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The company’s share price hit well above expectations on its first day of trading.

2016 is shaping up to be a notoriously sluggish year for tech IPOs. However, the tides seem to be turning after Twilio’s (NYSE:TWLO) successful IPO on the New York Stock Exchange.
The San Francisco-based company specializes in selling software that helps companies to communicate with customers via anonymous voice, video and messaging systems. According to CNBC, the company’s products are popular among companies like OpenTable (NASDAQ:OPEN), which uses Twilio to send reservation notifications, and Uber, which uses the technology to facilitate one-on-one conversations between drivers and riders without exposing private information like phone numbers.
However, despite the company’s enthusiastic customer base, it has yet to turn a profit. Another article from CNBC reports that, although the company’s revenue almost doubled last year to hit $166.9 million, it’s net loss in 2015 was still $35.5 million.

IPO figures

On Wednesday, the company revealed its pricing expectations at $15 per share. However, on Thursday morning the market surpassed these expectations. According to the Wall Street Journal, trading began at $23.99. The company’s shares rose to 68% in early trading, to reach $25.30. By market close, share price had jumped by 91.93-percent to hit $28.79. The company’s current market cap is 4.73 billion.

Challenging time for tech IPOs

The company’s IPO hit at a difficult period for the tech market. IPOs have been slow and sluggish, scaring away potential candidates from a challenging market. 2016 is shaping up to be the worst year for U.S.-listed IPOs since the financial crisis. Indeed, Twilio’s  IPO marks the first U.S. venture-backed tech IPO of the year.
It’s success, however, indicates that the tides may be turning. While some private technology companies have seen their valuations fall in private fundraising rounds in recent months, Twilio’s successful first day on the market sends a a different message of hope to both investors and prospective companies looking to go public.
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Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.
Related reading:
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The Impact of an IPO: BuildingIQ CEO Michael Nark on What it Means to Go Public
Cybersecurity Company SecureWorks to Become 2016’s First Tech IPO

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