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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on TWLO

Breaking News: Twilio Inc has been in the news recently with Genspark using its platform to power a global AI calling agent called "Call for Me". This integration allows users to delegate phone call-based tasks to AI, reducing language barriers and wait times. Some analysts believe Twilio along with ServiceNow and Shopify could see significant growth, with potential rises of up to 75%. However, it is recommended to exercise caution as some believe it may be too soon to buy. No recent earnings release was available.

1.c. Company Highlights

2. Twilio's Q3 2025 Earnings: A Strong Performance

Twilio reported a record revenue of $1.3 billion for Q3 2025, representing a 15% year-over-year growth. Non-GAAP income from operations also reached a record high of $235 million. The company's EPS came in at $1.25, beating estimates of $1.07. Revenue growth was driven by broad-based strength across customer segments, with ISV and self-serve customers growing revenue more than 20% year-over-year. Messaging revenue grew in the high teens, while voice revenue growth accelerated to the mid-teens.

Publication Date: Nov -10

📋 Highlights
  • Record Revenue and Income: Q3 2025 revenue hit $1.3B (+15% YoY), with non-GAAP income from operations at $235M (both records).
  • High-Growth Segments: ISV/self-serve customers drove >20% YoY revenue growth; Verify software add-on grew >25% YoY.
  • Strategic Acquisition: Acquired Stytch (<$100M) to enhance AI-driven identity solutions and digital interactions.
  • Upgraded Guidance: Raised full-year revenue target to $5.24B-$5.28B, non-GAAP income to $900M-$910M, and free cash flow to $920M-$930M.
  • International Momentum: International messaging grew 18%, with strong cross-sell adoption and expansion into Australia, Japan, and Singapore.

Segment Performance

The company's non-messaging business saw significant growth, with sequential adds nearly double last quarter, driven largely by email. The growth was broad-based, with ISVs, self-serve, and software add-on products like Verify, all growing over 20%. Voice AI start-up customer volume drove growth in voice, which grew mid- to high-teens. International messaging growth was also strong at 18%.

Guidance and Outlook

Twilio raised its revenue, profitability, and free cash flow targets for the full year. The company expects revenue to be in the range of $1.31 billion to $1.32 billion for Q4, representing organic revenue growth guidance of 11.3% to 11.5% for the full year. Non-GAAP income from operations is expected to be $230 million to $240 million for Q4, and full-year non-GAAP income from operations range is raised to $900 million to $910 million. Analysts estimate next year's revenue growth at 8.8%.

Valuation

Twilio's current valuation metrics indicate a premium, with a P/E Ratio of 290.85 and an EV/EBITDA of 67.43. The P/S Ratio stands at 4.0, while the Free Cash Flow Yield is 4.33%. The company's ROIC is 1.08%, and ROE is 0.84%. These metrics suggest that the market has high expectations for Twilio's future growth.

Growth Initiatives

The company is investing in areas such as voice AI, RCS adoption, and inorganic investments like the recent Stytch acquisition. Twilio sees potential in RCS due to its branded nature, leading to higher efficacy and more trust. The company's initiatives to fuel cross-sell growth, including product innovation, enablement, and marketing programs, have shown a positive start to the year.

3. NewsRoom

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Genspark Uses Twilio to Power Global AI Calling “Call for Me” Agent

Feb -03

Source: businesswire.com

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These software stocks could rise as much as 75%. But is now the time to buy?

Feb -02

Source: marketwatch.com

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Why Twilio (TWLO) Dipped More Than Broader Market Today

Jan -30

Source: zacks.com

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Harbor Mid Cap Core ETF Q4 2025 Portfolio Review

Jan -28

Source: seekingalpha.com

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Universal Beteiligungs und Servicegesellschaft mbH Sells 6,679 Shares of Twilio Inc. $TWLO

Jan -26

Source: defenseworld.net

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Why Twilio (TWLO) Outpaced the Stock Market Today

Jan -24

Source: zacks.com

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Twilio could double voice revenue as AI adoption scales, UBS says

Jan -20

Source: proactiveinvestors.com

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Trade Tracker: Joe Terranova buys Twilio

Jan -20

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (25.61%)

6. Segments

Messaging

Expected Growth: 27.43%

Twilio's 27.43% growth in Messaging is driven by increasing adoption of cloud-based communication platforms, rising demand for omnichannel customer engagement, and expansion into new markets. Additionally, the growing need for businesses to enhance customer experience, improve operational efficiency, and reduce costs are key factors contributing to this growth.

