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Twilio Has Reached Another All-Time High


Jun. 10 2019, Updated 2:53 p.m. ET

Twilio has seen tremendous growth in recent quarters

Cloud communication company Twilio (TWLO) continues to surge. The stock made another all-time high on June 7 when it closed at $144.1. It’s skyrocketed in the last couple of years, growing nearly sixfold in the last 24 months.

The company continues to see superb growth. Its revenue growth accelerated during the first quarter of 2019. It generated $233.14 million in revenue during the quarter, up 80.5% YoY (year-over-year). In the fourth quarter, the company’s revenue rose 77% YoY.

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Twilio will be raising more money through shares

However, Twilio’s net losses expanded on a YoY basis. The company lost $36.5 million in the first quarter compared to its loss of $23.7 million in the previous year’s quarter.

TWLO has been very resilient—even when the market corrected in late 2018 and in May 2019. It’s up nearly 150% year-to-date, and it still has a lot of scope for growth.

However, the stock is looking slightly expensive. It’s trading at 24.1x its trailing-12-month sales. However, growth companies in the tech sector have been trading at huge premiums in recent years, even if they’ve incurred losses.

Recently, Twilio took advantage of its high stock price, filing for a $750 million share offering. It expects to sell its shares for $132.95 apiece.


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