Khozema Shipchandler Appointed CEO
Jeff Lawson Steps Down as CEO and from the
Twilio Board of Directors
Jeff Epstein Appointed Chair of the Twilio
Board of Directors
Company Expects to Exceed Financial Guidance
for Fourth Quarter and Full Year 2023 Results
Twilio (NYSE: TWLO), the customer engagement platform that
drives real-time, personalized experiences for today’s leading
brands, today announced that Khozema Shipchandler, formerly
President of Twilio Communications, has been appointed Chief
Executive Officer and will join the company’s Board of Directors,
effective immediately. Shipchandler succeeds Jeff Lawson, Twilio’s
co-founder, who is stepping down as CEO and as a member of the
Twilio Board. In addition, Jeff Epstein, a member of the Twilio
Board and Lead Independent Director since 2017, has been appointed
as Chair of the Twilio Board.
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the full release here:
https://www.businesswire.com/news/home/20240107689821/en/
Khozema Shipchandler, Twilio CEO (Photo:
Business Wire)
Shipchandler has over 25 years of experience growing businesses
and driving financial performance across global, public
organizations. Prior to Twilio, Khozema spent over two decades at
GE where he drove operating excellence in GE’s high tech aviation
division, plus accelerated growth in the Middle East region. He has
a deep understanding of Twilio’s business, operations and culture,
having most recently served as President of Twilio Communications,
and previously as Twilio’s Chief Operating Officer and Chief
Financial Officer.
“Khozema is a proven leader and the right person to lead Twilio
in its next chapter,” said Jeff Epstein, incoming Board Chair.
“This appointment ensures that Twilio is best positioned to deliver
increased value to all stakeholders going forward. Khozema
successfully led Twilio Communications over the past year, pivoting
the business to profitable growth, in addition to having served in
key operational and financial leadership roles over the past five
years.”
Shipchandler said, “I am honored to step into the CEO role and
to partner with our talented team to lead Twilio in its next era.
Over the last year and a half, we have implemented meaningful
changes across the organization to position ourselves for renewed
growth and to drive operational improvements, optimize our capital
allocation strategy, and enhance focus and execution. We have a
strong foundation, but we always have more work to do. As I step
into the CEO role, I am focused on continuing to build on the
considerable growth and operating improvements we’ve made across
the board, plus taking a fresh look at the areas of the business
that are underperforming to realize the full potential of our
business.”
“Building Twilio over the past 15 years has been one of the most
rewarding experiences of my life,” said Jeff Lawson. “We launched
Twilio in 2008 with a to-do list written on the back of a pizza box
and 15 years later, Twilio’s platform handles over 1.7 trillion
interactions a year on behalf of more than 306,000 customers across
the globe. I’m proud to have led the company from zero to over $4
billion in annualized revenue, and now generating a 19% free cash
flow margin as of our last earnings. I leave Twilio in the hands of
a capable and talented management team who have my full support and
respect. Khozema is a great leader, and I am confident he will lead
the company well. Thank you to every Twilio customer, employee and
developer I’ve had the privilege of building with – I can’t wait to
see what you build next.”
Shipchandler continued, “It is a privilege to follow in the
footsteps of Jeff – a tech visionary and pioneer from whom I have
learned so much from over the past five years. Over the last 15
years, Jeff led Twilio through its incredible evolution from a
disruptive startup to an admired public company. He brought his
passion as a founder to countless product innovations and shaped
our culture. Jeff also pushed the tech industry forward in many
ways – democratizing business communications and making a hero of
developers. His mark on Twilio is indelible and I have profound
respect for him as a leader and friend.”
Fourth Quarter and Full Year 2023 Results
Twilio expects to report fourth quarter 2023 revenue, fourth
quarter 2023 non-GAAP income from operations, and fiscal year 2023
non-GAAP income from operations above the top-end of the guidance
ranges it originally provided on November 8, 2023.
The company will provide further information when it releases
its fourth quarter and full year 2023 results on Wednesday,
February 14, 2024, after market close. Twilio will host a
conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) on Wednesday,
February 14, 2024, to discuss its results with the investment
community.
Investors and analysts can pre-register for the webcast at
https://events.q4inc.com/attendee/764646733, and the live webcast
will also be available on the Twilio Investor Relations website at
https://investors.twilio.com. A replay will be available at (800)
770-2030 (U.S.) or (647) 362-9199 (non-U.S.) with conference ID
80378 until 11:59 p.m. (ET) on February 21, 2024.
About Khozema Shipchandler
Khozema Shipchandler most recently served as President of Twilio
Communications, since his appointment in March 2023. Prior to that,
he had served as Twilio’s Chief Operating Officer since October
2021 and as Chief Financial Officer from November 2018 to October
2021. Prior to Twilio, Shipchandler held a variety of financial and
operating roles at GE across Industrial Internet, Aviation and
Corporate Audit in the U.S., Middle East and Singapore. He earned
his bachelor’s degree from Indiana University Bloomington. Khozema
also serves on the boards of Smartsheet and Ethos.
