Twilio (NYSE: TWLO) is often considered a "best in breed" player in the cloud communications market. Its platform -- which processes voice calls, text messages, video, and other content via the cloud for mobile apps -- simplifies the process for app developers by reducing a time-consuming task into a few lines of code.
Instead of developing those features locally, developers simply outsource those tasks to Twilio. Many popular apps, including Airbnb, Lyft, and Twitter, rely on Twilio's services. Its revenue surged 75% to $1.13 billion last year, as its dollar-based net expansion rate (its growth per existing customer) soared 136%.
Those growth rates turned Twilio into a hot growth stock after its IPO in mid-2016. The stock debuted at $24 a share, surged to $150 last July, and currently trades in the high $80s. It's been a volatile ride, but investors are drawn to Twilio because it's growing like a weed and doesn't face much direct competition.