RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. The RiverPark Large Growth Fund (the “Fund”) returned -3.23% for the third quarter of 2021, while its benchmarks, the S&P 500 Total Return Index (“S&P”) advanced 0.58%, the Russell 1000 Growth Total Return Index (“RLG”) returned 1.16%, while the Morningstar Large Growth Category returned -0.07%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
RiverPark Large Growth Fund, in its Q4 2021 investor letter, mentioned Twilio Inc. (NYSE: TWLO) and discussed its stance on the firm. Twilio Inc. is a San Francisco, California-based cloud communications platform with a $34.2 billion market capitalization. TWLO delivered a -27.09% return since the beginning of the year, while its 12-month returns are down by -52.01)%. The stock closed at $192.00 per share on February 4, 2022.
Here is what RiverPark Large Growth Fund has to say about Twilio Inc. in its Q4 2021 investor letter:
“Twilio: TWLO shares were also down sharply to end the year. Just like after 1Q and 2Q, despite another quarterly beat in 3Q, management guidance–which we believe to be conservative– disappointed some investors. Third quarter revenue of $740 million was up 65% year over year, significantly exceeding management’s guidance of 50%-52% revenue growth. Management guided 4Q21 revenue to +40% revenue growth, which was ahead of sell side expectations, but likely below buy side expectations. Investors were also troubled by the departure of COO George Hu, who has been credited with rebuilding Twilio’s sales and marketing teams after arriving from SaleForce.com shortly after the company’s IPO in 2016.
The COVID crisis has accelerated the adoption of the company’s cloud-based, integrated communications platform that allows companies in a wide range of businesses to embed digital communications capabilities (video, chat, voice, SMS, fax, and email) into their customer facing applications without needing to build back-end infrastructure and interfaces. Twilio’s total addressable market is now greater than $40 billion, which should grow by 50% over the next few years, providing a strong secular tailwind for the company. We expect the company’s gross margin to continue to expand from 54% in the second quarter toward management’s long-term goal of 60%-65%, and, as the company grows to scale, we expect its non-GAAP operating margin to expand to 25%.”
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Our calculations show that Twilio Inc. (NYSE: TWLO) ranks 20th on our list of the 30 Most Popular Stocks Among Hedge Funds. TWLO was in 96 hedge fund portfolios at the end of the third quarter of 2021, compared to 98 funds in the previous quarter. Twilio Inc. (NYSE: TWLO) delivered a -38.18% return in the past 3 months.
In February 2022, we published an article that includes TWLO in the Top 5 Stock Picks of Michael Pausic’s Foxhaven Asset Management. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
