Twilio Q2 FY12/24 Earnings Review
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Just Chopping Wood, Quarter In, Quarter Out
by Alex King, CEO, Cestrian Capital Research, Inc
Well, in general we do pretty good with our buy and sell ideas. But we have a few howlers, and I can tell you that Twilio has thus far been Officially A Howler. No good. Big-L Loser. Worse, whether in our research services or personally, risk management on this name has been notable only by its absence. Speaking for myself I am something like 34-35% underwater on TWLO on one position and around 8% on another - and that's after averaging down a lot, so much so that I have an uncomfortably large allocation to this turkey. Urgh.
Except it's no longer a turkey. Or at least the company isn't. The stock still squawks but that's my own fault for buying it at the wrong price. The company just printed another great quarter. Revenue growth accelerated, EBITDA and cashflow margins increased, and the share count dropped - here we have that most rare of things, a company conducting a buyback campaign when the stock is at the lows, not the highs!
Read on folks.