So, Twilio – that cloud communications company you might’ve heard whispered about in tech circles. Picture this: They had a roaring end of 2024, like your favorite band playing an encore. Kicked off 2025 with fireworks, but then the sky got cloudy. Stocks took a nosedive, losing 40% of their sparkle. You know the culprit? Market uncertainty spiced up with some messy tariff policies. The Trump administration, stirring the pot like they do, and to top it off, Twilio’s quarterly report was kinda meh.
Okay, here’s why you shouldn’t just write Twilio off yet. Let’s dig into these layers.
Twilio’s definitely been bending an ear and eye to AI. Everyone’s got AI fever, and these folks are cooking with it in the cloud communications cafe. They teased us with some tempting figures for Q4 2024 – 11% revenue uptick and a 16% boost in earnings. Not too shabby, right? Yet, Wall Street was like, “Meh, we expected a tad more.” Investors got jittery, pressing alarm bells like it’s New Year’s Eve.
Q1 2025’s guidance was not the fireworks show people were hoping for. But hey, there’s a twist. Word on the street is Twilio’s AI tools are lining pockets – theirs and their customers’. More folks are cross-buying their goodies, and that’s saying something, considering they’re sitting on a goldmine of 325,000 customer accounts.
Now, those in-the-know at Twilio dropped some intriguing nuggets during an investor shindig in January. Turns out, 9,000 of their customers are already crafting AI-centric tools with Twilio’s stuff. That’s cool, but it means the larger chunk of Twilio’s customer base hasn’t waded into the AI water yet. Loads of upside lurking there.
They’re eyeing an up-sized market worth a dazzling $119 billion by 2028. And oh, conversational AI’s expected to sweeten that pot by another $39 billion soon.
2024 ended with Twilio pocketing close to $4.5 billion in revenue. AI looks like their magic wand, one that might just wave them towards impressive growth. Circle May 1 on your calendar, ’cause that’s when they’re slated to release their Q1 results. Smart money’s betting on some surprises.
Then there’s the valuation angle. In 2024, they had a 16% non-GAAP operating margin. Fast-forward to 2027, and they’re aiming for 21% to 22%. Possible? Seems like it. By 2027, if their earnings hit $6.22 per share and if Twilio trades like its Nasdaq-100 peers, we could be staring at a $149 stock.
Quick math: that translates to a tasty 69% potential hike from here over three years. Right now, Twilio’s at 20 times forward earnings – not a bad time for some stock shopping, especially if they turn things around post-May 1. Could be a helluva bull ride for those who dare to hop on.
