Twilio (TWLO) AI Stock Analysis

• Market Cap: $18.36B
• Dividend Yield: N/A
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: 9.27%
• EPS Growth: 95.03%
• Country: US
• Employees: 5,502
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): 1.14
• Shares Outstanding: 152,674,210
• 10 Day Avg. Volume: 2,059,999
• 30 Day Avg. Volume: 1,966,845
• PEG Ratio: -0.28
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.78
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 17.31
• 1Y Price Target: $129.43
• Price Target Upside: 7.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 69 Neutral
• Price Target: $131.00 ▲(8.92%Upside)

Twilio's overall score is bolstered by strong earnings call performance and technical momentum. However, valuation concerns and persistent net losses weigh on the score. The company's strategic focus on innovation and improving fundamentals suggest potential, but achieving consistent profitability remains critical.

Positive Factors

AI Integration

AI is emerging as a potentially stronger long-term growth driver, with TWLO adding new AI start-ups and enterprises to enhance conversational customer engagement.

Growth Initiatives

Twilio's internal initiatives to drive growth are showing early positive impact, with volumes reaccelerating.

Partnerships

The partnership with Microsoft is expected to enhance enterprise traction.

Negative Factors

Competition and Risks

Risks include competition, macro/usage trends, telco fees, and international expansion.

Market Demand

There are modest soft pockets in verticals like travel and e-commerce/retail, creating some uncertainty in demand.

Profit Margins

Gross margin of 51.3% was below market expectations at 53.0% due to an increase in international messaging mix.

Twilio Business Overview & Revenue Model

Company Description

Twilio Inc. is a leading cloud communications platform company that enables businesses to integrate various communication capabilities into their applications. Founded in 2008 and headquartered in San Francisco, Twilio operates in the technology and telecommunications sectors. The company's core products include APIs for voice, messaging, video, and email, which allow developers to embed communication functionalities into their software applications, thereby enhancing customer engagement and interaction.

How the Company Makes Money

Twilio generates revenue primarily through a usage-based model where customers are charged based on their consumption of communication services such as voice, SMS, email, and video APIs. The company earns money by charging fees for each interaction, like a text message sent or a voice call made using its platform. Additionally, Twilio offers premium service tiers and support plans that provide enhanced functionalities and dedicated customer support for higher fees. Significant partnerships with major cloud providers and telecommunications companies further bolster its revenue streams by expanding its network capabilities and market reach. Twilio's acquisition of companies like SendGrid has also diversified its offerings, allowing it to capture additional market segments and drive revenue growth.

Twilio Financial Statement Overview

Summary

Twilio demonstrates a strong growth trajectory with revenue and cash flow improvements. Despite ongoing net losses impacting profitability, the balance sheet remains robust, signaling financial stability. Operational improvements and revenue growth are key strengths, but consistent profitability is crucial for future success.

Income Statement

Twilio has shown a positive revenue growth rate, improving from $4.15 billion in 2023 to $4.58 billion TTM 2025, indicating a healthy growth trajectory. Gross profit margin is solid at around 50% TTM, but the company is still grappling with net losses, as reflected in the negative net profit margins. EBIT margin has turned positive TTM, highlighting operational improvements. However, the consistent net losses over the years pose a risk to profitability.

Balance Sheet

The company's balance sheet is robust, with a strong equity ratio of over 80% TTM, indicating low leverage and high financial stability. The debt-to-equity ratio is low, reflecting prudent financial management. Return on equity remains negative due to ongoing net losses, which is a concern. However, the substantial stockholder equity suggests resilience.

Cash Flow

Twilio's cash flow situation is improving, with a positive free cash flow growth rate TTM. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net losses. Free cash flow to net income ratio is also positive, suggesting effective capital management. The trend towards positive cash flows is promising, but historical negative cash flows highlight past challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.58B	4.46B	4.15B	3.83B	2.84B	1.76B
Gross Profit	2.30B	2.28B	2.04B	1.81B	1.39B	915.66M
EBITDA	218.44M	165.55M	-100.34M	-751.82M	-653.76M	-343.24M
Net Income	-34.04M	-109.40M	-1.02B	-1.26B	-949.90M	-490.98M
Balance Sheet
Total Assets	9.81B	9.87B	11.61B	12.56B	13.00B	9.49B
Cash, Cash Equivalents and Short-Term Investments	2.45B	2.38B	4.01B	4.16B	5.36B	3.04B
Total Debt	1.10B	1.11B	1.18B	1.23B	1.27B	607.23M
Total Liabilities	1.81B	1.91B	1.88B	2.01B	1.97B	1.03B
Stockholders Equity	8.00B	7.95B	9.73B	10.56B	11.03B	8.45B
Cash Flow
Free Cash Flow	671.20M	657.46M	363.52M	-334.55M	-148.21M	-26.48M
Operating Cash Flow	717.16M	716.24M	414.75M	-254.37M	-58.19M	32.65M
Investing Cash Flow	1.16B	1.37B	228.60M	-616.45M	-2.49B	-845.86M
Financing Cash Flow	-2.07B	-2.31B	-643.61M	45.01M	3.10B	1.49B

Twilio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 120.27 is above the 20-day moving average (MA) of 118.92, above the 50-day MA of 112.69, and above the 200-day MA of 102.98, indicating a bullish trend. The MACD of 1.78 indicates Positive momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 36.30 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
OPRA	81 Outperform	$1.79B	27.11	9.18%	3.90%	26.71%	-23.67%
PINS	80 Outperform	$24.14B	12.96	48.41%	―	17.81%	1175.52%
YELP	71 Outperform	$2.25B	16.94	19.74%	―	5.93%	29.17%
TWLO	69 Neutral	$18.36B	―	-0.39%	―	9.27%	95.03%
SNAP	63 Neutral	$15.49B	―	-23.97%	―	14.91%	59.90%
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
MTCH	61 Neutral	$7.98B	16.05	-865.98%	2.33%	0.40%	-11.05%

Twilio Corporate Events

Twilio Approves Key Governance Amendments at Annual Meeting

On June 10, 2025, Twilio Inc. held its Annual Meeting of Stockholders where several key amendments to the company’s Certificate of Incorporation were approved. These included declassifying the board of directors, eliminating supermajority voting provisions, and removing inoperative provisions. Additionally, the stockholders elected three directors, ratified the appointment of KPMG LLP as the independent auditor, and approved executive compensation. These changes are expected to streamline governance and enhance shareholder influence, potentially impacting Twilio’s operational efficiency and market positioning.

The most recent analyst rating on (TWLO) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Twilio stock, see the TWLO Stock Forecast page.