-- Twilio (TWLO) delivered Q1 results that exceeded expectations, with accelerating momentum across AI-driven use cases and stronger-than-expected business performance, Morgan Stanley said Friday in a report.
Revenue growth of 16% came in well above forecasts, marking the strongest organic growth in four years, driven by broad-based strength across voice, messaging, and third-party channels, the report said.
Morgan Stanley also highlighted stronger profitability, with non-GAAP operating margins of almost 20% beating expectations, supported by efficiency gains and disciplined cost control.
Accelerating AI adoption and a growing base of AI-native customers support long-term growth, and the Signal customer event next week may serve as a near-term catalyst for additional AI product announcements, the report said.
Morgan Stanley raised its price target on Twilio stock to $200 from $153 and maintained its overweight rating.
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