- Fourth Quarter Revenue of $548.1 million, up 65%
Year-Over-Year
- Fourth Quarter Revenue Dollar-Based Net Expansion Rate of
139%
- Full Year Revenue of $1.76 billion, up 55%
Year-Over-Year
- Full Year Revenue Dollar-Based Net Expansion Rate of
137%
Twilio (NYSE: TWLO), the leading cloud communications platform,
today reported financial results for its fourth quarter and full
year ended December 31, 2020.
“Twilio's 65% year-over-year total revenue growth in the fourth
quarter continued the strength and momentum we saw throughout an
outstanding year of results in which we delivered $1.76 billion in
revenue,” said Jeff Lawson, Twilio’s Co-Founder and CEO. “These
results reinforced that we are addressing a generational
opportunity, and with our acquisition of Segment and strong
traction with Flex, we are building the leading customer engagement
platform to improve every interaction that businesses have with
their customers."
Fourth Quarter 2020 Financial Highlights
- Revenue of $548.1 million for the fourth quarter of 2020, up
65% year-over-year, including $23 million from Twilio Segment
starting on November 2, 2020 (the date of acquisition). Political
traffic also contributed $22.7 million to revenue.
- GAAP loss from operations of $185.3 million for the fourth
quarter of 2020, compared with GAAP loss from operations of $93.8
million for the fourth quarter of 2019.
- Non-GAAP income from operations of $12.8 million for the fourth
quarter of 2020 compared with non-GAAP loss from operations of $3.0
million for the fourth quarter of 2019.
- GAAP net loss per share attributable to common stockholders,
basic and diluted, of $1.13 based on 158.4 million weighted average
shares outstanding in the fourth quarter of 2020, compared with
GAAP net loss per share attributable to common stockholders, basic
and diluted, of $0.66 based on 137.7 million weighted average
shares outstanding in the fourth quarter of 2019.
- Non-GAAP net income per share attributable to common
stockholders, diluted, of $0.04 based on 173.1 million non-GAAP
weighted average shares outstanding in the fourth quarter of 2020,
compared with non-GAAP net income per share attributable to common
stockholders, diluted, of $0.04 based on 147.3 million weighted
average shares outstanding in the fourth quarter of 2019.
Full Year 2020 Financial Highlights
- Revenue of $1.76 billion for the full year 2020, up 55%
year-over-year, including $23 million from Twilio Segment starting
on November 2, 2020 (the date of acquisition).
- GAAP loss from operations of $492.9 million for the full year
2020, compared with GAAP loss from operations of $369.8 million for
the full year 2019.
- Non-GAAP income from operations of $35.7 million for the full
year 2020 compared with non-GAAP loss from operations of $1.8
million for the full year 2019.
- GAAP net loss per share attributable to common stockholders,
basic and diluted, of $3.35 based on 146.7 million weighted average
shares outstanding in full year 2020, compared with GAAP net loss
per share attributable to common stockholders, basic and diluted,
of $2.36 based on 130.1 million weighted average shares outstanding
in the full year 2019.
- Non-GAAP net income per share attributable to common
stockholders, diluted, of $0.23 based on 157.6 million non-GAAP
weighted average shares outstanding in the full year 2020, compared
with non-GAAP net income per share attributable to common
stockholders, diluted, of $0.16 based on 143.0 million weighted
average shares outstanding in the full year 2019.
Key Metrics and Recent Business Highlights
- More than 221,000 Active Customer Accounts as of December 31,
2020, compared to 179,000 Active Customer Accounts as of December
31, 2019. Active Customer Accounts as of December 31, 2020 include
the contribution from Twilio Segment customer accounts.
- Dollar-Based Net Expansion Rate was 139% for the fourth quarter
of 2020, compared to 125% for the fourth quarter of 2019. Twilio
Segment results do not impact the calculation of this metric in
either period.
- 4,629 employees as of December 31, 2020.
- Completed the acquisition of Segment, the market-leading
customer data platform, accelerating Twilio's journey to build the
world's leading customer engagement platform.
