- Fourth Quarter Revenue of $1.19 billion, up 11%
reported year-over-year
- Full Year Revenue of $4.46 billion, up 7% reported and 9%
organic year-over-year
- Fourth Quarter GAAP Income from Operations of $14 million
and Full Year GAAP Loss from Operations of $54 million
- Fourth Quarter and Full Year Non-GAAP Income from Operations
of $197 million and $714 million, respectively
Twilio (NYSE: TWLO), the customer engagement platform that
drives real-time, personalized experiences for today’s leading
brands, reported financial results for its fourth quarter and full
year ended December 31, 2024.
“Twilio’s focus on financial discipline, operational rigor, and
innovation is paying off as we delivered a second consecutive
quarter of double digit growth and our first ever quarter of GAAP
operating profitability,” said Khozema Shipchandler, CEO of Twilio.
“I’m energized by the momentum in our business as we deliver on our
vision to ensure every digital interaction between businesses and
consumers is amazing.”
Fourth Quarter 2024 Financial Highlights
- Total revenue of $1.19 billion, up 11% year-over-year.
Communications revenue of $1.12 billion, up 12% year-over-year.
Segment revenue of $74.1 million, down 1% year-over-year.
- GAAP income from operations of $13.7 million, compared with
GAAP loss from operations of $361.7 million for the fourth quarter
of 2023.
- Non-GAAP income from operations of $197.0 million, compared
with non-GAAP income from operations of $172.6 million for the
fourth quarter of 2023.
- GAAP net loss per share attributable to common stockholders,
basic and diluted, of $0.08 based on 153.5 million weighted average
shares outstanding, compared with GAAP net loss per share
attributable to common stockholders, basic and diluted, of $2.01
based on 181.8 million weighted average shares outstanding in the
fourth quarter of 2023.
- Non-GAAP net income per share attributable to common
stockholders, diluted, of $1.00 based on 160.6 million non-GAAP
weighted average shares outstanding, compared with non-GAAP net
income per share attributable to common stockholders, diluted, of
$0.86 based on 184.0 million non-GAAP weighted average shares
outstanding in the fourth quarter of 2023.
- Net cash provided by operating activities of $108.4 million and
free cash flow of $93.5 million, compared with net cash provided by
operating activities of $222.5 million and free cash flow of $210.9
million for the fourth quarter of 2023.
During the quarter, we incurred $16.8 million in bad debt
expenses related to our customer Oi SA, a Brazilian telecom
company, as a result of a slowdown in their ongoing payment
activity. These expenses reduced both our GAAP and non-GAAP income
from operations in the quarter.
Full Year 2024 Financial Highlights
- Total revenue of $4.46 billion, up 7% year-over-year.
Communications revenue of $4.16 billion, up 8% year-over-year.
Segment revenue of $297.7 million, up 1% year-over-year.
- Total organic revenue growth of 9% year-over-year.
Communications organic revenue growth of 9% year-over-year.
- GAAP loss from operations of $53.7 million, compared with GAAP
loss from operations of $876.5 million for the full year 2023.
- Non-GAAP income from operations of $714.4 million, compared
with non-GAAP income from operations of $533.0 million for the full
year 2023.
- GAAP net loss per share attributable to common stockholders,
basic and diluted, of $0.66 based on 165.9 million weighted average
shares outstanding, compared with GAAP net loss per share
attributable to common stockholders, basic and diluted, of $5.54
based on 183.3 million weighted average shares outstanding in the
full year 2023.
- Non-GAAP net income per share attributable to common
stockholders, diluted, of $3.67 based on 169.2 million non-GAAP
weighted average shares outstanding, compared with non-GAAP net
income per share attributable to common stockholders, diluted, of
$2.45 based on 185.4 million non-GAAP weighted average shares
outstanding in the full year 2023.
- Net cash provided by operating activities of $716.2 million and
free cash flow of $657.5 million, compared with net cash provided
by operating activities of $414.8 million and free cash flow of
$363.5 million for the full year 2023.
Key Metrics
- More than 325,000 Active Customer Accounts as of December 31,
2024 compared to more than 305,000 Active Customer Accounts as of
December 31, 2023.
- Dollar-Based Net Expansion Rate of 106% for the fourth quarter
of 2024 compared to Dollar-Based Net Expansion Rate of 102% for the
fourth quarter of 2023. Dollar-Based Net Expansion Rate of 104% for
the full year 2024 compared to Dollar-Based Net Expansion Rate of
103% for the full year 2023.
- 5,535 employees as of December 31, 2024.
