TWLO - Twilio: Valuation Now Attractive (Rating Upgrade)
2024-04-16 21:34:57 ET
Summary
- Twilio is facing revenue challenges, but it saw growth in key metrics such as gross profits and its dollar-based net expansion rate in the most recent quarter.
- Shares of Twilio have not yet recovered from the Q4'23 earnings sell-off, creating an interesting engagement opportunity.
- Gross profit trajectory and improving monetization are two favorable aspects.
- Twilio's valuation is more reasonable now, making it a good investment option for growth investors.
Twilio ( TWLO ), despite seeing slowing top line growth in FY 2023, also achieved a small improvement in its dollar-based net potential rate, a vital monetization figure that indicates potential for organic revenue growth. Twilio’s shares skidded 22% year-to-date after the cloud-based communications platform presented its Q1’24 revenue guidance and they have not yet recovered. Considering that Twilio is still growing its enterprise customer base, seeing an uptick in its dollar-based net expansion rate and that the valuation is now much more attractive than during the pandemic period, I believe Twilio has potential for a rebound in FY 2024!...
Twilio: Valuation Now Attractive (Rating Upgrade)