- Welcomed Jeremiah Brazeau as Chief Technology Officer.
- Welcomed former Governor of Massachusetts Deval Patrick to the
Board of Directors.
- Released Twilio's first Impact Report, highlighting efforts in
social impact and environmental, social and corporate governance
areas.
Chief Legal Officer Transition
The Company also announced that Karyn Smith, who has served as
Twilio’s Chief Legal Officer since September 2014, has informed the
Company of her decision to leave. To ensure an orderly transition
and continuity of operations, Smith will continue to serve as Chief
Legal Officer until her successor is found and has moved into the
role.
Outlook
Twilio is initiating guidance for the first quarter ending March
31, 2021. This guidance includes the revenue contribution from
Twilio Segment.
Q1 FY21
Guidance
Revenue (millions)
$526 - $536
Y/Y Growth
44% - 47%
Non-GAAP loss from operations
(millions)
($20) - ($15)
Non-GAAP loss per share
($0.12) - ($0.09)
Non-GAAP basic shares outstanding
(millions)
166
Twilio is also updating its non-GAAP projected tax rate to 22%,
which reflects currently available information and could be subject
to change.
Conference Call Information
Twilio will host a conference call today, February 17, 2021, to
discuss its fourth quarter and full year 2020 financial results at
2:00 p.m. (PT) / 5:00 p.m. (ET). Investors and analysts should
register for the call in advance by visiting http://www.directeventreg.com/registration/event/1490367.
A live webcast of the conference call, as well as a replay of the
call, will be available at https://investors.twilio.com. Following the
completion of the call through 11:59 p.m. (ET) on February 24, a
replay will be available by dialing (800) 585-8367 (United States)
or +1 (416) 621-4642 (non-U.S.) and entering passcode 1490367.
Twilio intends to use its investor relations website, its
Twitter feed (@twilio), and the Twitter feed of Twilio's Chief
Executive Officer, Jeff Lawson (@jeffiel), as a means of disclosing
material non-public information and for complying with its
disclosure obligations under Regulation FD.
About Twilio Inc.
Millions of developers around the world have used Twilio to
unlock the magic of communications to improve any human experience.
Twilio has democratized communications channels like voice, text,
chat, video and email by virtualizing the world’s communications
infrastructure through APIs that are simple enough for any
developer to use, yet robust enough to power the world’s most
demanding applications. By making communications a part of every
software developer's toolkit, Twilio is enabling innovators across
every industry — from emerging leaders to the world’s largest
organizations — to reinvent how companies engage with their
customers.
Forward-Looking Statements
This press release and the accompanying conference call contain
forward-looking statements within the meaning of the federal
securities laws, which statements involve substantial risks and
uncertainties. Forward-looking statements generally relate to
future events or our 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 our
expectations, strategy, plans or intentions. Forward-looking
statements contained in this press release include, but are not
limited to, statements about: Twilio’s outlook for the quarter
ending March 31, 2021, the impact on Twilio and its customers and
partners related to COVID-19, Twilio’s expectations regarding its
products and solutions, and Twilio's expected business benefits and
financial impacts from the Segment acquisition. 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: adverse changes in general economic or market conditions;
changes in the market for communications; the impact of COVID-19 on
Twilio and its customers and partners; Twilio’s ability to adapt
its products to meet evolving market and customer demands and rapid
technological change; Twilio’s ability to comply with modified or
new industry standards, laws and regulations applying to its
business; Twilio’s ability to generate sufficient revenues to
achieve or sustain profitability; Twilio’s ability to retain
customers and attract new customers; Twilio’s ability to
effectively manage its growth; Twilio’s ability to compete
effectively in an intensely competitive market; and Twilio's
ability to successfully integrate Segment and risks that the
anticipated benefits of the acquisition of Segment may not be fully
realized or may take longer to realize than expected.
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
Form 10-Q for the quarter ended September 30, 2020 filed on October
29, 2020. Further information on potential risks that could affect
actual results will be included in the subsequent periodic and
current reports and other filings that Twilio makes with the
Securities and Exchange Commission from time to time. Moreover,
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.
