Twilio Cuts More Jobs as Growth Strategy Stumbles
Once the poster child for unprofitable tech companies, (NYSE: TWLO) is dead set on transforming itself into a sustainable, profitable business. The communications software provider has already gone through two rounds of significant layoffs, slashing its workforce by 11% last September and by another 17% in February.
Twilio also began a broad restructuring in February, grouping businesses with similar growth profiles. The communications segment, home to the core messaging APIs, would be focused on boosting efficiency. The data and applications segment, containing the rest of Twilio's product portfolio, would be focused on accelerating growth.
The company has made progress in reducing its losses, driven by both job cuts and efficiency improvements in the communications segment. While Twilio's revenue rose by just 5% year over year in the third quarter, the company's gross profit jumped 12%, and its operating loss was 76% smaller.
Source Fool.com
Twilio Inc Stock
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