Twilio's (TWLO) "solid" Q1 results reinforce the view that its platform is well-positioned to withstand broader economic challenges, as more customers look to automate and digitize engagement to reduce costs, Oppenheimer said in a note Friday.

Analysts, including Ittai Kidron, said the company's revenue rose 12% year-over-year, mostly driven by high messaging volume and consistent demand across different regions and industries. The company's sales initiatives and efforts to improve its artificial intelligence and self-service tools are helping to boost platform usage. Twilio's Segment unit also showed progress, with better win rates and a significant drop in customer churn.

The analysts said that efforts to improve the Segment business remain ongoing and require strong execution, and broader economic uncertainty could still impact some customer segments, and the company has kept its annual guidance conservative to reflect that. The analysts added that they remain positive and continue to view Twilio as a top pick.

The analysts said Twilio is set to see "strong growth" in the coming years, supported by several key trends like rapid adoption of application-to-person communication, cloud-based platforms are becoming the main method for integrating A2P communication into applications, an expanding total addressable market, and lastly, Twilio's developer-focused "land-and-expand" sales strategy.

"Overall, we believe these elements will enable Twilio to continue to experience strong revenue growth for the foreseeable future and drive upside to consensus expectations," the firm said.

Oppenheimer has an outperform rating and a $135 price target on the stock.

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