This post was originally published on this site
Oppenheimer reiterated its Outperform rating on the company, noting it had anticipated a potential activist involvement, as super-voting rights for Class B shares (10 votes per share) are set to expire in less than a month.
According to the firm, this would result in a significant reduction in the voting power of key shareholders, including CEO Jeff Lawson, whose control would decline from about 21% to approximately 3%. As a comparison, Legion Partners owns roughly 2% of Twilio stock (according to the latest 13-F).
According to Barclays, Twillio’s management has already announced 2 RIFs (~25% of its workforce), a GTM restructuring, a $1 billion share authorization, and added a GAAP profitability target (by 2027).
According to the bank, Twillio has more direct CPaaS market growth headwinds (macro/2FA/A2P) and competitive concerns for its Data & Applications business (encroaching CDP and reverse ETL competition) than a pain point that requires activist involvement at present. “That being said, frustrated investors may be supportive of more representation on TWLO’s board at this point,” added Barclays.
