Twilio's stock soared an impressive 16.84% in pre-market trading on Friday, following the company's investor day presentation that provided bullish guidance and growth outlook.
The cloud communications platform provider projected its total addressable market (TAM) for communications and data to grow at an annual rate of 11% to $119 billion by 2028. Twilio expects its operating margin to reach 21%-22% by 2027, indicating improved profitability. Additionally, the company's board approved a new $2 billion share buyback program, underscoring its commitment to returning value to shareholders.
Investors were also enthused by Twilio's focus on artificial intelligence (AI) and its partnerships with OpenAI and Amazon Web Services. The company sees AI playing a crucial role in enhancing its services, such as smarter autonomous agents and more personalized customer communications.