TORONTO - Anson Funds, a significant shareholder of Twilio Inc. (NYSE: NYSE:TWLO), has been actively engaged in discussions with the company's board, leading to the recent departure of Byron Deeter, a long-standing director, and a proposal to declassify the board. The changes, announced by Twilio's board, are a direct result of Anson Funds' recommendations and persistent engagement.
Sagar Gupta, Portfolio Manager and Head of Active Engagement at Anson Funds, emphasized that these governance changes were necessary for Twilio to overcome its persistent underperformance and to prevent further entrenchment of the board. Twilio's board had previously rejected Anson Funds' proposals, which included calls for governance improvements, the departure of directors with potential conflicts of interest, and stockholder representation on the board.
The investor's engagement with Twilio has already led to significant changes, including the departure of Twilio's Founder and Former CEO Jeff Lawson in January 2024. However, Anson Funds plans to continue holding Twilio's board publicly accountable, focusing on strategy, operations, corporate governance, and capital allocation, including preventing further related-party transactions with Bessemer Venture Partners.
Anson Funds, with assets totaling US$1.8 billion, is led by Chief Investment Officer Moez Kassam and has offices in Toronto and Dallas. The firm intends to file a definitive proxy statement for the 2024 Annual Meeting of Stockholders of Twilio. The proxy statement will be available on the SEC's website and will contain important information for stockholders.
This news is based on a press release statement from Anson Funds.
InvestingPro Insights
Twilio Inc. (NYSE: TWLO) has been at the center of shareholder activism, with significant governance changes influenced by Anson Funds. As investors assess the implications of these changes, they may find it useful to consider the latest financial data and expert analysis provided by InvestingPro. With a market capitalization of $11.1 billion, Twilio's financial health is a critical factor for stakeholders.
InvestingPro Tips suggest that Twilio's management is taking an assertive stance on capital return to shareholders, with aggressive share buybacks reported. This could signal confidence from management in the company's valuation and future prospects. Additionally, the company holds more cash than debt on its balance sheet, which may provide financial flexibility and resilience against market volatility.
Key InvestingPro Data metrics for Twilio include a P/E Ratio (Adjusted) for the last twelve months as of Q4 2023 at -20.07, indicating that the company has been operating at a loss. However, analysts have revised their earnings upwards for the upcoming period, hinting at a potential shift towards profitability. The company's revenue growth over the last twelve months stood at 8.56%, showcasing its ability to expand amidst challenging market conditions.
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As Twilio navigates through governance changes and shareholder activism, staying informed with real-time data and expert insights can be crucial for making informed investment decisions. Visit https://www.investing.com/pro/TWLO for further details and to explore the full list of 7 InvestingPro Tips available for Twilio.
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