Loading...

Twilio

NYSE:TWLO
Snowflake Description

Adequate balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TWLO
NYSE
$16B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Twilio Inc. provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The last earnings update was 18 days ago. More info.


Add to Portfolio Compare Print
  • Twilio has significant price volatility in the past 3 months.
TWLO Share Price and Events
7 Day Returns
2.9%
NYSE:TWLO
3%
US IT
2.4%
US Market
1 Year Returns
216.3%
NYSE:TWLO
15.5%
US IT
1.9%
US Market
TWLO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Twilio (TWLO) 2.9% 21.1% 50.9% 216.3% - -
US IT 3% 4.7% 19.4% 15.5% 79.7% 94.9%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • TWLO outperformed the IT industry which returned 15.5% over the past year.
  • TWLO outperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
TWLO
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Twilio undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Twilio to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Twilio.

NYSE:TWLO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TWLO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (2.73%))
1.058
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.058 * 5.96%)
9.04%

Discounted Cash Flow Calculation for NYSE:TWLO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Twilio is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TWLO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.04%)
2019 -36.88 Analyst x3 -33.82
2020 34.39 Analyst x1 28.93
2021 60.76 Analyst x1 46.87
2022 84.84 Est @ 39.64% 60.02
2023 109.07 Est @ 28.57% 70.77
2024 131.77 Est @ 20.81% 78.42
2025 152.05 Est @ 15.39% 82.99
2026 169.68 Est @ 11.59% 84.94
2027 184.83 Est @ 8.93% 84.86
2028 197.91 Est @ 7.07% 83.33
Present value of next 10 years cash flows $587.31
NYSE:TWLO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $197.91 × (1 + 2.73%) ÷ (9.04% – 2.73%)
$3,224.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,224.53 ÷ (1 + 9.04%)10
$1,357.70
NYSE:TWLO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $587.31 + $1,357.70
$1,945.01
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,945.01 / 123.58
$15.74
NYSE:TWLO Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.74
Current discount Discount to share price of $129.35
= -1 x ($129.35 - $15.74) / $15.74
-721.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Twilio is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Twilio's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Twilio's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TWLO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-1.26
NYSE:TWLO Share Price ** NYSE (2019-03-18) in USD $129.35
United States of America IT Industry PE Ratio Median Figure of 78 Publicly-Listed IT Companies 30.16x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Twilio.

NYSE:TWLO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TWLO Share Price ÷ EPS (both in USD)

= 129.35 ÷ -1.26

-103.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Twilio is loss making, we can't compare its value to the US IT industry average.
  • Twilio is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Twilio's expected growth come at a high price?
Raw Data
NYSE:TWLO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -103.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
-15%per year
United States of America IT Industry PEG Ratio Median Figure of 64 Publicly-Listed IT Companies 2.43x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Twilio, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Twilio's assets?
Raw Data
NYSE:TWLO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $4.38
NYSE:TWLO Share Price * NYSE (2019-03-18) in USD $129.35
United States of America IT Industry PB Ratio Median Figure of 122 Publicly-Listed IT Companies 4.33x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:TWLO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TWLO Share Price ÷ Book Value per Share (both in USD)