Dollars in millions, except per share
amounts
Q4 2024 Results
Full Year 2024
Results
Revenue
$1,195
$4,458
Y/Y Revenue Growth
11%
7%
Y/Y Organic Revenue Growth
11%
9%
Amount
Margin
Amount
Margin
GAAP income (loss) from operations
$14
1.1%
$(54)
(1.2)%
Non-GAAP income from operations
$197
16.5%
$714
16.0%
Cash provided by operating activities
$108
9%
$716
16%
Free cash flow
$93
8%
$657
15%
GAAP net loss attributable to common
stockholders
$(12)
$(109)
Non-GAAP net income attributable to common
stockholders
$161
$622
GAAP net loss per share attributable to
common stockholders, basic and diluted
$(0.08)
$(0.66)
Non-GAAP net income per share attributable
to common stockholders, diluted
$1.00
$3.67
Share Repurchase Program
In January 2025, Twilio’s Board of Directors authorized a share
repurchase program pursuant to which Twilio may repurchase up to
$2.0 billion in aggregate value of its outstanding Class A common
stock. The program is set to expire on December 31, 2027. As of
December 31, 2024, Twilio completed the $3.0 billion of aggregate
repurchases authorized under its previous share repurchase
programs, which expired on December 31, 2024.
Outlook
Twilio is initiating guidance for the first quarter ending March
31, 2025. For fiscal year 2025, Twilio is reiterating the financial
targets announced at its investor day on January 23, 2025,
including organic revenue growth of 7% - 8% year-over-year,
non-GAAP income from operations of $825 - $850 million, and free
cash flow of $825 - $850 million.
Dollars and shares in millions, except per
share amounts
Q1 FY25
Guidance
Revenue
$1,130 - $1,140
Y/Y Revenue Growth
8% - 9%
Non-GAAP income from operations
$180 - $190
Non-GAAP diluted earnings per share
(1)
$0.88 - $0.93
Non-GAAP weighted average diluted shares
outstanding
162
(1) Non-GAAP diluted earnings per share
guidance assumes no impact from volatility of foreign exchange
rates.
Dollars in millions
FY25 Guidance
Y/Y Organic Revenue Growth
7% - 8%
Non-GAAP income from operations
$825 - $850
Free cash flow
$825 - $850
Conference Call Information
Twilio is hosting a Q&A conference call today, February 13,
2025, to discuss its fourth quarter and full year 2024 financial
results. The conference call will begin at 2:00 p.m. (PT) / 5:00
p.m. (ET), and investors and analysts should register for the
webcast in advance by visiting
https://edge.media-server.com/mmc/p/auzd77nc/. The live webcast of
the conference call, as well as a replay, and Twilio’s supplemental
earnings presentation, will be available on the investor relations
website.
Twilio uses its investor relations website and its X (formerly
Twitter) feed (@twilio), as a means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD.
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 and territories,
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 and the accompanying conference call contain
forward-looking statements within the meaning of the federal
securities laws. 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 and the accompanying
conference call include, but are not limited to, statements about:
our future financial and operating performance, including our
expected financial and operating results, guidance and targets,
including the assumptions underlying such guidance and targets; our
anticipated strategies and business plans and our ability to
successfully execute them; our expectations regarding capital
returns to shareholders, including share repurchases; our
expectations regarding our relationships with ISVs, partners and
resellers, and our self-service and cross-sell efforts; our ability
to expand into new and existing markets, including international
markets; the development and release of our products (and the
timing thereof), including related to AI and machine learning; the
effects of our increased investment and go-to-market focus to
capture market share; our strategy for streamlining and adding
value to the customer experience; our ability to deliver on our
product roadmap and our focus on innovation; and our expectations
regarding the impact of operating and industry conditions and the
impact of such conditions on our business and customers. 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 our actual results, performance,
or achievements to differ materially from those described in the
forward-looking statements, including, among other things: our
ability to attract and retain customers and expand their usage of
our platform; our ability to realize the anticipated benefits of
changes to our operating model and organizational structure; our
ability to successfully implement our cost-saving initiatives and
to capture expected efficiencies; our ability to form and expand
partnerships; our ability to successfully enter into new markets
and manage our international expansion; the impact of macroeconomic
and political conditions and market volatility; our ability to
compete effectively in intensely competitive markets; our financial
performance, including expectations regarding our results of
operations and the assumptions underlying such expectations, and
ability to achieve and sustain profitability; our ability to manage
changes in network service provider fees and optimize our network
service provider coverage and connectivity; and our ability to
comply with modified or new industry standards, laws and
regulations applying to our business, and increased costs
associated with regulatory compliance.
The forward-looking statements contained in this press release
and the accompanying conference call are also subject to additional
risks, uncertainties, and factors, including those more fully
described in our most recent filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q. Should any of these
risks materialize, or should our assumptions prove to be incorrect,
actual financial results could differ materially from our
projections or those implied by these forward-looking statements.
Moreover, we operate 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 and the accompanying conference call.
All forward-looking statements contained in this press release
and the accompanying conference call represent our management’s
beliefs and assumptions only as of the date such statements are
made and we do not assume any obligation to update any
forward-looking statements to reflect events or circumstances
occurring after the date on which the statements were made, 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 U.S. generally accepted accounting principles (“GAAP”), this
press release and the accompanying conference call include certain
non-GAAP financial measures, including those listed below. We use
these non-GAAP financial measures to evaluate our ongoing
operations and for internal planning and forecasting purposes. We
believe that these non-GAAP financial measures may be helpful to
investors because they provide consistency and comparability with
past financial performance, facilitate period-to-period comparisons
of results of operations and assist in comparisons with other
companies, many of which use similar non-GAAP financial measures to
supplement their GAAP results. We believe organic revenue, organic
revenue growth, Communications organic revenue and Communications
organic revenue growth are useful in understanding the ongoing
results of our operations on a consolidated basis and at the
segment level. We believe free cash flow and free cash flow margin
provide useful supplemental information to help investors
understand underlying trends in our business and our liquidity.
