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TWLO

Twilio NYSE:TWLO Stock Report

Last Price

US$80.69

Market Cap

US$14.8b

7D

-5.7%

1Y

-76.4%

Updated

18 Aug, 2022

Data

Company Financials +
TWLO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance0/6
Financial Health4/6
Dividends0/6

TWLO Stock Overview

Twilio Inc., together with its subsidiaries, provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications in the United States and internationally.

Twilio Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Twilio
Historical stock prices
Current Share PriceUS$80.69
52 Week HighUS$373.00
52 Week LowUS$77.14
Beta1.52
1 Month Change-9.44%
3 Month Change-21.68%
1 Year Change-76.36%
3 Year Change-38.17%
5 Year Change175.21%
Change since IPO180.27%

Recent News & Updates

Aug 07

Twilio: Nothing Is Wrong

Twilio reported another strong quarter as the cloud communications firm continues to ring up $20 million beats. The market didn't like guidance for up to 30% organic revenue growth. The stock is too cheap here, trading below 5x sales and half the pre-covid multiple despite still generating fast growth. The market has been highly unpredictable around earnings season, with Twilio (TWLO) being a prime example. The stock market has been very forgiving of some weak results while smashing a tech company with 30% growth. My investment thesis is ultra-Bullish on the cloud communications stock, trading at multi-year lows following a 13.5% dip on Friday. Don't Fret Guidance Despite reporting a quarter where Twilio smashed analyst targets again, the stock was squashed for providing some tepid guidance for Q3. The market needs to better understand the conservative nature of the management team before overreacting to guidance. Twilio reported Q2'22 revenues smashed analyst targets by $22 million to reach $943 million. The cloud communications firm grew revenue by a very impressive 41% with organic growth hitting 33%. The company has a long history of blowing away revenue targets each quarter. The below chart highlights the constant quarterly revenue surprise as a percentage. The quarterly revenue beat tends to top $20 million on a regular basis. Source: Seeking Alpha Due to this trend, investor shouldn't fret the guidance for Q3 revenues at the $970 million level at the midpoint. Twilio is likely to hit $990+ million for the quarter and approach $1 billion in Q3 revenues, way ahead of the analyst estimates heading into the Q2'22 report of $979 million. The market freaked out some due to the much larger targeted loss from operations of at least $60 million, but a large amount of this loss is due to the odd $35 million cost of a non-cash charge for the adoption of a new sabbatical program. Such non-cash charges shouldn't be included in non-GAAP numbers. Take out this odd charge, and Twilio gets back close to the original analyst EPS target for the quarter of a loss of $0.11. In fact, the low end of guidance suggests just a $0.14 loss for the quarter, once excluding the $35 million charge from a $60 million loss. Once factoring in the normal beat, Twilio again beats this target and likely cuts the loss level from the Q2'22 amount in a scenario where the stock would normally have rallied following the earnings report. The company remains clear that the business is fundamentally strong. Twilio continues to sign bigger deals and provides a platform to seamlessly connect customers across multiple channels, such as this example for a retailer discussed on the Q2'22 earnings call: In fact, Twilio signed its largest Flex deal ever in the second quarter - an eight figure deal with a Fortune 100 retailer to completely reimagine their customer experience with Twilio Flex! This multinational organization expanded its existing relationship with Twilio to rebuild the connection between its brick and mortar and virtual store with Twilio Flex, video, chat and messaging. This data driven, cross-channel customer engagement platform will create a single view of the customer across the organization to provide a seamless, personalized and memorable customer experience across marketing, sales and customer support. Unlike most tech companies that saw covid pull forwards, Twilio is still growing active customer accounts and net dollar expansion. Customer accounts reached 275,000 in the quarter for 15% growth and dollar-based net expansion rates grew 123% in the quarter. Source: Twilio Q2'22 presentation While these numbers spiked during covid lockdowns, Twilio didn't see the excessive acceleration, with the net expansion rate only peaking at 139% back in Q4'20. Some platforms provide general customer engagement that saw a spike during Covid, while Twilio provides a platform where customers start with one product and eventually expand to new products for deeper customer engagement.

Shareholder Returns

TWLOUS ITUS Market
7D-5.7%1.0%1.4%
1Y-76.4%-25.4%-8.4%

Return vs Industry: TWLO underperformed the US IT industry which returned -25.9% over the past year.

Return vs Market: TWLO underperformed the US Market which returned -9% over the past year.

Price Volatility

Is TWLO's price volatile compared to industry and market?
TWLO volatility
TWLO Average Weekly Movement11.5%
IT Industry Average Movement8.9%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: TWLO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: TWLO's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20088,510Jeff Lawsonhttps://www.twilio.com

Twilio Inc., together with its subsidiaries, provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications in the United States and internationally. Its customer engagement platform provides a set of application programming interfaces that handle the higher-level communication logic needed for nearly every type of customer engagement, as well as enable developers to embed voice, messaging, video, and email capabilities into their applications. The company was incorporated in 2008 and is headquartered in San Francisco, California.

Twilio Inc. Fundamentals Summary

How do Twilio's earnings and revenue compare to its market cap?
TWLO fundamental statistics
Market CapUS$14.78b
Earnings (TTM)-US$1.06b
Revenue (TTM)US$3.40b

4.3x

P/S Ratio

-13.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TWLO income statement (TTM)
RevenueUS$3.40b
Cost of RevenueUS$1.77b
Gross ProfitUS$1.63b
Other ExpensesUS$2.69b
Earnings-US$1.06b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-5.79
Gross Margin47.96%
Net Profit Margin-31.16%
Debt/Equity Ratio9.1%

How did TWLO perform over the long term?

See historical performance and comparison