Twilio (NYSE:TWLO) remains the leader in the communication platform as a service (CPaaS) market, helping leading companies communicate with their customers. As companies and consumers become more digitally native, the need to have an intuitive and sophisticated software communication platform will become essential.
With their recent acquisition of Segment, Twilio is evolving from a pure software communications company into a customer experience company. The acquisition will help Twilio's customers be able to leverage AI and data analytics in order to better serve their end customers.
In recent weeks, the company reported a very strong Q4 with revenue growth of 52%, even after excluding $23 million of political-related revenue and $23 million of Segment acquisition revenue.
With dollar-based net expansion rates remaining above 125%, Twilio has continued to see growth from existing customers in addition to growing their new customer base. International revenue still represents less than 30% of total and remains a significant long-term growth opportunity.
Twilio is one of the leading communication platforms that helps connect businesses with the end-users. By utilization their software stack, businesses are able to directly communicate with customers across several different channels, including text messages, push notifications, email, etc.
The classic example is Lyft (LYFT) using the technology to notify riders when their driver is approaching. Anyone who has used Lyft knows that they get a notification or text message when their ride is approaching. The driver is not the one who actually texts the rider, rather, it is Twilio's technology and software that automates the message.
With significant long-term growth potential, I believe long-term investors will be rewarded. The recent 20% correction has provided a good opportunity to buy the dip.
Recent Acquisition Strategy
In recent weeks, Twilio has made some minority investments and acquisitions that will help advance their technology stack and expand
