I mentioned already that I sold my small position in NEWR this morning. I decided to put that money in TWLO doubling my 1% position to 2%. Why TWLO?
The have demonstrated scalability. Below is their Customer Count for the past couple of years:
Customers Cust Gwth (q/q) Cust Gwth (seq) Net Dollar-based Expansion
Q1'15 19340 145%
Q2'15 21226 9.8% 149%
Q3'15 23822 12.2% 156%
Q4'15 25347 6.4% 172%
Q1'16 28648 48% 13.0% 170%
Q2'16 30780 45% 7.4% 164%
Q3'16 34457 45% 11.9% 155%
Q4'16 36606 44% 6.2% 155%
Q1'17 40696 42% 11.2% 141%
These numbers look incredible and demonstrate scalability is working. Customers are spending more and staying with TWLO.
Yes, Uber decided to move some of their business away, but I see this as a special case. As long as I see the customer growth this high and the customer spending on TWLO increasing, I will like it.
Here’s the recurring revenue growth:
Rev Rec Rev Rec Rev Gwth (y/y) Rec Rev Gwth (full year)
Q1'15 25.9
Q2'15 37.954 30.7
Q3'15 44.262 36.7
Q4'15 51.3 43.5
Q1'16 59.34 49.8
Q2'16 64.51 56.4 70.0%
Q3'16 71.533 64.1 61.6%
Q4'16 82 75.2 59.8%
Q1'17 87.4 80.6 47.3% 71.9%
Q2'17 86.5 78 34.1% 59.8%
Pretty amazing growth especially considering that I’m sure the Q2 2017 number is account for the loss of some recurring revenue due to Uber’s decision.
The next earnings report is next due out on Monday so we will get an update on how they did in Q2 2017.
Chris