Twilio Announces Fourth Quarter and Full Year 2023 Results
- Strong revenue growth of 5% in the fourth quarter and 9% for the full year
- Organic revenue growth of 8% in Q4 and 10% for the full year
- Positive non-GAAP income from operations results
- More than 305,000 active customer accounts as of December 31, 2023
- Share repurchase program authorization of up to $1.0 billion
- Executive leadership update with Khozema Shipchandler appointed as CEO
- Operational review of the Segment business unit to drive improved execution and profitable growth
- GAAP loss from operations in Q4 and full year 2023
- Impairment related to intangible assets acquired as part of the Segment acquisition
- Uncertainty regarding the outcome of the Segment operational review
- Resignation of former CEO Jeff Lawson
Insights
The reported financial results from Twilio indicate a mixed performance. The year-over-year increase in revenue growth, both reported and organic, for the fourth quarter and full year is a positive sign, suggesting that the company's core business continues to expand. However, the sharp contrast between GAAP losses and non-GAAP income raises questions about the company's operational costs and non-operating expenses that are being excluded from non-GAAP measures. The substantial GAAP losses may concern investors about the sustainability of the current business model, despite the non-GAAP profitability.
Twilio's share repurchase program is another point of interest. The aggressive buyback, with over $730 million already repurchased, signals management's confidence in the company's valuation. This could be seen as a positive move to enhance shareholder value, but it also uses up cash that could have been invested in growth opportunities or used as a buffer against operational losses.
The operational review of the Segment business unit is a critical strategic move. The impairment charge of $285.7 million related to the Segment acquisition suggests that the expected synergies or performance metrics have not been met and investors will be keen on the outcome of this review for future profitability and strategic direction.
Twilio's performance in the customer engagement platform market is reflected in its dollar-based net expansion rate, which has declined year-over-year. This metric, which measures revenue growth from existing customers, suggests that while Twilio is still expanding its revenue base with current clients, the rate of expansion has slowed down. This could be indicative of increased competition or market saturation. However, the increase in active customer accounts shows that the company is still capable of attracting new business, which is essential for long-term growth.
The guidance for the first quarter of 2024 shows a more modest revenue growth expectation, which could be a sign of market headwinds or a strategic focus on profitability over top-line growth. Investors and analysts will need to monitor customer acquisition costs and retention rates closely, as these will be key factors in assessing Twilio's future performance in a competitive environment.
The executive leadership update, with the resignation of the former CEO and the appointment of a new one, represents a significant change in governance that could have implications for the company's strategic direction. While this might not directly affect the company's financials in the short term, it could influence investor confidence and the company's culture and operational approach moving forward. The market often reacts to such changes with caution until the new leadership's impact becomes clear.
It is also important to note the legal implications of the impairment charge related to the Segment acquisition. This financial adjustment reflects a reassessment of the intangible assets' value, which is a complex process that requires careful consideration of accounting standards and potential regulatory scrutiny. Investors should consider how these adjustments might affect the company's balance sheet and future earnings reports.
-
Fourth Quarter Revenue of
$1.08 billion 5% reported and8% organic year-over-year -
Full Year Revenue of
$4.15 billion 9% reported and10% organic year-over-year -
Fourth Quarter and Full Year GAAP Loss from Operations of
$362 million $877 million -
Fourth Quarter and Full Year Non-GAAP Income from Operations of
$173 million $533 million
“Twilio had a terrific fourth quarter to close out a strong 2023,” said Khozema Shipchandler, Twilio’s CEO. “It’s a privilege to lead the Twilio team into its next chapter as we continue to make strides on our path to GAAP profitability. We enter 2024 from a position of strength and the team is focused on further delivering on our customer engagement vision for our customers.”
