Twilio price target raised to $125 from $110 at Oppenheimer
Oppenheimer analyst Ittai Kidron raised his price target for Twilio to $125 from $110 after the company reported another "impressive" quarter, with robust customer growth and expansion rates, while providing above-consensus top-line guidance for standalone Twilio. The analyst sees upside from robust base revenue growth, conservatively-guided variable revenues, and cross-selling Twilio's voice/text products to SendGrid's customer base, all of which solidify Twilio's long-term revenue growth trajectory. Meanwhile, Kidron sees gross margin benefiting from rolling SendGrid into the model and is unconcerned with the lower operating margin guidance, given the magnitude of the visible opportunity in front of Twilio. He reiterates an Outperform rating on the shares.