Stifel analyst J. Parker Lane downgraded Twilio to Hold from Buy with a price target of $90, down from $200. While total revenue and non-GAAP operating margin beat during the quarter, the company offered an outlook for Q3 that came in below consensus on the top and bottom-lines, Lane tells investors in a research note. With Twilio’s non-GAAP gross margin stepping back to 51.0% during Q2 and the company projecting a wider operating loss than consensus for Q3, the timeline for it achieving material profitability “remains uncertain,” says the analyst. The analyst is moving to the sidelines pending a clearer picture on the progress towards 60%-plus gross margin.
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