Over the past 12 months, Twilio Inc. (TWLO) gained more than 200 %. The company was able to increase sales during the coronavirus pandemic when the demand for high-quality communication increased. However, TWLO stock remains unprofitable for now.
In 2020, Twilio lost $ 491 million compared to $ 307 million in 2019, that is, the increase in losses was about 60 %. According to management, the increase in losses is associated with general economic trends, including a slowdown in the economy and the impact of the COVID-19 crisis. Also, Twilio increased losses through its acquisitions of SendGrid and Segment in 2019 and 2020, respectively. So far, Twilio’s operating expenses are growing more slowly than revenue is increasing. This indicates that Twilio can control costs.
Twilio Inc. (TWLO) delivers a communications platform as a service (CPaaS). Developers can use company programmable interfaces to perform actions such as customer support chats, reminders, and video conferencing. The company’s clients include large companies including Lyft and Airbnb. In total, over 190,000 businesses provide nearly 932 billion customer interactions per year through Twilio.
In FY2020, Twilio reported that it was earning an average of 37 % more from existing customers than a year earlier. The company’s revenue for this period increased by 55 %, to $ 1.76 billion. In the first quarter, the company expects revenue growth by 44 – 47 %. Thus, the company demonstrates sustainable growth and increases customer engagement. Competition is not a serious obstacle for Twilio, since the company’s solutions have several advantages, which customers confirm.
Twilio Inc. (TWLO) shares are 10.56% up in the year-to-date (YTD) period and have moved up 6.09% or $21.48 higher in the latest trading session. However, the stock’s trailing 12-month performance remains nearly 330.12% higher. Comparatively, the stock is 10.56% up YTD and 16.66% over the trailing 3-month period. If we look at the shorter duration, TWLO stock week performance is up 8.15% and -7.95% over the month.