Growth Expert: "We Love Twilio"
Near term, we feel Twilio’s biggest challenge is keeping up with demand for its cloud communications services, which is a great problem to have.
Longer term, we view the company’s horizontal, business-to-developer cloud platform as an opportunity for potentially disproportionate capital appreciation over a multi-year period, as was the case with Amazon Web Services.
Base revenue for the latest quarter was $75M — up 73% year-over-year and representing 92% of total revenue. Twilio also had eight variable customers in the quarter, one of which was WhatsApp, which represented 6% of total quarterly revenue.
Twilio landed a number of key new customers in 4Q16, including Capital One; one of the Blue Cross Blue Shield companies; Scotia Bank; and one of the largest U.S. airlines.
Twilio also landed a leading customer acquisition marketing business focused on the U.S. insurance industry. This customer will use Twilio to power its call centers, which receive tens of thousands of calls per day.
Twilio also announced it had acquired Beepsend, a Swedish application-to person messaging provider, for an undisclosed amount. Management said Twilio expects to improve the super network for its entire messaging business by leveraging Beepsend’s technology.
Note that they now have 36,000 customers, up from 33,000 last quarter. This statistic talks to us big time. In the meantime, we are enjoying watching Twilio grow as fast as anybody out there.