Shares of Twilio (NYSE: TWLO) plunged as much as 45.6% this week, according to data from S&P Global Market Intelligence. The cloud communications company that helps other businesses send text messages, phone calls, and other forms of communication through application programming interfaces (APIs) posted disappointing earnings and guidance for the rest of 2022. As of 12:37 p.m. EST on Friday, the stock is down 44.7% this week.

After the market closed on Nov. 3, Twilio released an update on its financials for the three months ending in September. Revenue grew 33% year over year to $983 million, and adjusted earnings per share (EPS) were a negative $0.27. Both numbers beat expectations from Wall Street analysts, who pegged the company to post $972.2 million in revenue with an adjusted loss of $0.36 per share.

There were two reasons for the stock's collapse after the report: poor guidance and a lack of profitability. Twilio has grown quickly over the years in both adoption and revenue, but it has failed to generate a positive operating profit. Last quarter, it had an operating loss of $457 million on $983 million in revenue.

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Source Fool.com