Twilio's (TWLO) efforts to scale self-serve adoption, drive cross-selling, and expand into AI-driven services could position the company for revenue growth and operating margins above current targets, Oppenheimer said in a report Tuesday.

Following investor meetings with Twilio's management, analysts at Oppenheimer said they see the company entering a new phase that could support revenue growth beyond its 7-8% target for 2025 and operating margins above the 21-22% goal for 2027.

Twilio is making more products available for self-serve fulfillment, while enhancing its sales approach to drive cross-selling. Self-serve demand is growing at a double-digit rate, and only 37% of customers currently use multiple products, presenting an opportunity to expand adoption of offerings such as email, voice, and AI-powered services, according to the note.

Additionally, Twilio is embedding its segment capabilities into its communication platform, positioning it to capitalize on AI-driven customer engagement. Initiatives such as Conversation Relay and Voice Intelligence could generate incremental messaging and voice traffic, supporting growth.

Oppenheimer noted that Twilio's sales quotas for 2025 have been set at double-digit growth, reinforcing expectations for performance above management's baseline targets. The firm also highlighted Twilio's renewed focus on core communication technology, disciplined capital allocation, and buybacks as factors supporting long-term margin expansion.

Oppenheimer maintained outperform rating on Twilio, with a price target of $160.