Twilio: President of Communications Unit Elevated to CEO as Co-Founder and CEO Steps Down

Narrow-moat Twilio announced on Jan. 8, 2024, that its co-founder and CEO, Jeff Lawson, was stepping down and that Khozema Shipchandler was appointed as the new CEO and is joining the board of directors. The company also announced that it expects results for the fourth quarter of 2023 for both revenue and non-GAAP operating income to exceed the high end of guidance ranges provided on Nov. 8, 2023. While we normally do not like to see leadership changes, we see Shipchandler as a natural choice to lead Twilio in a post-COVID-19 world, and we do not expect any immediate impact to the firm's moat. We are maintaining our fair value estimate of $64 per share, and we view shares as slightly overvalued.