Use of Non-GAAP Financial Measures
To provide investors and others with additional information
regarding Twilio’s results, the following non-GAAP financial
measures are disclosed:
Non‑GAAP Gross Profit and Non‑GAAP Gross Margin.
For the periods presented, Twilio defines non‑GAAP gross profit and
non‑GAAP gross margin as GAAP gross profit and GAAP gross margin,
respectively, adjusted to exclude, as applicable, certain expenses
as presented in the table below.
Non‑GAAP Operating Expenses. For the periods presented,
Twilio defines non‑GAAP operating expenses (including categories of
operating expenses) as GAAP operating expenses (and categories of
operating expenses) adjusted to exclude, as applicable, certain
expenses as presented in the table below.
Non‑GAAP Income (Loss) from Operations and Non‑GAAP
Operating Margin. For the periods presented, Twilio defines
non‑GAAP income (loss) from operations and non‑GAAP operating
margin as GAAP loss from operations and GAAP operating margin,
respectively, adjusted to exclude, as applicable, certain expenses
as presented in the table below.
Non-GAAP Tax Rate. The Company utilizes a fixed long-term
projected non-GAAP tax rate in order to provide better consistency
across the interim reporting periods by eliminating the effects of
items that can vary in size and frequency. For fiscal 2020, the
Company used a projected non-GAAP tax rate of 25%. For fiscal 2021,
the Company uses a projected non-GAAP tax rate of 22%, which
reflects currently available information, as well as other factors
and assumptions. The non-GAAP tax rate could be subject to change
for a variety of reasons, including the changes in tax laws and
regulations, significant changes in the Company’s geographic
earnings mix, or other changes to the Company’s strategy or
business operations. The Company will re-evaluate its long-term
rate as appropriate.
Non‑GAAP Net Income Attributable to Common Stockholders
and Non‑GAAP Net Income Per Share Attributable to Common
Stockholders, Basic and Diluted. For the periods presented,
Twilio defines non-GAAP net income attributable to common
stockholders and non‑GAAP net income per share attributable to
common stockholders, basic and diluted, as GAAP net loss
attributable to common stockholders and GAAP net loss per share
attributable to common stockholders, basic and diluted,
respectively, adjusted to exclude, as applicable, certain expenses
presented in the table below.
Twilio’s management uses the foregoing non-GAAP financial
information, collectively, to evaluate its ongoing operations and
for internal planning and forecasting purposes. Twilio’s management
believes that non-GAAP financial information, when taken
collectively, may be helpful to investors because it provides
consistency and comparability with past financial performance,
facilitates period-to-period comparisons of results of operations,
and assists in comparisons with other companies, many of which use
similar non-GAAP financial information to supplement their GAAP
results. Non‑GAAP financial information is presented for
supplemental informational purposes only, should not be considered
a substitute for financial information presented in accordance with
generally accepted accounting principles, and may be different from
similarly‑titled non‑GAAP measures used by other companies.
Whenever Twilio uses a non-GAAP financial measure, a reconciliation
is provided to the most closely applicable financial measure stated
in accordance with GAAP. Investors are encouraged to review the
related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures.
With respect to Twilio’s guidance as provided under “Outlook”
above, Twilio has not reconciled its expectations as to non-GAAP
income (loss) from operations to GAAP loss from operations or
non-GAAP net income (loss) per share to GAAP net loss per share
because stock-based compensation expense cannot be reasonably
calculated or predicted at this time. Accordingly, a reconciliation
is not available without unreasonable effort.
Operating Metrics
Twilio reviews a number of operating metrics to evaluate its
business, measure performance, identify trends, formulate business
plans, and make strategic decisions. These include the number of
Active Customer Accounts and Dollar-Based Net Expansion Rate.
Number of Active Customer Accounts. Twilio believes that
the number of Active Customer Accounts is an important indicator of
the growth of its business, the market acceptance of its platform
and future revenue trends. Twilio defines an Active Customer
Account at the end of any period as an individual account, as
identified by a unique account identifier, for which Twilio has
recognized at least $5 of revenue in the last month of the period.
