hapabapa
Twilio (NYSE:TWLO) reported better than expected results for its second fiscal quarter at the beginning of the month, although the Cloud company continued to see rather weak top-line growth. Despite slow growth on the top line, Twilio is making progress in terms of its free cash flow profile and the retention rate, a crucial monetization figure for Cloud software companies, which remained stable in the last quarter as well. I continue to like Twilio here, in part because of the company’s more aggressive focus on completing stock buybacks. Shares have upside revaluation potential and continue to exhibit a favorable risk-reward equation!
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Previous rating
I rated Twilio shares a buy in April 2024 despite the company seeing weakening top-line growth and facing some retention challenges, mainly due to valuation reasons: Valuation Now Attractive. In Q2’24,…
