At FinancialMediaGuide, we view Rosenblatt’s decision to begin coverage of Twilio with a “buy” rating and a $140 price target as an important signal for the tech sector. The company, long seen as a “communications infrastructure builder,” is increasingly transforming into a provider of AI and customer data management solutions. At Prime Focus, we note that these are the companies that are becoming the link between the AI explosion and sustainable revenue streams.
According to Rosenblatt, the key to Twilio’s continued growth is monetizing its existing base of 349,000 customers. Two-thirds of these customers still use only one product, while multi-product customers account for 90% of revenue. This creates an obvious vector: cross-selling and deeper integrations can dramatically increase revenue without the costly acquisition of new users.
FinancialMediaGuide commentary: Another important factor is Twilio’s role in the AI ecosystem. More than 9,000 companies use its infrastructure, including most of the Forbes 50 top AI startups. Partnerships with OpenAI, AWS, Google, and Snowflake confirm that Twilio is becoming an infrastructure player, powering next-generation applications.
Financial discipline also strengthens the picture. The company forecasts GAAP profitability as early as 2025, margin growth to 21-22% by 2027, and free cash flow in excess of $3 billion. At the same time, management intends to return half of this amount to shareholders through a buyback.
FinancialMediaGuide view: We see that Twilio’s story goes beyond a single Rosenblatt recommendation. It illustrates how second-tier platforms are becoming key anchors in the tech ecosystem. If the predictions for the multi-product strategy and AI integration are confirmed, Twilio could transform from a “communications utility” into one of the drivers of the new tech cycle.
Twilio is gaining support from analysts not only because of the numbers, but also because of its position in the future AI market. For investors, this is not just another “tech bet,” but an example of how mature infrastructure can turn into a strategic asset in a fast-growing ecosystem.
