TWLO - Embedded Expectations Analysis - 2020 07 29
Twilio Inc. (TWLO:USA) currently trades at historical highs relative to Uniform assets, with a 15.2x Uniform P/B. At these levels, the market has bullish expectations for the firm, but management may be concerned about their sales staff, positioning in the market, and their ability to meet second quarter guidanceSpecifically, management may lack confidence in their ability to meet Q2 revenue guidance, and may be exaggerating customer engagement with sales staff working at home. Furthermore, they may lack confidence in their ability to sustain their customer base, and may be concerned about the effectiveness of their multichannel strategy. They may also be exaggerating the spikes in volume at the beginning of the coronavirus outbreak, and may lack confidence in their ability to execute their sales plans. Finally, they may have concerns about the impact of slower-than-planned hiring, and might be exaggerating strength in their medical-oriented business
Twilio provides a cloud communications platform that enables developers to build, scale and operate communications within their software applications via the company's Application Programming Interfaces (APIs). The company's platform consists of three layers: Engagement Cloud, which provides functionality for a specific purpose, such as two-factor authentication or a contact center; Programmable Communications Cloud, which provides a range of products that enables developers to embed voice, messaging and video capabilities into their applications; and Super Network, which contains a set of API's giving the company's customers access to components of its platform.
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