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17-10-2026, 10:26 AM
Much of SGX IPOs in the last 1-2years have not done well and Toku Ltd is one of them - current share price has been cut at least half of its IPO price.
I took a quick look at the company recently and it had some overlaps with Twilio's business model (of providing the messaging communication channel between the business and their customer).
Currently, Toku is still loss making and its main revenue generator is largely selling to businesses a "communication package" between the business's service center and their customers. Despite been its largest revenue generator, the BU (business unit) is still small as a % of SGA. It does not scale fast because despite charging customers by usage, it has to pay its telco suppliers by usage too. To reach profitability (and eventually "low" marginal cost for distribution), Toku is banking on upselling value-added services in the form of CRM (leveraging Salesforce), enterprise communications (Microsoft Teams) and its own proprietary AI software that helps businesses to transcribe/rate/train their customer calls etc.
Revised Guidance FY2026 Revenue Growth & Order Book
At the 1H2026 Announcement, management expected year-on-year revenue growth in the second half of FY2026 (“2H2026”) to exceed the 13.0% recorded in the first half (“1H2026”). Management now expects revenue growth for FY2026 as a whole to exceed 20.0%, which implies 2H2026 growth of more than 26.0%. The other elements of the outlook given at the 1H2026 Announcement are unchanged; in particular, gross profit is expected to continue to grow in 2H2026, more slowly than revenue given the weight of Usage in the revenue mix.
https://links.sgx.com/FileOpen/Toku%20Lt...eID=907243
I took a quick look at the company recently and it had some overlaps with Twilio's business model (of providing the messaging communication channel between the business and their customer).
Currently, Toku is still loss making and its main revenue generator is largely selling to businesses a "communication package" between the business's service center and their customers. Despite been its largest revenue generator, the BU (business unit) is still small as a % of SGA. It does not scale fast because despite charging customers by usage, it has to pay its telco suppliers by usage too. To reach profitability (and eventually "low" marginal cost for distribution), Toku is banking on upselling value-added services in the form of CRM (leveraging Salesforce), enterprise communications (Microsoft Teams) and its own proprietary AI software that helps businesses to transcribe/rate/train their customer calls etc.
Revised Guidance FY2026 Revenue Growth & Order Book
At the 1H2026 Announcement, management expected year-on-year revenue growth in the second half of FY2026 (“2H2026”) to exceed the 13.0% recorded in the first half (“1H2026”). Management now expects revenue growth for FY2026 as a whole to exceed 20.0%, which implies 2H2026 growth of more than 26.0%. The other elements of the outlook given at the 1H2026 Announcement are unchanged; in particular, gross profit is expected to continue to grow in 2H2026, more slowly than revenue given the weight of Usage in the revenue mix.
https://links.sgx.com/FileOpen/Toku%20Lt...eID=907243
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
