Twilio launches RCS messaging globally for enhanced customer engagement

SAN FRANCISCO - Twilio (NYSE:TWLO), the $16.1 billion cloud communications giant that has achieved impressive revenue growth of 11.56% over the last twelve months, announced Tuesday the general availability of Rich Communication Services (RCS) messaging globally, following its public beta launch last year. The service is now accessible to all 349,000+ active customer accounts through Twilio’s Programmable Messaging and Verify APIs. According to InvestingPro analysis, Twilio maintains strong financial health with more cash than debt on its balance sheet, positioning it well for continued expansion.

RCS enables businesses to send branded, verified messages with interactive features including call-to-action buttons, carousels, location sharing, and rich media content. According to a statement from the company, existing customers can upgrade with no code changes while new customers can implement both SMS and RCS through a single integration. With Twilio’s stock showing strong momentum and currently trading below its InvestingPro Fair Value, investors may find the company’s growth initiatives particularly interesting. For deeper insights, check out the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.

"RCS makes this a reality by delivering richer interactions, improved deliverability, increased trust in your brand," said Inbal Shani, Chief Product Officer and Head of R&D at Twilio.

The service automatically upgrades SMS messages to RCS on capable devices at no additional cost for basic messages up to 160 characters, with business logos, taglines, and trusted sender verification by Google. When RCS is unavailable, the platform automatically falls back to SMS.

A study cited in the press release indicates businesses using RCS experience a 32% increase in customer engagement and conversion rates compared to traditional SMS messaging.

Twilio’s RCS messaging is available across more than 20 countries and 55+ carriers. With Apple’s upcoming support for RCS on iPhones starting with iOS 18.2 in December 2024, the service will reach users across both major mobile platforms.

Companies including Nova Gestões in Latin America and Fresha in Europe are already using the service. Juliano Skrzyszowski, CTO at Nova Gestões, reported a "4x improvement in response rates compared to SMS" according to the company statement.

The messaging service aims to address trust issues in digital communications, particularly as messaging fraud continues to rise, with the FTC reporting losses to text scams reaching $470 million as of April 2025.

In other recent news, Twilio Inc. reported impressive financial results for the second quarter of 2025, with earnings per share of $1.19, exceeding the forecasted $1.05 by 13.33%. The company’s revenue also surpassed expectations, reaching $1.23 billion compared to the projected $1.19 billion. Despite these strong results, Twilio’s stock experienced a decline in premarket trading, indicating investor concerns beyond the quarterly performance. Additionally, Twilio will be added to the S&P MidCap 400 index, replacing Amedisys Inc., following the latter’s acquisition by UnitedHealth Group Inc. Analysts have been active in their assessments, with Stifel maintaining a Hold rating on Twilio, highlighting ongoing margin pressures despite the company’s consistent revenue growth. Meanwhile, Bernstein SocGen Group lowered its price target for Twilio to $119 from $130, citing challenges in revitalizing growth. These developments reflect a mixed sentiment among investors and analysts regarding Twilio’s future performance.

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