Why doesn't Twilio have 34% profit margin? Because their price is low and their costs are high. If they increase the price of their product and cut certain costs, they would have similar profit margin to Microsoft.
If Twilio raises their prices, will they make more money? Or will it cause people to not use Twilio, either opting for competing free services or using alternatives to SMS entirely? I don't know, and I don't think Twilio does either; hence the profitability risk.