Fourth Quarter 2023 Financial Highlights
-
Total revenue of
$1.08 billion 5% year-over-year. Communications revenue of$1.00 billion 5% year-over-year. Segment (formerly Data & Applications) revenue of$75.0 million 4% year-over-year. -
Total organic revenue growth of
8% year-over-year for the fourth quarter of 2023. Communications organic revenue growth of8% year-over-year for the fourth quarter of 2023. -
GAAP loss from operations of
$361.7 million $218.6 million -
Non-GAAP income from operations of
$172.6 million $32.9 million -
GAAP net loss per share attributable to common stockholders, basic and diluted, of
$2.01 $1.24 -
Non-GAAP net income per share attributable to common stockholders, diluted, of
$0.86 $0.22 -
Net Cash Provided by Operating Activities of
$222.5 million $210.9 million
Full Year 2023 Financial Highlights
-
Total revenue of
$4.15 billion 9% year-over-year. Communications revenue of$3.86 billion 9% year-over-year. Segment (formerly Data & Applications) revenue of$295.3 million 7% year-over-year. -
Total organic revenue growth of
10% year-over-year for the full year 2023. Communications organic revenue growth of11% year-over-year for the full year 2023. -
GAAP loss from operations of
$876.5 million $1.21 billion -
Non-GAAP income from operations of
$533.0 million $4.5 million -
GAAP net loss per share attributable to common stockholders, basic and diluted, of
$5.54 $6.86 -
Non-GAAP net income per share attributable to common stockholders, diluted, of
$2.45 $0.15 -
Net Cash Provided by Operating Activities of
$414.8 million $363.5 million
Key Metrics
- More than 305,000 Active Customer Accounts as of December 31, 2023 compared to more than 290,000 Active Customer Accounts as of December 31, 2022.
-
Dollar-Based Net Expansion Rate of
102% for the fourth quarter of 2023 compared to Dollar-Based Net Expansion Rate of110% for the fourth quarter of 2022. Dollar-Based Net Expansion Rate of103% for the full year 2023 compared to Dollar-Based Net Expansion Rate of121% for the full year 2022. - 5,867 employees as of December 31, 2023.
Share Repurchase Program
-
In February 2023, Twilio authorized a share repurchase program pursuant to which it may repurchase up to
$1.0 billion $730 million 73% of the total program amount. Twilio intends to continue making progress against the balance of its share repurchase authorization in future quarters. The program expires on December 31, 2024.
Executive Leadership Update
- On January 7, 2024, Jeff Lawson resigned as Twilio’s Chief Executive Officer (“CEO”), as a member of Twilio’s Board of Directors (the “Board”) and as Board Chair, in each case, effective January 8, 2024.
- On January 7, 2024, the Board appointed Khozema Shipchandler, Twilio’s President, Communications, as CEO of Twilio and as a member of the Board, effective January 8, 2024.
Business Unit Update
- In the fourth quarter of 2023, Twilio moved its Flex and Marketing Campaigns products from its Data & Applications business unit to its Communications business unit. Twilio has also renamed its Data & Applications business unit to Twilio Segment, which includes both its Segment and Engage products. As a result of these changes, all segment-level results and metrics have been recast accordingly.
Segment Update
-
Twilio announced that management is undergoing an operational review of the Segment business unit in order to identify the appropriate path forward for improved execution and profitable growth. Twilio management will provide more details on the outcome of this review upon its completion in March of 2024. During the fourth quarter, Twilio recorded a
$285.7 million
Outlook
Twilio plans to provide its full-year 2024 non-GAAP income from operations outlook, as well as any updates to its financial framework, following the completion of the Segment operational review in March of 2024. At a minimum, Twilio expects to exceed its 2023 non-GAAP income from operations for the full-year 2024.
Twilio is initiating guidance for the first quarter ending March 31, 2024.
|
|
Q1 FY24
|
Revenue (millions) |
|
|
Y/Y Revenue Growth |
|
|
Y/Y Organic Revenue Growth |
|
|
Non-GAAP income from operations (millions) |
|
|
Non-GAAP diluted earnings per share (1) |
|
|
Non-GAAP weighted average diluted shares outstanding (millions) |
|
185 |
(1) Non-GAAP diluted earnings per share guidance assumes no impact from volatility of foreign exchange rates. |
||
Conference Call Information
Twilio posted prepared remarks on its investor relations website at https://investors.twilio.com. Twilio is hosting a Q&A conference call today, February 14, 2024, to discuss its fourth quarter and full year 2023 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://events.q4inc.com/attendee/764646733. The live webcast of the conference call, as well as a replay, 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, 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 Twilio’s 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: Twilio’s future financial performance, including Twilio’s expected financial results and guidance; Twilio’s expectations regarding profitability, including when it will become profitable on GAAP and non-GAAP bases; Twilio’s anticipated strategies and business plans, including future strategic partnerships; Twilio’s expectations regarding the operational review of Segment; the ongoing effects of Twilio’s recent workforce reductions and other cost-saving measures; the reorganization of Twilio’s business and the shift in its segment reporting structure; Twilio’s expectations regarding compensation programs; Twilio’s expectations regarding its sales pipeline, the benefits of recently signed deals, new product releases, increased investment and go-to-market focus to capture market share, revenue growth, profit potential, anticipated cash flows, strategy for streamlining the customer experience, the effects of registering certain messaging traffic on Twilio’s results of operations; Twilio’s ability to develop products related to generative artificial intelligence and machine learning, including CustomerAI and its use cases; Twilio’s ability to deliver on its product roadmap; Twilio’s expectations regarding share repurchases; and Twilio’s expectations regarding the impact of macroeconomic and industry conditions, the impact of such conditions on Twilio’s customers, and Twilio’s ability to operate in such conditions. 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 successfully implement its cost-saving initiatives and to capture expected efficiencies; Twilio’s ability to realize the anticipated benefits of changes to its operating model and organizational structure; 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; Twilio’s ability to manage changes in network service provider fees and optimize its network service provider coverage and connectivity; Twilio’s ability to form and expand partnerships; and Twilio’s ability to successfully enter into new markets and manage its international expansion.
