WEBVTT - Businessweek Extra- Twilio CFO

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<v Speaker 1>This is Bloomberg Business Week from Bloomberg Radio. I'm Carol

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<v Speaker 1>Masser and I'm Tim Stanik. Welcome to the Bloomberg Business

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<v Speaker 1>Week Extra. It's a weekly podcast bringing you a highlight

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<v Speaker 1>our favorite interview from the week, and this week it's

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<v Speaker 1>with Cozma Ship Chandler, CFO of the cloud communication platform

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<v Speaker 1>company's Wilio. Tim shares of Twilio have been on a

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<v Speaker 1>tear stock Is that more than twenty year to date

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<v Speaker 1>after two rally Wow. So Twilio works with everyone from

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<v Speaker 1>lift to Uber, Shopify and Instacart to Netflix, Twitter, Yelp,

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<v Speaker 1>and Morgan's Stanley lending Tree into It and more. My

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<v Speaker 1>conversation began with the company's recent quarterly update, but we

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<v Speaker 1>had a strong performance, I would say pretty much across

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<v Speaker 1>the board. We are in the early innings of what

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<v Speaker 1>I would characterize as really a generational opportunity in this

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<v Speaker 1>space of customer engagement. I think what we found during

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<v Speaker 1>the course of is that when customers embrace software, when

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<v Speaker 1>they embrace agility, and in particular, when they decide to

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<v Speaker 1>build things on their own own, that they tend to

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<v Speaker 1>be the ones that are winning. And we're lucky to

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<v Speaker 1>be able to power a number of their use cases, right,

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<v Speaker 1>and that's exactly what you guys are doing, providing the

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<v Speaker 1>tools for them to be able to do that. How

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<v Speaker 1>much though, of what you're seeing is a surge to

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<v Speaker 1>digitally catch up and expand because of COVID in the

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<v Speaker 1>shutdown and the big move for the world to digital

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<v Speaker 1>and e commerce. How much is to catch up in

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<v Speaker 1>your view? That's a great question. I do think it's

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<v Speaker 1>more an acceleration, I would say, than catch up. We

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<v Speaker 1>feel like the shift that's been happening is permanent. You know,

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<v Speaker 1>we've done a number of studies I'm sure you've seen

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<v Speaker 1>a number of external studies as well that basically suggests

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<v Speaker 1>that businesses are not going to go back that over

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<v Speaker 1>of them in fact planned to either increase or maintain

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<v Speaker 1>the levels of investment that they've been making in customer

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<v Speaker 1>engagement after the pandemic. So we're very excited about our

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<v Speaker 1>prospects going forward. Well, what do you guys do once

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<v Speaker 1>you kind of land a customer, right, and you get

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<v Speaker 1>kind of that initial level and you know, relationship between

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<v Speaker 1>you and the customer, Like, what are the next layers

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<v Speaker 1>that you can help in terms of helping the customer

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<v Speaker 1>with what they're doing. Yeah, I think what's important about

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<v Speaker 1>our business model, which is really exciting and keeps the

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<v Speaker 1>cost down as well, actually is that most of our

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<v Speaker 1>interactions start because a developer inside of one of the

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<v Speaker 1>companies that we're working with starts working on our platform,

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<v Speaker 1>develops a use case. We notice that there's a certain

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<v Speaker 1>amount of activity there, and once we do, we have

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<v Speaker 1>a salesperson contact the company and we start doing some

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<v Speaker 1>work with them, and they'll start with the use case.

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<v Speaker 1>It might be an SMS, it might be a one

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<v Speaker 1>time notification of something, but then will offer some of

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<v Speaker 1>the other aspects of our portfolio. It could be voice messaging,

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<v Speaker 1>it could be other SMS use cases, it could be email,

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<v Speaker 1>you know. Now it could be segment with the company

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<v Speaker 1>that we just bought with respect to data. So there

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<v Speaker 1>are any number of things that we can do for

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<v Speaker 1>a customer as it relates to customer engagement. I'll give

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<v Speaker 1>you a great example. You know, last week, obviously we

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<v Speaker 1>are all watching what was happening in Texas, and you know,

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<v Speaker 1>we were able to deploy a hotline in twenty four

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<v Speaker 1>hours to help them manage thousands of calls, not just

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<v Speaker 1>with respect to all of the emergency response activity, but

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<v Speaker 1>also you know the vaccine distribution and the logistics associated

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<v Speaker 1>with that. We're not just doing it in Texas, for

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<v Speaker 1>doing it all the way from California all the way

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<v Speaker 1>across the Maine as well, so it really does run

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<v Speaker 1>the gamut. Well, I'm glad you took took us there,

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<v Speaker 1>because that is certainly something we kick off every broadcast

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<v Speaker 1>talking about the latest and greatest fingers cross when it

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<v Speaker 1>comes to COVID and the vaccine. Talk to us a

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<v Speaker 1>little bit more about what you folks are doing at

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<v Speaker 1>twilio to help others when it comes in particular to

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<v Speaker 1>getting that vaccine out and communicating and communication within communities,

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<v Speaker 1>because we know that has been something that was certainly lagging,