These 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 of these measures to the most
directly comparable GAAP measures is included at the end of this
press release. We have not provided the forward-looking GAAP
equivalents for certain forward-looking non-GAAP measures presented
in this press release and the accompanying conference call, or a
GAAP reconciliation, as a result of the uncertainty regarding, and
the potential variability of, reconciling items such as stock-based
compensation expense. Accordingly, a reconciliation of these
non-GAAP guidance metrics to their corresponding forward-looking
GAAP equivalents is not available without unreasonable effort.
However, it is important to note that material changes to
reconciling items could have a significant effect on future GAAP
results.
Non‑GAAP Gross Profit and Non‑GAAP Gross Margin.
For the periods presented, we define non‑GAAP gross profit and
non‑GAAP gross margin as GAAP gross profit and GAAP gross margin,
respectively, adjusted to exclude stock-based compensation,
amortization of acquired intangibles and payroll taxes related to
stock-based compensation. Segment-level non‑GAAP gross profit and
non‑GAAP gross margin are calculated using the same methodology,
but using (and excluding, as applicable) only revenue and expenses
attributable to the applicable segment.
Non-GAAP Gross Profit Growth. For the periods presented,
we calculate non-GAAP gross profit growth by dividing (i) non-GAAP
gross profit for the period presented less non-GAAP gross profit in
the comparative period by (ii) non-GAAP gross profit in the
comparative period.
Non‑GAAP Operating Expenses. For the periods presented,
we define non‑GAAP operating expenses (including categories of
operating expenses) as GAAP operating expenses (and categories of
operating expenses) adjusted to exclude, as applicable, stock-based
compensation, amortization of acquired intangibles, loss on net
assets divested, acquisition and divestiture related expenses,
payroll taxes related to stock-based compensation, charitable
contributions, restructuring costs, and impairment of long-lived
assets.
Non‑GAAP Income (Loss) from Operations and Non‑GAAP
Operating Margin. For the periods presented, we define 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, stock-based compensation,
amortization of acquired intangibles, loss on net assets divested,
acquisition and divestiture related expenses, payroll taxes related
to stock-based compensation, charitable contributions,
restructuring costs, and impairment of long-lived assets.
Segment-level non‑GAAP income (loss) from operations and non‑GAAP
operating margin are calculated using the same methodology, but
using (and excluding, as applicable) only revenue and expenses
attributable to the applicable segment.
Non‑GAAP Net Income (Loss) Attributable to Common
Stockholders and Non‑GAAP Net Income (Loss) Per Share
Attributable to Common Stockholders. For the periods presented,
we define non-GAAP net income (loss) attributable to common
stockholders and non‑GAAP net income (loss) per share attributable
to common stockholders, diluted (which we refer to as “non-GAAP
diluted earnings per share”) 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 stock-based compensation, amortization of acquired
intangibles, loss on net assets divested, acquisition and
divestiture related expenses, payroll taxes related to stock-based
compensation, accretion of debt discount and issuance costs,
provision of income tax effects related to non-GAAP adjustments,
income tax benefit related to acquisitions, charitable
contributions, share of losses from equity method investment,
restructuring costs, impairment of long-lived assets and gains on
or impairment of strategic investments.
Organic Revenue. For the periods presented, we define
organic revenue as GAAP revenue, excluding (i) revenue from each
acquired business and revenue from application-to-person (“A2P”)
10DLC fees imposed by major U.S. carriers on our core messaging
business, in each case until the beginning of the first full
quarter following the one-year anniversary of the closing date of
such acquisition or the initial date such fees were charged and
(ii) revenue from each divested business beginning in the quarter
of the closing date of such divestiture; provided that (a) if an
acquisition closes or such fees are initially charged on the first
day of a quarter, such revenue will be included in organic revenue
beginning on the one-year anniversary of the closing date of such
acquisition or the initial date such fees were charged and (b) if a
divestiture closes on the last day of a quarter, such revenue will
be included in organic revenue for that quarter. A2P 10DLC fees are
fees imposed by U.S. mobile carriers for A2P SMS messages delivered
to its subscribers, and we pass these fees to our messaging
customers at cost.
Organic Revenue Growth. For the periods presented, we
calculate organic revenue growth by dividing (i) organic revenue
for the period presented less organic revenue in the comparative
period by (ii) organic revenue in the comparative period. If
revenue from certain acquisitions, divestitures or A2P 10DLC fees
is included or excluded in organic revenue in the period presented,
then revenue from the same acquisitions, divestitures and A2P 10DLC
fees is included or excluded in organic revenue in the comparative
period for purposes of the organic revenue growth calculation. As a
result, organic revenue used in this calculation for the
comparative period will not always equal organic revenue reported
for the comparative period. Communications organic revenue growth
is calculated using the same methodology, but using (and excluding,
as applicable) only revenue attributable to the Communications
segment.
