analysts wrote.

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