Last Thursday, cloud-based communications company Twilio (NYSE:TWLO) launched its initial public offering on the New York Stock Exchange and enjoyed a great first day of trade. Closing the day just under $29 per share, TWLO saw its share price jump a whopping 92% as investors flocked to buy in to the stock. (Watch: What Twilio Is And Why Twilio Is A Hot IPO Stock)
TWLO continued its run Tuesday after a Brexit-induced drop Friday and Monday, as the stock closed nearly 9.5% higher. It seems as though investors like what they see in Twilio, which enables software and app developers to communicate with users quickly and effectively. The company has big name clients using its services, with Facebook’s (NASDAQ:FB) Whatsapp, Nordstrom (NYSE:JWN) and Uber Technologies being three of the largest.
The company’s platform seeks to help developers add communication features to their apps, and Twilio projects the platform will be worth upwards of $45 billion next year. The company posted revenue growth of 78% in 2014, 87% in 2015, and 77.8% in its most recent quarter, making it very intriguing for growth investors.
Despite the growth however, the company is yet to be profitable, as it continues to reinvest its earnings into the business. Twilio does not have any debt on its balance sheet, and boasts over $200 million in cash.
Bottom Line
2016 has been a relatively slow year in regards to the IPO market, with the uncertainty of the global economy and slowing growth causing most IPO-candidates to remain cautious of launching offerings. Many are hoping that despite recent volatility, Twilio’s IPO success could provide some motive for other unicorns, companies with valuations over $1 billion, to consider launching IPOs of their own.
Read: Will Uber Be The Hottest IPO of 2016?
NORDSTROM INC (JWN): Free Stock Analysis Report
FACEBOOK INC-A (FB): Free Stock Analysis Report
Original post
Zacks Investment Research