Twilio’s stronger results demonstrate management’s successful execution of disciplined cost management while maintaining strong revenue growth momentum.
Twilio’s AI-first strategy positions it advantageously in the rapidly evolving customer engagement landscape, where businesses increasingly demand intelligent, personalized interactions with customers at scale.
TWILIO INC. (Nasdaq symbol TWLO; www.twilio.com) offers a key service to software developers who create mobile apps. Specifically, its own software is used to connect apps to essential functions elsewhere on a device, including dealing with phone calls and messaging.
In the quarter ended March 31, 2025, Twilio’s revenue rose 12.0%, to $1.17 billion from $1.05 billion. The company continues to add to its client base, with a growing emphasis on markets outside of North America; it now has 335,000 active customer accounts (up 7.0% from 313,000 a year ago).
Excluding one-time items, Twilio made $1.14 a share in the latest quarter. That was up 42.5% from $0.80. The big earnings jump came from improved operational efficiencies, as well as reductions in marketing and other costs.
The company holds a huge cash balance of $2.4 billion. Its long-term debt is just $991.0 million.
Twilio’s AI integration will help drive future growth
The company spends a high 30% of sales on R&D—that includes spending to expand its Twilio CustomerAI technology.
The hi-tech offering combines AI with real-time customer data flowing through Twilio’s Customer Engagement Platform. That platform encompasses text messages and calls, web and mobile activity, contact center conversations and email correspondence.
Twilio CustomerAI helps companies better understand and unlock the potential of their customer lists and so provide deeper value through predictive artificial intelligence.
In April 2024, Twilio appointed a partner at activist investment firm Sachem Head Capital Management to its board of directors. It made the move in the face of pressure from several activist investment firms looking for significant changes. How Twilio will respond to pressure from Sachem and the other activists is uncertain—but it does draw attention to its growth prospects.
Twilio’s outlook is positive. The company is considered to be the top industry provider for corporate communications infrastructure, including for messaging, voice and email solutions. All in all, Twilio’s impressive customer base, leading products and high R&D all bode well for its future success in rapidly growing markets.
Recommendation in Power Growth Investor: Twilio Inc. is a buy.