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Twilio Inc Class A TWLO

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Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Twilio’s ZipWhip Acquisition and Segment Release Feed Growth Engine; FVE up to $388

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Narrow-moat Twilio reported a strong second quarter that exceeded both our and management’s expectations, and provided a mixed outlook. We are raising our fair value estimate to $388 from $370 per share, reflecting our confidence in Twilio’s significant growth runway amidst its expanding footprint in the customer engagement space. At current levels, we view shares as fairly valued. Outperformance in the quarter was driven by strength in messaging and the acquired Segment business. Journeys is the latest innovation within Segment, allowing for personalization of customer engagement by utilizing real-time first-party data to engage with customers most efficiently and within the confines of broader industry data-privacy laws. This product release, in conjunction with the June acquisition of ZipWhip, a toll-free business messaging provider, confirms Twilio’s focus on building a diverse portfolio that complements and enhances the core communication API capabilities.

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Company Profile

Business Description

Twilio is a communications-platform-as-a-service company that allows software developers to integrate messaging and communications functionality into existing or new applications via application programming interfaces and software development kits. The firm’s Programmable Communications Cloud addresses several use cases, including Programmable Voice to make and receive phone calls, Programmable Messaging for SMS and MMS delivery, and Programmable Video, which allows developers to embed video functionality in mobile and web applications.

Contact
101 Spear Street, First Floor
San Francisco, CA, 94105
T +1 415 390-2337
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Speculative Growth
Employees 6,334

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