You want to get into a clinic about how software has evolved? A place where you can learn more about where software has been and where it is going? Then run, don't walk, to the Twilio (TWLO) call, that amazing company that has a usage-based pricing model. The more customers use it, the more customers pay for their work.
As Twilio's brilliant CEO, Jeff Lawson, says about the business model: "When they (customers) succeed, we succeed." The call is filled with gems like that, including this one from CFO Lee Kirkpatrick: "Every message sent, every minute of phone traffic, or every authentication that is processed generates revenues for Twilio."
No wonder this company had 84% core revenue growth for its platform customers.
Using a network of 22 data centers in seven regions, Twilio has locked up customers as diverse as Facebook (FB) Messenger, Airbnb, Home Depot (HD) , Uber, Salesforce.com (CRM) and The New York Times. I don't know if you are getting the Times' coverage of the Olympics, but it's Twilio behind those headlines that are pushed to your cellphone. Yep, it powers the flash updates.
Look, the stock is up huge. There's nothing you can do about that now. I have liked it since it came public. Now you need a market-wide swoon to get into it, as no analyst is going to downgrade this horse. Instead, more and more will just roll out coverage of the stock and it will most likely go higher over time.
Maybe you buy some now and some later.
But wow, what a model, what a client list, what a management, and what a story.