Good morning. Twilio’s turnaround didn’t hinge on a single quarter. It was a multi-year overhaul of its strategy, cost base, and culture that is now clearly showing up in the numbers.
Bank of America has turned increasingly bullish on Twilio. Analyst Koji Ikeda has reiterated a Buy rating and added the stock to his “Fab Five” basket (alongside Datadog, JFrog, MongoDB, and Snowflake), a group the firm expects to keep outperforming as companies step up spending on AI infrastructure.
“Our transformation is really the result of the disciplined work we’ve been doing for many years,” Twilio CFO Aidan Viggiano told me. “We didn’t just wake up here. We built our way here one decision at a time.”
Twilio lets companies embed voice, video, text, email, and other communications into their products. As AI adoption accelerates, Viggiano describes the company as the “connective tissue” for AI agents: LLMs provide the intelligence, data platforms provide the context, and Twilio manages the customer interactions.
During the pandemic boom, Twilio saw demand pulled forward. Afterward, usage slowed as customers cut back, and revenue decelerated faster than at subscription-based peers, with costs and ambitions built for a very different growth environment.
