4 Analysts On Twilio's Year-End Report: 'Digital Darling'

4 Analysts On Twilio's Year-End Report: 'Digital Darling'

Shares of Twilio TWLO were gaining ground Thursday after the San Francisco-based cloud communications platform reported higher-than-expected revenue and earnings for the fourth quarter and full-year 2020.

Twilio's Numbers: Twilio posted $548.1 million in fourth-quarter revenue, up 65% year-over-year, with the company attributing $23 million from Segment starting on Nov. 2, 2020, the date that it completed the acquisition of the customer data platform.

Political traffic also contributed $22.7 million to fourth-quarter revenue.

For the full year 2020, Twilio reported $1.76 billion in revenue, a 55% year-over-year spike. The company ended 2020 with more than 221,000 active customer accounts versus 179,000 one year earlier.

Twilio Analysts React: Piper Sandler analyst Brent Bracelin dubbed Twilio a "digital darling" and expressed enthusiasm over the latest numbers.

"Accelerating growth reinforces our bullish view on the 3-5 year growth prospects and confidence in the Segment combination as having ‘game-changing' potential," the analyst said.

Needham analyst Richard Valera said Twilio showed "broad-based strength, especially in COVID-bolstered verticals, such as telehealth, e-commerce, and education."

He also realigned his projections for Twilio's 2021 performance.

"Net, it appears Twilio is benefiting from an acceleration of digital transformation plans by both new and existing customers, driving increased demand for TWLO's broadening digital communications platform," he said.

Alex Kurtz, managing director at KeyBanc Capital Markets, credited much of Twilio's performance to opportunities related to the COVID-19 pandemic, "including new Flex (the Company's new CCaaS platform) wins, new vertical-specific use cases in Healthcare and Education, and expanded CoD opportunities like Instacart."

He also predicted a solid 2021 for the company.

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