What Software Development Companies Can Excel with AI?
Cathie Wood, founder of ARK Invest, predicts companies like UiPath, Twilio, and Teladoc will thrive as they leverage artificial intelligence in their operations, acting as a propellant for their growth.
UiPath (PATH)
UiPath is dedicated to developing software in the realm of robotization and business process automation. Their platform, rooted in artificial intelligence, is crafted to govern divisions of large-scale corporations.
Following Q1 of 2023, UiPath's revenue has grown by 18%, reaching $289.6 million. The retention ratio, that is, the income to net profit relation, hit 122%. Since the dawn of 2023, the company's share price has leapt by 47%, rebounding from a 70% tumble in 2022.
Cathie Wood's ARK Invest portfolio currently encompasses 28.8 million UiPath securities, valued at $517.28 million. This positions UiPath as the fourth most impactful asset for Wood.
Twilio (TWLO)
Twilio offers a cloud-based online platform, underpinned by APIs, for the creation of communication services. This platform allows other businesses to build and integrate diverse customer communication channels. Twilio's APIs empower developers to swiftly construct tools for phone calls, messaging services, and more, with an aim to boost customer engagement.
During the initial three months of 2023, the volume of active Twilio customer accounts has escalated past 300,000. The company's revenue saw a 15% rise from the previous year, amounting to $1.01 billion.
Jeff Lawson, Twilio's CEO, holds the conviction that artificial intelligence will soon provide substantial impetus for his company's growth. ARK Invest has poured roughly $303.54 million into Twilio.
Teladoc Health (TDOC)
Teladoc Health is an international enterprise originating from America, responsible for creating a virtual healthcare platform powered by artificial intelligence. With the Teladoc Health app, patients who can't physically access hospitals can consult with a physician online, using video calls and messaging.
During the coronavirus pandemic, the company soared in popularity. By the end of 2020, Teladoc's revenue had surged by 98%. Even though the pandemic has subsided, the company's expansion persists. At the start of 2023, revenue increased by 11% compared to the first quarter of the previous year. However, Teladoc's shares are presently 90% below their 2021 peak.
Cathie Wood's investment fund, ARK Invest, holds Teladoc Health securities worth $301.07 million.
