Shares of cloud communications platform company Twilio Inc (NYSE:TWLO), which has lost some 36% over the past three months and 32% in the past six months, have rebounded almost 20% since we last discussed the company’s prospects. On Jan. 25, I told you TWLO stock would rise 40%.

Those of you who bought TWLO shares on my buy recommendation? You’re welcome. For others, it’s still not too late. At the time, I predicted a 40% rise in Twilio stock as it heads to $40. Based on Wednesday’s closing price of $33.42, there’s still 20% returns to be won.

Last week, thanks to its list of prominent clients, such as Facebook Inc (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX), Twitter Inc (NYSE:TWTR) and salesforce.com, inc. (NYSE:CRM), Twilio delivered strong fourth-quarter results that beat on both the top and bottom lines.

Notably, the San Francisco-based tech company made a profit of 5 cents per share when Wall Street was looking for breakeven results. Likewise, the fact that fourth-quarter revenue surged 60% year over year to $82 million, beating estimates by nearly $8 million, suggests analysts grossly underestimated the company. And, with the its net loss narrowing to 15 cents per share, down from 48 cents, underscores the extent to which Twilio management has begun to focus on profitability.

Just as impressive was Twilio’s guidance. For fiscal 2017, Twilio projects its “base revenue,” which excludes revenue from “Variable Customer Accounts,” to rise in a range of 48%-52%. These are revenues the company considers outside of its core customers. It also expects total revenue in 2017 to rise 31%-34%, which on the low end is four percentage points above analyst expectations of 27% growth.

Bottom Line on Twilio Stock

These factors, particularly the company’s confident outlook, continue to support the bullish case for TWLO stock. Despite these strong numbers, Twilio stock is up just 5% since its earnings announcement and shares are still down 44% in six months.

Shares appear undervalued relative to the company’s growth potential. What’s more, investors continue to overlook the fact that, during the fourth quarter, Twilio not only launched an array of new voice call connection and recording tools, but also acquired Swedish SMS provider Beepsend.

“With this acquisition, we are expanding both the breadth and depth of our network reach to provide customers with even more delivery options for their messaging needs. Furthermore, this adds even more redundancy and resiliency on top of the global telecom network,” Twilio said in a statement.

TechCrunch noted that Beepsend, which specializes in SMS message traffic, will allow Twilio to keep things efficient and cost-effective on its platform. In other words, Twilio is building more scale while working to keep costs low. Combined with impressive top-line growth, Twilio’s profit — as it showed in the fourth quarter — will continue to grow, too.

This continues to qualify TWLO stock as a bargain at any price under $40.

As of this writing, Richard Saintvilus did not hold a position in any of the aforementioned securities.