Evaluating Twilio: Insights From 8 Financial Analysts

Ratings for Twilio TWLO were provided by 8 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Twilio and provided 12-month price targets. The average target is $75.12, accompanied by a high estimate of $110.00 and a low estimate of $60.00. Surpassing the previous average price target of $65.17, the current average has increased by 15.27%.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Twilio among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Twilio. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Twilio compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Twilio's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Twilio's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Twilio analyst ratings.

Delving into Twilio's Background

Twilio is a cloud-based communications platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.

Key Indicators: Twilio's Financial Health

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Over the 3 months period, Twilio showcased positive performance, achieving a revenue growth rate of 5.15% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Twilio's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -13.71%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Twilio's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -1.42% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Twilio's ROA stands out, surpassing industry averages. With an impressive ROA of -1.19%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.12.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.