Twilio Is Trying To Recover After Deep Loss This Week: What’s The Deal?

Twilio’s price fell 12% on October 27 after the company reported weaker-than-expected third-quarter revenue and a wider-than-expected net loss. TWLO stock is trading at $301.00 as of today’s pre-market session.

Twilio Q4 revenue is expected to grow 38%-40% year over year, which comfortably beats analyst estimates. It also sees non-GAAP earnings staying in the red. Despite Twilio’s robust growth, its stock price decline indicates that many investors are worried about its failure to deliver profitable results.

Twilio’s platform lets developers integrate various services into their apps with some programming code. Instead of creating new communication features from scratch, developers can now focus on improving the core app’s core functionalities.

Since its IPO in 2016, Twilio’s revenue has grown like a weed. It has almost tripled in size every year since its IPO. Its total active accounts grew from 28,000 to more than 250,000 during the last quarter. Its robust growth rate is astonishing, but it also depends on acquisitions.

Over the past six years, Twilio has acquired 10 companies. Its largest acquisitions were SendGrid, Segment, and Zipwhip. If not for the impact of Zipwhip and Segment, Twilio’s revenue would have only grown 48% organically. The company’s organic revenue growth rate is expected to reach 30% in the next three years.