3 Growth Stocks for In-the-Know Investors
Sometimes it takes a little digging to find a great opportunity. Investors who are willing to put in a little time to understand cloud software platforms Twilio (NYSE: TWLO), Okta (NASDAQ: OKTA), and Shopify (NYSE: SHOP) will be well rewarded. Let's look at why in-the-know investors love these behind-the-scenes operators that have become powerhouse growth stocks.
Twilio is a communications platform that allows software developers to embed digital messaging capabilities into a company's existing applications. Twilio makes it easy for software to generate an email to let you know about a new product, produce a text message saying your delivery is delayed, or initiate a phone call reminding you of your medical appointment.
Since it was founded in 2008, the company has built a $1.4 billion annual revenue run-rate business with over 200,000 customers around the globe. Even in the throws of the coronavirus, the company posted solid 42% year-over-year growth for its most recent quarter ending June 30, 2020. A majority of its revenue (76%) comes from usage-based fees for each message, which has been highly successful in driving growth. Once on the platform, customers spend more as they find more ways to utilize its powerful messaging tools. Last quarter, this increase in customer spend drove an impressive 132% dollar-based net expansion.
Source Fool.com