Free Cash Flow and Free Cash Flow Margin. For the
periods presented, we define free cash flow as net cash provided by
(used in) operating activities, excluding capitalized software
development costs and purchases of long-lived and intangible
assets, and we define free cash flow margin as free cash flow
divided by revenue.
Operating Metrics
We review a number of operational and financial metrics,
including Active Customer Accounts and Dollar-Based Net Expansion
Rate, to evaluate our business, measure our performance, identify
trends affecting our business, formulate business plans and make
strategic decisions. These metrics are not based on any
standardized industry methodology and are not necessarily
calculated in the same manner or comparable to similarly titled
measures presented by other companies. Similarly, these metrics may
differ from estimates published by third parties or from similarly
titled metrics of our competitors due to differences in
methodology. The numbers that we use to calculate Active Customer
Accounts and Dollar-Based Net Expansion Rate are based on internal
data. While these numbers are based on what we believe to be
reasonable judgments and estimates for the applicable period of
measurement, there are inherent challenges in measuring usage. We
regularly review and may adjust our processes for calculating our
internal metrics to improve their accuracy. If investors or
analysts do not perceive our metrics to be accurate representations
of our business, or if we discover material inaccuracies in our
metrics, our reputation, business, results of operations, and
financial condition would be harmed.
Active Customer Accounts. We define an Active Customer
Account at the end of any period as an individual account, as
identified by a unique account identifier, for which we have
recognized at least $5 of revenue in the last month of the period.
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. Active
Customer Accounts excludes customer accounts from Zipwhip, Inc.
(“Zipwhip”). Communications Active Customer Accounts and Segment
Active Customer Accounts are calculated using the same methodology,
but using only revenue recognized from accounts in the respective
segment. The number of consolidated and Communications Active
Customer Accounts is rounded down to the nearest thousand. The
number of Segment Active Customer Accounts is rounded down to the
nearest hundred.
Our business and customer relationships have grown since we
began reporting the number of Active Customer Accounts using the
above definition, which is anchored to a minimum $5 monthly revenue
figure. We have a large number of Active Customer Accounts with
relatively low individual spend that in the aggregate do not drive
a significant portion of our revenue. Due to this dynamic, we
believe that the number of Active Customer Accounts, as currently
defined, is less informative now as an indicator of the growth of
our business and future revenue trends than it has been in prior
periods.
Dollar-Based Net Expansion Rate. Our Dollar-Based Net
Expansion Rate compares the total revenue from all Active Customer
Accounts and customer accounts from Zipwhip in a quarter to the
same quarter in the prior year. To calculate the Dollar-Based Net
Expansion Rate, we first identify the cohort of Active Customer
Accounts and customer accounts from Zipwhip that were Active
Customer Accounts or customer accounts from Zipwhip 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 we calculate
Dollar-Based Net Expansion Rate for periods longer than one
quarter, we use the average of the applicable quarterly
Dollar-Based Net Expansion Rates for each of the quarters in such
periods. Revenue from acquisitions does not impact the Dollar-Based
Net Expansion Rate calculation until the quarter following the
one-year anniversary of the applicable acquisition, unless the
acquisition closing date is the first day of a quarter. As a
result, for the quarter ended December 31, 2024, our Dollar-Based
Net Expansion Rate excludes the contributions from any acquisitions
made after October 1, 2023. Revenue from divestitures does not
impact the Dollar-Based Net Expansion Rate calculation beginning in
the quarter the divestiture closed, unless the divestiture closing
date is the last day of a quarter. As a result, for the quarter
ended December 31, 2024, our Dollar-Based Net Expansion Rate
excludes the contributions from any divestitures made after
December 31, 2023. Communications Dollar-Based Net Expansion Rate
and Segment Dollar-Based Net Expansion Rate are calculated using
the same methodology, but using only revenue attributable to the
respective segment and Active Customer Accounts and customer
accounts from Zipwhip for that respective segment. Revenue from
customer accounts from Zipwhip, which we acquired on July 14, 2021,
has been included in our Dollar-Based Net Expansion Rate beginning
in the quarter ended December 31, 2022.
We believe that measuring Dollar-Based Net Expansion Rate, on an
aggregate basis and at the segment level, provides an important
indication of the performance of our efforts to increase revenue
from existing customers. Our ability to drive growth and generate
incremental revenue depends, in part, on our ability to maintain
and grow our relationships with existing Active Customer Accounts
and to increase their use of the platform. An important way in
which we have historically tracked performance in this area is by
measuring the Dollar-Based Net Expansion Rate for Active Customer
Accounts. Our 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. Our Dollar-Based Net Expansion Rate decreases when such
Active Customer Accounts cease or reduce their usage of a product
or when we lower 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.
Source: Twilio Inc.
TWILIO INC.