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 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. 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 and the accompanying conference call.
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 or the accompanying conference call to reflect events or circumstances occurring after this press release or accompanying conference call, as applicable, 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
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. Twilio has 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 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, Twilio defines 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, Twilio calculates 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, 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, 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, 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, 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 Stock-Based Compensation Expense and Non-GAAP Stock-Based Compensation Expense as a Percentage of Revenue. For the periods presented, Twilio defines non-GAAP stock-based compensation expense as GAAP stock-based compensation expense, adjusted to exclude stock-based compensation reflected in restructuring costs.
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, Twilio defines non-GAAP net income (loss) attributable to common stockholders and non‑GAAP net income (loss) per share attributable to common stockholders, diluted (which is often referred 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 share-based compensation, amortization of acquired intangibles, loss on net assets divested, acquisition and divestiture related expenses, payroll taxes related to stock-based compensation, amortization of debt discount and issuance costs, income tax benefit related to acquisitions, charitable contributions, share of losses from equity method investment, restructuring costs, impairment of long-lived assets and impairment of strategic investments.
Organic Revenue. For the periods presented, Twilio defines organic revenue as GAAP revenue, excluding (i) revenue from each acquired business and revenue from application-to-person (“A2P”) 10DLC fees imposed by major
Organic Revenue Growth. For the periods presented, Twilio calculates 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 denominator in the organic revenue growth calculation. As a result, the denominator used in this calculation will not always equal the 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. For the periods presented, Twilio calculates free cash flow as net cash provided by operating activities, excluding capitalized software development costs and purchases of long-lived and intangible assets.
Operating Metrics
Twilio reviews a number of operational and financial metrics, including Active Customer Accounts and Dollar-Based Net Expansion Rate, to evaluate its business, measure its performance, identify trends affecting its 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 Twilio’s competitors due to differences in methodology. The numbers that Twilio uses to calculate Active Customer Accounts and Dollar-Based Net Expansion Rate are based on internal data. While these numbers are based on what Twilio believes to be reasonable judgments and estimates for the applicable period of measurement, there are inherent challenges in measuring usage. Twilio regularly reviews and may adjust its processes for calculating its internal metrics to improve their accuracy. If investors or analysts do not perceive Twilio’s metrics to be accurate representations of its business, or if Twilio discovers material inaccuracies in its metrics, Twilio’s reputation, business, results of operations, and financial condition would be harmed.
Active Customer Accounts. 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
Twilio believes that the number of Active Customer Accounts, on an aggregate basis and at the segment level, is an important indicator of the growth of its business, the market acceptance of its platform and future revenue trends. Twilio believes that use of its platform by customers at or above the
Dollar-Based Net Expansion Rate. Twilio’s Dollar-Based Net Expansion Rate compares the total revenue from all Active Customer Accounts and customer accounts from Zipwhip, Inc. in a quarter to the same quarter in the prior year. To calculate the Dollar-Based Net Expansion Rate, Twilio first identifies the cohort of Active Customer Accounts and customer accounts from Zipwhip, Inc. that were Active Customer Accounts or customer accounts from Zipwhip, Inc. 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. 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, 2023, Twilio's Dollar-Based Net Expansion Rate excludes the contributions from acquisitions made after October 1, 2022. 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, 2023, Twilio’s Dollar-Based Net Expansion Rate excludes the contributions from divestitures made after December 31, 2022. 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, Inc. for that respective segment. Revenue from customer accounts from Zipwhip, Inc., which Twilio acquired on July 14, 2021, has been included in Twilio’s Dollar-Based Net Expansion Rate beginning in the quarter ended December 31, 2022.
