Baird positive on Twilio’s restructuring plans, cost reductions

Baird analyst William Power notes Twilio announced plans to restructure its business into two units, along with a reduction in workforce to drive more efficiency and growth. The reorganization will separate Twilio Data & Applications, including Flex, CDP, and Engage, from Twilio Communications, including its voice, messaging, and its traditional CPaaS businesses. The firm thinks splitting the business into two units makes strategic sense as a way to optimize the communications business and accelerate growth in the data and applications business. Baird also views the cost reductions as positive given the market’s increased focus on profitability. The firm has a Neutral rating on the shares with a price target of $55.