Condensed Consolidated Statements of
Operations
(In thousands, except share and per
share amounts)
(Unaudited)
Three Months Ended December
31,
2024
2023
Revenue
$
1,194,835
$
1,075,950
Cost of revenue
595,138
544,784
Gross profit
599,697
531,166
Operating expenses:
Research and development
252,577
235,645
Sales and marketing
216,671
238,602
General and administrative
116,779
106,968
Restructuring costs
(57
)
25,452
Impairment of long-lived assets
—
286,226
Total operating expenses
585,970
892,893
Income (loss) from operations
13,727
(361,727
)
Other (expenses) income, net:
Share of losses from equity method
investment
(29,687
)
(28,059
)
Impairment of strategic investments
(6,750
)
—
Other income, net
9,152
30,132
Total other (expenses) income, net
(27,285
)
2,073
Loss before provision for income taxes
(13,558
)
(359,654
)
Provision for income taxes
1,088
(5,754
)
Net loss attributable to common
stockholders
$
(12,470
)
$
(365,408
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.08
)
$
(2.01
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
153,511,425
181,786,135
TWILIO INC.
Condensed Consolidated Statements of
Operations
(In thousands, except share and per
share amounts)
(Unaudited)
Year Ended December
31,
2024
2023
Revenue
$
4,458,036
$
4,153,945
Cost of revenue
2,179,824
2,110,015
Gross profit
2,278,212
2,043,930
Operating expenses:
Research and development
1,008,747
942,790
Sales and marketing
860,821
1,022,985
General and administrative
449,079
468,459
Restructuring costs
13,273
165,733
Impairment of long-lived assets
—
320,504
Total operating expenses
2,331,920
2,920,471
Loss from operations
(53,708
)
(876,541
)
Other expenses, net:
Share of losses from equity method
investment
(108,481
)
(121,897
)
Impairment of strategic investments
(8,220
)
(46,154
)
Other income, net
81,796
47,863
Total other expenses, net
(34,905
)
(120,188
)
Loss before provision for income taxes
(88,613
)
(996,729
)
Provision for income taxes
(20,790
)
(18,712
)
Net loss attributable to common
stockholders
$
(109,403
)
$
(1,015,441
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.66
)
$
(5.54
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
165,925,128
183,327,844
TWILIO INC.
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
As of December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
421,297
$
655,931
Short-term marketable securities
1,963,102
3,356,064
Accounts receivable, net
588,540
562,773
Prepaid expenses and other current
assets
474,360
329,204
Total current assets
3,447,299
4,903,972
Property and equipment, net
191,042
209,639
Operating right-of-use assets
53,405
73,959
Equity method investment
485,835
593,582
Intangible assets, net
238,503
350,490
Goodwill
5,243,266
5,243,266
Other long-term assets
206,122
234,799
Total assets
$
9,865,472
$
11,609,707
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
100,169
$
119,615
Accrued expenses and other current
liabilities
530,686
424,311
Deferred revenue and customer deposits
155,680
144,499
Operating lease liability, current
33,685
49,872
Total current liabilities
820,220
738,297
Operating lease liability, noncurrent
85,875
120,770
Long-term debt, net
990,587
988,953
Other long-term liabilities
15,824
29,135
Total liabilities
1,912,506
1,877,155
Commitments and contingencies
Stockholders' equity:
Preferred stock
—
—
Common stock
153
182
Additional paid-in capital
15,476,124
14,797,723
Accumulated other comprehensive (loss)
income
(1,301
)
619
Accumulated deficit
(7,522,010
)
(5,065,972
)
Total stockholders’ equity
7,952,966
9,732,552
Total liabilities and stockholders’
equity
$
9,865,472
$
11,609,707
TWILIO INC.
Condensed Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Year Ended
December 31,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss
$
(109,403
)
$
(1,015,441
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
205,984
284,413
Non-cash reduction to the right-of-use
asset
19,095
26,971
Net amortization of investment premium and
discount
(22,940
)
(44
)
Impairment of long-lived assets
—
320,504
Stock-based compensation including
restructuring
616,607
675,857
Amortization of deferred commissions
76,348
72,892
Realized and unrealized losses on equity
securities
1,681
8,043
Provision for doubtful accounts
35,393
51,859
Value of shares of Class A common stock
issued and donated to charity
5,907
5,346
Share of losses from equity method
investment
108,481
121,897
Impairment of strategic investments
8,220
46,154
Loss on net assets divested
—
32,277
Other adjustments
5,009
14,669
Changes in operating assets and
liabilities:
Accounts receivable
(61,160
)
(85,093
)
Prepaid expenses and other current
assets
(153,470
)
(56,283
)
Other long-term assets
(47,077
)
(2,328
)
Accounts payable
(20,256
)
12,370
Accrued expenses and other current
liabilities
87,434
(51,816
)
Deferred revenue and customer deposits
11,181
5,371
Operating lease liabilities
(48,759
)
(56,340
)
Other long-term liabilities
(2,034
)
3,474
Net cash provided by operating
activities
716,241
414,752
CASH FLOWS FROM INVESTING
ACTIVITIES:
Acquisitions, net of cash acquired and
payments related to prior period acquisitions
—
(5,770
)
Divestitures, net of cash divested
—
38,194
Purchases of marketable securities and
other investments
(923,863
)
(1,953,003
)
Proceeds from sales and maturities of
marketable securities
2,353,486
2,200,417
Capitalized software development costs
(51,808
)
(39,925
)
Purchases of long-lived and intangible
assets
(6,978
)
(11,310
)
Net cash provided by investing
activities
1,370,837
228,603
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal payments on debt and finance
leases
(12,558
)
(16,134
)
Value of equity awards withheld for tax
liabilities
(2,000
)
(2,565
)
Repurchases of shares of Class A common
stock and related costs
(2,334,400
)
(668,751
)
Proceeds from exercises of stock options
and shares of Class A common stock issued under ESPP
37,386
43,840
Net cash used in by financing
activities
(2,311,572
)
(643,610
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
—
108
NET DECREASE IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
(224,494
)
(147
)
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH—Beginning of period
655,931
656,078
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH—End of period
$
431,437
$
655,931
TWILIO INC.