Twilio believes that use of its platform by customers at or above
the $5 per month threshold is a stronger indicator of potential
future engagement than trial usage of its platform or usage at
levels below $5 per month. A single organization may constitute
multiple unique Active Customer Accounts if it has multiple account
identifiers, each of which is treated as a separate Active Customer
Account. Effective December 31, 2019, we round down the number of
Active Customer Accounts to the nearest thousand.
Dollar-Based Net Expansion Rate. Twilio’s ability to
drive growth and generate incremental revenue depends, in part, on
the Company’s ability to maintain and grow its relationships with
existing Active Customer Accounts and to increase their use of the
platform. An important way in which Twilio has historically tracked
performance in this area is by measuring the Dollar-Based Net
Expansion Rate for Active Customer Accounts. Twilio’s Dollar-Based
Net Expansion Rate increases when such Active Customer Accounts
increase their usage of a product, extend their usage of a product
to new applications or adopt a new product. Twilio’s Dollar-Based
Net Expansion Rate decreases when such Active Customer Accounts
cease or reduce their usage of a product or when the Company lowers
usage prices on a product. As our customers grow their businesses
and extend the use of our platform, they sometimes create multiple
customer accounts with us for operational or other reasons. As
such, when we identify a significant customer organization (defined
as a single customer organization generating more than 1% of
revenue in a quarterly reporting period) that has created a new
Active Customer Account, this new Active Customer Account is tied
to, and revenue from this new Active Customer Account is included
with, the original Active Customer Account for the purposes of
calculating this metric. Twilio believes that measuring
Dollar-Based Net Expansion Rate provides a more meaningful
indication of the performance of the Company’s efforts to increase
revenue from existing customers.
For historical periods through December 31, 2019, Twilio’s
Dollar-Based Net Expansion Rate compared the revenue from Active
Customer Accounts, other than large Active Customer Accounts that
have never entered into 12-month minimum revenue commitment
contracts with the Company, in a quarter to the same quarter in the
prior year. For reporting periods starting with the three months
ended March 31, 2020, Twilio's Dollar-Based Net Expansion Rate
compares the total revenue from all Active Customer Accounts in a
quarter to the same quarter in the prior year. To calculate the
Dollar-Based Net Expansion Rate, the Company first identifies the
cohort of Active Customer Accounts that were Active Customer
Accounts in the same quarter of the prior year. The Dollar-Based
Net Expansion Rate is the quotient obtained by dividing the revenue
generated from that cohort in a quarter, by the revenue generated
from that same cohort in the corresponding quarter in the prior
year. When Twilio calculates Dollar-Based Net Expansion Rate for
periods longer than one quarter, it uses the average of the
applicable quarterly Dollar-Based Net Expansion Rates for each of
the quarters in such period. As a result of the change in
calculation of Dollar-Based Net Expansion Rate, unless specifically
identified as being calculated based on total revenue, any
Dollar-Based Net Expansion Rates disclosed by our Company in SEC
filings, press releases and presentations prior to the date of our
press release for the three months ended March 31, 2020, will not
be directly comparable to our Dollar-Based Net Expansion Rates
going forward.
Source: Twilio Inc.
TWILIO INC.
Condensed Consolidated Statements of
Operations
(In thousands, except share
and per share amounts)
(Unaudited)
Three Months Ended
December 31,
2020
2019
Revenue
$
548,090
$
331,224
Cost of revenue
265,969
156,534
Gross profit
282,121
174,690
Operating expenses:
Research and development
158,856
110,236
Sales and marketing
179,987
106,394
General and administrative
128,569
51,859
Total operating expenses
467,412
268,489
Loss from operations
(185,291
)
(93,799
)
Other (expense) income, net
(9,426
)
4,708
Loss before benefit (provision) for income
taxes
(194,717
)
(89,091
)
Income tax benefit (provision)
15,366
(1,156
)
Net loss attributable to common
stockholders
$
(179,351
)
$
(90,247
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(1.13
)
$
(0.66
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
158,382,667
137,728,578
TWILIO INC.
