Twilio: Discounted AI Stock Tapping a $150B Contact Center Opportunity
Twilio's AI brings real wins for support: agent assist, transcripts, intent, and automation. Growing faster and priced low, it's a pragmatic pick for support leaders.
Shares Undervalued and Ignored: Why Twilio's AI Push Matters to Customer Support Leaders
AI has lifted many tech names, but one company sitting right in the contact center stack still trades at a discount: Twilio (NYSE: TWLO). For support teams, that matters. It signals a vendor with strong momentum, growing adoption, and more practical AI features landing in your workflows.
Why support leaders should care
- Omnichannel without the old baggage: APIs for voice, SMS, email, chat, and video let you build the experience your customers want, not the one a legacy suite dictates.
- AI where it counts: real-time agent guidance, automatic transcription and summaries, intent detection, and personalized outreach tied to customer profiles.
- Automation that pays for itself: deflect common intents, triage smarter, and feed CRM with clean post-interaction notes to speed up the next contact.
Signals from the numbers
- Q2 revenue up 13% year over year to $1.23B (vs. 4% growth a year ago).
- Non-GAAP EPS up 37% to $1.19.
- Active customers up 10% and dollar-based net expansion rate at 108% (existing customers are spending more).
- Valuation: ~3.4x sales and a forward earnings multiple near 19-attractive for a business still growing.
- Context: The contact center market is projected to approach $150B by 2030, nearly 5x 2023 levels-ample room for AI-led expansion.
Practical playbook: Deploy AI in your contact center
- Map high-volume, low-complexity intents: order status, password reset, billing basics, appointment changes. Automate containment and escalate the rest.
- Pilot agent assist in one queue: provide real-time suggestions, knowledge snippets, and next best action; A/B test vs. a control group.
- Turn on auto-transcription and summaries: push structured notes into CRM to reduce after-call work and improve the next interaction.
- Use proactive messaging: event-triggered SMS/email for updates and renewals to reduce inbound and lift satisfaction.
- Instrument the right KPIs: containment rate, AHT, FCR, CSAT, cost per contact, QA pass rate, handle time variance, and escalations per 100 contacts.
- Data and governance: clean knowledge articles, PII redaction, audit trails, prompt libraries, and clear escalation paths when confidence is low.
- Integrations: connect to your CRM, ticketing, and knowledge base; standardize schemas so AI features don't break on day two.
Quick ROI math you can take to finance
- If you handle 1,000,000 contacts/year at $5 per assisted contact:
- 20% AI containment = 200,000 deflected = ~$1,000,000 saved.
- 15% AHT reduction on the remaining 800,000 assisted contacts:
Assume 6 minutes baseline and $0.83/minute = ~$598,000 saved.
- Add quality gains: fewer transfers, cleaner notes, faster onboarding for new agents.
Buying checklist for your team
- Security and compliance: data residency, encryption, PII handling, HIPAA/PCI/SOC2 where applicable.
- Quality gates: human-in-the-loop for sensitive intents, confidence thresholds, and clear fallback flows.
- Vendor fit: Twilio Flex vs. API-first approach; alignment with your engineering capacity and roadmap.
- Pricing clarity: volume tiers, AI feature costs, projected usage; model upside and downside scenarios.
- Reliability: SLAs, regional failover, message deliverability, voice quality.
The investor view, briefly
Twilio's stock is down about 5.5% in 2025 while the Nasdaq Composite is up 15.7%. Analysts' 12-month median target sits near $132, a ~29% lift from current levels. If earnings reach $6.17 per share by 2027 and the market assigns a tech-like multiple near 26.4x, the price case reaches ~$163-about 60% higher. Regardless of the stock path, the operational story is clear: more customers, more spend, and AI features that cut costs and improve CX.
Next steps for support leaders
- Run a 90-day AI pilot in one channel with tight metrics and a clear success threshold.
- Create a knowledge refresh loop: weekly updates fuel better suggestions and summaries.
- Train agents on prompt hygiene and escalation cues to keep quality high.
- Operationalize wins: document the playbook, then scale to new intents and regions.
Further learning
Disclaimer: For information purposes only. Past performance is not indicative of future results.
