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TWLO (Twilio) Piotroski F-Score : 6 (As of Dec. 12, 2024)


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What is Twilio Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Twilio has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Twilio's Piotroski F-Score or its related term are showing as below:

TWLO' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 7
Current: 6

During the past 11 years, the highest Piotroski F-Score of Twilio was 7. The lowest was 2. And the median was 4.


Twilio Piotroski F-Score Historical Data

The historical data trend for Twilio's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Twilio Piotroski F-Score Chart

Twilio Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 4.00 2.00 3.00 7.00

Twilio Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 7.00 6.00 6.00

Competitive Comparison of Twilio's Piotroski F-Score

For the Software - Infrastructure subindustry, Twilio's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Twilio's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Twilio's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Twilio's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was -365.408 + -55.349 + -31.858 + -9.726 = $-462 Mil.
Cash Flow from Operations was 222.545 + 190.123 + 213.343 + 204.329 = $830 Mil.
Revenue was 1075.95 + 1047.05 + 1082.502 + 1133.649 = $4,339 Mil.
Gross Profit was 531.166 + 544.041 + 555.845 + 578.629 = $2,210 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(11857.738 + 11609.707 + 11289.289 + 10507.652 + 10037.257) / 5 = $11060.3286 Mil.
Total Assets at the begining of this year (Sep23) was $11,858 Mil.
Long-Term Debt & Capital Lease Obligation was $1,085 Mil.
Total Current Assets was $3,548 Mil.
Total Current Liabilities was $701 Mil.
Net Income was -229.422 + -342.139 + -166.187 + -141.707 = $-879 Mil.

Revenue was 1024.574 + 1006.564 + 1037.761 + 1033.67 = $4,103 Mil.
Gross Profit was 481.142 + 490.69 + 505.755 + 516.319 = $1,994 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(12612.656 + 12564.304 + 12298.908 + 11904.486 + 11857.738) / 5 = $12247.6184 Mil.
Total Assets at the begining of last year (Sep22) was $12,613 Mil.
Long-Term Debt & Capital Lease Obligation was $1,134 Mil.
Total Current Assets was $4,742 Mil.
Total Current Liabilities was $726 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Twilio's current Net Income (TTM) was -462. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Twilio's current Cash Flow from Operations (TTM) was 830. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=-462.341/11857.738
=-0.03899066

ROA (Last Year)=Net Income/Total Assets (Sep22)
=-879.455/12612.656
=-0.06972798

Twilio's return on assets of this year was -0.03899066. Twilio's return on assets of last year was -0.06972798. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Twilio's current Net Income (TTM) was -462. Twilio's current Cash Flow from Operations (TTM) was 830. ==> 830 > -462 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=1084.935/11060.3286
=0.09809247

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=1133.942/12247.6184
=0.09258469

Twilio's gearing of this year was 0.09809247. Twilio's gearing of last year was 0.09258469. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=3548.322/700.737
=5.06370008

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=4741.578/726.117
=6.53004681

Twilio's current ratio of this year was 5.06370008. Twilio's current ratio of last year was 6.53004681. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Twilio's number of shares in issue this year was 159.091. Twilio's number of shares in issue last year was 181.749. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2209.681/4339.151
=0.50924271

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1993.906/4102.569
=0.48601401

Twilio's gross margin of this year was 0.50924271. Twilio's gross margin of last year was 0.48601401. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=4339.151/11857.738
=0.36593413

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=4102.569/12612.656
=0.32527399

Twilio's asset turnover of this year was 0.36593413. Twilio's asset turnover of last year was 0.32527399. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+1+1+0+0+1+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Twilio has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Twilio  (NYSE:TWLO) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Twilio Piotroski F-Score Related Terms

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Twilio Business Description

Address
101 Spear Street, Fifth Floor, San Francisco, CA, USA, 94105
Twilio is a cloud-based communications platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.
Executives
Dana Wagner officer: Chief Legal Officer, Secretary C/O TWILIO INC., 101 SPEAR STREET, FIRST FLOOR, SAN FRANCISCO CA 94105
Aidan Viggiano officer: Chief Financial Officer 101 SPEAR STREET, FIFTH FLOOR, SAN FRANCISCO CA 94105
Khozema Shipchandler officer: Chief Financial Officer C/O PIVOTAL SOFTWARE, INC., 875 HOWARD STREET, FIFTH FLOOR, SAN FRANCISCO CA 94103
Elena A. Donio director C/O CONCUR TECHNOLOGIES, INC., 18400 NE UNION HILL RD., REDMOND WA 98052
Charles H Bell director 101 SPEAR STREET, FIFTH FLOOR, SAN FRANCISCO CA 94105
Donna Dubinsky director C/O TWILIO INC., 375 BEALE STREET, SUITE 300, SAN FRANCISCO CA 94105
Jeff Lawson director, 10 percent owner, officer: Chief Executive Officer 645 HARRISON STREET, THIRD FLOOR, SAN FRANCISCO CA 94107
Eyal Manor officer: Chief Product Officer C/O TWILIO INC., 101 SPEAR STREET, FIRST FLOOR, SAN FRANCISCO CA 94105
Miyuki Suzuki director C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Marc Boroditsky officer: Chief Revenue Officer 121 W. WACKER DR., SUITE 2050, CHICAGO IL 60614
Richard L Dalzell director PO BOX 81226, SEATTLE WA 98108-1226
Karyn Smith officer: General Counsel and Secretary TWILIO INC, 645 HARRISON STREET THIRD FLOOR, SAN FRANCISCO CA 94107
Jeffrey R Immelt director GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210
George Hu officer: Chief Operating Officer C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
Erika Rottenberg director 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043