TWLO Stock Recent News

Twilio is experiencing strong double-digit revenue growth, robust enterprise customer acquisition, and improving profitability, supporting an upgrade to strong buy. Customer monetization trends are highly favorable, with a rising dollar-based net expansion rate indicating organic revenue growth potential. The Cloud platform is on track to be operating income profitable on a GAAP basis in FY 2025. Twilio maintained high free cash flow margins in Q1 as well.

Tech giants like INTU, APH, AVGO, TWLO and UI surged over 11% in May, powering markets past the "Sell in May" adage with standout gains.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

Twilio's Q1 FY25 showed strong revenue and profit growth, with Communications accelerating and Segment stabilizing, with the dollar-based net expansion rate growing to 108%. Management's AI-led product innovation and go-to-market execution are driving progress toward its long-term margin target of 21–22% by FY27 and a cumulative free cash flow of $3B during this period. Consensus estimates remain conservative, but I see them as easily achievable as AI adoption intensifies and organizations increase spending on personalized communications.

SAN FRANCISCO--(BUSINESS WIRE)--Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for today's leading brands, today announced that Chief Executive Officer Khozema Shipchandler will participate in a fireside chat at the William Blair 45th Annual Growth Stock Conference on Wednesday, June 4, 2025 at 6:40 a.m. (PT) / 9:40 a.m. (ET). A live webcast and replay will be available on Twilio's investor relations website at investors.twilio.com. Disclos.

TWLO's AI monetization is here, as more consumers adopt its well diversified messaging, e-mail, and voice agent offerings, implying its improved cross selling cadence. The same has been observed in its growing top/ bottom-line performance and the higher Dollar-Based Net Expansion Rate, despite the uncertain macroeconomic environment. This may potentially be aided by the still heightened downturn risks of below 50%, as more Enterprises adopt AI to drive improved Return Of Investments [ROI].

Twilio is showing a strong recovery with improving organic growth, retention rates, and expansion within its existing customer base, leading me to reiterate my buy rating as the stock rebounds. The company boasts a substantial cash position, disciplined cost management, and a leading market position with limited competition, supporting long-term value. The company's Q1 results showed healthy end-customer usage, leading to accelerating revenue growth and net expansion trends.

Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.

The current low-valuation of Internet-centric AI stocks provides good opportunity for investors. Five such stocks to buy are: ANET, FSLY, FIVN, HUBS, TWLO.

Twilio's strong revenue growth, expanding profit margins, and aggressive share repurchases support my continued buy rating, despite recent stock gains. The company boasts a net cash balance sheet and has been expanding GAAP profitability. Management's conservative guidance and focus on profitability targets look achievable, though macro risks and top-line growth expectations warrant caution.