Twilio Inc (TWLO)

[Hypi]

I am and compete in this space, so know the dynamics of the industry. Very tight margins and difficult to make money with plenty of competitors. I made a killing on buying puts yesterday, so won't even cash them today unless we dip down to $21. I think next week we see the teens.

Remember they list thousands of customers, but many are two man shops that built an application and run it with hardly any volume. Twilio was built for the developer community and they have some large customers, but lose one and its significant. Most large companies use bigger players for these type of applications that offer full support like professional services, managed services contracts on their applications, very tight PCI compliance & the utmost secure environments. In the mid-tier market there are so many players like FIVE9, Cisco, Aspect, Genesys, Interactive Intelligent and in the low end they compete against relatively free service providers and/or lost cost heavy weights like MSFT and GOOG who practically give it away.