RBC Capital analysts provided their views on Twilio Inc. (NYSE:TWLO) ahead of the upcoming Analyst Day and Q3 earnings announcement.
The analysts expect the company to address two primary topics: (1) how over 30% organic growth should be taken off the table near-term, (3) more granular gross margin disclosures (similar to the 2020 Analyst Day) and a medium-term margin target, in order for investors to feel comfortable about long-term profitability potential.
Against a low bar and in what could be a true self-help story, RBC views the Analyst Day as a potential upside catalyst, maintaining its Outperform rating and $110 price target.