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Twilio: What Twilio is, and Why Twilio is a Hot IPO Stock
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Nothing says success like a billion dollar valuation and a whimsical company name. Last week, before the Brexit came in and rocked the world like a nude Kardashian photo, the word of the week was Twilio. Not to be confused with what the dilliyo, Coolio’s Twitter page or Leonardo Di’Caprio in cotton twill pants, Twilio is a cloud communications company based in Unicornville USA, AKA San Francisco, California.
The company runs a cloud-based API that allows software developers to programmatically make and receive phone calls, text messages and video chats. The advantage of this is that now small app developers can add rich communications features to their apps without breaking the bank. The scalable cloud service can grow with developers. With it, the Zacks Mobile app could potentially send you live video chats with trades to make as part of my Momentum Trader service.
Twilio was founded in 2007 by Jeff Lawson, Evan Cooke and John Wolthuis. Their first real claim to fame came when they started the Rickrolling prank. It’s a bait and switch using a disguised hyperlink which would trick people into watching
That’s right, the music video for the 1987 Rick Astley song “Never Gonna Give You Up.” Whether it was Anonymous Rickrolling ISIS or Ted Cruz Rickrolling the Donald, it all started with Twilio. Since those early days, Twilio has added some very high profile customers. 17% of its revenue comes from Facebook’s What’s App. Uber uses Twilio to fuel its communications between drivers and riders. Home Depot uses it in its 2,200 customer contact centers. Nordstrom has been using it as a foundation for a concierge service. Competitors include Plivo, Nexmo, and Sinch, with an S. Because it’s more whimsical with an S.
The stock IPO’d at $15 last week and has since jumped in $32, in spite of the citizens of Great Britain trying to burn the world down. The current price puts the company’s valuation somewhere around $2.6 billion. Like many tech IPOs, the company isn’t yet turning a profit but revenue grew 88% to $167 million in 2015. In 2014, revenues were up 78%. During the same time, losses have widened from about $27 million to $35.5 million last year.
With the company having just gone public, we don’t have a Zacks Rank yet as there has been no activity from analysts. As for what industry, I think it will follow Zacks Rank #1 (Strong Buy) Zendesk in the Internet Software Industry that ranks in the Top 17% of our Zacks Industry Rank.
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Twilio: What Twilio is, and Why Twilio is a Hot IPO Stock
Nothing says success like a billion dollar valuation and a whimsical company name. Last week, before the Brexit came in and rocked the world like a nude Kardashian photo, the word of the week was Twilio. Not to be confused with what the dilliyo, Coolio’s Twitter page or Leonardo Di’Caprio in cotton twill pants, Twilio is a cloud communications company based in Unicornville USA, AKA San Francisco, California.
The company runs a cloud-based API that allows software developers to programmatically make and receive phone calls, text messages and video chats. The advantage of this is that now small app developers can add rich communications features to their apps without breaking the bank. The scalable cloud service can grow with developers. With it, the Zacks Mobile app could potentially send you live video chats with trades to make as part of my Momentum Trader service.
Twilio was founded in 2007 by Jeff Lawson, Evan Cooke and John Wolthuis. Their first real claim to fame came when they started the Rickrolling prank. It’s a bait and switch using a disguised hyperlink which would trick people into watching
That’s right, the music video for the 1987 Rick Astley song “Never Gonna Give You Up.” Whether it was Anonymous Rickrolling ISIS or Ted Cruz Rickrolling the Donald, it all started with Twilio. Since those early days, Twilio has added some very high profile customers. 17% of its revenue comes from Facebook’s What’s App. Uber uses Twilio to fuel its communications between drivers and riders. Home Depot uses it in its 2,200 customer contact centers. Nordstrom has been using it as a foundation for a concierge service. Competitors include Plivo, Nexmo, and Sinch, with an S. Because it’s more whimsical with an S.
The stock IPO’d at $15 last week and has since jumped in $32, in spite of the citizens of Great Britain trying to burn the world down. The current price puts the company’s valuation somewhere around $2.6 billion. Like many tech IPOs, the company isn’t yet turning a profit but revenue grew 88% to $167 million in 2015. In 2014, revenues were up 78%. During the same time, losses have widened from about $27 million to $35.5 million last year.
With the company having just gone public, we don’t have a Zacks Rank yet as there has been no activity from analysts. As for what industry, I think it will follow Zacks Rank #1 (Strong Buy) Zendesk in the Internet Software Industry that ranks in the Top 17% of our Zacks Industry Rank.