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<v Speaker 1>uh certainly early on. Yeah, So part of it is

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<v Speaker 1>deploying a hotline. Another part of it is using our

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<v Speaker 1>SMS capabilities so that we can provide patients with alerts

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<v Speaker 1>and scheduling information. Another part of it is so that

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<v Speaker 1>medical professionals can communicate with one another in a time

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<v Speaker 1>sensitive way visa V text messaging. And so if you

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<v Speaker 1>just consider all of these different areas that allow medical

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<v Speaker 1>professionals patients folks that are attempting to get the vaccine

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<v Speaker 1>in the hands of patients. It just allows for a

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<v Speaker 1>very seamless experience. It makes sure that patients are able

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<v Speaker 1>to get the information when they need it. They can

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<v Speaker 1>get it through whatever channel they want, whether it's SMS,

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<v Speaker 1>whether it's voice, whether it's email. And these same solutions

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<v Speaker 1>can be used to register folks and then constantly communicate

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<v Speaker 1>with them to make sure that they're keeping their appointments

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<v Speaker 1>and that they go back for the second vaccine as well. Yeah,

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<v Speaker 1>it's great and it creates some organization. Um. I think

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<v Speaker 1>that many would would argue that wasn't quite there in

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<v Speaker 1>the beginning. Okay, I want to go back to what

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<v Speaker 1>you guys are doing and where you go from here,

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<v Speaker 1>especially once you start working with a customer. We had

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<v Speaker 1>on James chalk Mark earlier covers the tech sector, and

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<v Speaker 1>I said to him, okay, so if you were talking,

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<v Speaker 1>uh to the CFO of Twilio, what would you want

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<v Speaker 1>to know? And he said, you know, what's interesting is

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<v Speaker 1>how do you improve you know, how do you kind

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<v Speaker 1>of boost beyond once you start working with a customer

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<v Speaker 1>and you are providing data and working with them, how

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<v Speaker 1>do you kind of improve upon that in terms of productivity,

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<v Speaker 1>And I'm curious, how do you guys think about that

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<v Speaker 1>and taking your services to the next level for your customers. Yeah,

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<v Speaker 1>I'll give you a great, great example. Obviously, tax season

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<v Speaker 1>is right around the corner and one of our marquee

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<v Speaker 1>customers has been H and R Block historically, and just

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<v Speaker 1>in the last quarter, we've expanded our relationship with that

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<v Speaker 1>customer as they prepare for the tax season. Obviously there's

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<v Speaker 1>a huge surge and the amount of activity that they see,

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<v Speaker 1>and what we're doing is actually giving them tooling so

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<v Speaker 1>that they're able to provide better virtual tax support using

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<v Speaker 1>our Twilio video product. Obviously, last year around this time,

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<v Speaker 1>the pandemic was just starting. It wasn't quite clear how

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<v Speaker 1>things were going to play out. And so now above

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<v Speaker 1>and beyond the the voice, SMS and chat capabilities that

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<v Speaker 1>we're already providing them, they can now also enhance the

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<v Speaker 1>experience between H and R Block and their consumer base

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<v Speaker 1>using a really simple and easy to use in app

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<v Speaker 1>API to deploy video to make for a richer consumer experience.

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<v Speaker 1>That makes a lot of sense. What about all the

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<v Speaker 1>data that that's coming into all of these customers that

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<v Speaker 1>you guys work with um and and helping them in

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<v Speaker 1>terms of be more productive with that use of data

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<v Speaker 1>kind of the data overloads. Yeah, that's a great question.

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<v Speaker 1>So we actually bought a company towards the end of

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<v Speaker 1>last year. It's called Segment and Segment their entire value

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<v Speaker 1>proposition of the company is to really focus on data,

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<v Speaker 1>and one of the things that they do uniquely well,

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<v Speaker 1>there's the only company to my knowledge, on the planet

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<v Speaker 1>that can actually pull it off, is that they can

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<v Speaker 1>grab data out of all of the unique silos inside

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<v Speaker 1>of a company, put that data together orchestrated in a way,

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<v Speaker 1>organize it in a way that makes it really simple

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<v Speaker 1>to understand what's going on with the consumer experience, so

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<v Speaker 1>that what we're then able to do is help our

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<v Speaker 1>customers ensure that they can then deliver a rich consumer experience.

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<v Speaker 1>So using all of these disparate data sources, we've got

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<v Speaker 1>the proverbial one pane of glass that allows you then

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<v Speaker 1>to subsequently deliver something that's really personalized, really rewarding if

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<v Speaker 1>you're on the consumer ended experience. Sounds like a big

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<v Speaker 1>growth area for you guys. Absolutely, we're really excited about that. Acquisition.

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<v Speaker 1>We've signed on some interesting winds recently, and I think

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<v Speaker 1>there's a lot more that we can do with it.

