Twilio Inc (TWLO) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001447669

P/B 2.72

P/E 319.77

P/S 4.39

Market Cap 21.49 Bn

ROIC (Qtr) 1.44

Div Yield % 0.00

Rev 1y % (Qtr) 14.71

Total Debt (Qtr) 1.09 Bn

Debt/Equity (Qtr) 0.14

About

Twilio Inc., a leading company in the customer engagement industry, is publicly traded on the NASDAQ stock exchange under the ticker symbol TWLO. The company provides a platform that revolutionizes how businesses engage with their customers through various channels, including messaging, voice, and email. Twilio's platform is highly customizable, allowing businesses to tailor their communications to specific customer segments and use cases. It is also highly scalable, enabling businesses to handle large volumes of customer interactions. Twilio's...

Twilio Inc., a leading company in the customer engagement industry, is publicly traded on the NASDAQ stock exchange under the ticker symbol TWLO. The company provides a platform that revolutionizes how businesses engage with their customers through various channels, including messaging, voice, and email. Twilio's platform is highly customizable, allowing businesses to tailor their communications to specific customer segments and use cases. It is also highly scalable, enabling businesses to handle large volumes of customer interactions.

Twilio's main business activities are focused on providing a customer engagement platform that enables businesses to communicate with their customers through various channels. The company's platform is designed to be highly customizable, allowing businesses to tailor their communications to specific customer segments and use cases. Twilio's platform is also designed to be highly scalable, allowing businesses to handle large volumes of customer interactions.

Twilio generates revenue through a range of products and services, including Messaging, Voice, Email, Flex, Marketing Campaigns, and User Identity and Authentication. Messaging is a cloud-based messaging platform that enables businesses to send and receive messages to and from their customers. Voice is a cloud-based voice platform that enables businesses to make and receive phone calls to and from their customers. Email is a cloud-based email platform that enables businesses to send and receive emails to and from their customers. Flex is a digital engagement center that enables businesses to build personalized, omnichannel customer experiences. Marketing Campaigns is a marketing automation platform that enables businesses to build and send targeted marketing campaigns to their customers. User Identity and Authentication is a platform that enables businesses to verify the identity of their customers and ensure secure authentication.

Twilio's position within the industry is strong, with the company being a leading provider of customer engagement platforms. The company's platform is designed to be highly customizable, allowing businesses to tailor their communications to specific customer segments and use cases. Twilio's platform is also designed to be highly scalable, allowing businesses to handle large volumes of customer interactions. The company's key competitors are other customer engagement platform providers, including companies such as Salesforce, Oracle, and SAP. Twilio's competitive advantages include its highly customizable platform, its ability to handle large volumes of customer interactions, and its strong brand recognition.

Twilio's customers include a range of businesses, including technology companies, healthcare providers, financial institutions, and retailers. These businesses use Twilio's platform to communicate with their customers through various channels, including messaging, voice, and email.

Twilio's primary products and services include Messaging, Voice, Email, Flex, Marketing Campaigns, and User Identity and Authentication. These products and services enable businesses to communicate with their customers through various channels, including messaging, voice, and email. They also enable businesses to build personalized, omnichannel customer experiences, and to build and send targeted marketing campaigns to their customers.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 840.13M provides robust 0.77x coverage of total debt 1.09B, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 734.84M provide 21x coverage of short-term debt 34.99M, demonstrating strong liquidity position and minimal refinancing risk.
Robust free cash flow of 782.79M exceeds capital expenditure of 57.34M by 13.65x, indicating strong organic growth funding capability.
Strong tangible asset base of 4.31B provides 3.94x coverage of total debt 1.09B, indicating robust asset backing and low credit risk.
Tangible assets of 4.31B provide exceptional 27.09x coverage of deferred revenue 159.16M, showing strong service capability backing.

Cons

Investment activities of 350.48M provide weak support for R&D spending of 1.01B, which is 0.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
The company's operating cash flow of 840.13M shows concerning coverage of stock compensation expenses of 602.48M, with a 1.39 ratio indicating potential earnings quality issues.
Operating cash flow of 840.13M barely covers operating expenses of (57000) with a -14739.21 ratio, suggesting thin operational efficiency margins and limited flexibility.
Operating earnings of 79.30M show weak coverage of depreciation charges of 197.72M, with a 0.40 ratio indicating high capital intensity and potential reinvestment needs.
Free cash flow of 782.79M represents just -102.93x of debt issuance (7.61M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	2.23	2.56
EV to Cash from Ops.	25.74	38.32
EV to Debt	19.75	-11.37
EV to EBIT	272.72	-12.79
EV to EBITDA	69.22	7.72
EV to Free Cash Flow [EV/FCF]	27.63	24.22
EV to Market Cap	1.01	0.58
EV to Revenue	4.42	-35.00
Price to Book Value [P/B]	2.72	3.74
Price to Earnings [P/E]	319.77	-18.61

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	0.00	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-3.33	-404.11
Cash and Equivalents Growth (1y) %	25.84	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	114.54	31.15
EBITDA Growth (1y) %	250.55	49.02
EBIT Growth (1y) %	118.24	25.85
EBT Growth (1y) %	118.24	17.82
EPS Growth (1y) %	116.80	70.69
FCF Growth (1y) %	1.03	295.45
Gross Profit Growth (1y) %	9.34	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.50	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.99	1.21
Current Ratio	4.69	2.57
Debt to Equity Ratio	0.14	-0.93
Interest Cover Ratio	0.00	-13.15
Times Interest Earned	0.00	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	5.70	-544.82
EBIT Margin %	1.62	-197.78
EBT Margin %	1.62	-602.74
Gross Margin %	49.30	52.06
Net Profit Margin %	1.40	-605.52

Twilio Inc (NYSE: TWLO)