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Twilio Announces Private Offering

May 15, 2018
By Paula Bernier - Executive Editor, TMC

Twilio (News - Alert) this week announced plans to offer $435 million of convertible senior notes as part of a private offering. Then it upped that to $475 million.




The notes, which will come due in 2023, will be convertible into cash, shares of Twilio’s Class A common stock, or a combination of the two.

“We believe these notes will provide financial flexibility to the company and propel long-term growth,” writes Zacks. “Nonetheless, escalating interest expenses due to increased debt burden may dampen the company’s profitability.”

Last week Twilio announced its first quarter 2018 results. The company revealed that its revenue for the quarter was $129.1 million, up 48 percent year over year, and up 12 percent from the fourth quarter of last year.

That was the cloud-based communications specialist’s biggest quarter of accelerating revenue growth as a public company, The Motley Fool reported yesterday. “The reinvigorated growth stock darling was only targeting 32 to 34 percent in revenue growth for the quarter back in February, and analysts were perched near the high end of that range,” Rick Munarriz reported. “The market was clearly impressed, sending the stock to its highest level since late 2016.”

(Twilio went public two years ago, in what has been described as 2016’s hottest tech IPO. It debuted in June 2016 at $15 a share and peaked at nearly $71 in September. At last look, it was trading a $52.94.)

Zacks noted that Twilio stock has increased more than 116 percent in the past year. And it said that at the end of the first quarter it had cash and cash equivalents and short-term marketable securities of $308 million.

A pioneer in what is now a major open API movement, more than 2 million developers have used Twilio technology to build communications services leveraging chat, text, video, and voice.




Edited by Maurice Nagle


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