Sachem Head's Andy Stafman joins Twilio's board. Here's how he may help grow margins

Twilio consists of two main business units: Communications, which makes up around 90% of revenue, and Segment, which makes up 10% of revenue. Twilio is known for providing messaging, voice, and email solutions and is considered the industry leader in communications infrastructure. After its initial public offering in 2016, Twilio experienced rapid growth, but its revenue growth has since slowed down. Despite its revenue of $4.2 billion, the company has never been profitable. Twilio has made efforts to address this, including reducing stock-based compensation and cutting its workforce. The company also underwent a CEO transition and announced a share repurchase authorization. Activist investors have been involved with Twilio, calling for divestiture of the Segment business.