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Twilio Inc Class A TWLO Stock Quote

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Morningstar‘s Stock Analysis TWLO

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Is it the right time to buy or sell?
Is it the right time to buy or sell?

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Good Quarter for Twilio but Macro Pressure Mounting; Lowered Outlook; FVE Cut to $95

Dan Romanoff, CPA Senior Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Narrow-moat Twilio reported third-quarter results in conjunction with its analyst day. Results were generally solid from revenue and profitability perspectives, while the fourth-quarter outlook was meaningfully below our revenue estimate and below our profitability estimate, as well. Between macro pressures and lower-than-expected guidance, we are cutting our fair value estimate to $95 per share, from $140 previously. We see cracks in the thesis that are certainly fixable, including the recent shut down portions of Zipwhip after acquiring the company for $840 million in 2021; a material headcount reduction that seemingly has no impact on previously issued profitability guidance for 2023; refusing political campaign text messaging, which normally provides a revenue bump in the fall; a lack of profitability despite what will likely be about $3.8 billion in revenue this year; and changes in the company’s go-to-market motion. Despite the upside our model shows for the stock, we would avoid it for now given the heightened near-term risk.

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Key Statistics TWLO

Company Profile TWLO

Business Description

Twilio Inc. is a cloud-based communication platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces, or APIs, and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.

101 Spear Street, First Floor
San Francisco, CA, 94105
T +1 415 390-2337
Industry Internet Content & Information
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 8,992

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