Twilio (TWLO) AI Stock Analysis

• Market Cap: $19.67B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 311.3
• 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: 1,711,704
• 30 Day Avg. Volume: 2,164,260
• 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: 8.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 4.8
• Revenue Forecast (FY): $5.02B

• Rating: 70 Neutral
• Price Target: $132.00 ▲(3.03% Upside)

Twilio's overall stock score is driven by strong earnings call results and solid financial performance, despite challenges in profitability and high valuation. The company's strategic initiatives and raised guidance provide a positive outlook, but the high P/E ratio and neutral technical indicators temper the score.

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., 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.

How the Company Makes Money

Twilio generates revenue primarily through a consumption-based model, charging customers based on the volume of communications they send and receive using its services. Key revenue streams include charges for SMS messages, voice calls, video conferencing, and email services. Twilio also offers various pricing tiers and packages that cater to different customer needs, such as pay-as-you-go plans and subscription services. Significant partnerships with major companies, like Salesforce and Zendesk, enhance Twilio's ecosystem and drive additional revenue through integrations that allow businesses to streamline their communication processes. Additionally, Twilio's acquisition of companies like Segment has expanded its capabilities and customer base, contributing to its overall earnings.

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: 128.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 128.12 is above the 20-day moving average (MA) of 126.15, above the 50-day MA of 116.34, and above the 200-day MA of 111.25, indicating a bullish trend. The MACD of 2.84 indicates Positive momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 85.62 is Negative, 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
ZM	81 Outperform	$25.04B	16.43	17.74%	―	3.85%	72.42%
TWLO	70 Neutral	$19.67B	311.27	0.83%	―	12.84%	―
RNG	63 Neutral	$2.50B	203.75	―	―	5.45%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FIVN	58 Neutral	$1.54B	55.31	4.67%	―	12.48%	―
BAND	52 Neutral	$429.13M	―	-3.20%	―	7.42%	34.42%
EGHT	48 Neutral	$267.58M	―	-4.88%	―	0.25%	92.10%

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.