Twilio believes that measuring Dollar-Based Net Expansion Rate, on an aggregate basis and at the segment level, provides an important indication of the performance of Twilio’s efforts to increase revenue from existing customers. Twilio’s ability to drive growth and generate incremental revenue depends, in part, on Twilio’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 Twilio lowers usage prices on a product. As Twilio’s customers grow their businesses and extend the use of Twilio's platform, they sometimes create multiple customer accounts with us for operational or other reasons. As such, when Twilio identifies a significant customer organization (defined as a single customer organization generating more than
Source: Twilio Inc.
TWILIO INC. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) |
||||||||
|
|
Three Months Ended December 31, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
1,075,950 |
|
|
$ |
1,024,574 |
|
Cost of revenue |
|
|
544,784 |
|
|
|
543,432 |
|
Gross profit |
|
|
531,166 |
|
|
|
481,142 |
|
Operating expenses: |
|
|
|
|
||||
Research and development |
|
|
235,645 |
|
|
|
274,094 |
|
Sales and marketing |
|
|
238,602 |
|
|
|
296,335 |
|
General and administrative |
|
|
106,968 |
|
|
|
125,095 |
|
Restructuring costs |
|
|
25,452 |
|
|
|
4,185 |
|
Impairment of long-lived assets |
|
|
286,226 |
|
|
|
— |
|
Total operating expenses |
|
|
892,893 |
|
|
|
699,709 |
|
Loss from operations |
|
|
(361,727 |
) |
|
|
(218,567 |
) |
Other income (expenses), net: |
|
|
|
|
||||
Share of losses from equity method investment |
|
|
(28,059 |
) |
|
|
(21,939 |
) |
Other income, net |
|
|
30,132 |
|
|
|
20,281 |
|
Total other income (expenses), net |
|
|
2,073 |
|
|
|
(1,658 |
) |
Loss before provision for income taxes |
|
|
(359,654 |
) |
|
|
(220,225 |
) |
Provision for income taxes |
|
|
(5,754 |
) |
|
|
(9,197 |
) |
Net loss attributable to common stockholders |
|
$ |
(365,408 |
) |
|
$ |
(229,422 |
) |
|
|
|
|
|
||||
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(2.01 |
) |
|
$ |
(1.24 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
|
181,786,135 |
|
|
|
185,120,702 |
|
TWILIO INC. Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) |
||||||||
|
|
Year Ended December 31, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
4,153,945 |
|
|
$ |
3,826,321 |
|
Cost of revenue |
|
|
2,110,015 |
|
|
|
2,012,744 |
|
Gross profit |
|
|
2,043,930 |
|
|
|
1,813,577 |
|
Operating expenses: |
|
|
|
|
||||
Research and development |
|
|
942,790 |
|
|
|
1,079,081 |
|
Sales and marketing |
|
|
1,022,985 |
|
|
|
1,248,032 |
|
General and administrative |
|
|
468,459 |
|
|
|
517,414 |
|
Restructuring costs |
|
|
165,733 |
|
|
|
76,636 |
|
Impairment of long-lived assets |
|
|
320,504 |
|
|
|
97,722 |
|
Total operating expenses |
|
|
2,920,471 |
|
|
|
3,018,885 |
|
Loss from operations |
|
|
(876,541 |
) |
|
|
(1,205,308 |
) |
Other expenses, net: |
|
|
|
|
||||
Share of losses from equity method investment |
|
|
(121,897 |
) |
|
|
(35,315 |
) |
Impairment of strategic investments |
|
|
(46,154 |
) |
|
|
— |
|
Other income (expenses), net |
|
|
47,863 |
|
|
|
(3,009 |
) |
Total other expenses, net |
|
|
(120,188 |
) |
|
|
(38,324 |
) |
Loss before provision for income taxes |
|
|
(996,729 |
) |
|
|
(1,243,632 |
) |
Provision for income taxes |
|
|
(18,712 |
) |
|
|
(12,513 |
) |
Net loss attributable to common stockholders |
|
$ |
(1,015,441 |
) |
|
$ |
(1,256,145 |
) |
|
|
|
|
|
||||
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(5.54 |
) |
|
$ |
(6.86 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
|
183,327,844 |
|
|
|
182,994,038 |
|
TWILIO INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