Reconciliation of GAAP Financial
Measures to Non-GAAP Financial Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Three Months Ended December
31,
2024
2023
GAAP gross profit
$
599,697
$
531,166
GAAP gross margin
50.2
%
49.4
%
Non-GAAP adjustments:
Stock-based compensation
5,171
7,666
Amortization of acquired intangibles
15,682
24,591
Payroll taxes related to stock-based
compensation
248
200
Non-GAAP gross profit
$
620,798
$
563,623
Non-GAAP gross margin
52.0
%
52.4
%
GAAP research and development
$
252,577
$
235,645
Non-GAAP adjustments:
Stock-based compensation
(84,007
)
(84,772
)
Amortization of acquired intangibles
—
(653
)
Payroll taxes related to stock-based
compensation
(1,554
)
(979
)
Non-GAAP research and development
$
167,016
$
149,241
Non-GAAP research and development as % of
revenue
14.0
%
13.9
%
GAAP sales and marketing
$
216,671
$
238,602
Non-GAAP adjustments:
Stock-based compensation
(33,667
)
(41,046
)
Amortization of acquired intangibles
(11,601
)
(17,227
)
Payroll taxes related to stock-based
compensation
(529
)
(658
)
Non-GAAP sales and marketing
$
170,874
$
179,671
Non-GAAP sales and marketing as % of
revenue
14.3
%
16.7
%
GAAP general and administrative
$
116,779
$
106,968
Non-GAAP adjustments:
Stock-based compensation
(32,938
)
(31,087
)
Amortization of acquired intangibles
(8
)
—
Acquisition and divestiture related
expenses
—
(40
)
Payroll taxes related to stock-based
compensation
4,024
(409
)
Charitable contributions
(1,996
)
(13,361
)
Non-GAAP general and administrative
$
85,861
$
62,071
Non-GAAP general and administrative as %
of revenue
7.2
%
5.8
%
TWILIO INC.
Reconciliation of GAAP Financial
Measures to Non-GAAP Financial Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Three Months Ended December
31,
2024
2023
GAAP income (loss) from
operations
$
13,727
$
(361,727
)
GAAP operating margin
1.1
%
(33.6
)%
Non-GAAP adjustments:
Stock-based compensation
155,783
164,571
Amortization of acquired intangibles
27,291
42,471
Acquisition and divestiture related
expenses
—
40
Payroll taxes related to stock-based
compensation
(1,693
)
2,246
Charitable contributions
1,996
13,361
Restructuring costs
(57
)
25,452
Impairment of long-lived assets
—
286,226
Non-GAAP income from operations
$
197,047
$
172,640
Non-GAAP operating margin
16.5
%
16.0
%
GAAP net loss attributable to common
stockholders
$
(12,470
)
$
(365,408
)
GAAP net loss attributable to common
stockholders as % of revenue
(1.0
)%
(34.0
)%
Non-GAAP adjustments:
Stock-based compensation
155,783
164,571
Amortization of acquired intangibles
27,291
42,471
Acquisition and divestiture related
expenses
—
40
Payroll taxes related to stock-based
compensation
(1,693
)
2,246
Accretion of debt discount and issuance
costs
414
398
Income tax benefit related to
acquisitions
—
(631
)
Provision of income tax effects related to
non-GAAP adjustments
(46,543
)
(38,312
)
Charitable contributions
1,996
13,361
Share of losses from equity method
investment
29,687
28,059
Restructuring costs
(57
)
25,452
Impairment of long-lived assets
—
286,226
Impairment of strategic investments
6,750
—
Non-GAAP net income attributable to common
stockholders
$
161,158
$
158,473
Non-GAAP net income attributable to common
stockholders as % of revenue
13.5
%
14.7
%
TWILIO INC.
Reconciliation of GAAP Financial
Measures to Non-GAAP Financial Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Three Months Ended December
31,
2024
2023
GAAP net loss per share attributable to
common stockholders, basic and diluted*
$
(0.08
)
$
(2.01
)
Non-GAAP adjustments:
Stock-based compensation
0.97
0.89
Amortization of acquired intangibles
0.17
0.23
Acquisition and divestiture related
expenses
—
—
Payroll taxes related to stock-based
compensation
(0.01
)
0.01
Accretion of debt discount and issuance
costs
—
—
Provision of income tax effects related to
non-GAAP adjustments
(0.29
)
(0.21
)
Charitable contributions
0.01
0.07
Share of losses from equity method
investment
0.18
0.15
Restructuring costs
—
0.14
Impairment of long-lived assets
—
1.56
Impairment of strategic investments
0.04
—
Other dilutive
0.01
0.03
Non-GAAP net income per share attributable
to common stockholders, diluted
$
1.00
$
0.86
GAAP weighted-average shares used to
compute net loss per share attributable to common stockholders,
basic
153,511,425
181,786,135
Weighted Average Diluted Shares
Outstanding
7,078,762
2,248,261
Non-GAAP weighted-average shares used
to compute non-GAAP net income per share attributable to common
stockholders, diluted
160,590,187
184,034,396
* Some columns may not add due to
rounding
TWILIO INC.
