After Twilio announced it will keep Segment following its operational review of the business unit, Baird analyst William Power said the firm believes investors were hoping for a sale, but also noted that the company laid out a number of operational focus areas and a path to breakeven adjusted operating income for Segment by Q2 of 2025. In addition, Twilio reaffirmed Q1 guidance, released 2024 targets, added a 2025 target for GAAP operating profitability by Q4 of 2025 and expanded its buyback, which are positives. The lack of a Segment sale will “disappoint many,” though the company indicated the sale value “effectively wasn’t worth it given current financials,” added the analyst, who keeps a Neutral rating and $70 price target on the shares.
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