From CNBC: 2025-01-24 12:20:09

Twilio’s shares soared over 20% after issuing an optimistic profit forecast for the coming years, reaching $140.12 in mid-day trading. The company’s adjusted operating margin is expected to widen to 21-22% in 2027, exceeding Visible Alpha’s 19.68% consensus, with a commitment to generate $3 billion in free cash flow by 2027.

CEO Khozema Shipchandler, who took over from co-founder Jeff Lawson, aims to write Twilio’s success story starting in 2026. The company did not provide a revenue growth target for 2027, but expects $825M-$850M in free cash flow and adjusted operating income for 2025, with 7-8% revenue growth year over year.

Twilio, which aids in mobile communications, went public in 2016. Despite initial success during the Covid remote work boom, the stock plummeted over 80% in 2022 as investor focus shifted to profitability. Layoffs and activist investor pressure followed, but since adding a board seat, the stock has risen 81% due to revenue growth and narrowed losses.

Expanding into conversational AI, Twilio aims to reach a $158 billion market by 2028. Preliminary fourth-quarter results show 11% revenue growth, surpassing expectations, with adjusted operating income exceeding the top end of projections. Analysts had predicted 7.9% revenue growth and approximately $190 million in adjusted operating income.



Read more at CNBC:: Twilio shares pop 22% and head for biggest gain since Covid pandemic on growth forecast