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Twilio Extends Its Tremendous Growth Run

By Brian Withers - Mar 5, 2021 at 6:44AM

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This customer-engagement platform is firing on all cylinders.

Twilio (TWLO 3.84%) was one of the beneficiaries of the accelerating digital transformation trend as businesses dealt with the impacts of the coronavirus. The stock was up an astounding 244% last year because of its solid performance. It ended the year on a high note with its Q4 earnings release. On a Fool Live episode recorded on Feb. 18, Fool contributor Brian Withers covers the highlights of the quarter as this customer-engagement platform continues its amazing growth run.

Brian Withers: Twilio had an incredible quarter. Super-excited. The stock is up. Last I looked was up about eight percent.

The reason is that they eclipsed half a billion in revenue in the quarter for the 1st time, up 65 percent year-over-year. Pretty stellar. Net expansion rate of 139 percent. Again, stellar. The full-year is up 55 percent, and some of that is due to the effect of acquisitions, but I'll show you a little bit more. Customer active accounts are up 23 percent year-over-year. They guided for a 44 percent to 47 percent year-over-year in Q1. Super nice.

Now, what's interesting is they're really transparent here, and I really like the new CFO who's been there for a little while. They pulled out political revenue, which is a one-time thing, about 23 million. They also pulled out Segment revenue, another 23 million. Segment is their most recent acquisition, which they closed in November. They took those out, so you could see organic revenue growth. The organic revenue growth, up above 52 percent, which was fantastic. Well, and political revenue, you should count that too, but they're saying it's a one-time thing related to the every four-year cycle.

This is the money chart for me. All right. Just go back five years, 167 million in revenue, 10X the revenue five years later. That's the power of a software platform for you. Continued to increase dollar-based net expansion to fantastic rates. Their top 10 customer counts are becoming less concentrated. Just great numbers all around. They've got three billion in cash. They have plenty of money to continue to invest in growth.

There's lots to like about what's going on with Twilio.

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