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<v Speaker 1>We're just getting started. So because I want to ask you,

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<v Speaker 1>you do work with just about everybody. If you go

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<v Speaker 1>to your website, it's Lift, it's Ubert, Shopify, it's Instacard,

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<v Speaker 1>it's Morgan Stanley, it's lending Tree, it's Netflix, it's Twitter,

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<v Speaker 1>it's help. What are you hearing from those clients which

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<v Speaker 1>crossed so many different industries, What are you hearing from

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<v Speaker 1>them and what are you seeing in terms of your

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<v Speaker 1>working with them, about what that tells us about how

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<v Speaker 1>the business environment is and what's going on more broadly

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<v Speaker 1>in the economy, maybe what kind of year one might be. Yeah,

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<v Speaker 1>I think what's never been truer than it is today

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<v Speaker 1>is this whole idea around the importance of customer engagement.

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<v Speaker 1>I think we're all used to one way experiences sometimes

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<v Speaker 1>with our customers, and unfortunately those experiences weren't enabled previously

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<v Speaker 1>by technology. But now enter Twilio and some of the

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<v Speaker 1>things that we're able to do to help really drive

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<v Speaker 1>that rich consumer experience so that you, as a consumer

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<v Speaker 1>can do business with the clients that you really care about,

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<v Speaker 1>you can get the kinds of messages from them that

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<v Speaker 1>you really care about. Obviously, for our customers that helps

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<v Speaker 1>them drive a revenue event, But to the consumer herself,

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<v Speaker 1>it's really important because that individual is able to get

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<v Speaker 1>the information that they want, when they want it, through

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<v Speaker 1>the channel that they want without it kind of becoming

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<v Speaker 1>this annoying clutter that we sometimes experience otherwise through these channels.

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<v Speaker 1>And so customer engagements the name of the game. And

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<v Speaker 1>I think going forward, every one of the companies that

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<v Speaker 1>we're working with, they see more share of wallet going

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<v Speaker 1>towards these customer facing interactions, and we think that's going

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<v Speaker 1>to continue. We think it's part of a long term

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<v Speaker 1>secular trend. Frankly, Okay, so that's the trend. But what

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<v Speaker 1>does it say the economy doing well? Second half story?

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<v Speaker 1>You know, from from these conversations, what does it tell

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<v Speaker 1>you about the visibility for our economy and really our

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<v Speaker 1>business environment. Yeah, I mean, I'm not a macro economist, obviously,

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<v Speaker 1>I'll i'll maybe kind of answer your question through the

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<v Speaker 1>lens of our our consumer experience, our customer experience. Excuse me.

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<v Speaker 1>What we're generally seeing is a lot of strength in

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<v Speaker 1>the marketplace, and whether it's uh an online retailer, whether

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<v Speaker 1>it's an e commerce provider, whether it's a brick and

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<v Speaker 1>mortar bank, We're seeing a lot of traction and a

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<v Speaker 1>lot of activity. And so I would say we're cautiously

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<v Speaker 1>optimistic about the way that the broader economy plays out,

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<v Speaker 1>just based on the activity that we see on our platform.

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<v Speaker 1>We do see a significant move of that activity from

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<v Speaker 1>you know, sort of an uh AN in person environment

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<v Speaker 1>more much more towards an online environment. I think many

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<v Speaker 1>of the things that we were used to previously attending

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<v Speaker 1>in person, as much as I'm desperate to go, you know,

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<v Speaker 1>do a restaurant in person, I think we're all getting

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<v Speaker 1>used to as consumers um the idea of getting things

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<v Speaker 1>delivered and and having communications tools help orchestrate some of that.

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<v Speaker 1>So I think you will see a shift in the

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<v Speaker 1>way some of these organizations work. But we're broadly optimistic,

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<v Speaker 1>I would say, cautiously so, just given what a what

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<v Speaker 1>a dynamic macro environment it is out there. Hey, one

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<v Speaker 1>last question in terms of you guys seem to be

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<v Speaker 1>firing out also Landers. It's really impressive and impressive story

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<v Speaker 1>and company to watch access to workers, any labor constraints.

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<v Speaker 1>Where are you finding maybe problems as you move forward

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<v Speaker 1>that maybe can be holding back your growth and just

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<v Speaker 1>got about forty five seconds. Yeah, that's a great question.

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<v Speaker 1>I don't see any real issues in terms of our

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<v Speaker 1>ability to access talent. I think, if anything, Like many

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<v Speaker 1>other companies, what we're finding is is that as everybody's

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<v Speaker 1>working from home, there's a global talent market that we

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<v Speaker 1>can get our talent from. And we're really excited about that.

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<v Speaker 1>That was because the most ship channeler CFO of the

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<v Speaker 1>cloud communication platform company Twilio. You've been listening to Bloomberg

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<v Speaker 1>Business Week Extra, be sure to listen to our Bloomberg

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<v Speaker 1>Business Week Daily radio show, airing live Monday through Friday

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<v Speaker 1>at two pm Wall Street Time on Bloomberg Radio, and

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<v Speaker 1>search Bloomberg Global News and catch Tim on Bloomberg Quicktake,

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<v Speaker 1>available on Bloomberg dot com, slash qt and streaming on

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<v Speaker 1>platforms like Roku, Apple TV, Samsung TV, and more. I'm

0:11:57.920 --> 0:12:00.920
<v Speaker 1>Carol Masser and I'm Tim Stanovick. This is Bloomberg