Like many of the software-as-a-service stocks, Twilio (NYSE:TWLO) was able to capture new customers and accelerate its growth during the pandemic. But investors are wondering if these tailwinds are just temporary. On a Fool Live episode recorded on June 30, Fool contributor Brian Withers discusses a recent interview with the CFO who notes that the digital transformation catalysts from the coronavirus are likely here to stay.
Brian Withers: Moving on to another software-as-a-service company, Twilio, TWLO. Twilio's CFO, Khozema Shipchandler, was recently at JPMorgan [Chase]'s investor conference and he was asked as the economy reopens, is this a net tailwind for Twilio or a net-neutral? Shipchandler, here's a quote, said, "I think on balance, what we see is durability in the emergent use cases, and I would call that generally a tailwind." There's [laughs] lots of buzzwords there: durability, emergent use cases.
Basically, he went on to explain a couple of examples. He said, "Look at grocery stores that have turned to more online channels or order online and pickup-in-store. These have been proven convenient and lasting for customers." Certainly, again, these are going to require more digital services, requires more digital communications.
Telehealth, that's here to stay. It's a win for the patients from a convenience standpoint and its return on investment for the healthcare provider. Retail banking, many of the products and services that can be delivered digitally require more digital communications channel. He took a chance to jab his host from JPMorgan. I thought that was really good.
Many customers returning to digital channels to enhance their interactions with customers that will continue long after COVID. Lastly, the hospitality and travel industries really coming back online, that's going to be a tailwind for the company.
You can see there's durability of these emergent use cases like the ones that I talked about, that makes sense. He wrapped up with, "We've committed during our investor day that we think we can do 30 percent-plus revenue growth over the next four years." As a shareholder, that makes me pretty happy.