Photo Credit: Gerd Altmann from Pixabay

Communications PaaS player, Twilio (NYSE: TWLO) recently announced its fourth-quarter results that continued to surpass market expectations. The impressive performance sent the stock soaring 15% in the after-hours trading session.

Twilio’s Financials

For the fourth quarter, Twilio’s revenues grew 22% to $1.02 billion, surging ahead of the market’s forecast of $998.9 million. EPS was $0.22 per share, shattering the market’s expectations of a loss of $0.09 per share.

Among key metrics, its active customer accounts grew by 34,000 to 290,000. The company ended the quarter with 8,156 employees. Dollar-Based Net Expansion Rate, which is calculated using total revenue, was 110% compared to 126% reported a year ago.

For the fiscal year, Twilio’s revenues grew 35% to $3.83 billion and loss was $0.15 per share.

Twilio expects to end the first quarter with revenues of $0.995-$1.005 billion and an EPS of $0.18-$0.22 per share, compared to the Street’s forecast of revenues of $1.02 billion and a loss of $0.02 per share.

Twilio’s Restructuring

Like others in the industry, Twilio too is looking at cost management measures and recently announced plans to cut 17% of its workforce. In September last year, it had already announced plans to lay off 11% of its workforce. Post the latest reduction, Twilio will restructure its internal organization and create two business units — Twilio Communications and Twilio Data & Applications.

Twilio’s Health Vertical Solutions

Besides revisiting their cost structure, Twilio is also looking at offering more vertical-focused services. It recently announced the general availability of Twilio Segment for Healthcare & Life Sciences, a HIPAA-eligible customer data platform (CDP) that can improve patients’ experiences and health outcomes by unifying Protected Health Information (PHI) data across their entire care journey. At present, the healthcare industry, including providers, health insurers, biotech, pharmaceutical, and digital health companies, suffers from the availability of data in siloes that inhibits their ability to improve the end-to-end patient experience.

Current data solutions are difficult to merge offline and online and fail to provide real-time, intelligent, and personalized support. With Twilio’s solution, these organizations will be able to connect in-person visits with digital touchpoints across the web, patient portal or mobile app, and communication channels to deliver personalized journeys for patients. The solution will instantly resolve a prescription denial by reaching out proactively to a member before they’ve even left the pharmacy, determine if a patient is adhering to their medication with real-time pickup history, ensure that a patient is attending annual health checkups and health visits, and leveraging customer data coming into Twilio Flex and Twilio Segment to inform products and features for mobile and web apps.

Its stock is currently trading at $75.45 with a market cap of $13.9 billion. The stock hit a 52-week high of $185.00 in March last year and a 52-week low of $41.00 in December last year.

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