The bear market of 2022 set longtime owners of Twilio (NYSE: TWLO) back by about four years. The fast-growing cloud-communications company got wiped out last year as the market turned its attention to profitability and found Twilio severely lacking.
The stock has been heating up again lately thanks to Twilio's management team getting serious about turning things around. Shares are up 40% so far in 2023, bolstered by a fourth-quarter 2022 earnings report that showed the company is doubling its efforts to get profitable sooner than later. Is it too late to buy this rally?
Twilio's days of hypergrowth are over, and the Q4 2022 revenue and guidance for 2023 prove it. Still, year-over-year Q4 sales growth of 22% (or 21% on an organic basis excluding acquisitions) isn't so bad considering big organizations have been tightening their belts. Recession has been on the market's bated breath for the better part of a year now, so any double-digit-percentage expansion is pretty darn good. This was also Twilio's first $1 billion quarter, reporting total sales of $1.02 billion.
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Twilio Accelerates Its Profit-Margin Expansion Plans. Is It Too Late to Buy?