Sushree Mohanty

Tue, Jun 24, 2025, 4:00 AM4 min read

With a market cap of $17.8 billion, Twilio (TWLO) is a cloud communications platform company. Its APIs enable developers to include voice, video, messaging, email, and authentication features in their apps without having to build complex telecommunications infrastructure themselves. Twilio’s core strength is its programmable communication tools, which are used by companies such as Uber (UBER) and Airbnb (ABNB).

Twilio’s stock has fluctuated dramatically, from soaring prices during the tech boom to sharp declines as Twilio prioritized growth over profitability. Recognizing the need for change, Twilio’s management team, led by ex-CEO Jeff Lawson, launched a comprehensive restructuring in 2023 and 2024. So far this year, Twilio stock is up nearly 9%, compared to the broader market gain of 2.5%.

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Let’s find out if now is the time to buy this tech stock, which is poised for a rebound.

Strategic investments in generative AI, intelligent voice, cross-channel data integration, and automation are starting to show results in both product adoption and financial performance. Recently, Twilio reported a solid start to fiscal 2025. Total revenue for the first quarter came in at $1.17 billion, up 12% year over year and marking the third consecutive quarter of double-digit growth. Adjusted earnings per share increased by 42.5%, reaching $1.14.

During the Q1 earnings call, Chief Revenue Officer Thomas Wyatt mentioned that Twilio’s cross-sell engine is gaining traction. Many customers who initially entered through a single channel (typically messaging or voice) are now expanding into related products such as email, Verify (authentication), and SMS Pumping Protection (fraud prevention). These premium features are growing faster than the company average, contributing significantly to high-margin software revenue. Over time, the company expects higher-margin software revenue from products such as Segment and Verify to boost blended margins.

In Q1, Communications revenue increased 13% year on year to $1.09 billion, while Segment revenue remained roughly flat at $76 million. According to management, Segment revenue is expected to resume growth and break even in Q2. Management also highlighted that the collaboration with ElevenLabs added over 1,000 AI voice models in more than 40 languages to Twilio’s voice stack, allowing for highly localized, personalized conversational experiences.