About Twilio Inc.
Today's leading companies trust Twilio's Customer Engagement
Platform (CEP) to build direct, personalized relationships with
their customers everywhere in the world. Twilio enables companies
to use communications and data to add intelligence and security to
every step of the customer journey, from sales to marketing to
growth, customer service and many more engagement use cases in a
flexible, programmatic way. Across 180 countries, millions of
developers and hundreds of thousands of businesses use Twilio to
create magical experiences for their customers. For more
information about Twilio (NYSE: TWLO) visit www.twilio.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, which statements
involve risks and uncertainties. Forward-looking statements
generally relate to future events or Twilio’s future financial or
operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
“may,” “can,” “will,” “would,” “should,” “expects,” “plans,”
“anticipates,” “could,” “intends,” “target,” “projects,”
“contemplates,” “believes,” “estimates,” “predicts,” “forecasts,”
“potential” or “continue” or the negative of these words or other
similar terms or expressions that concern Twilio’s expectations,
strategy, plans or intentions. Forward-looking statements contained
in this press release include, but are not limited to, statements
about: Twilio’s financial performance, including Twilio’s expected
financial results for the fourth quarter and fiscal year ended
December 31, 2023; Twilio’s CEO transition; Twilio’s anticipated
strategies and business plans; Twilio’s expectations regarding
future growth and profitability; and the effects of organizational
and operational changes. You should not rely upon forward-looking
statements as predictions of future events.
The outcome of the events described in these forward-looking
statements is subject to known and unknown risks, uncertainties,
and other factors that may cause Twilio’s actual results,
performance, or achievements to differ materially from those
described in the forward-looking statements, including, among other
things: Twilio’s ability to realize the anticipated benefits of
changes to its operating model and organizational structure;
Twilio’s ability to successfully implement its cost-saving
initiatives and to capture expected efficiencies; the impact of
macroeconomic uncertainties and market volatility; Twilio’s
financial performance, including expectations regarding its results
of operations and the assumptions underlying such expectations, and
ability to achieve and sustain profitability; Twilio’s ability to
attract and retain customers; Twilio’s ability to compete
effectively in an intensely competitive market; Twilio’s ability to
comply with modified or new industry standards, laws and
regulations applying to its business, and increased costs
associated with regulatory compliance; and Twilio’s ability to
manage changes in network service provider fees and optimize its
network service provider coverage and connectivity.
The forward-looking statements contained in this press release
are also subject to additional risks, uncertainties, and factors,
including those more fully described in Twilio’s most recent
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q. Twilio operates in a very competitive and rapidly changing
environment, and new risks and uncertainties may emerge that could
have an impact on the forward-looking statements contained in this
press release.
Forward-looking statements represent Twilio’s management’s
beliefs and assumptions only as of the date such statements are
made. Twilio undertakes no obligation to update any forward-looking
statements made in this press release to reflect events or
circumstances after the date of this press release or to reflect
new information or the occurrence of unanticipated events, except
as required by law.
Non-GAAP Financial Measures
In addition to financial information presented in accordance
with GAAP, this press release includes free cash flow margin, a
non-GAAP financial measure. We use non-GAAP financial to evaluate
our ongoing operations and for internal planning and forecasting
purposes. We believe that our non-GAAP financial measures may be
helpful to investors because they provide consistency and
comparability with past financial performance and assist in
comparisons with other companies, many of which use similar
non-GAAP financial measures to supplement their GAAP results. We
believe free cash flow margin provides useful supplemental
information to help investors understand underlying trends in our
business. Our non-GAAP financial measures are presented for
supplemental informational purposes only, should not be considered
substitutes for financial information presented in accordance with
GAAP, and may be different from similarly-titled non-GAAP measures
used by other companies. A reconciliation to the most directly
comparable GAAP measure is included below. Note that material
changes to reconciling items could have a significant effect on
future GAAP results.
We define free cash flow margin as free cash flow divided by
revenue. We calculate free cash flow as net cash provided by
operating activities, excluding capitalized software development
costs and purchases of long-lived and intangible assets.
Non-GAAP Financial Measures
Reconciliation
(in thousands, except percentages;
unaudited)
Three Months Ended
September 30, 2023
Free cash flow margin Total Revenue
$
1,033,670
Net cash provided by operating activities
$
206,427
Capitalized software development costs
(10,451
)
Purchase of long-lived and intangible assets
(765
)
Free cash flow
$
195,211
Net cash provided by operating activities margin
20
%
Free cash flow margin
19
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240107689821/en/
Investor Contact: Bryan Vaniman ir@Twilio.com
Media Contact: Caitlin Epstein press@Twilio.com
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