Reconciliation to Non-GAAP Financial
Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Year Ended December
31,
2024
2023
GAAP gross profit
$
2,278,212
$
2,043,930
GAAP gross margin
51.1
%
49.2
%
Non-GAAP adjustments:
Stock-based compensation
22,001
26,343
Amortization of acquired intangibles
62,728
113,266
Payroll taxes related to stock-based
compensation
1,133
699
Non-GAAP gross profit
$
2,364,074
$
2,184,238
Non-GAAP gross margin
53.0
%
52.6
%
GAAP research and development
$
1,008,747
$
942,790
Non-GAAP adjustments:
Stock-based compensation
(330,933
)
(331,526
)
Amortization of acquired intangibles
(1,867
)
(1,913
)
Acquisition and divestiture related
expenses
—
(488
)
Payroll taxes related to stock-based
compensation
(8,867
)
(6,779
)
Non-GAAP research and development
$
667,080
$
602,084
Non-GAAP research and development as a %
of revenue
15.0
%
14.5
%
GAAP sales and marketing
$
860,821
$
1,022,985
Non-GAAP adjustments:
Stock-based compensation
(135,331
)
(183,389
)
Amortization of acquired intangibles
(47,248
)
(77,128
)
Acquisition and divestiture related
expenses
—
(1,091
)
Payroll taxes related to stock-based
compensation
(2,204
)
(3,715
)
Non-GAAP sales and marketing
$
676,038
$
757,662
Non-GAAP sales and marketing as a % of
revenue
15.2
%
18.2
%
GAAP general and administrative
$
449,079
$
468,459
Non-GAAP adjustments:
Stock-based compensation
(125,164
)
(121,584
)
Amortization of acquired intangibles
(8
)
—
Acquisition and divestiture related
expenses
—
(3,976
)
Loss on net assets divested
—
(32,277
)
Payroll taxes related to stock-based
compensation
2,562
(1,792
)
Charitable contributions
(19,907
)
(17,346
)
Non-GAAP general and administrative
$
306,562
$
291,484
Non-GAAP general and administrative as a %
of revenue
6.9
%
7.0
%
TWILIO INC.
Reconciliation to Non-GAAP Financial
Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Year Ended December
31,
2024
2023
GAAP loss from operations
$
(53,708
)
$
(876,541
)
GAAP operating margin
(1.2
)%
(21.1
)%
Non-GAAP adjustments:
Stock-based compensation
613,429
662,842
Amortization of acquired intangibles
111,851
192,307
Acquisition and divestiture related
expenses
—
5,555
Loss on net assets divested
—
32,277
Payroll taxes related to stock-based
compensation
9,642
12,985
Charitable contributions
19,907
17,346
Restructuring costs
13,273
165,733
Impairment of long-lived assets
—
320,504
Non-GAAP income from operations
$
714,394
$
533,008
Non-GAAP operating margin
16.0
%
12.8
%
GAAP net loss attributable to common
stockholders
$
(109,403
)
$
(1,015,441
)
GAAP net loss attributable to common
stockholders as % of revenue
(2.5
)%
(24.4
)%
Non-GAAP adjustments:
Stock-based compensation
613,429
662,842
Amortization of acquired intangibles
111,851
192,307
Acquisition and divestiture related
expenses
—
5,555
Loss on net assets divested
—
32,277
Payroll taxes related to stock-based
compensation
9,642
12,985
Accretion of debt discount and issuance
costs
1,634
1,571
Income tax benefit related to
acquisition
—
(1,382
)
Provision of income tax effects related to
non-GAAP adjustments
(154,514
)
(108,044
)
Charitable contributions
19,907
17,346
Share of losses from equity method
investment
108,481
121,897
Restructuring costs
13,273
165,733
Impairment of long-lived assets
—
320,504
Impairment of strategic investments
7,231
46,154
Non-GAAP net income attributable to common
stockholders
$
621,531
$
454,304
Non-GAAP net income attributable to common
stockholders as % of revenue
13.9
%
10.9
%
TWILIO INC.
