BTIG Starts Coverage on Twilio (TWLO), Sees Path to Sustainable Double-Digit Growth

Core Viewpoint - Twilio Inc. is recognized as a strong long-term investment opportunity, with analysts projecting sustainable double-digit growth and a favorable market outlook leading to increased market share by 2026 [2]. Financial Performance - Twilio shares have increased over 26% since the beginning of 2025, primarily driven by robust quarterly results [3]. - In Q3 2025, Twilio reported earnings of $1.25 per share on revenue of $1.3 billion, surpassing analyst expectations of $1.07 per share and $1.25 billion in revenue [3]. - Revenue grew by 15% year-over-year, reflecting broad-based strength across various customer segments [3]. - Non-GAAP earnings rose by 22% compared to the previous year, while GAAP results improved from a loss of $4.9 million last year to a profit of $40.9 million this quarter [4]. Cash Flow and Demand - Free cash flow increased by over 30% to $247.5 million during the quarter, highlighting strong cash generation capabilities [5]. - There is a rising demand from AI-focused customers, with revenue from the top 10 voice AI start-up customers increasing more than tenfold year-over-year [5]. - The adoption of AI in cloud contact centers is expected to grow more than five times over the next decade, indicating a durable momentum for Twilio's services [5]. Company Overview - Twilio Inc. is a cloud communications company based in San Francisco, providing programmable tools for developers to manage calls, text messages, and other communication functions through web-based APIs [6].