Back to top

Image: Shutterstock

TWLO Enhances Its Segment Platform: What Should Investors Do?

Read MoreHide Full Article

Twilio’s (TWLO - Free Report) shares have gained 38.5% in the year-to-date period, outperforming the Zacks Internet – Software Industry, Zacks Computer and Technology Sector and the S&P 500 index’s growth of 35.1%, 28.2% and 26.7%, respectively. TWLO’s outperformance reflects investors’ confidence in its robust portfolio, solid partner base and strong financials.

Twilio recently launched the beta version of Linked Audiences in the Twilio Segment for Amazon (AMZN - Free Report) Redshift. This new product integration of the two companies adds to the existing portfolio of integrations like Amazon Kinesis, Amazon S3, Amazon Lambda, Amazon Personalize and Amazon EventBridge.

Twilio Segment for Amazon Redshift will enable the customers of Amazon and TWLO to build an audience, enhance customer profiles and scale personalization. This initiative aims at simplifying the work of marketers who can now create dynamic, data-rich audiences for personalized marketing campaigns.

Marketers operating across both business-to-business and business-to-customer channels will be able to use this no-code tool to explore customer data and build a precise target audience. The tool reduces reliance on SQL and further allows marketers to get a comprehensive view of customer interactions. The product also uses Amazon Ads DSP + AMC (Public Beta) to enable campaigns across Amazon’s ecosystem using first-party data.

Twilio YTD Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Expanding Portfolio Aids Twilio

Twilio is continuously developing new products and partnering with other industry leaders to broaden its portfolio. In the past year, the company launched solutions including Rich Communication Services, Unified Profiles and Agent Copilot. Twilio also integrated its platform with OpenAI’s Realtime API for developing real-time conversational solutions.

Twilio also launched Agent Copilot, where it combined customer data and AI to enhance customer engagement for its clients. Agent Copilot leverages the data from TWLO’s Unified Profiles platform and improves productivity among employees. The company has also partnered with Frame AI to enhance its Flex platform by integrating AI capabilities into it.

Twilio’s developer-friendly platform and extensive API ecosystem have made it a preferred choice for companies looking to build custom communication solutions. Its ability to offer highly customizable communication tools, alongside its extensive global reach in more than 180 countries, gives it a competitive edge. In contrast, its competitors often offer more regionalized or standardized services.

Rising Customer Base Boosts Twilio’s Revenue Growth

Twilio’s API-first approach has attracted a broad range of clients from startups to large enterprises, solidifying its market position. The company is experiencing customer growth and strengthened connections in its client base. It already serves renowned companies like Netflix (NFLX - Free Report) , Airbnb (ABNB - Free Report) , Lyft, Zendesk, Uber, WhatsApp and DoorDash.

Netflix uses Twilio’s offerings for enabling account notifications, SMS, toll-free numbers and email. Airbnb uses TWLO’s SMS features to streamline the rental experience for travelers, where it connects hosts and guests in a low-cost and effective way.

Twilio’s sustained focus on offering innovative products will continue helping it win new customers, which will drive its top-line performance. The Zacks Consensus Estimate for TWLO’s 2024 and 2025 revenues indicates an increase in the mid-single-digit percentage range.

The consensus estimate for 2024 earnings is pegged at $3.64 per share, indicating a year-over-year increase of 48.57%.

What Should Investors Do?

Twilio’s constant expansion of its product portfolio positions it well for growth. The company also boasts a strong partner base and a steady inflow of customers, which aid its financial growth.

Considering these factors, it is prudent that investors should buy this Zacks Rank #1 (Strong Buy) stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Netflix, Inc. (NFLX) - free report >>

Twilio Inc. (TWLO) - free report >>

Airbnb, Inc. (ABNB) - free report >>

Published in