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I have a very difficult time understanding how Twilio can justify such a high flying IPO ($1B+ mkt cap). This is a classic business (Enterprise PBX and Services
by martinshen 10y ago
I have a very difficult time understanding how Twilio can justify such a high flying IPO ($1B+ mkt cap). This is a classic business (Enterprise PBX and Services) with lipstick on it. Look at Polycom, Mitel and Alcatel-Lucent as their comps and try to justify these multiples.
That said, I respect Twilio a lot. They've been a great innovator.
- jMyles 10y ago> This is a classic business (Enterprise PBX and Services) with lipstick on it. In this case that "lipstick" is one of the most popular APIs in the startup world - you'll need to face the fact that this is a big selling point.
- dexterdog 10y agoThey have great APIs, but from what I have seen and used them for they wrap a bunch of services that have no stickiness. If I am using their API today and a competitor comes out tomorrow that will save me 10% it will make total sense to switch as it will be seamless to my users. I also don't get their pricing models at all. For the tiny guy, it's free. For the slightly larger guy it is the most expensive per use and then it tapes off so that the big users pay a fraction of that. Why should text message number 1 billion cost 1/8 what text message one costs. They are either losing money on their big accounts (doubtful) or they are severely overcharging most customers.
- aviv 10y agoNo need to wait until tomorrow. ALL of Twilio's existing competitors (and there are many, and many more coming especially from the big telcos) will save you much more than 10% for essentially the same range of services.
- dexterdog 10y agoI'd be surprised if the telcos offer everything Twilio offers, but I would expect them to be able to offer the biggest line item for me (SMS) more cheaply.