Reconciliation to Non-GAAP Financial
Measures
(In thousands, except shares, per share
amounts and percentages)
(Unaudited)
Year Ended December
31,
2024
2023
GAAP net loss per share attributable to
common stockholders, basic and diluted*
$
(0.66
)
$
(5.54
)
Non-GAAP adjustments:
Stock-based compensation
3.62
3.58
Amortization of acquired intangibles
0.66
1.04
Acquisition and divestiture related
expenses
—
0.03
Loss on net assets divested
—
0.17
Payroll taxes related to stock-based
compensation
0.06
0.07
Accretion of debt discount and issuance
costs
0.01
0.01
Income tax benefit related to
acquisition
—
(0.01
)
Provision for income tax effects related
to non-GAAP adjustments
(0.91
)
(0.58
)
Charitable contributions
0.12
0.09
Share of losses from equity method
investment
0.64
0.66
Restructuring costs
0.08
0.89
Impairment of long-lived assets
—
1.73
Impairment of strategic investments
0.04
0.25
Other dilutive
0.01
0.06
Non-GAAP net income per share attributable
to common stockholders, diluted
$
3.67
$
2.45
GAAP weighted-average shares used to
compute net loss per share attributable to common stockholders,
basic and diluted
165,925,128
183,327,844
Weighted average dilutive shares
outstanding
3,314,675
2,052,559
Non-GAAP weighted-average shares used
to compute Non-GAAP net income per share attributable to common
stockholders, diluted
169,239,803
185,380,403
* Some columns may not add due to
rounding.
TWILIO INC.
Reconciliation to Non-GAAP Financial
Measures
(In thousands, except
percentages)
(Unaudited)
Year Ended December
31,
2024
GAAP Revenue
$
4,458,036
Organic Revenue
$
4,458,036
GAAP Revenue Y/Y Growth
7
%
Organic Revenue Y/Y Growth
9%1
1 Organic revenue for the year ended
December 31, 2023, when used in the calculation of organic revenue
growth for the year ended December 31, 2024, excludes $52.8 million
of divestiture revenue. Revenue for the year ended December 31,
2023 was $4.15 billion.
Year Ended December
31,
2024
GAAP Communications Revenue
$
4,160,340
Communications Organic Revenue
$
4,160,340
GAAP Communications Revenue Y/Y Growth
8
%
Communications Organic Revenue Y/Y
Growth
9%1
1 Communications organic revenue for the
year ended December 31, 2023, when used in the calculation of
Communications organic revenue growth for the year ended December
31, 2024, excludes $52.8 million of divestiture revenue.
Communications revenue for the year ended December 31, 2023 was
$3.9 billion.
Three Months Ended
December 31,
2024
2023
Free cash flow
Net cash provided by operating
activities
$
108,446
$
222,545
Operating cash flow margin
9
%
21
%
Non-GAAP adjustments:
Capitalized software development costs
(11,549
)
(9,399
)
Purchase of long-lived and intangible
assets
(3,430
)
(2,291
)
Free cash flow
$
93,467
$
210,855
Free cash flow margin
8
%
20
%
Net cash provided by (used in) investing
activities
$
129,098
$
(137,142
)
Net cash used in financing activities
$
(407,770
)
$
(107,389
)
Year Ended December
31,
2024
2023
Free cash flow
Net cash provided by operating
activities
$
716,241
$
414,752
Operating cash flow margin
16
%
10
%
Non-GAAP adjustments:
Capitalized software development costs
(51,808
)
(39,925
)
Purchase of long-lived and intangible
assets
(6,978
)
(11,310
)
Free cash flow
$
657,455
$
363,517
Free cash flow margin
15
%
9
%
Net cash provided by investing
activities
$
1,370,837
$
228,603
Net cash used in financing activities
$
(2,311,572
)
$
(643,610
)
TWILIO INC.
Operating Results by Segment
(In thousands)
(Unaudited)
Three Months Ended December
31, 2024
Communications
Segment
Total
Revenue
$
1,120,782
$
74,053
$
1,194,835
Segment non-GAAP income (loss) from
operations
$
275,336
$
(10,042
)
$
265,294
Reconciliation of total segment
non-GAAP income from operations to loss from operations:
Total segment non-GAAP income from
operations
$
265,294
Corporate costs not allocated to
segments
(68,247
)
Stock-based compensation
(155,783
)
Amortization of acquired intangibles
(27,291
)
Payroll taxes related to stock-based
compensation
1,693
Charitable contributions
(1,996
)
Restructuring costs
57
Income from operations
13,727
Other expenses, net
(27,285
)
Loss before provision for income taxes
$
(13,558
)
Year Ended December 31,
2024
Communications
Segment
Total
Revenue
$
4,160,340
$
297,696
$
4,458,036
Segment non-GAAP income (loss) from
operations
$
1,042,049
$
(62,655
)
$
979,394
Reconciliation of total segment
non-GAAP income from operations to loss from operations:
Total segment non-GAAP income from
operations
$
979,394
Corporate costs not allocated to
segments
(265,000
)
Stock-based compensation
(613,429
)
Amortization of acquired intangibles
(111,851
)
Payroll taxes related to stock-based
compensation
(9,642
)
Charitable contributions
(19,907
)
Restructuring costs
(13,273
)
Loss from operations
(53,708
)
Other expenses, net
(34,905
)
Loss before provision for income taxes
$
(88,613
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250213215182/en/
Investor Contact: Bryan Vaniman ir@Twilio.com
or
Media Contact: Caitlin Epstein press@Twilio.com
Twilio (NYSE:TWLO)
Historical Stock Chart
From Jan 2025 to Feb 2025
Twilio (NYSE:TWLO)
Historical Stock Chart
From Feb 2024 to Feb 2025
