Twilio Soars on Robust Outlook, AI Demand Surge
Twilio's shares surged on Friday after the cloud communications software provider revealed a positive outlook and robust demand for its AI tools.
Key Takeaways
* Double-digit revenue growth projected, exceeding analyst estimates
* GAAP operating profitability targeted for fiscal 2025 and onward
* Over 9,000 AI companies utilized Twilio's services in 2024
Strong Outlook Drives Growth
Twilio's optimistic outlook stems from increasing demand for its AI capabilities. The company expects to achieve double-digit revenue growth, with a projected 11% year-over-year increase in fourth-quarter revenue. This exceeds analyst predictions compiled by Visible Alpha.
Profitability and Cash Flow Targets
Twilio is aiming for GAAP operating profitability in fiscal 2025 and beyond. Additionally, the company anticipates generating over $3 billion in free cash flow (FCF) from 2025 through 2027, alongside a non-GAAP operating margin of 21% to 22% in 2027.
Investor Returns and Share Performance
Twilio plans to return half of its annual FCF to investors through 2027. The company estimates that 2025 income from operations and FCF will range between $825 million and $850 million. Shares of Twilio experienced a significant increase of over 22% on Friday, reaching $139.03 in intraday trading. The company's stock has nearly doubled in value over the past year.