William Blair analyst Arjun Bhatia has reiterated their bullish stance on TWLO stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors, primarily focusing on Twilio’s solid quarterly results and its promising future outlook. The company demonstrated an acceleration in revenue growth to 11% for the quarter, indicating improved execution and increased demand for its offerings. Twilio’s management has reiterated a future guidance of 7%-8% growth by 2025, with a focus on expanding margins.
Twilio’s operating margin was reported at 16.5%, despite a one-time bad-debt write-off impacting this figure. The company’s communications business, which constitutes over 90% of its revenue, grew by 12% and showed strong performance in messaging and email services. Additionally, Twilio’s communications net revenue retention improved, reaching 108%, the highest in the past six quarters. These positive trends in revenue and execution, along with significant potential for margin expansion, underpin Bhatia’s recommendation for the stock.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $165.00 price target.