= 129.35 ÷ 4.38

29.54x

* Primary Listing of Twilio.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Twilio is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Twilio's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Twilio has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Twilio expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Twilio expected to grow at an attractive rate?
  • Unable to compare Twilio's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Twilio's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Twilio's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TWLO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TWLO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts -15%
NYSE:TWLO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts 23.5%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TWLO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TWLO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,275 1
2022-12-31 1,950 1
2021-12-31 1,781 113 -215 4
2020-12-31 1,428 76 -167 18
2019-12-31 1,075 36 -154 22
NYSE:TWLO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 650 8 -122
2018-09-30 561 17 -94
2018-06-30 493 20 -90
2018-03-31 441 11 -73
2017-12-31 399 -3 -64
2017-09-30 366 -1 -57
2017-06-30 337 1 -45
2017-03-31 305 7 -49
2016-12-31 277 10 -41
2016-09-30 247 0 -37
2016-06-30 219 -2 -38
2016-03-31 193 -9 -37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Twilio is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Twilio's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TWLO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Twilio Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TWLO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 -1.09 -0.45 -1.78 9.00
2019-12-31 -1.12 -0.56 -1.69 10.00
NYSE:TWLO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -1.26
2018-09-30 -0.98
2018-06-30 -0.96
2018-03-31 -0.79
2017-12-31 -0.70
2017-09-30 -0.64
2017-06-30 -0.52
2017-03-31 -0.69
2016-12-31 -0.78
2016-09-30 -1.03
2016-06-30 -1.99
2016-03-31 -2.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Twilio is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Twilio's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Twilio has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Twilio performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Twilio's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Twilio does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Twilio's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Twilio's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
Twilio's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Twilio Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TWLO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 650.07 -121.95 282.77 171.36
2018-09-30 561.00 -93.71 236.44 152.56
2018-06-30 492.65 -90.11 208.94 141.89
2018-03-31 440.76 -73.21 178.09 131.79
2017-12-31 399.02 -63.71 159.98 120.74
2017-09-30 365.74 -57.40 145.18 112.50
2017-06-30 336.73 -45.20 131.25 101.93
2017-03-31 305.37 -49.08 129.93 89.58
2016-12-31 277.34 -41.32 115.85 77.93
2016-09-30 246.72 -36.98 107.02 66.43
2016-06-30 219.45 -38.12 99.77 56.92
2016-03-31 192.89 -36.70 90.02 48.94
2015-12-31 166.92 -38.90 84.13 42.56
2015-09-30 143.27 -39.01 76.69 36.30
2015-06-30 122.53 -32.63 66.37 30.69
2015-03-31 103.39 -29.23 58.22 25.80
2014-12-31 88.85 -26.76 51.98 21.82
2013-12-31 49.92 -26.85 36.94 13.96

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Twilio has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Twilio has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Twilio improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Twilio's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Twilio has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Twilio's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Twilio's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Twilio is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Twilio's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Twilio's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Twilio Company Filings, last reported 2 months ago.

NYSE:TWLO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 438.24 436.67 748.34
2018-09-30 434.35 428.78 745.35
2018-06-30 429.67 423.10 794.65
2018-03-31 362.54 0.00 308.01
2017-12-31 359.85 0.00 290.87
2017-09-30 355.00 0.00 283.94
2017-06-30 358.11 0.00 289.22
2017-03-31 337.86 0.00 288.53
2016-12-31 329.45 0.00 305.67
2016-09-30 264.27 0.00 252.23
2016-06-30 267.23 0.00 261.39
2016-03-31 114.35 0.00 103.32
2015-12-31 116.63 0.00 108.84
2015-09-30 120.31 0.00 115.99
2015-06-30 127.24 0.00 121.82
2015-03-31 31.19 0.00 32.63
2014-12-31 31.19 0.00 32.63
2013-12-31 52.90 0.00 54.72
  • Twilio's level of debt (99.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 99.6% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Twilio has sufficient cash runway for more than 3 years based on current free cash flow.
  • Twilio has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -17.8% each year.
X
Financial health checks
We assess Twilio's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Twilio has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Twilio's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Twilio dividends. Estimated to be 0% next year.
If you bought $2,000 of Twilio shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Twilio's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Twilio's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TWLO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TWLO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Twilio has not reported any payouts.
  • Unable to verify if Twilio's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Twilio's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Twilio has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Twilio's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Twilio's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Twilio afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Twilio has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Twilio's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Lawson
COMPENSATION $5,626,401
AGE 41
TENURE AS CEO 10.9 years
CEO Bio

