Twilio Inc (NYSE: TWLO) reported third-quarter revenue of $1.03 billion, which beat the consensus estimate of $989.28 million. The company's top-line results were up 5% on a year-over-year basis.
Mizuho analyst Siti Panigrahi reiterated the Neutral rating on Twilio, raising the price target to $60 from $55.
Panigrahi remains particularly encouraged by margin expansion but is waiting to see a revenue reacceleration trend.
The analyst writes that the recovery in Communications will be largely tied to an improvement in the macro (given its usage-based model),
According to Panigrahi, while TD&A booking trends are expected to improve further in Q4, the analyst doesn't see a material reacceleration to drive meaningful improvements in at least H1 2024 for Twilio's "growthiest" segment.
Additionally, the resignation of Elena Donio could create additional distraction within TD&A until a permanent replacement is announced, the analyst adds.
Following the Q3 results, the analyst raised FY23 revenue estimates to $4.115 billion from $4.078 billion and FY23 EPS to $2.15 from $1.69.
Oppenheimer analyst Ittai Kidron reiterated the Outperform rating on TWLO, with a price target ...