When (NYSE: TWLO) went public in 2016, it initially impressed investors with the disruptive potential of its cloud-based services.

It allowed developers to easily add voice calls, text messages, and security verification tools to their apps by outsourcing those features to its cloud platform with just a few lines of code. Doing so was usually easier than building those features from scratch -- which could be buggy, time-consuming, and difficult to scale as an app gained more users. That's why companies like Airbnb and Lyft use Twilio to connect their customers to their hosts and drivers, respectively.

Twilio's first-mover advantage in this space, along with the expansion of the mobile app market, boosted its annual revenue at a whopping compound annual growth rate (CAGR) of 55% between 2016 and 2022. Its stock has dropped more than 80% from its record high of $443.49 in February 2021, but it remains more than 360% above its IPO price of $15.

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Source Fool.com