||||||||
|
|
As of December 31, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
655,931 |
|
|
$ |
651,752 |
|
Short-term marketable securities |
|
|
3,356,064 |
|
|
|
3,503,317 |
|
Accounts receivable, net |
|
|
562,773 |
|
|
|
547,507 |
|
Prepaid expenses and other current assets |
|
|
329,204 |
|
|
|
281,510 |
|
Total current assets |
|
|
4,903,972 |
|
|
|
4,984,086 |
|
Property and equipment, net |
|
|
209,639 |
|
|
|
263,979 |
|
Operating right-of-use assets |
|
|
73,959 |
|
|
|
121,341 |
|
Equity method investment |
|
|
593,582 |
|
|
|
699,911 |
|
Intangible assets, net |
|
|
350,490 |
|
|
|
849,935 |
|
Goodwill |
|
|
5,243,266 |
|
|
|
5,284,153 |
|
Other long-term assets |
|
|
234,799 |
|
|
|
360,899 |
|
Total assets |
|
$ |
11,609,707 |
|
|
$ |
12,564,304 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
119,615 |
|
|
$ |
124,605 |
|
Accrued expenses and other current liabilities |
|
|
424,311 |
|
|
|
490,221 |
|
Deferred revenue and customer deposits |
|
|
144,499 |
|
|
|
139,110 |
|
Operating lease liability, current |
|
|
49,872 |
|
|
|
54,222 |
|
Total current liabilities |
|
|
738,297 |
|
|
|
808,158 |
|
Operating lease liability, noncurrent |
|
|
120,770 |
|
|
|
164,551 |
|
Finance lease liability, noncurrent |
|
|
9,191 |
|
|
|
21,290 |
|
Long-term debt, net |
|
|
988,953 |
|
|
|
987,382 |
|
Other long-term liabilities |
|
|
19,944 |
|
|
|
23,881 |
|
Total liabilities |
|
|
1,877,155 |
|
|
|
2,005,262 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
182 |
|
|
|
186 |
|
Additional paid-in capital |
|
|
14,797,723 |
|
|
|
14,055,853 |
|
Accumulated other comprehensive income (loss) |
|
|
619 |
|
|
|
(121,161 |
) |
Accumulated deficit |
|
|
(5,065,972 |
) |
|
|
(3,375,836 |
) |
Total stockholders’ equity |
|
|
9,732,552 |
|
|
|
10,559,042 |
|
Total liabilities and stockholders’ equity |
|
$ |
11,609,707 |
|
|
$ |
12,564,304 |
|
TWILIO INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
|
|
Years Ended December 31, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
||||||
Net loss |
|
$ |
(1,015,441 |
) |
|
$ |
(1,256,145 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
284,413 |
|
|
|
279,127 |
|
Non-cash reduction to the right-of-use asset |
|
|
26,971 |
|
|
|
47,160 |
|
Net amortization of investment premium and discount |
|
|
(44 |
) |
|
|
33,165 |
|
Impairment of long-lived assets |
|
|
320,504 |
|
|
|
97,722 |
|
Stock-based compensation including restructuring |
|
|
675,857 |
|
|
|
798,560 |
|
Amortization of deferred commissions |
|
|
72,892 |
|
|
|
57,913 |
|
Realized and unrealized losses on equity securities |
|
|
8,043 |
|
|
|
— |
|
Provision for doubtful accounts |
|
|
51,859 |
|
|
|
35,012 |
|
Value of shares of Class A common stock issued and donated to charity |
|
|
5,346 |
|
|
|
9,541 |
|
Share of losses from equity method investment |
|
|
121,897 |
|
|
|
35,315 |
|
Impairment of strategic investments |
|
|
46,154 |
|
|
|
— |
|
Loss on net assets divested |
|
|
32,277 |
|
|
|
— |
|
Other adjustments |
|
|
14,669 |
|
|
|
4,905 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(85,093 |
) |
|
|
(194,655 |
) |
Prepaid expenses and other current assets |
|
|
(56,283 |
) |
|
|
(94,326 |
) |
Other long-term assets |
|
|
(2,328 |
) |
|
|
(146,458 |
) |
Accounts payable |
|
|
12,370 |
|
|
|
30,336 |
|
Accrued expenses and other current liabilities |
|
|
(51,816 |
) |
|
|
75,430 |
|
Deferred revenue and customer deposits |
|
|
5,371 |
|
|
|
(2,688 |
) |
Operating lease liabilities |
|
|
(56,340 |
) |
|
|
(54,450 |
) |
Other long-term liabilities |
|
|
3,474 |
|
|
|
(9,832 |
) |
Net cash provided by (used in) operating activities |
|
|
414,752 |
|
|
|
