Why Data Is The New Oil? Part 5
Abraham George Essay Series
Breezy Briefings is pleased to present a brand new essay series by Abraham George titled Why Data Is The New Oil? Subscribe using the button above or Telegram to receive the latest updates as soon as it is published. This is Part 5 - if you missed the previous parts, check out Part 1, Part 2, Part 3 and Part 4.
Twilio is the undisputed leader of the CPaaS industry. A very ambitious company too. The current macro environment combined with Twilio’s leverage and lack of operating cash flows has forced its prices to pull back considerably. Last week, its prices were down by 43% from its top and I think current prices should be attractive for long-term investors.
The company expects to grow at 30% through 2025. Analysts are underestimating Twilio’s growth possibilities especially with the newfound expectations that Segment brings in.
Twilio was founded in 2008 by Jeff Lawson, John Wolthuis, and Evan Cooke. Jeff Lawson was the main architect, a software developer by training he was also one of AWS’ earliest product managers. Twilio had one major mission. Make life easy for software developers. They started their mission by enabling developers to easily add a full communications stack to their applications.
Twilio makes things easy for developers by providing an application programming interface (API). With a little easy-to-use coding, programmers can add a full array of fully-featured functionality to their applications. A process that used to take a team of engineers months to write, can now be done within a few hours and can have the best communication experience through Twilio’s application tools.
We have to see how Tanla’s Wisely product will stand up to Twilio’s existing technology. Even large companies that have the capability to develop their own communication platforms use Twilio because Twilio is the best in the market.
Uber and Lyft drivers use Twilio to connect with their riders. Stripe, one of the largest private companies in the world uses Twilio to confirm their identity before linking their bank accounts to make a purchase. The list goes on.
Twilio’s focus was on removing the complexity and interfacing with hundreds of wireless operators around the world. They moved it all to the backend so the customers didn’t have to know anything. In the process, Twilio became a $40 bln company. Jeff Lawson knew all along that markets will be driven by data. The customers’ habits will define the future of shopping and marketing. The data will be invaluable for marketers and business analysts. Lawson sensed this opportunity and found companies with the best software that could fit into the Twilio ecosystem to enable its customers to become the best data-driven marketing companies.
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Abraham George is a seasoned investment manager with more than 40 years of experience in trading & investment and multi-billion dollar portfolio management spanning diverse environments like banks (HSBC, ADCB), sovereign wealth fund (ADIA), a royal family office and a hedge fund. Currently, he is setting up a hedge fund where foreign citizens can invest in Indian growth stocks like Tanla operating in hyper-growth markets like CPaaS.
Fabulous Sir.