TWLOTWILIO INC

Services-Prepackaged Software

Revenue: $5.1B; 14% YoY
Operating margin: 3.1%; 358% YoY
EBITDA: $353M; 132% YoY
Market cap: $31.2B
Employees: 2,632; $2M revenue each
Net debt / EBITDA: -0.2×; −$68M net debt
AI in 10-K: 9.4; mentions per 10K words

Takeover score 5 of 13

Fixable underperformance 3 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
30× net income
Cash flow under 80% of net income
Dilutive SBCYes
12% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
87% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
48% of assets
Over 40% of assets
Shareholder dissentNo
94% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$2M · 91st pct
Bottom quartile of its SIC industry
Quiet on AINo
9.4 per 10K words · 92nd pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.2× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$31.2B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$619M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$2.8B	$3.8B	$4.2B	$4.5B	$5.1B	14%
Operating income	−$916M	−$1.2B	−$877M	−$54M	$158M	394%
Net income	−$950M	−$1.3B	−$1.0B	−$109M	$34M	131%
Operating cash flow	−$58M	−$254M	$415M	$716M	$1.0B	40%
Capex	$46M	—	—	—	—
Stock-based comp	$632M	$799M	$676M	$617M	$600M	2.6%
Buybacks	$0	$0	$669M	$2.3B	$869M	63%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $619M · 96
Net: −$619M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	42	258
FY2024	—	—	32	208
FY2023	—	—	22	152
FY2022	—	—	14	97
FY2021	—	—	78	135