(254,368 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Acquisitions, net of cash acquired and payments related to prior period acquisitions |
|
|
(5,770 |
) |
|
|
(37,410 |
) |
Divestitures, net of cash divested |
|
|
38,194 |
|
|
|
— |
|
Purchases of marketable securities and other investments |
|
|
(1,953,003 |
) |
|
|
(1,938,337 |
) |
Proceeds from sales and maturities of marketable securities |
|
|
2,200,417 |
|
|
|
1,439,477 |
|
Capitalized software development costs |
|
|
(39,925 |
) |
|
|
(45,761 |
) |
Purchases of long-lived and intangible assets |
|
|
(11,310 |
) |
|
|
(34,421 |
) |
Net cash provided by (used in) investing activities |
|
|
228,603 |
|
|
|
(616,452 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Payments of costs related to public offerings |
|
|
— |
|
|
|
(35 |
) |
Principal payments on debt and finance leases |
|
|
(16,134 |
) |
|
|
(13,423 |
) |
Value of equity awards withheld for tax liabilities |
|
|
(2,565 |
) |
|
|
(1,098 |
) |
Repurchases of shares of Class A common stock and related costs |
|
|
(668,751 |
) |
|
|
— |
|
Proceeds from exercises of stock options and shares of Class A common stock issued under ESPP |
|
|
43,840 |
|
|
|
59,563 |
|
Net cash (used in) provided by financing activities |
|
|
(643,610 |
) |
|
|
45,007 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
108 |
|
|
|
60 |
|
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
(147 |
) |
|
|
(825,753 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period |
|
|
656,078 |
|
|
|
1,481,831 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period |
|
$ |
655,931 |
|
|
$ |
656,078 |
|
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, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
GAAP gross profit |
|
$ |
531,166 |
|
|
$ |
481,142 |
|
GAAP gross margin |
|
|
49 |
% |
|
|
47 |
% |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
7,666 |
|
|
|
6,505 |
|
Amortization of acquired intangibles |
|
|
24,591 |
|
|
|
30,052 |
|
Payroll taxes related to stock-based compensation |
|
|
200 |
|
|
|
82 |
|
Non-GAAP gross profit |
|
$ |
563,623 |
|
|
$ |
517,781 |
|
Non-GAAP gross margin |
|
|
52 |
% |
|
|
51 |
% |
GAAP research and development |
|
$ |
235,645 |
|
|
$ |
274,094 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(84,772 |
) |
|
|
(95,166 |
) |
Amortization of acquired intangibles |
|
|
(653 |
) |
|
|
(420 |
) |
Payroll taxes related to stock-based compensation |
|
|
(979 |
) |
|
|
(953 |
) |
Non-GAAP research and development |
|
$ |
149,241 |
|
|
$ |
177,555 |
|
Non-GAAP research and development as % of revenue |
|
|
14 |
% |
|
|
17 |
% |
|
|
|
|
|
||||
GAAP sales and marketing |
|
$ |
238,602 |
|
|
$ |
296,335 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(41,046 |
) |
|
|
(55,284 |
) |
Amortization of acquired intangibles |
|
|
(17,227 |
) |
|
|
(20,429 |
) |
Payroll taxes related to stock-based compensation |
|
|
(658 |
) |
|
|
(781 |
) |
Non-GAAP sales and marketing |
|
$ |
179,671 |
|
|
$ |
219,841 |
|
Non-GAAP sales and marketing as % of revenue |
|
|
17 |
% |
|
|
21 |
% |
|
|
|
|
|
||||
GAAP general and administrative |
|
$ |
106,968 |
|
|
$ |
125,095 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(31,087 |
) |
|
|
(36,344 |
) |
Acquisition and divestiture related expenses |
|
|
(40 |
) |
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
(409 |
) |
|
|
(207 |
) |
Charitable contributions |
|
|
(13,361 |
) |
|
|
(1,025 |
) |
Non-GAAP general and administrative |
|
$ |
62,071 |
|
|
$ |
87,519 |
|
Non-GAAP general and administrative as % of revenue |
|
|
6 |
% |
|
|
9 |
% |
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, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