Condensed Consolidated Statements of
Operations
(In thousands, except share
and per share amounts)
(Unaudited)
Year Ended
December 31,
2020
2019
Revenue
$
1,761,776
$
1,134,468
Cost of revenue
846,115
525,551
Gross profit
915,661
608,917
Operating expenses:
Research and development
530,548
391,355
Sales and marketing
567,407
369,079
General and administrative
310,607
218,268
Total operating expenses
1,408,562
978,702
Loss from operations
(492,901
)
(369,785
)
Other (expense) income, net
(11,525
)
7,569
Loss before benefit from income taxes
(504,426
)
(362,216
)
Income tax benefit
13,447
55,153
Net loss attributable to common
stockholders
$
(490,979
)
$
(307,063
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(3.35
)
$
(2.36
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
146,708,663
130,083,046
TWILIO INC.
Condensed
Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of
December 31,
2020
2019
ASSETS
Current assets:
Cash and cash equivalents
$
933,885
$
253,660
Short-term marketable securities
2,105,906
1,599,033
Accounts receivable, net
251,167
154,067
Prepaid expenses and other current
assets
81,377
54,571
Total current assets
3,372,335
2,061,331
Property and equipment, net
183,239
141,256
Operating right-of-use asset
258,610
156,741
Intangible assets, net
966,573
460,849
Goodwill
4,595,394
2,296,784
Other long-term assets
111,282
33,555
Total assets
$
9,487,433
$
5,150,516
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
60,042
$
39,099
Accrued expenses and other current
liabilities
243,833
147,681
Deferred revenue and customer deposits
87,031
26,362
Operating lease liability, current
48,338
27,156
Finance lease liability, current
9,062
6,924
Total current liabilities
448,306
247,222
Operating lease liability, noncurrent
229,905
139,200
Finance lease liability, noncurrent
17,856
8,746
Convertible senior notes, net
302,068
458,190
Other long-term liabilities
36,633
17,747
Total liabilities
1,034,768
871,105
Commitments and contingencies
Stockholders’ equity:
Preferred stock
—
—
Common stock
164
138
Additional paid-in capital
9,613,246
4,952,999
Accumulated other comprehensive income
9,046
5,086
Accumulated deficit
(1,169,791
)
(678,812
)
Total stockholders’ equity
8,452,665
4,279,411
Total liabilities and stockholders’
equity
$
9,487,433
$
5,150,516
TWILIO INC.
Condensed
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Year Ended
December 31,
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(490,979
)
$
(307,063
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
149,660
110,430
Non-cash reduction to the right-of-use
asset
38,395
23,193
Net amortization of investment premium and
discount
6,789
(4,501
)
Amortization of debt discount and issuance
costs
23,759
23,696
Stock-based compensation
360,936
264,318
Amortization of deferred commissions
13,322
4,511
Tax benefit related to release of
valuation allowance
(16,459
)
(55,745
)
Allowance for credit losses
13,239
2,491
Value of donated common stock
18,993
—
Loss on extinguishment of debt
12,863
—
Other adjustments
(477
)
674
Changes in operating assets and
liabilities:
Accounts receivable
(81,303
)
(51,357
)
Prepaid expenses and other current
assets
(11,636
)
(20,316
)
Other long-term assets
(81,908
)
(18,021
)
Accounts payable
10,060
17,255
Accrued expenses and other current
liabilities
88,340
46,154
Deferred revenue and customer deposits
13,824
2,968
Operating lease liabilities
(33,938
)
(21,138
)
Other long-term liabilities
(826
)
(3,501
)
Net cash provided by operating
activities
32,654
14,048
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired and
other related payments
(333,591
)
122,749
Purchases of marketable securities and
other investments
(1,636,590
)
(2,038,422
)
Proceeds from sales and maturities of
marketable securities
1,183,459
697,171
Capitalized software development costs
(33,328
)
(21,922
)
Purchases of long-lived and intangible
assets
(25,805
)
(45,368
)
Net cash used in investing activities
(845,855
)
(1,285,792
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from a public offering, net of
underwriting discount and issuance costs
1,408,113
979,123
Principal payments on debt and finance
leases
(10,784
)
(11,046
)
Proceeds from exercises of stock options
and shares issued in ESPP
104,760
57,480
Value of equity awards withheld for tax
liabilities
(8,778
)
(5,412
)
Net cash provided by financing
activities
1,493,311
1,020,145
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
40
—
NET INCREASE (DECREASE) IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH
680,150
(251,599
)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH—Beginning of year
253,735
505,334
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
—End of year
$
933,885
$
253,735
TWILIO INC.
