Twilio Q4'18 Earnings
Twilio (TWLO) just reported a quarter where revenues grew 77%, yet the guidance suggests 2019 revenue growth of only 35%. Part of the issue is the inclusion of slower growing SendGrid (SEND) in the 2019 results.
- Twilio - $650M
- SendGrid - $145M
- Total - $1,071M
Twilio has a market cap of $16 billion based on the forecast for 141 million shares outstanding in 2019. Don't chase this over hyped story.
Update 2/13 10:50 est
Originally missed this nugget from the earnings call that further explains why revenue growth will decelerate in 2019:
And while the majority of our base revenue growth came from the normal drivers of our business, we did have two items that amplified our Q4 results: First, we saw significant seasonal spending ramp from a large international customer that we added earlier in 2018; Second, we saw positive impact related to the midterm elections in the U.S. Combined, the two items added roughly 10 points to our year-over-year growth in Q4.
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