Twilio reported solid first-quarter results and raised its guidance for 2025. The company’s revenue grew 12% year-over-year to $1.17 billion, beating estimates by 2-3%. Non-GAAP earnings per share of $1.14 were about 20% above consensus, and the operating margin expanded by nearly 300 basis points to 18.2%.
HSBC upgraded Twilio from “Reduce” to “Hold” and raised its target price to $99 from $77. The firm highlighted encouraging customer adoption trends and product traction, including growing demand for AI-focused offerings like ConversationRelay. Twilio’s dollar-based net expansion rate improved to 107%, up from 102% a year ago.
Despite the upgrade, HSBC expressed skepticism over Twilio’s long-term margin targets. The firm…