Mr. Jeffrey Lawson, also known as Jeff, has been Director of SendGrid Inc. since February 1, 2019. Mr. Lawson co-founded Twilio Inc. in 2008 and has been its Chief Executive Officer since April 2008 and Chairman of the Board since November 2015. He serves as an Advisor at Homebrew Management LLC. Prior to Twilio, he was Founder and served as Chief Technology Officer of NineStar, Founding Chief Technology Officer of Stubhub.com and Founder, Chief Executive Officer & Chief Technology Officer of Versity. Mr. Lawson is a serial inventor with entrepreneurial and product experience. He has held several founding executive roles at Nine Start, Stubhub and Versity. In addition, he was one of the original product managers for Amazon Web Services. He identified the fundamental need for a communications platform that would enable developers and enterprises of all sizes to easily build the communications solutions that meet the specific needs of their business. He has been a Director of Cellular Telecommunications & Internet Association - The Wireless Association since January 1, 2015. He serves as a Director of Twilio Inc. since April 2008. He earned his B.S. in Computer Science & Film/Video from University of Michigan.

CEO Compensation
  • Jeff's compensation has increased whilst company is loss making.
  • Jeff's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Twilio management team in years:

2.1
Average Tenure
44
Average Age
  • The tenure for the Twilio management team is about average.
Management Team

Jeff Lawson

TITLE
Co-Founder
COMPENSATION
$6M
AGE
41
TENURE
10.9 yrs

George Hu

TITLE
Chief Operating Officer
COMPENSATION
$22M
AGE
43
TENURE
2.1 yrs

Karyn Smith

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$2M
AGE
54
TENURE
4.5 yrs

John Wolthuis

TITLE
Co-Founder & Board Observer
TENURE
11.2 yrs

Khozema Shipchandler

TITLE
Chief Financial Officer
AGE
44
TENURE
0.3 yrs

Greg Kleiner

TITLE
VP of Investor Relations & Treasurer

Sara Varni

TITLE
Chief Marketing Officer
TENURE
1.2 yrs

Marc Boroditsky

TITLE
Senior VP of Sales

Marty Réaume

TITLE
Chief People Officer
AGE
51
TENURE
1.7 yrs

Ott Kaukver

TITLE
Senior Vice President of Engineering
Board of Directors Tenure

Average tenure and age of the Twilio board of directors in years:

3.1
Average Tenure
56
Average Age
  • The tenure for the Twilio board of directors is about average.
Board of Directors

John Wolthuis

TITLE
Co-Founder & Board Observer

Elena Donio

TITLE
Non-Employee Director
COMPENSATION
$193K
AGE
48
TENURE
3.1 yrs

Jeff Lawson

TITLE
Co-Founder
COMPENSATION
$6M
AGE
41
TENURE
3.3 yrs

Erika Rottenberg

TITLE
Director
COMPENSATION
$200K
AGE
56
TENURE
2.8 yrs

Jeff Epstein

TITLE
Lead Independent Director
COMPENSATION
$348K
AGE
62
TENURE
1.3 yrs

Byron Deeter

TITLE
Non-Employee Director
COMPENSATION
$180K
AGE
44
TENURE
8.3 yrs

Rick Dalzell

TITLE
Non-Employee Director
COMPENSATION
$182K
AGE
61
TENURE
5 yrs

Donna Dubinsky

TITLE
Director
AGE
63
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Twilio insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Feb 19 Sell Byron Deeter Individual 15. Feb 19 15. Feb 19 -74,993 $106.62 $-7,995,754
21. Feb 19 Sell Karyn Smith Individual 15. Feb 19 15. Feb 19 -1,360 $106.22 $-144,460
21. Feb 19 Sell George Hu Individual 15. Feb 19 15. Feb 19 -7,649 $106.22 $-812,480
20. Nov 18 Sell Karyn Smith Individual 15. Nov 18 15. Nov 18 -1,965 $84.10 $-161,999
17. Aug 18 Sell Karyn Smith Individual 15. Aug 18 15. Aug 18 -2,009 $73.71 $-148,089
17. May 18 Sell Lee Kirkpatrick Individual 15. May 18 15. May 18 -1,618 $50.96 $-82,457
17. May 18 Sell George Hu Individual 15. May 18 15. May 18 -7,126 $50.96 $-363,165
17. May 18 Sell Karyn Smith Individual 15. May 18 15. May 18 -1,988 $50.97 $-101,319
X
Management checks
We assess Twilio's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Twilio has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Twilio Inc. (NYSE:TWLO) A Financially Sound Company?