Reconciliation to
Non-GAAP Financial Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Three Months Ended
December 31,
2020
2019
Gross profit
$
282,121
$
174,690
Non-GAAP adjustments:
Stock-based compensation
2,640
2,017
Amortization of acquired intangibles
21,885
12,401
Payroll taxes related to stock-based
compensation
—
17
Non-GAAP gross profit
$
306,646
$
189,125
Non-GAAP gross margin
56
%
57
%
Research and development
$
158,856
$
110,236
Non-GAAP adjustments:
Stock-based compensation
(53,959
)
(32,624
)
Payroll taxes related to stock-based
compensation
(5,005
)
(1,276
)
Non-GAAP research and development
$
99,892
$
76,336
Non-GAAP research and development as a %
of revenue
18
%
23
%
Sales and marketing
$
179,987
$
106,394
Non-GAAP adjustments:
Stock-based compensation
(33,848
)
(18,430
)
Amortization of acquired intangibles
(15,286
)
(7,886
)
Payroll taxes related to stock-based
compensation
(3,401
)
(642
)
Non-GAAP sales and marketing
$
127,452
$
79,436
Non-GAAP sales and marketing as a % of
revenue
23
%
24
%
General and administrative
$
128,569
$
51,859
Non-GAAP adjustments:
Stock-based compensation
(33,642
)
(13,915
)
Amortization of acquired intangibles
(10
)
336
Acquisition-related expenses
(20,651
)
(1,525
)
Charitable contributions
(6,563
)
—
Payroll taxes related to stock-based
compensation
(1,173
)
(390
)
Non-GAAP general and administrative
$
66,530
$
36,365
Non-GAAP general and administrative as a %
of revenue
12
%
11
%
Loss from operations
$
(185,291
)
$
(93,799
)
Non-GAAP adjustments:
Stock-based compensation
124,089
66,986
Amortization of acquired intangibles
37,181
19,951
Acquisition-related expenses
20,651
1,525
Charitable contributions
6,563
—
Payroll taxes related to stock-based
compensation
9,579
2,325
Non-GAAP income (loss) from operations
$
12,772
$
(3,012
)
Non-GAAP operating margin
2
%
(1
)%
TWILIO INC.
