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Twilio's AI Push, Microsoft Partnership Spark Analyst Optimism
TWLOTwilio(TWLO) Benzinga· Benzinga·2025-05-16 17:33

Core Viewpoint - Needham analyst Joshua Reilly maintains a Buy rating on Twilio (TWLO) with a price target of 125,expressingpositivesentimentafterattendingtheTwilioSignalcustomerconference,highlightingincreasedproductusageandfavorablecustomerfeedback[1][2].Group1:CompanyPerformanceandStrategy−ReillynotedanincreasingpipelineofprojectsandamoreefficientimplementationprocessutilizingAI,whichpositionsTwiliostrategicallyforcross−sellingopportunities,particularlywiththerecentMicrosoftpartnership[2][4].−ThecollaborationwithMicrosoftenhancesTwilio′scapabilitiesinbuildingmulti−channelAIagentsandimprovingcustomerengagementthroughadvancedfeatureslikeTwilioAgentCopilot[3][7].−Twiliohasaddressedmanyoperationalchallengesoverthepast24months,allowingastrongerfocusonproductdevelopmentandcustomerbenefitsmovingforward[4][9].Group2:ProductDevelopmentandCustomerExperience−Twilioisworkingtostreamlinethebillingprocessforitsservices,whichcurrentlyoperateonseparateplatforms,toimprovecustomerexperienceandfacilitateeasierbundling[5][6].−ThecompanylaunchedseveralnewproductsattheSignal2025event,withVerifyandLookupreceivingparticularlypositivefeedbackfromcustomers[7][8].−Discussionswithmanagementindicatedaprojectedgrowthtrajectoryforvoicevolumesthatcouldsignificantlyexceed2024levels,reflectingsustainedoptimismamongpartnersandcustomers[9][10].Group3:FinancialProjections−Reillyprojectsfiscal2025revenueforTwilioat125, expressing positive sentiment after attending the Twilio Signal customer conference, highlighting increased product usage and favorable customer feedback [1][2]. Group 1: Company Performance and Strategy - Reilly noted an increasing pipeline of projects and a more efficient implementation process utilizing AI, which positions Twilio strategically for cross-selling opportunities, particularly with the recent Microsoft partnership [2][4]. - The collaboration with Microsoft enhances Twilio's capabilities in building multi-channel AI agents and improving customer engagement through advanced features like Twilio Agent Copilot [3][7]. - Twilio has addressed many operational challenges over the past 24 months, allowing a stronger focus on product development and customer benefits moving forward [4][9]. Group 2: Product Development and Customer Experience - Twilio is working to streamline the billing process for its services, which currently operate on separate platforms, to improve customer experience and facilitate easier bundling [5][6]. - The company launched several new products at the Signal 2025 event, with Verify and Lookup receiving particularly positive feedback from customers [7][8]. - Discussions with management indicated a projected growth trajectory for voice volumes that could significantly exceed 2024 levels, reflecting sustained optimism among partners and customers [9][10]. Group 3: Financial Projections - Reilly projects fiscal 2025 revenue for Twilio at 4.82 billion and earnings per share (EPS) at $4.45, indicating confidence in the company's financial outlook [10].