
Twilio (TWLO) Stock Forecast & Price Target
Twilio (TWLO) Analyst Ratings
Bulls say
Twilio's positive outlook is supported by a 14.7% year-over-year increase in total revenue, indicating robust growth driven by key sectors such as international messaging and software add-ons. The dollar-based net expansion rate improved to 109%, reflecting enhanced customer retention and up-selling efforts. Additionally, the company's active customer count reached 392,000, demonstrating a 23% year-over-year growth, which highlights its expanding market presence and successful engagement strategies.
Bears say
Twilio's financial outlook appears negative primarily due to a decline in gross margins, which fell to 50.1%, driven by rising costs associated with Verizon A2P fees and increased cost of goods sold (COGS), reflecting a greater competitive landscape and macroeconomic pressures. Additionally, while the company generated $248 million in free cash flow at a 19% margin, this represents a decrease from the previous quarter and indicates challenges in maintaining profitability amidst heightened competitive dynamics within the cloud-based communications market. The combination of slowing revenue growth, increased competition, and macroeconomic sensitivities further exacerbates uncertainties regarding Twilio’s financial performance going forward.
This aggregate rating is based on analysts' research of Twilio and is not a guaranteed prediction by Public.com or investment advice.
Twilio (TWLO) Analyst Forecast & Price Prediction
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