Twilio Inc. (TWLO): What the Financials Tell Us


Twilio Inc. (NYSE:TWLO) saw an upside of 1.02% to $56.94 after adding $0.58 on Tuesday. The 5-day average trading volume is 2,905,780 shares of the company’s common stock. It has gained $59.66 in the past week and touched a new high 2 times within the past 5 days. An average of 2,952,250 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,770,948.

TWLO’s 1-month performance is 20.02% or $12.22 on its low of $42.78 reached on 12/27/22. The company’s shares have touched a 52-week low of $41.00 and high of $233.60, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, TWLO has achieved 15.11% or $8.01 and has reached a new high 6 times. However, the current price is down -75.63% from the 52-week high price.

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Insider Transactions

TWLO stock investors last saw insider trading activity on Jan 17.Manor Eyal (Chief Product Officer) most recently sold 414 shares at $53.80 per share on Jan 17. This transaction cost the insider $22,273. Chief Operating Officer, Shipchandler Khozema, sold 1,591 shares at a price of $49.22 on Jan 03. Then, on Dec 15, Chief Product Officer Manor Eyal sold 414 shares at a price of $49.48 per share. This transaction amounted to $20,485.

Valuation Metrics

TWLO stock has a beta of 1.34. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.74 while the price-to-book (PB) in the most recent quarter is 0.98.

Twilio Inc.’s quick ratio for the period ended September 29 was 5.70, with the current ratio over the same period at 5.70. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.10, while the total debt to equity was 0.10. In terms of profitability, the gross margin trailing 12 months is 47.40%. The firm’s gross profit as reported stood at $1.39 billion against revenue of $2.84 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Twilio Inc.’s cash and short-term investments amounted to $3.58 billion against total debt of $1.25 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 53.54% to -$482.33 million, while revenue of -$322.77 million was 33.08% off the previous quarter. Analysts expected TWLO to announce -$0.36 per share in earnings in its latest quarter, but it posted -$0.27, representing a 25.00% surprise. EBITDA for the quarter stood at more than -$364.7 million. TWLO stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 2.08 billion, with total debt at $1.25 billion. Shareholders hold equity totaling $184.34 million.

Let’s look briefly at Twilio Inc. (TWLO) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 71.21% to suggest the stock is trending Overbought, with historical volatility in this time period at 37.23%.

The stock’s 5-day moving average is $54.66, reflecting a +3.09% or $1.71 change from its current price. TWLO is currently trading +26.66% above its 20-day SMA, -20.01% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +30.67% and SMA200 by-62.85%.

Stochastic %K and %D was 83.76% and 77.64% and the average true range (ATR) pointed at 2.71. The RSI (14) points at 65.16%, while the 14-day stochastic is at 76.83% with the period’s ATR at 2.73. The stock’s 9-day MACD Oscillator is pointing at 1.77 and 2.99 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Twilio Inc. (NYSE: TWLO), Jefferies downgraded it to a Hold rating. They previously had a Buy rating on the stock. Analysts offering their rating for TWLO stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate TWLO as a “sell,”, while 14 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 0 rates the stock as overweight while 19 have offered a “buy” rating.

What is TWLO’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $44.00 and a high of $140.00, with their median price target at $67.00. Looking at these predictions, the average price target given by analysts is for Twilio Inc. (TWLO) stock is $73.39.


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