Salesforce revealed the size of its $28 million investment in Twilio for the first time, and Twilio shares are surging
- Salesforce just disclosed that it owns $27.6 million in stock for Twilio, a cloud communication company.
- Shares for Twilio were up 19% Wednesday morning following strong quarterly earnings on Tuesday.
- Salesforce also owns $1.36 million in Oracle rival MongoDB, whose shares were up 9% Wednesday.
Salesforce just disclosed that it owns a $27.6 million stake in Twilio, a popular cloud communication company. The 888,517 Twilio shares owned by Salesforce was disclosed Wednesday morning in am Salesforce filing with the Securities and Exchange Commission.
The company also disclosed that it has $1.36 million, or 44,845 shares, in MongoDB, a database platform which competes with Salesforce's rival Oracle.
The 13F filing - the first ever from Salesforce- is used by companies to disclose ownership in other public companies. A representative for Salesforce said that it was required to file for the fourth quarter of 2017 because the company's investments had passed a "value threshold."
Salesforce wouldn't confirm how or when it came into its thousands of shares. But Salesforce made late stage investments in both Twilio and MongoDB before the two companies went public in 2016 and 2017, respectively.
Twilio specializes in digital communications like SMS, digital phone calls and video conversations. Its products integrate well with Salesforce's own sales and customer service tools.
While it's not common for a public company like Salesforce to invest in another public company, Salesforce tends to keep its investments to companies whose products work within the larger Salesforce ecosystem.
Salesforce participated in a $130 million Series E for Twilio in 2015, and a $130 million Series E for MongoDB in 2013, thought it was not the lead investor in either deals.
Salesforce's peek at its investments on Wednesday may have cheered investors at Twilio and MongoDB.
Twilio was up 18% Wednesday morning on the back of a successful earnings report the day before. The company reported $115.2 million in revenue in its fourth quarter. That's up 40.6% year-over-year, and far ahead analyst and management's estimates of $104 million for the quarter.
MongoDB's stock spiked 9% on Wednesday.