Twilio Profitability Analysis

TWLO Stock  USD 61.15  0.14  0.23%   
Considering Twilio's profitability and operating efficiency indicators, Twilio Inc may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in April. Profitability indicators assess Twilio's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2014-03-31
Previous Quarter
-141.7 M
Current Value
-365.4 M
Quarterly Volatility
124 M
 
Yuan Drop
 
Covid
As of the 29th of March 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.10, while Price To Sales Ratio is likely to drop 3.18. At this time, Twilio's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 29th of March 2024, Change To Netincome is likely to grow to about 1.3 B, though Operating Income is likely to grow to (832.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.570.492
Fairly Up
Pretty Stable
For Twilio profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Twilio to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Twilio Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Twilio's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Twilio Inc over time as well as its relative position and ranking within its peers.
  
Check out World Market Map.
Is Twilio's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Twilio. If investors know Twilio will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Twilio listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(5.54)
Revenue Per Share
22.659
Quarterly Revenue Growth
0.05
Return On Assets
(0.02)
Return On Equity
(0.10)
The market value of Twilio Inc is measured differently than its book value, which is the value of Twilio that is recorded on the company's balance sheet. Investors also form their own opinion of Twilio's value that differs from its market value or its book value, called intrinsic value, which is Twilio's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Twilio's market value can be influenced by many factors that don't directly affect Twilio's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Twilio's value and its price as these two are different measures arrived at by different means. Investors typically determine if Twilio is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Twilio's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Twilio Inc Shares Outstanding vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Twilio's current stock value. Our valuation model uses many indicators to compare Twilio value to that of its competitors to determine the firm's financial worth.
Twilio Inc is currently regarded number one company in revenue category among related companies. It is currently regarded as top stock in shares outstanding category among related companies creating about  0.04  of Shares Outstanding per Revenue. The ratio of Revenue to Shares Outstanding for Twilio Inc is roughly  22.82 . As of the 29th of March 2024, Common Stock Shares Outstanding is likely to drop to about 124.3 M. Comparative valuation analysis is a catch-all model that can be used if you cannot value Twilio by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Twilio's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Twilio's earnings, one of the primary drivers of an investment's value.

Twilio Revenue vs. Competition

Twilio Inc is currently regarded number one company in revenue category among related companies. Market size based on revenue of Information Technology industry is at this time estimated at about 168.48 Billion. Twilio holds roughly 4.15 Billion in revenue claiming about 2.47% of equities under Information Technology industry.

Twilio Shares Outstanding vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Twilio

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
4.15 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

Twilio

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
182.06 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.

Twilio Shares Outstanding Comparison

Twilio is currently under evaluation in shares outstanding category among related companies.

Twilio Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Twilio, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Twilio will eventually generate negative long term returns. The profitability progress is the general direction of Twilio's change in net profit over the period of time. It can combine multiple indicators of Twilio, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income619 K650 K
Operating Income-876.5 M-832.7 M
Income Before Tax-996.7 M-946.9 M
Total Other Income Expense Net-120.2 M-114.2 M
Net Loss-1 B-964.7 M
Net Loss-879.5 M-835.5 M
Net Loss-1.1 B-1.1 B
Income Tax Expense-18.7 M-17.8 M
Non Operating Income Net Other-40.8 M-38.8 M
Change To Netincome1.2 B1.3 B
Net Income Per E B T 1.02  1.09 

Twilio Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Twilio. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Twilio position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Twilio's important profitability drivers and their relationship over time.

Twilio Profitability Trends

Twilio profitability trend refers to the progression of profit or loss within a business. An upward trend means that Twilio's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Twilio's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Twilio Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Twilio different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Twilio in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Twilio's future profitability.

Use Twilio in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Twilio position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Twilio will appreciate offsetting losses from the drop in the long position's value.

Twilio Pair Trading

Twilio Inc Pair Trading Analysis

The ability to find closely correlated positions to Twilio could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Twilio when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Twilio - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Twilio Inc to buy it.
The correlation of Twilio is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Twilio moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Twilio Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Twilio can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Twilio position

In addition to having Twilio in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run SPAC Thematic Idea Now

SPAC
SPAC Theme
Entities that are involved in raising capital, merging with and acquiring companies, and investing in private equity through leveraged buyouts. The SPAC theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize SPAC Theme or any other thematic opportunities.
View All  Next Launch
When determining whether Twilio Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Twilio's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Twilio Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Twilio Inc Stock:
Check out World Market Map.
You can also try the Stocks Directory module to find actively traded stocks across global markets.

Complementary Tools for Twilio Stock analysis

When running Twilio's price analysis, check to measure Twilio's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Twilio is operating at the current time. Most of Twilio's value examination focuses on studying past and present price action to predict the probability of Twilio's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Twilio's price. Additionally, you may evaluate how the addition of Twilio to your portfolios can decrease your overall portfolio volatility.
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
CEOs Directory
Screen CEOs from public companies around the world
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
To fully project Twilio's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Twilio Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Twilio's income statement, its balance sheet, and the statement of cash flows.
Potential Twilio investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Twilio investors may work on each financial statement separately, they are all related. The changes in Twilio's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Twilio's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.