GAAP loss from operations |
|
$ |
(361,727 |
) |
|
$ |
(218,567 |
) |
GAAP operating margin |
|
|
(34 |
)% |
|
|
(21 |
)% |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
164,571 |
|
|
|
193,299 |
|
Amortization of acquired intangibles |
|
|
42,471 |
|
|
|
50,901 |
|
Acquisition and divestiture related expenses |
|
|
40 |
|
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
2,246 |
|
|
|
2,023 |
|
Charitable contributions |
|
|
13,361 |
|
|
|
1,025 |
|
Restructuring costs |
|
|
25,452 |
|
|
|
4,185 |
|
Impairment of long-lived assets |
|
|
286,226 |
|
|
|
— |
|
Non-GAAP income from operations |
|
$ |
172,640 |
|
|
$ |
32,866 |
|
Non-GAAP operating margin |
|
|
16 |
% |
|
|
3 |
% |
|
|
|
|
|
||||
GAAP net loss attributable to common stockholders |
|
$ |
(365,408 |
) |
|
$ |
(229,422 |
) |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
164,571 |
|
|
|
193,299 |
|
Amortization of acquired intangibles |
|
|
42,471 |
|
|
|
50,901 |
|
Acquisition and divestiture related expenses |
|
|
40 |
|
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
2,246 |
|
|
|
2,023 |
|
Accretion of debt discount and issuance costs |
|
|
398 |
|
|
|
397 |
|
Income tax benefit related to acquisitions |
|
|
(631 |
) |
|
|
(2,664 |
) |
Provision of income tax effects related to non-GAAP adjustments |
|
|
(38,312 |
) |
|
|
— |
|
Charitable contributions |
|
|
13,361 |
|
|
|
1,025 |
|
Share of losses of equity method investment |
|
|
28,059 |
|
|
|
21,939 |
|
Restructuring costs |
|
|
25,452 |
|
|
|
4,185 |
|
Impairment of long-lived assets |
|
|
286,226 |
|
|
|
— |
|
Gains on strategic investments |
|
|
— |
|
|
|
(631 |
) |
Non-GAAP net income attributable to common stockholders |
|
$ |
158,473 |
|
|
$ |
41,052 |
|
Non-GAAP net income attributable to common stockholders as % of revenue |
|
|
15 |
% |
|
|
4 |
% |
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, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
GAAP net loss per share attributable to common stockholders, basic and diluted* |
|
$ |
(2.01 |
) |
|
$ |
(1.24 |
) |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
0.89 |
|
|
|
1.03 |
|
Amortization of acquired intangibles |
|
|
0.23 |
|
|
|
0.27 |
|
Acquisition and divestiture related expenses |
|
|
— |
|
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
0.01 |
|
|
|
0.01 |
|
Accretion of debt discount and issuance costs |
|
|
— |
|
|
|
— |
|
Income tax benefit related to acquisitions |
|
|
— |
|
|
|
(0.01 |
) |
Provision of income tax effects related to non-GAAP adjustments |
|
|
(0.21 |
) |
|
|
— |
|
Charitable contributions |
|
|
0.07 |
|
|
|
0.01 |
|
Share of losses of equity method investment |
|
|
0.15 |
|
|
|
0.12 |
|
Restructuring costs |
|
|
0.14 |
|
|
|
0.02 |
|
Impairment of long-lived assets |
|
|
1.56 |
|
|
|
— |
|
Other dilutive |
|
|
0.03 |
|
|
|
0.01 |
|
Non-GAAP net income per share attributable to common stockholders, diluted |
|
$ |
0.86 |
|
|
$ |
0.22 |
|
|
|
|
|
|
||||
GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic |
|
|
181,786,135 |
|
|
|
185,120,702 |
|
|
|
|
|
|
||||
Weighted Average Diluted Shares Outstanding |
|
|
2,248,261 |
|
|
|
2,104,014 |
|
|
|
|
|
|
||||
Non-GAAP weighted-average shares used to compute non-GAAP net income per share attributable to common stockholders, diluted |
|
|
184,034,396 |
|
|
|
187,224,716 |
|
* 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, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
GAAP gross profit |
|
$ |
2,043,930 |
|
|
$ |
1,813,577 |
|
GAAP gross margin |
|
|
49 |
% |
|
|
47 |
% |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
26,343 |
|
|
|
21,136 |
|
Amortization of acquired intangibles |
|
|
