Twilio partners with Microsoft for AI customer engagement

Published 14/05/2025, 14:20
Twilio partners with Microsoft for AI customer engagement

SAN FRANCISCO - Twilio (NYSE: TWLO), a prominent customer engagement platform with over $4.5 billion in annual revenue and a market capitalization of $17.5 billion, has announced a strategic partnership with Microsoft to enhance the development and adoption of conversational artificial intelligence (AI) solutions. According to InvestingPro data, Twilio maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 4.78x. This collaboration, revealed today during the Twilio SIGNAL conference, aims to leverage Twilio’s communication expertise and Microsoft’s Azure AI infrastructure to address challenges in customer engagement.

The partnership is poised to benefit Twilio’s developer community, which exceeds 10 million, as well as Microsoft’s managed customer base. By integrating Twilio’s platform with Microsoft Azure AI Foundry, the alliance focuses on creating AI agents that can automate and improve customer interactions across various channels, assist live agents, and provide multi-modal solutions for digital exchanges between businesses and customers.

Conversational AI, which employs natural language processing (NLP) and machine learning (ML), has been instrumental in enhancing digital interactions by enabling systems to understand and respond to human conversations naturally. Despite its potential, businesses have encountered obstacles in deploying conversational AI, such as data precision issues and integration challenges with existing systems.

Inbal Shani, Twilio’s Chief Product Officer, highlighted the importance of every business-customer interaction in building loyalty and trust, emphasizing that conversational AI can significantly enrich these exchanges. Microsoft’s Corporate Vice President, Azure AI Platform, Asha Sharma, also noted the enterprise-grade capabilities of Azure AI Foundry in scaling AI across organizations.

As part of the announcement, Twilio introduced new conversational AI features, including ConversationRelay and Conversational Intelligence, which are now generally available for voice and in private beta for messaging. These innovations aim to streamline the development process and provide actionable insights from voice and text conversations.

The Twilio SIGNAL conference, taking place on May 14-15, features industry leaders and offers hands-on learning sessions. A virtual fireside chat with Microsoft CEO Satya Nadella is among the event’s highlights. Following the conference, Twilio will also showcase its conversational AI solutions at the Microsoft Build Conference in Seattle from May 19-22.

This press release statement includes forward-looking remarks regarding the anticipated capabilities of the partnership’s solutions and should be considered with caution due to potential risks and uncertainties. Twilio’s expectations are based on current beliefs and assumptions and are subject to change. While the company currently shows a gross profit margin of 50.55% and analysts expect profitability this year, investors seeking deeper insights can access comprehensive analysis through InvestingPro, which offers exclusive access to over 14 additional ProTips and detailed financial metrics for Twilio, along with a professional research report that transforms complex Wall Street data into actionable intelligence.

In other recent news, Twilio has reported a strong financial performance, achieving a 12% year-over-year revenue growth for the fourth consecutive quarter. The company’s EBIT margin improved significantly to 18% in the first quarter of fiscal year 2025. Analyst firms have responded with various ratings: UBS maintained a Buy rating but lowered the price target to $150, citing the company’s resilience despite macroeconomic concerns. Meanwhile, Scotiabank raised its price target to $135, highlighting Twilio’s advancements in artificial intelligence and its robust revenue growth. Tigress Financial Partners reiterated a Buy rating with a price target of $170, emphasizing the company’s AI-driven growth and international expansion. Stifel maintained a Hold rating with a $110 target, noting Twilio’s cautious financial outlook despite positive quarterly results. Twilio’s recent product announcements at the SIGNAL user conference, including new AI and data capabilities, are expected to enhance customer engagement. The company continues to focus on long-term value creation through research, development, and strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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