Shares of Twilio (TWLO) - Get Report were falling after hours Monday after the cloud communications platform reported third-quarter results that topped analyst estimates, but offered guidance that missed expectations.
The San Francisco-based company reported third-quarter revenue of $448 million, a 52% increase over the previous year, with earnings of 4 cents per share.
Analysts were expecting the company to report a net loss of 3 cents per share on revenue of $409.79 million.
“Our performance in the third quarter is further evidence that Twilio's platform provides three things that every company needs today -- digital communications, software agility, and cloud scale," CEO Jeff Lawson said.
For the fourth quarter, Twilio said it expects revenue to grow between 36% and 37% year over year to between $450 million and $455 million. The company expects a non-GAAP loss per share between 11 cents and 8 cents per share.
Wall Street is expecting the company to report revenue of $436.85 million with earnings of a penny per share.
"Great digital engagement is becoming more critical to differentiate the customer experience, and companies across industries and around the world are choosing Twilio's customer engagement platform to build these solutions,” said Lawson.
Earlier this month, Twilio announced that it was purchasing customer-data platform Segment for $3.2 billion of stock.
The combined company will have a total addressable market of $79 billion, Twilio said.
Twilio shares were down 1.6% to $196 per share after closing Monday's session down nearly 1.8%.
Cloud stocks were generally lower Monday. The Global X Cloud Computing ETF (CLOU) - Get Report fell 37 cents, or 1.46%, to $24.92 while the First Trust Cloud Computing ETF (SKYY) - Get Report fell $2.29, or 2.79%, to $79.81.