Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - UBS lowered its price target on Twilio (NYSE:TWLO) to $135 from $150 while maintaining a Buy rating following the company’s second-quarter results. Currently trading at $122.39, Twilio remains within analysts’ target range of $75-$170, with InvestingPro data showing the stock has delivered an impressive 101.86% return over the past year.
The firm noted that Twilio’s results met or modestly exceeded expectations in key areas, including an acceleration to 13% year-over-year organic revenue growth, roughly stable quarter-over-quarter organic gross margins at 50.55%, and a 110 basis point EBIT margin beat. The company maintains strong financial health with a current ratio of 4.78x and more cash than debt on its balance sheet.
Despite these positive aspects, UBS pointed to several factors complicating the results, including new A2P fees weighing on reported gross margins, a reiteration of the full-year 2025 EBIT guidance despite the Q2 beat due to accelerated R&D investments, and a second-half 2025 revenue growth guide implying a slight deceleration.
UBS expressed concern that Twilio might become a "show me story" in the near term as investors seek reassurance about growth durability and margin expansion.
The firm continues to favor Twilio on a relative basis, citing its non-seat-based model, AI optionality, improving self-help driven demand trends, and solid free cash flow growth. According to InvestingPro analysis, Twilio appears undervalued at current levels, with 12 additional exclusive ProTips and a comprehensive Pro Research Report available for subscribers.
In other recent news, Twilio reported its second-quarter earnings, which exceeded expectations by $40 million, excluding certain fees. The company also posted a 13% year-over-year revenue growth, marking its fourth consecutive quarter of growth acceleration. Despite these positive results, Twilio’s stock faced a decline in trading. Analysts from Needham, Goldman Sachs, William Blair, and JMP Securities have all reiterated their positive ratings on Twilio, maintaining their Buy or Outperform recommendations. Needham highlighted the impressive revenue performance, while Goldman Sachs noted the company’s above-consensus third-quarter revenue guidance. William Blair emphasized Twilio’s growth acceleration and potential for margin expansion. JMP Securities pointed out advancements in voice technology as a positive indicator for the company. Additionally, Twilio announced new features aimed at enhancing customer engagement, including Event Triggered Journeys, Data Residency for Email in the EU, and WhatsApp Business Calling on Programmable Voice.
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