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Twilio Enhances Email Tools for SendGrid Marketing Campaigns

Zacks Equity Research

Twilio TWLO introduced Automation and Email Testing tools within SendGrid Marketing Campaign platform, designed to enable marketers send effective emails.

Reportedly, the new features will help marketers manage all email “including one-time and automated marketing mail and transactional messages, for unprecedented consistency and control to perfect content and improve deliverability.”

Notably, despite the growing popularity of video, voice and chat communications, demand for transactional email services is shooting up. Significantly, email still remains an imperative conduit for businesses to communicate with customers as it aids in more prudently addressing the respective client's engagement strategy.

Earlier in April, Twilio added services for email marketing including Email Bootcamp, Email Implementation and Email Implementation & Strategy. These provide customers with options for additional support, education and guidance to help set up and use SendGrid’s products, optimize their email programs and boost business results.

Acquisition of Sendgrid — A Key Driver

In February 2019, Twilio completed the buyout of SendGrid, the leading email API platform, for $3 billion. With this transaction, Twilio’s onmichannel communications capabilities are strengthened by enhancing its Programmable Communications Cloud software, which allows developers to embed voice, messaging, video and authentication skills.

Through the integration of SendGrid’s services, Twilio expects to integrate more than half a trillion customer interactions annually into its communications platform.

Notably, Twilio ended the last reported quarter boasting 154,797 active customer accounts with SendGrid contributing more than 84,000 to the count.

SendGrid's organic growth after taking into account its two months’ accretion in the first quarter was 30% year over year.  Moreover, SendGrid boosted gross margins by 300 basis points sequentially.

Twilio Inc. Revenue (TTM)

Twilio Inc. Revenue (TTM)

Twilio Inc. revenue-ttm | Twilio Inc. Quote

Vonage Brandshing Power

Recently, Vonage VG in a bid to bolster its bouquet of communication channels on offer, partnered SendinBlue to add email capabilities to its API platform, Nexmo.

Reportedly, this collaboration with the SendinBlue email platform will allow Nexmo to provide businesses with the force to ease application of programmable capabilities for springboarding the email marketing campaigns.

Further, the alliance will facilitate direct exchanges with customers for emergency data or time-sensitive offers. Moreover, Nexmo will deliver as the sole SMS provider for Sendinblue.

Given the intensifying competition, we believe the sophistication of features and product launches would make Twillio well equipped to grab a larger market share with the necessary competitive edge.

Zacks Rank & Stocks to Consider

Twilio currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Rosetta Stone RST and Alteryx AYX, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Rosetta Stone and Alteryx is currently projected at 12.5% and 13.7%, respectively.

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