Shares of Twilio Inc. (NYSE: TWLO) soared 33.40% on Friday after the leading cloud communication platform has provided a number of optimistic updates from management. Twilio anticipates the year-over-year organic growth revenue will exceed 30% annually over the course of the next four years.
If we focused on the last investor day of Twilio in 2017, the company has reported an increase in quarterly revenue to $401 million from $115 million. Likewise, if we look at its active customers, it has reported an increase of 200,000 in its active customers. In the management updates, Twilio revealed that it is predicting the non-GAAP gross margin will increase from 56% in the company’s second-quarter of 2020 to between 60% and 65%.
Lastly, management believes its non-GAAP operating margin will expand from 2% in Q2 to greater than 20% four years from now. If we put all the assumptions together, Twilio reports its revenue at an average rate of 35% annually over the next for years.
And if the cloud communication platform will achieve a 20% net margin on that revenue, the company would have an annual operating income of more than $900 million on about $4.6 billion of revenue.
Shares of Twilio (NYSE: TWLO) soared 33.40% as it gained +13.00 at $290.36 during the trading session of Friday. In the past 52-weeks of trading, this company’s stock has fluctuated between the low range of $68.06 and a high range of $288.81. Twilio has moved up 326.65% and 0.54% from its 52-weeks low and high, respectively. Looking at its liquidity, it has a current ratio of 7.30. This company market capitalization has remained high, hitting $38.25 billion at the time of writing.
If we look at the analyst’s sentiments, almost seven analysts have already lifted the price target for Twilio stock after the investor presentation of the company. Mizuho has initiated the buy rating and maintained the price target of $215. On the other hand, Cowen analyst has lifted the price target for Twilio stock from $230 to $260. He believed that the company would outperform in the coming years.
Twilio has earlier announced that it has launched Microvisor, an IoT connectivity and device management platform that provides embedded developers a one-stop-shop for building connected devices, keeping them secure, and managing them throughout their lifetime. The company is striving to speed up the adoption of IoT to provide a unique experience to businesses and consumers.