Twilio is a company that helps to establish communication between a company and its clients via phone calls and massaging services. Its stocks lost 85% of their peak prices and are unaffected by the recent rally in the tech sector.

The firm delivers 30% of annual revenue growth on average. The Q1 2023 revenues rose 15% YoY to $1.007 billion. The company’s management is focused on improving margins. Non-GAAP income from operations was reported to be at 103.8 million compared to $5 million in Q1 2022. Management wants to increase the income to $275-350 million by the end of 2023. The company owns $4 billion in cash and only owes $1 billion in debt. So, the company has a net cash position of 20% of its market cap, which is around $11 billion. Management has announced a buyback program of $1 billion that is now active.

Twilio may not rise at the same pace as it did before, but this doesn’t justify a huge contraction of its stock prices. A strong fiscal balance and efforts to increase income  show that TWLO stocks have been heavily oversold.