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Twilio Rides on Growth in Active Accounts & Global Presence

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On Oct 9, we issued an updated research report on Twilio Inc. (TWLO - Free Report) .

The San Francisco-based company enables developers to build, scale and operate real-time communications within software applications. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities.  

Notably, Twilio has beaten the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 60.72%.

Notably, shares of Twilio have gained a whopping 215% year to date, outperforming the industry’s rally of 7.4%.

Twilio Rides on Client Wins, Product Strength

Twilio is benefiting not only from robust expansion within existing customers but also first- time deals with new ones, which resulted from the company’s continued focus on introducing products as well as its go-to-market sales strategy. During the second quarter alone, Twilio added more than 3,365 active customer accounts.

Management pointed out solid growth in the company’s core voice and messaging products to be a key driver. Moreover, positive response to Twilio Flex has given further impetus to the company’s Engagement Cloud strategy.

Twilio is also gaining from selective acquisitions. The most recent was the buyout of Ytica last month aimed at enhancing its customer service application platform, Twilio Flex. With the acquisition, the company expects to provide an operational and analytical edge to Twilio Flex’s customer service solution. Ytica’s sound analytics and workforce optimization expertise will benefit the company significantly in the long run.

Global Expansion – A Positive

Twilio has been aggressively growing its presence in the global markets. The company has offices in important cities such as San Francisco, New York, London, Madrid, Melbourne, Berlin, Hong Kong, Singapore and Sydney, among others.

It recently opened its EMEA headquarters in Dublin and expects to hire 100 employees by the end of 2019. Its most recently opened office is in Atlanta, GA. Such efforts at expansion reflect Twilio’s strong appetite for growth.

Zacks Rank & Other Stocks to Consider

Twilio currently sports Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks in the broader Computer and Technology sector are Twitter, Inc. (TWTR - Free Report) , j2 Global, Inc. (JCOM - Free Report) and CyberArk Software Ltd. (CYBR - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Twitter, j2 Global and CyberArk is projected to be 22.05%, 8% and 19.83%, respectively.

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Twitter, Inc. (TWTR) - free report >>

Twilio Inc. (TWLO) - free report >>

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