Twilio reported results of its September quarter earlier this week.
The results were a complete blow out with strong beats in terms of revenues, customer adds and even operating margin performance.
The company raised guidance noticeably, although to a point that’s probably still excessively prudent.
The shares rose 35% on the day of the earnings release to a new record. But with growth accelerating the valuation metric most in use, EV/S is actually less now than it had been.
I believe that even after the dramatic share price increase, investors continue to undervalue the company’s commanding position in their particular niche.
TWILIO has competition but the competition does not offer the breadth of features you can build into your app. For instance, Twilio Pay is a new offering and they just bought SendMail. Flex is another new feature (cloud based contact center that SHOP adopted when they were just about to develop their own call center)
The ability a company like SHOP has to deploy a rather elaborate call center application in just a few months using the Twilio tool with only three professional developers is thought by many to be extraordinary How many more of these will be coming in the near future???
I recall reading the Twilio Pay allows someone to call or chat into a call center and make a payment without the person on the other end seeing their credit card info. That is nice security feature that would make people less worried about paying for something.
The ability a company like SHOP has to deploy a rather elaborate call center application in just a few months using the Twilio tool with only three professional developers is thought by many to be extraordinary,
Let’s not forget about the 2 interns! But yes, I completely agree that creating a massive, customized call center for a company that relies on customer service using such few resources is absolutely incredible! Bert’s article was once again one of the most well researched and written pieces I’ve seen on SeekingAlpha.
“Three developers and two interns” should be Twilio’s new corporate slogan.
Anything that solves the “low quality, long-time-to-build” software problem is worth looking at!
“Anything that solves the “low quality, long-time-to-build” software problem is worth looking at!”
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From the AYX conference call:
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