Twilio shares drop 14% despite beating earnings estimates as COO announces departure

Twilio shares are down more than 14% Thursday despite beating third-quarter earnings expectations, after the company shared a weak forecast for the fourth quarter and its COO announced his departure.

The cloud communications platform reported $0.01 adjusted earnings per share and revenue of $740 million, beating analyst estimates which included an adjusted loss of $0.15 and revenue of $681 million.

Those gains were eclipsed by a weak fourth-quarter earnings forecast and news that George Hu will depart as COO. Khozema Shipchandler will take over the role while maintaining chief financial officer duties.

The San Francisco-based company, which allows app developers to add features like voice and text messaging to their products, forecasted a fourth-quarter loss of 23 cents per share to 26 cents per share compared to an expected loss of 8 cents.

Analysts at JMP maintained their $510 price target on the company’s stock, noting that despite Hu’s departure they “continue to like this business.” JMP cited CEO Jeff Lawson’s leadership, the company’s mission, and the estimated $79 billion addressable market as some of those reasons.