Other

Expected Growth: 27.18%

Twilio's 'Other' segment growth of 27.18% is driven by increasing adoption of its IoT and messaging services, expansion into new markets, and strategic partnerships. The rise of remote work and digital transformation also fuels demand for Twilio's communication and customer engagement solutions, contributing to its rapid growth.

Voice

Expected Growth: 26.27%

Twilio's Voice segment growth is driven by increasing adoption of cloud-based communication platforms, rising demand for omnichannel customer engagement, and expansion into new industries such as healthcare and finance. Additionally, the growing need for real-time communication and analytics capabilities, as well as the shift towards API-based communication, are contributing to the segment's 26.27% growth.

Email and Marketing Campaigns

Expected Growth: 11.7%

Twilio's 11.7% growth in Email and Marketing Campaigns is driven by increasing demand for omnichannel customer engagement, expansion into new industries, and growing adoption of cloud-based communication platforms. Additionally, the rise of e-commerce and digital transformation initiatives across enterprises are fueling the need for personalized and automated marketing campaigns, further boosting Twilio's growth.

Twilio

Expected Growth: 27.93%

Twilio's 27.93% growth is driven by increasing adoption of cloud-based communication platforms, rising demand for customer engagement solutions, and expansion into new markets. Additionally, the company's strategic acquisitions, such as Segment, have enhanced its offerings and contributed to revenue growth.

7. Detailed Products

Twilio Voice

A cloud communication platform that enables businesses to make and receive voice calls programmatically.

Twilio Messaging

A messaging platform that enables businesses to send and receive SMS, MMS, and WhatsApp messages programmatically.

Twilio Video

A cloud-based video platform that enables businesses to build real-time video experiences into their applications.

Twilio Flex

A cloud-based contact center platform that enables businesses to build custom, omnichannel customer service experiences.

Twilio Autopilot

A conversational AI platform that enables businesses to build custom, omnichannel chatbots and IVRs.

Twilio Verify

A two-factor authentication platform that enables businesses to verify user identities programmatically.

Twilio Lookup

A phone number lookup platform that enables businesses to validate and enrich phone number data programmatically.

8. Twilio Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Twilio's platform is highly specialized and customizable, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative communication platforms, Twilio's strong brand recognition and customer loyalty mitigate this force.

Bargaining Power Of Suppliers

Twilio has a diversified supplier base, and its technology is not heavily reliant on any single supplier, reducing the bargaining power of suppliers.

Threat Of New Entrants

The cloud communication platform market is highly competitive, and new entrants can easily enter the market, posing a significant threat to Twilio's market share.

Intensity Of Rivalry

The cloud communication platform market is highly competitive, with many established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.72%
Debt Cost 3.95%
Equity Weight 90.28%
Equity Cost 10.53%
WACC 9.89%
Leverage 10.76%

11. Quality Control: Twilio Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Alphabet

A-Score: 5.8/10

Value: 1.0

Growth: 8.2

Quality: 8.2

Yield: 0.0

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Yelp

A-Score: 5.2/10

Value: 6.5

Growth: 7.8

Quality: 8.4

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
CarGurus

A-Score: 4.7/10

Value: 2.6

Growth: 6.7

Quality: 8.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Twilio

A-Score: 4.4/10

Value: 1.6

Growth: 8.1

Quality: 5.4

Yield: 0.0

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Cogent Communications

A-Score: 4.1/10

Value: 7.7

Growth: 2.7

Quality: 2.1

Yield: 10.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
IAC

A-Score: 4.0/10

Value: 6.9

Growth: 2.7

Quality: 4.6

Yield: 0.0

Momentum: 3.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

109.5$

Current Price

109.5$

Potential

-0.00%

Expected Cash-Flows