(NYSE: TWLO), once a growth-at-any-cost Wall Street darling, is remaking itself as a company focused on the bottom line. The communications software provider originally laid out a plan to become profitable on a GAAP (generally accepted accounting principles) basis by 2027. That target hinged on accelerating growth in the data and applications portion of the business, which excludes the core communications products.

While Twilio succeeded in improving profitability in its mature lines of business, Segment, the customer data platform the company shelled out $3.2 billion for in 2020, has been a major disappointment. Segment's revenue grew by just 7% in 2023, and the business remained profoundly unprofitable.

A management shakeup in January brought in Khozema Shipchandler, previously the head of Twilio's Communications segment, as CEO to replace founder Jeff Lawson. Two months later, Twilio has now presented an updated turnaround plan that shifts even harder toward profitability and away from growth.

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Source Fool.com