Twilio (TWLO) AI Stock Analysis

• Market Cap: $15.85B
• Dividend Yield: N/A
• Average Volume (3M): 4.82M
• Price to Earnings (P/E): 836.9
• Beta (1Y): 1.44
• Revenue Growth: 11.56%
• EPS Growth: N/A
• Country: US
• Employees: 5,502
• Sector: Technology
• Sector Strength: 87
• Industry: Internet Content & Information
• EPS (TTM): 1.19
• Shares Outstanding: 153,433,610
• 10 Day Avg. Volume: 9,180,887
• 30 Day Avg. Volume: 4,824,259
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 3.89
• Enterprise Value/Gross Profit: 7.80
• Enterprise Value/Ebitda: 67.10
• 1Y Price Target: $130.71
• Price Target Upside: 29.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 61 Neutral
• Price Target: $111.00 ▲(9.93% Upside)

Twilio's overall stock score reflects a mix of strong financial performance and positive earnings call highlights, tempered by technical analysis indicating bearish momentum and high valuation concerns. The company's strategic initiatives and improving financial metrics are promising, but the high P/E ratio and technical indicators suggest caution.

Positive Factors

Financial Performance

Twilio reported strong Q2 results, including upside to revenue and margins.

Market Potential

Twilio noted growing Voice AI demand and healthy usage of its platform by AI-native customers.

Revenue Guidance

The company raised full-year revenue guidance, now guiding to 10-11% growth.

Negative Factors

Gross Margins

Gross margins were lighter than expected, impacted by higher messaging mix and pass-through fees.

Growth Concerns

Organic growth in Q3 was guided to decelerate, an unfortunate signal after recent actions to drive just the opposite.

Guidance Deceleration

Guidance implies 2H deceleration, driven by tougher comps and suspected conservatism.

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 demonstrates a strong growth trajectory with improving financial health. Revenue growth and positive cash flow trends are significant strengths. However, persistent net losses affect profitability metrics, and while the balance sheet is robust, achieving consistent profitability is key 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	4.73B	4.46B	4.15B	3.83B	2.84B	1.76B
Gross Profit	2.36B	2.28B	2.04B	1.81B	1.39B	915.66M
EBITDA	274.49M	165.55M	-100.34M	-751.82M	-649.76M	-321.48M
Net Income	20.24M	-109.40M	-1.02B	-1.26B	-949.90M	-490.98M
Balance Sheet
Total Assets	9.85B	9.87B	11.61B	12.56B	13.00B	9.49B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.38B	4.01B	4.16B	5.36B	3.04B
Total Debt	1.10B	1.11B	1.16B	1.24B	1.29B	607.23M
Total Liabilities	1.80B	1.91B	1.88B	2.01B	1.97B	1.03B
Stockholders Equity	8.04B	7.95B	9.73B	10.56B	11.03B	8.45B
Cash Flow
Free Cash Flow	724.39M	657.46M	363.52M	-334.55M	-148.21M	-26.48M
Operating Cash Flow	780.90M	716.24M	414.75M	-254.37M	-58.19M	32.65M
Investing Cash Flow	779.33M	1.37B	228.60M	-616.45M	-2.49B	-845.86M
Financing Cash Flow	-1.35B	-2.31B	-643.61M	45.01M	3.10B	1.49B

Twilio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 100.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 100.97 is below the 20-day moving average (MA) of 114.10, below the 50-day MA of 118.47, and below the 200-day MA of 111.62, indicating a bearish trend. The MACD of -6.04 indicates Positive momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 49.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TWLO.

Twilio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	78 Outperform	$1.45B	20.11	8.57%	4.94%	29.62%	-19.65%
PINS	75 Outperform	$23.95B	12.68	48.08%	―	17.00%	901.05%
YELP	70 Outperform	$1.95B	14.03	20.13%	―	5.37%	13.08%
MTCH	68 Neutral	$9.11B	18.64	-865.98%	1.03%	-0.60%	-11.05%
TWLO	61 Neutral	$15.85B	836.95	0.24%	―	11.56%	―
Sector *	61 Neutral	$35.38B	6.84	-10.82%	1.97%	8.74%	-8.28%
SNAP	59 Neutral	$12.13B	―	-26.42%	―	13.18%	54.39%

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.