Stop

Twilio, the company that's secretly texting you, hits new highs on a $3B splurge

Tuesday, October 13, 2020 by Robinhood Snacks | Disclosures

When DoorDash texts you more than your friends... Text "STOP." Cloud company Twilio helps other companies communicate with customers — think: text notifications, emails, support calls. Twilio hides personal info so you can call your delivery driver without knowing their 617 area code. You don't see Twilio, but you definitely just used it. Its customers include:

  • Uber: When you rush for that "Honda Civic is 2 minutes away" text.
  • Instacart: When you call your shopper to say they got the wrong almond butter.
  • DoorDash: When you get the play-by-play of taco's life journey.

Nailed it... ICYMI, it's a good time to be in remote communications. Twilio stock jumped last week after the company raised its sales expectations for the quarter, and has more than tripled in value this year on continued growth.

  • 200K+: How many customers Twilio had last quarter, 4X more than in 2017.
  • $401M: Twilio's sales last quarter, up from $115M in the last quarter of 2017. Buuut: it's still not profitable.
  • $3.2B: How much Twilio's dropping on customer data startup Segment. Twilio stock hit an all-time high on yesterday's news.
THE TAKEAWAY

Like selling shovels in a gold rush... Companies like Shopify and Doordash are corona-conomy winners, but they're using Twilio to support their pandemic surges. That makes Twilio a winner (by the transitive property). Companies don't reinvent the wheel to build all their own tools — they tap others for help. But with great opportunity comes great competition: Microsoft just launched a calling/messaging service that competes with Twilio head-on.