the key to their continued success lies in its financial health. … Let’s take a look at Twilio’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

Are Insiders Selling Twilio Inc. (NYSE:TWLO) Stock?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So shareholders might well want to know whether insiders have been buying or selling shares in Twilio Inc. … That means that an insider was selling shares at slightly below the current price (US$111)

Simply Wall St -

How Much Of Twilio Inc (NYSE:TWLO) Do Insiders Own?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We'd expect to see both institutions and retail investors owning a portion of the company. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Twilio Inc's (NYSE:TWLO) Insiders Have Sold Shares - Should You?

provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. … It is widely considered that insider selling stock in their own companies is potentially a bearish signal … A research published in The MIT Press (1998) concluded that stocks following insider selling fell 2.7% compared to the market

Simply Wall St -

Should Twilio Inc's (NYSE:TWLO) Recent Earnings Decline Worry You?

After looking at Twilio Inc's (NYSE:TWLO) latest earnings announcement (31 December 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Check out our latest analysis for Twilio Was TWLO's recent earnings decline worse than the long-term trend and the industry? … For the purpose of this commentary, I like to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data.

Simply Wall St -

Has Twilio Inc (TWLO) Got Enough Cash To Cover Its Short-Term Obligations?

Check out our latest analysis for Twilio Is TWLO’s level of debt at an acceptable level? … For Twilio, investors should not worry about its debt levels because the company has none! … NYSE:TWLO Net Worth Dec 5th 17 Given zero long-term debt on its balance sheet, Twilio has no solvency issues.

Simply Wall St -

When Will Twilio Inc (TWLO) Need To Raise More Money?

With a negative operating cash flow of -$1.38M, TWLO is chipping away at its $283.94M cash reserves in order to run its business. … According to my analysis, if TWLO continues to grow at this rate, it will burn through its cash reserves by the next 1.1 years and may be coming to market again. … The cash burn analysis result indicates a cash constraint for TWLO, due to its high opex growth and its level of cash reserves.

Simply Wall St -

Is Twilio Inc's (TWLO) CEO Incentives Align With Yours?

Therefore I will use earnings as a proxy of Lawson's performance in the past year. … Most recently, TWLO delivered negative earnings of -$45M , which is a further decline from prior year's loss of -$38M. … Typically I would look at market cap and earnings as a proxy for performance, however, TWLO's negative earnings reduces the effectiveness of this method.

Simply Wall St -

Company Info

Description

Twilio Inc. provides a cloud communications platform that enables developers to build, scale, and operate communications within software applications in the United States and internationally. The company’s programmable communications cloud provides a set of application programming interfaces that enable developers to embed voice, messaging, and video capabilities into their applications. Twilio Inc. was founded in 2008 and is headquartered in San Francisco, California.

Details
Name: Twilio Inc.
TWLO
Exchange: NYSE
Founded: 2008
$15,985,219,036
123,581,129
Website: http://www.twilio.com
Address: Twilio Inc.
375 Beale Street,
Suite 300,
San Francisco,
California, 94105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TWLO Class A common Stock New York Stock Exchange US USD 23. Jun 2016
DB TWH Class A common Stock Deutsche Boerse AG DE EUR 23. Jun 2016
LSE 0LHL Class A common Stock London Stock Exchange GB USD 23. Jun 2016
BMV TWLO * Class A common Stock Bolsa Mexicana de Valores MX MXN 23. Jun 2016
Number of employees
Current staff
Staff numbers
1,440
Twilio employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 00:42
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.