Twilio (TWLO) AI Stock Analysis

• Market Cap: $19.80B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 313.4
• Beta (1Y): 1.35
• Revenue Growth: 12.84%
• EPS Growth: N/A
• Country: US
• Employees: 5,502
• Sector: Technology
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 1.25
• Shares Outstanding: 151,612,820
• 10 Day Avg. Volume: 3,164,364
• 30 Day Avg. Volume: 2,671,293
• PEG Ratio: 1.86
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 4.02
• P/FCF Ratio: 27.28
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 2.98
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 49.30
• 1Y Price Target: $138.53
• Price Target Upside: 7.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $149.00 ▲(16.02% Upside)

Twilio's overall stock score reflects strong technical momentum and positive earnings call insights, offset by high valuation concerns. The financial performance is solid, but profitability challenges persist. Investors should be cautious of the high P/E ratio and potential overvaluation.

Positive Factors

Revenue Growth

Twilio's record-breaking revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Strategic Acquisition

The acquisition of Stytch enhances Twilio's platform, bolstering its competitive edge in digital authentication, a key growth area.

Customer Segment Growth

Strong growth in key customer segments reflects Twilio's ability to capture diverse market opportunities, ensuring sustained revenue streams.

Negative Factors

Gross Margin Decline

Declining gross margins due to increased carrier fees could pressure profitability, challenging Twilio's ability to maintain healthy margins.

Carrier Fee Impact

Rising carrier fees may continue to erode margins, affecting Twilio's cost structure and long-term financial performance.

Profitability Challenges

Despite revenue growth, Twilio's low net profit margin highlights ongoing profitability issues, which could hinder future financial stability.

Twilio Business Overview & Revenue Model

Company Description

Twilio Inc. is a cloud communications platform that enables developers and businesses to integrate various communication functionalities into their applications. Founded in 2008, Twilio operates in the technology sector, primarily focusing on providing APIs for messaging, voice, video, and authentication services. Its core products include Twilio Programmable SMS, Twilio Voice, Twilio Video, and Twilio Flex, a cloud-based contact center solution, catering to a diverse range of industries such as healthcare, finance, and e-commerce.

How the Company Makes Money

Twilio generates revenue primarily through a usage-based model, where customers pay for the communication services they use via its APIs. Key revenue streams include fees for SMS and voice calls, as well as charges for video and authentication services. Twilio also offers monthly subscription services for its Flex platform and other products, which provide businesses with advanced capabilities for managing customer interactions. Significant partnerships with companies like Salesforce and AWS enhance Twilio's offerings and expand its market reach, contributing to its earnings. Additionally, the company benefits from a growing demand for cloud-based communication solutions, driven by digital transformation trends across various industries.

Twilio Financial Statement Overview

Summary

Twilio's financial performance is solid with a strong balance sheet and healthy cash flow metrics. The income statement shows improving margins and revenue growth, but profitability remains a challenge with a low net profit margin. Continued focus on improving net margins is crucial for future success.

Income Statement

Twilio's income statement shows a positive trajectory with a revenue growth rate of 3.53% in the TTM, indicating steady growth. The gross profit margin is healthy at 48.64%, but the net profit margin is low at 1.37%, suggesting limited profitability. The EBIT and EBITDA margins have improved, reflecting better operational efficiency, but still remain modest.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.013, indicating minimal leverage and financial risk. The return on equity is positive at 0.84%, showing a turnaround from previous losses. The equity ratio is robust, reflecting a solid capital structure.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 10.28% in the TTM, indicating strong cash generation. The operating cash flow to net income ratio is 1.13, suggesting efficient cash conversion. The free cash flow to net income ratio is high at 0.95, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.90B	4.46B	4.15B	3.83B	2.84B	1.76B
Gross Profit	2.39B	2.23B	1.96B	1.76B	1.31B	876.67M
EBITDA	295.57M	136.47M	-685.35M	-917.35M	-653.76M	-291.39M
Net Income	67.22M	-109.40M	-1.02B	-1.26B	-949.90M	-490.98M
Balance Sheet
Total Assets	9.71B	9.87B	11.61B	12.56B	13.00B	9.49B
Cash, Cash Equivalents and Short-Term Investments	2.46B	2.38B	4.01B	4.16B	5.36B	3.04B
Total Debt	1.09B	1.11B	1.16B	1.24B	1.29B	607.23M
Total Liabilities	1.82B	1.91B	1.88B	2.01B	1.97B	1.03B
Stockholders Equity	7.90B	7.95B	9.73B	10.56B	11.03B	8.45B
Cash Flow
Free Cash Flow	847.62M	657.46M	363.52M	-334.55M	-148.21M	-26.48M
Operating Cash Flow	867.00M	716.24M	414.75M	-254.37M	-58.19M	32.65M
Investing Cash Flow	350.48M	1.37B	228.60M	-616.45M	-2.49B	-845.86M
Financing Cash Flow	-1.08B	-2.31B	-643.61M	45.01M	3.10B	1.49B

Twilio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TWLO, the sentiment is Positive. The current price of 128.43 is above the 20-day moving average (MA) of 120.66, above the 50-day MA of 111.76, and above the 200-day MA of 112.45, indicating a bullish trend. The MACD of 5.35 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 38.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TWLO.

Twilio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PINS	73 Outperform	$18.46B	9.47	51.49%	―	16.79%	819.94%
TWLO	71 Outperform	$19.80B	313.36	0.83%	―	12.84%	―
SNAP	68 Neutral	$14.94B	―	-22.38%	―	11.75%	49.19%
MTCH	63 Neutral	$7.79B	15.35	―	1.15%	-0.46%	-2.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
Z	59 Neutral	$17.57B	―	-0.66%	―	15.17%	75.90%
NBIS	50 Neutral	$23.50B	102.93	3.45%	―	-87.55%	336.73%

Twilio Corporate Events

Twilio’s Earnings Call Highlights Growth and Optimism

Twilio’s recent earnings call painted a picture of strong revenue growth and broad-based customer strength, with the company celebrating significant achievements in customer wins and product adoption. Despite facing challenges such as a decline in gross margins due to increased carrier fees, Twilio’s increased guidance and strategic acquisition signal a positive outlook for the future.

Twilio Inc. Reports Strong Q3 2025 Results

Twilio Inc. is a customer engagement platform that enables companies to build direct, personalized relationships with their customers through communications and data, serving a wide range of industries globally.

Twilio’s Earnings Call: Growth Amid Challenges

Twilio’s latest earnings call presented a balanced sentiment, highlighting both strong growth and strategic achievements alongside notable challenges. The company reported impressive revenue growth and strategic partnerships, yet faced headwinds with declining gross margins and stagnant segment revenue.

Twilio Inc. Reports Strong Q2 2025 Financial Results

Twilio Inc., a leading customer engagement platform, specializes in providing real-time, personalized communication solutions for businesses worldwide, leveraging data and AI to enhance customer experiences across various sectors.