Twilio (TWLO) and KORE Group Holdings Tie Up on IoT Solution
Twilio TWLO inked a definitive agreement with Atlanta-based Internet of Things (IoT) solutions provider KORE Group Holdings KORE, under which the latter will be acquiring the company’s IoT business unit to offer customers a unified, seamless approach for launching IoT solutions.
Per the deal, Twilio will get 10 million shares of KORE common stock, representing around 11.5% of KORE's issued and outstanding shares. This buyout will boost KORE’s growth strategy by providing a one-stop shop to its customers for building, deploying, managing and scaling IoT operations throughout the entire lifecycle with the help of best-in-class technologies.
Further, the current deal will accelerate customers’ time to market by providing a powerful connectivity suite with KORE OmniSIM and Twilio Super SIM solutions. Twilio Super SIM is a global cellular connectivity platform that connects IoT devices around the world. Powered by Twilio’s cloud-scale mobile core, it enables connectivity of the most comprehensive list of Tier 1 global networks available via a single SIM.
Taylor Wolfe, Twilio's head of IoT, stated, "As a global leader in IoT, KORE has the right expertise, vision, and technology to expand the robust offerings that Twilio's world-class IoT team has built. KORE is the right home for Twilio's IoT business, and we look forward to this acquisition increasing scalability and creating even more powerful business outcomes for our customers going forward." This transaction’s conclusion is subject to customary closing conditions, like negotiation and execution of certain ancillary agreements.
Twilio Inc. Price and Consensus
Twilio Inc. price-consensus-chart | Twilio Inc. Quote
Twilio has been witnessing tremendous demand for its programmable voice and messaging products, which is favoring its top-line performance. The company’s consistent efforts in developing innovative use case products and enhancing the capabilities of existing ones will continue to boost its revenues in the long run. The cloud-based communications platform-as-a-service provider reported revenues of $3.83 billion for 2022, 34.6% higher than 2021.
Twilio’s efforts toward expanding its global footprint are commendable. The company has been continuously making investments to meet the requirements of a broader range of global developers and enterprises. Furthermore, it is making strategic alliances and has employed more staff outside the U.S. office to enhance international operations.
The company’s revenues from the international market increased 43.9% year over year to $1.32 billion in 2022. Moreover, contributions of the international market toward total revenues increased to 34.4% in 2022 from 32.2% in 2021.
Zacks Rank & Other Stocks to Consider
Twilio currently carries a Zacks Rank #2 (Buy), while KORE has a Zacks Rank #4 (Sell). Shares of TWLO and KORE have plunged 64.4% and 76.3%, respectively, over the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Airbnb ABNB and Fabrinet FN. Fabrinet sports a Zacks Rank #1 (Strong Buy) and Airbnb has a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Airbnb’s first-quarter 2023 earnings has been revised northward from a loss of a penny to 14 cents per share over the past 60 days. For 2023, earnings estimates have moved up by 58 cents to $3.38 in the past 60 days.
ABNB's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 57.2%. Shares of the company have declined 33.6% in the past year.
The Zacks Consensus Estimate for Fabrinet's third-quarter fiscal 2023 earnings has been revised 7 cents upward to $1.90 per share over the past 60 days. For fiscal 2023, earnings estimates have moved north by 23 cents to $7.71 in the past 60 days.
FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 4.5% in the past year.
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