Naughty and Nice ER Review: TWLO

TWILIO - Cloud Communications Royalty

TWLO last reported Q1 2022 on May 4:……

  • First Quarter Revenue of $875.4 million, up 48% Year-Over-Year: ATTA BOY!

  • Revenue Beat % Sliding into Abyss: OH POOP!

  • Revenue Beat of only 1% - way below Standard for starting a position or adding: OH POOP!

  • Organic Revenue Growth is Declining: OH POOP!

  • First Quarter Revenue Dollar-Based Net Expansion Rate of 127%: ATTA BOY!

  • Non-GAAP income from operations of $5.0 million for the first quarter of 2022 compared with Non-GAAP income from operations of $17.3 million for the first quarter of 2021: Big OH POOP!

  • 268,000 Active Customer Accounts as of March 31, 2022, compared to 235,000 Active Customer Accounts as of March 31, 2021: ATTA BOY!

  • Guidance was for lower Revenue Growth in the coming QTR: Oh POOP!

  • To achieve this goal, we’ll continue to make the necessary investments in 2022, which will put us on a solid trajectory to deliver against our growth and profitability targets over the coming years: What this means is they don’t really care about profits just now which raises the question, how big does Revenue have to grow to generate a profit to these guys: OH POOP!

Market Reaction to Report: First the stock sold off a bit - then it popped a little higher - but then it sold off again. Today share prices are up about 6% or so. And - some analysts cut price targets: Overall I see this as a mixed bag but still: Light OH POOP!


LIST and Ranking Assignments: Naughty #6

Note: BROS and TWLO are in a virtual tie for Naughtyness but I give BROS a slightly better score due to is long, long path to growth. TWLO simply doesn’t seem to be able to ever make enough money to loan me any. BROS still has some runway to tease investments with store growth - if the inflation thing ever goes away.

All the Best,