Twilio

TWLO

Software - Infrastructure · Technology

Price

$206.78

+0.08 (+0.04%)

Market Cap

$31.38B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−8.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 174.2M (2021) → 159.8M (2025)

Twilio is a software company that helps other businesses communicate with their customers through text messages, phone calls, emails, and other digital channels. Its tools are used by companies like Uber, Airbnb, and thousands of other apps to send ride confirmations, delivery alerts, two-factor authentication codes, and marketing messages. Twilio sits in the background of these interactions — most people never see the Twilio name, but they use its technology every day.

Twilio makes money by charging businesses based on how many messages or calls they send, plus subscription fees for some of its software products. It operates globally, with a large portion of revenue coming from the United States, and serves over 300,000 active customer accounts. Its main competitive advantage is how deeply its tools are embedded into customers' existing software, making it costly to switch providers — but the company faces pressure from large cloud rivals like Amazon and Google offering similar communication services at lower prices.

Winston Score History

Politician Trades

1 trades / 12mo

1 Congressional buy and 0 sells on TWLO in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+20.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+353.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$1.0B/ year

→ Flat (+1% vs prior year)

20.1% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

0.4%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

$542M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Twilio is a rare growth stock that's already generating positive cash flow while growing at 20%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

48.1%

Healthy — 48.1% gross margin

Operating Margin

7.8%

Modest — 7.8% operating margin

ROCE

1.2%

Weak — 1.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+15.7%

Fast-growing sales (15.7% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

963%

Turns 963% of profit into real cash

FCF Margin

17.2%

Converts sales into free cash efficiently (17.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.13

Conservative — low debt load (0.13)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

304.1x

Expensive — P/E 304.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+276.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (304.1 → 27.9)

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Dividends

Not applicable for this business.

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