Summary
- Twilio offers communications as a service, such as automated text messages for a variety of companies from Airbnb to Morgan Stanley.
- The company reported solid financial results for Q4 22 as it beat both top and bottom line estimates.
- Open AI’s ChatGPT uses “Twilio Verify” for account security and helped the business scale its security even with a blistering influx of users.
- Twilio’s board authorized a share buyback program of up to $1.0 billion, and intends to purchase up to $500 million in the first half of 2023.
- Twilio’s co-founder and CEO announced he will be “personally buying” $10 million worth of shares on the Q4 earnings call, which shows “skin in the game”.
Twilio (NYSE:TWLO) is a leading communications as a services software company which offers a range of automated text and chat features. The company is known for having a range of iconic customers across various industries from Morgan Stanley (MS) to the American Red Cross and even Airbnb (ABNB). But what most people don’t know is OpenAI, which founded the viral platform ChatGPT, is also a customer, and the business has offered integration with the GPT-3 model, since 2020! Thus, Twilio could be poised to benefit from the tailwinds across the AI industry, which is forecast to be worth over $1.3 trillion by 2029. In this post, I’m going to break down Twilio’s business model and its AI related products, before breaking down its fourth quarter financials and valuation. Let’s dive in.
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