Reconciliation to
Non-GAAP Financial Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Three Months Ended
December 31,
2020
2019
Net loss attributable to common
stockholders
$
(179,351
)
$
(90,247
)
Non-GAAP adjustments:
Stock-based compensation
124,089
66,986
Amortization of acquired intangibles
37,181
19,951
Acquisition-related expenses
20,651
1,525
Charitable contributions
6,563
—
Payroll taxes related to stock-based
compensation
9,579
2,325
Amortization of debt discount and issuance
costs
5,327
6,007
Income tax benefit related to
acquisition
(15,743
)
(1,541
)
Provision for income tax effects related
to Non-GAAP adjustments **
(1,791
)
771
Non-GAAP net income attributable to common
stockholders
$
6,505
$
5,777
Non-GAAP net income attributable to common
stockholders as a % of revenue
1
%
2
%
Net loss per share attributable to
common stockholders, basic and diluted*
$
(1.13
)
$
(0.66
)
Non-GAAP adjustments:
Stock-based compensation
0.72
0.45
Amortization of acquired intangibles
0.21
0.14
Acquisition-related expenses
0.12
0.01
Charitable contributions
0.04
—
Payroll taxes related to stock-based
compensation
0.06
0.02
Amortization of debt discount and issuance
costs
0.03
0.04
Income tax benefit related to
acquisition
(0.09
)
(0.01
)
Provision for income tax effects related
to Non-GAAP adjustments **
(0.01
)
0.01
Dilutive securities
0.09
0.04
Non-GAAP net income per share attributable
to common stockholders, diluted
$
0.04
$
0.04
GAAP weighted-average shares used to
compute net loss per share attributable to common stockholders,
basic
158,382,667
137,728,578
Effect of dilutive securities (stock
options, restricted stock units and convertible debt)
14,716,399
9,561,497
Non-GAAP weighted-average shares used
to compute Non-GAAP net income per share attributable to common
stockholders, diluted
173,099,066
147,290,075
* Some columns may not add due to
rounding
** Represents the tax effect of the
non-GAAP adjustments based on the estimated non-GAAP tax rate of
25%.
TWILIO INC.
Reconciliation to
Non-GAAP Financial Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Year Ended
December 31,
2020
2019
Gross profit
$
915,661
$
608,917
Non-GAAP adjustments:
Stock-based compensation
8,857
7,123
Amortization of acquired intangibles
59,501
45,267
Payroll taxes related to stock-based
compensation
—
104
Non-GAAP gross profit
$
984,019
$
661,411
Non-GAAP gross margin
56
%
58
%
Research and development
$
530,548
$
391,355
Non-GAAP adjustments:
Stock-based compensation
(173,303
)
(126,012
)
Payroll taxes related to stock-based
compensation
(14,606
)
(7,870
)
Non-GAAP research and development
$
342,639
$
257,473
Non-GAAP research and development as a %
of revenue
19
%
23
%
Sales and marketing
$
567,407
$
369,079
Non-GAAP adjustments:
Stock-based compensation
(103,450
)
(60,886
)
Amortization of acquired intangibles
(38,915
)
(27,540
)
Payroll taxes related to stock-based
compensation
(9,930
)
(3,692
)
Non-GAAP sales and marketing
$
415,112
$
276,961
Non-GAAP sales and marketing as a % of
revenue
24
%
24
%
General and administrative
$
310,607
$
218,268
Non-GAAP adjustments:
Stock-based compensation
(76,301
)
(70,297
)
Amortization of acquired intangibles
(78
)
—
Acquisition-related expenses
(21,765
)
(15,713
)
Charitable contributions
(18,993
)
—
Payroll taxes related to stock-based
compensation
(2,853
)
(3,522
)
Non-GAAP general and administrative
$
190,617
$
128,736
Non-GAAP general and administrative as a %
of revenue
11
%
11
%
Loss from operations
$
(492,901
)
$
(369,785
)
Non-GAAP adjustments:
Stock-based compensation
361,911
264,318
Amortization of acquired intangibles
98,494
72,807
Acquisition-related expenses
21,765
15,713
Charitable contributions
18,993
—
Payroll taxes related to stock-based
compensation
27,389
15,188
Non-GAAP income (loss) from operations
$
35,651
$
(1,759
)
Non-GAAP operating margin
2
%
—
%
TWILIO INC.
