Twilio (TWLO): Thoughts Ahead Of First Analyst Day - William Blair

William Blair analyst, Bhavan Suri, reiterated his Outperform rating on shares of Twilio (NYSE: TWLO) ahead of first analyst day next week on December 5. The analyst believes that this years volatility has been driven mainly by changes with its relationship with Uber (a significant customer representing 5% of total revenue last quarter) and worries about increasing competition (from other platform players and Amazon have been pressuring the stock,

He expects management to provide an update on:
1) its relationship with Uber and its expectations of revenue contribution
2) insight into the sustainability of its core business (base revenue excluding Uber), which has grown over 60% over the past three quarters.
A bridge from the company’s current gross margin profile of 53.4% to its long-term target
of 60% to 65%.
3) Clarity on the company’s product revenue mix (voice, SMS, video, and authentication),
expectations for this mix over the longer term, and the impact on margins.
4) The traction in the enterprise market and how the engagement cloud is contributing to
success in this market.
5) Key investment areas for its product set and sales and marketing to drive growth, and
expectations to balance growth with operating margin expansion next year.

For an analyst ratings summary and ratings history on Twilio click here. For more ratings news on Twilio click here.

Shares of Twilio closed at $26.23 yesterday.

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