Twilio (TWLO) going strong, but is it overbought?

10:29 am ET, 02 Aug 2018

Twilio Inc. (TWLO) is expected to report earnings on August 6 after market close. The report will be for the fiscal quarter ending June 2018. Shares are trading at 58.00, down -4.46%. 

What are TWLO earnings expectations?  What news should investors be paying attention to?

Twilio’s platform-as-a-service offering is going strong.  Enterprises are using it as a part of their digital transformation initiatives (for customer engagement and customer satisfaction).  Twilio’s technology enables omnichannel communications by making legacy systems redundant, resulting in substantial cost savings.  

Twilio is frequently pitted against large incumbents, but the company is establishing itself as a leading vendor in communications PaaS.  It solves the customer engagement problem by providing multiple building blocks for developers to build communication functionality into applications. This functionality can span multiple channels, including text, voice, and video, allowing firms to modernize legacy contact centers or create new avenues for customers to engage with brands. 

Companies such as Lyft use Twilio’s platform to allow drivers and riders to communicate instantly and anonymously via text or voice.  Two-factor authentication is a popular use case as well, as firms such as WhatsApp use Twilio’s platform to verify users via SMS. Twilio’s customers also include well-established brands such as Coca-Cola and software powerhouses such as Salesforce.com.

Twilio’s addressable market is $45 billion.  The company is facing competition from legacy networking vendors such as Cisco, as well as niche vendors such as Nexmo.  

Twilio Inc. has a mixed history of beating analysts’ earnings estimates. In the past four quarters, the company: 

  • Beat analyst EPS estimates by 6 cents ($-.05 actuals vs. $-.11 forecast) in FQ2’17;
  • Delivered on the analyst EPS estimate ($-.08 actuals vs. $-.08 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 3 cents ($-.03 actuals vs. $-.06 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 3 cents ($-.04 actuals vs. $-.07 forecast) in FQ1’18.

For FQ2’18, EPS is expected to decline by 20% year-over-year to $-.06, while revenue is expected to grow 36% year-over-year to $130 million.  

Over the last month, Twilio Inc. (TWLO) returned +3.53%.

Twilio Inc. (TWLO) average analyst price target ($53.54) is -7.69% below its current price ($58.00).

For the latest price and information on Twilio Inc., please visit Finstead and search for "TWLO price" or "TWLO news".

Twilio Inc. (TWLO) Stock Guide

Updated at: 6:06 pm ET, 18 Sep 2020

Before we start: if you're looking for TWLO stock price, you can quickly find it out by visiting Finny and typing "TWLO quote". If you're looking for a quick scoop on TWLO stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "TWLO". You'll get all this info in one place. Or you can just type "TWLO news" to get the latest stock news.

Looking to buy or sell Twilio Inc. (TWLO)? Interested in getting the full scoop on TWLO, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this TWLO stock guide, we'll address key questions about TWLO, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are TWLO earnings?
2. What is TWLO stock forecast (i.e., prediction)?
3. TWLO buy or sell? What is TWLO Finny Score?
4. What are the reasons to buy TWLO? Why should I buy TWLO stock?
5. What are the reasons to sell TWLO? Why should I sell TWLO stock?
6. What are TWLO key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are TWLO earnings?

TWLO trailing 12-month earnings per share (EPS) is -$2.68.

Analyst Predictions

2. What is TWLO stock forecast (i.e., prediction)?

Based on TWLO analyst price targets, TWLO stock forecast is $298.41 (for a year from now). That means the average analyst price target for TWLO stock is $298.41. The prediction is based on 13 analyst estimates.

The low price target for TWLO is $225.00, while the high price target is $335.00.

TWLO analyst rating is Buy.

Analysis

3. TWLO buy or sell? What is TWLO Finny Score?

#{finnyScore:50}Our quantitative analysis shows 5 reasons to buy and 5 reasons to sell TWLO, resulting in Finny Score of 50.

4. What are the reasons to buy TWLO? Why should I buy TWLO stock?

Here are the reasons to buy TWLO stock:

5. What are the reasons to sell TWLO? Why should I sell TWLO stock?

Let's look at the reasons to sell TWLO stock (i.e., the bear case):

  • TWLO profitability is declining. The YoY profit margin change was -1.07 percentage points. See TWLO profitability chart.
  • TWLO forward P/E ratio is 1188.00, which is high compared to its industry peers’ P/E ratios. See TWLO forward P/E ratio chart.
  • TWLO PEG ratio (P/E adjusted for growth) is 131.59, which is high compared to its industry peers’ PEG ratios. See TWLO PEG chart.
  • TWLO short share of float is 7.66%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See TWLO short share of float chart.
  • TWLO short interest (days to cover the shorts) ratio is 2.8. The stock garners more short interest than the average industry, sector or S&P 500 stock. See TWLO short interest ratio chart.

Key Stats

6. What are TWLO key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for TWLO:

Metrics TWLO
Price $245.01
Average Price Target / Upside $298.41 / 21.80%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Software - Application
Sector Technology
Number of Employees 1,440
Market Cap $39.11B
Forward P/E Ratio 1,188.00
Price/Book Ratio 28.1
Revenue (TTM) $1.39B
YoY Quarterly Revenue Growth 45.70%
Profit Margin -26.77%

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