Reconciliation to
Non-GAAP Financial Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Year Ended December
31,
2020
2019
Net loss attributable to common
stockholders
$
(490,979)
$
(307,063)
Non-GAAP adjustments:
Stock-based compensation
361,911
264,318
Amortization of acquired intangibles
98,494
72,807
Acquisition-related expenses
21,765
15,713
Charitable contributions
18,993
—
Payroll taxes related to stock-based
compensation
27,389
15,188
Amortization of debt discount and issuance
costs
23,759
23,696
Income tax benefit related to
acquisition
(16,459)
(55,745)
Provision for income tax effects related
to Non-GAAP adjustments **
(8,959)
(6,727)
Non-GAAP net income attributable to common
stockholders
$
35,914
$
22,187
Non-GAAP net income attributable to common
stockholders as a % of revenue
2
%
2
%
Net loss per share attributable to
common stockholders, basic and diluted*
$
(3.35)
$
(2.36)
Non-GAAP adjustments:
Stock-based compensation
2.30
1.85
Amortization of acquired intangibles
0.62
0.51
Acquisition-related expenses
0.14
0.11
Charitable contributions
0.12
—
Payroll taxes related to stock-based
compensation
0.17
0.11
Amortization of debt discount and issuance
costs
0.15
0.17
Income tax benefit related to
acquisition
(0.10)
(0.39)
Provision for income tax effects related
to Non-GAAP adjustments **
(0.06)
(0.05)
Dilutive securities
0.24
0.21
Non-GAAP net income per share attributable
to common stockholders, diluted
$
0.23
$
0.16
GAAP weighted-average shares used to
compute net loss per share attributable to common stockholders,
basic
146,708,663
130,083,046
Effect of dilutive securities (stock
options, restricted stock units and convertible debt)
10,895,399
12,873,540
Non-GAAP weighted-average shares used
to compute Non-GAAP net income per share attributable to common
stockholders, diluted
157,604,062
142,956,586
* Some columns may not add due to rounding.
** Represents the tax effect of the non-GAAP adjustments based
on the estimated non-GAAP tax rate of 25%.
TWILIO INC.
Key
Metrics
(Unaudited)
Three Months Ended
Dec 31, 2018
Mar 31, 2019
Jun 30, 2019
Sep 30, 2019
Dec 31, 2019
Mar 31, 2020
Jun 30, 2020
Sep 30, 2020
Dec 31, 2020
Number of Active Customers (1)
(as of period end date)
64,286
154,797
161,869
172,092
179,000
190,000
200,000
208,000
221,000
Dollar-Based
Net Expansion Rate (2)
150
%
142
%
141
%
132
%
125
%
143
%
(3)
132
%
137
%
139
%
Total Revenue
$
204,302
$
233,139
$
275,039
$
295,066
$
331,224
$
364,868
$
400,849
$
447,969
$
548,090
Total Revenue Growth Rate, Year over
Year
77
%
81
%
86
%
75
%
62
%
57
%
46
%
52
%
65
%
(1) Effective December 31, 2019, we round down the number of
active customer accounts to the nearest thousand. Commencing with
the three month period ended March 31, 2019, Active Customer
Accounts include the contribution from Twilio SendGrid customer
accounts from February 1, 2019 (the date of the acquisition).
Commencing with the three month period ended December 31, 2020,
Active Customer Accounts include the contribution from Twilio
Segment customer accounts from November 2, 2020 (the date of the
acquisition).
(2) As previously announced in our Annual Report on Form 10-K
filed with the SEC on March 2, 2020, commencing with the
three-month period ended March 31, 2020, we calculate our
Dollar-Based Net Expansion Rate by comparing total revenue from a
cohort of Active Customer Accounts in a period to the same period
in the prior year (the "New DBNE Definition"). To facilitate
comparison between the periods presented, Dollar-Based Net
Expansion Rate as presented in the table above, has been calculated
as if the New DBNE Definition had been in effect during that
period. As a result of the New DBNE Definition, unless specifically
identified as being calculated using total revenue, any
Dollar-Based Net Expansion Rates disclosed by our Company in SEC
filings, press releases and presentations prior to the date of our
press release for the three months ended March 31, 2020, will not
be directly comparable to our Dollar-Based Net Expansion Rates
going forward. Commencing with the three month period ended March
31, 2020, Dollar-Based Net Expansion Rate includes the contribution
from Twilio SendGrid from February 1, 2019 (the date of the
acquisition).
(3) After adjusting for the extra month of revenue from Twilio
SendGrid in January 2020, Dollar-Based Net Expansion Rate was
135%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210217005908/en/
Investor Contact: Andrew Zilli ir@Twilio.com
or
Media Contact: Carolyn Bos press@Twilio.com
