Twilio: New America Article

Twilio profiled in this week’s The New America article from IBD.…

Snippits, probably nothing we don’t know.

“The SendGrid acquisition is very good because that business is extremely complementary and allows Twilio to enter the marketing space in a disruptive way,” Piper Jaffray analyst Alex Zukin said in an email.

Twilio’s biggest move, however, could be its shift to cloud computing. Twilio’s core product has been a software platform that enables app developers to embed voice, text messaging and video into their products. The software also makes it easier for cloud applications to communicate with each other.

“Twilio’s growth will continue to be fueled by the proliferation of cloud and mobile application development that is reflective of its strong customer base, which includes Uber, WhatsApp, Airbnb, and other industry leaders,” Murphy said in a recent note to clients.

Bullish analysts, like Piper Jaffray’s Zukin, expect upside next year from Twilio’s rollout of a new product — “Flex”-branded software for customer-service departments called “contact centers.”

Total active customers grew 32% to 61,153 from a year earlier. Annual revenue per customer jumped 27% to $10,420

Because of telecom network costs, though, Twilio’s gross margins have “hovered in the low to mid-50s vs. typical software company gross margins well above 70%,” says the Deutsche Bank report.

Boosted by new CEO from Salesforce.