TWLO is still an 8% position. I haven’t touched it, but I’d be more likely to trim than add. I just don’t see how they’re going to grow as fast as these others. I’m not impressed with the Sendgrid progress, although I admit it’s too early to ding them much for that, and I could be proven wrong…eventually. I don’t care much about the Flex conversation…it’s more about SendGrid for me. It was a very large acquisition and growing slowly compared to “legacy” Twilio products.
I share your sentiments on TWLO–buying SEND has just never sat right. If you’re a company with a huge runway ahead of you and lots of growth avenues to take advantage of, why would you make a big acquisition of a slower-growing company in a different product category? At best, it is a distraction for management. At worst, it was an attempt by TWLO to buy revenues or perhaps they were concerned about competitive dynamics and felt they needed to become more “full-service” to differentiate themselves. It may work out in the end and we see some cross-selling, but generally, companies in the midst of their S-curve growth don’t make big acquisitions like TWLO did with SEND. Some sort of sales partnership would have been just as good.