Twilio (TWLO, Financial) saw its stock price soar over 18% in pre-market trading, reaching $134.29. This surge follows the company's announcement of an optimistic profit forecast for the next three years. As part of its three-year guidance framework, Twilio anticipates its adjusted operating profit margin will expand to between 21% and 22% by 2027, surpassing market expectations of 19.7%. In the most recent quarter, Twilio reported an adjusted operating profit margin of 16.1%.
Additionally, Twilio's management has committed to generating $3 billion in free cash flow over the next three years. This is a significant increase compared to the approximately $690 million in free cash flow generated between 2022 and 2024.
