Twilio’s CFO has claimed that the company is steaming ahead with a fantastic growth trajectory, despite a few issues in the stock market over recent months. At the end of July 2019, the leading communications and collaboration company announced a revenue of $275 million. This puts Twilio ahead of its $264 million consensus slightly, with earnings of around 3 cents per share.
On the other side of the coin, Twilio has encountered a few issues with losses in share value. Shares dropped by 1.6% during in-hours trading, as investors considered the outcome of the latest financial results. Twilio’s stock value had risen by around 55% year-to-date. Additionally, the revenue figures posted by Twilio represented a growth rate of 86% year-over-year, and about 18% sequentially.
In other words, the results weren’t terrible. The CFO of Twilio, Khozema Shipchandler, has responded to media questions with a positive approach to the company’s outlook, saying that the growth in revenue is broad-based across the brand’s organic holdings. Khozema also noted that the recent purchase of SendGrid is only just beginning to make a difference to Twilio’s value.
Discussing Twilio’s Financial Standing
Last quarter represents the first full quarter since Twilio closed its deal to purchase SendGrid for $2 billion in Stock. The acquisition was announced during October 2018, and SendGrid has allowed Twilio to add the highly desirable feature of an email API to its portfolio. Before purchasing SendGrid, Twilio’s solution was limited to APIs for videoconferencing, calling, and SMS.
Twilio believes that they have yet to see the full impact of their acquisition, as it’s still very early days. The Twilio brand has only officially owned SendGrid for 5 months, and opportunities to upsell and cross-sell offerings to Twilio customers are only just starting to become apparent. According to Shipchandler, Twilio is only just beginning to see what’s possible with SendGrid.
In a discussion of the latest financial results, Shipchandler also drew attention to the fact that Twilio is consistently moving away from various big customers as disproportionate sources of revenue. The percentage of money taken from top 10 customers in the Twilio community has been dropping gradually. Twilio now has 161,869 active customers compared to 57,350 for the same time last year.
Continued Growth on the Horizon
Twilio believes that the future looks bright for their investors. Shipchandler noted that investors would be able to see more growth for the cloud communications brand in the quarters to come. At the end of July, the company announced that it had exceeded its $1 billion annualised run rate, and the brand also pointed out that they’re investing in various crucial product developments. For instance, we’ll soon see the arrival of a new IoT product named Trust Onboard.
Shipchandler believes that few other companies are achieving the same rate of growth as Twilio, with such significant scale.