113,266 |
|
|
|
122,653 |
|
Payroll taxes related to stock-based compensation |
|
|
699 |
|
|
|
539 |
|
Non-GAAP gross profit |
|
$ |
2,184,238 |
|
|
$ |
1,957,905 |
|
Non-GAAP gross margin |
|
|
53 |
% |
|
|
51 |
% |
GAAP research and development |
|
$ |
942,790 |
|
|
$ |
1,079,081 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(331,526 |
) |
|
|
(374,846 |
) |
Amortization of acquired intangibles |
|
|
(1,913 |
) |
|
|
(1,680 |
) |
Acquisition and divestiture related expenses |
|
|
(488 |
) |
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
(6,779 |
) |
|
|
(11,274 |
) |
Non-GAAP research and development |
|
$ |
602,084 |
|
|
$ |
691,281 |
|
Non-GAAP research and development as a % of revenue |
|
|
14 |
% |
|
|
18 |
% |
|
|
|
|
|
||||
GAAP sales and marketing |
|
$ |
1,022,985 |
|
|
$ |
1,248,032 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(183,389 |
) |
|
|
(240,109 |
) |
Amortization of acquired intangibles |
|
|
(77,128 |
) |
|
|
(81,841 |
) |
Acquisition and divestiture related expenses |
|
|
(1,091 |
) |
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
(3,715 |
) |
|
|
(9,539 |
) |
Non-GAAP sales and marketing |
|
$ |
757,662 |
|
|
$ |
916,543 |
|
Non-GAAP sales and marketing as a % of revenue |
|
|
18 |
% |
|
|
24 |
% |
|
|
|
|
|
||||
GAAP general and administrative |
|
$ |
468,459 |
|
|
$ |
517,414 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(121,584 |
) |
|
|
(148,194 |
) |
Amortization of acquired intangibles |
|
|
— |
|
|
|
(7 |
) |
Acquisition and divestiture related expenses |
|
|
(3,976 |
) |
|
|
(2,621 |
) |
Loss on net assets divested |
|
|
(32,277 |
) |
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
(1,792 |
) |
|
|
(2,480 |
) |
Charitable contributions |
|
|
(17,346 |
) |
|
|
(9,541 |
) |
Non-GAAP general and administrative |
|
$ |
291,484 |
|
|
$ |
354,571 |
|
Non-GAAP general and administrative as a % of revenue |
|
|
7 |
% |
|
|
9 |
% |
TWILIO INC. Reconciliation to Non-GAAP Financial Measures (In thousands, except shares, per share amounts and percentages) (Unaudited) |
||||||||
|
|
Year Ended December 31, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
GAAP loss from operations |
|
$ |
(876,541 |
) |
|
$ |
(1,205,308 |
) |
GAAP operating margin |
|
|
(21 |
)% |
|
|
(32 |
)% |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
662,842 |
|
|
|
784,285 |
|
Amortization of acquired intangibles |
|
|
192,307 |
|
|
|
206,181 |
|
Acquisition and divestiture related expenses |
|
|
5,555 |
|
|
|
2,621 |
|
Loss on net assets divested |
|
|
32,277 |
|
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
12,985 |
|
|
|
23,832 |
|
Charitable contributions |
|
|
17,346 |
|
|
|
9,541 |
|
Restructuring costs |
|
|
165,733 |
|
|
|
76,636 |
|
Impairment of long-lived assets |
|
|
320,504 |
|
|
|
97,722 |
|
Non-GAAP income from operations |
|
$ |
533,008 |
|
|
$ |
(4,490 |
) |
Non-GAAP operating margin |
|
|
13 |
% |
|
|
— |
% |
GAAP net loss attributable to common stockholders |
|
$ |
(1,015,441 |
) |
|
$ |
(1,256,145 |
) |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
662,842 |
|
|
|
784,285 |
|
Amortization of acquired intangibles |
|
|
192,307 |
|
|
|
206,181 |
|
Acquisition and divestiture related expenses |
|
|
5,555 |
|
|
|
2,621 |
|
Loss on net assets divested |
|
|
32,277 |
|
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
12,985 |
|
|
|
23,832 |
|
Accretion of debt discount and issuance costs |
|
|
1,571 |
|
|
|
1,490 |
|
Income tax benefit related to acquisition |
|
|
(1,382 |
) |
|
|
(7,617 |
) |
Provision of income tax effects related to non-GAAP adjustments |
|
|
(108,044 |
) |
|
|
— |
|
Charitable contributions |
|
|
17,346 |
|
|
|
9,541 |
|
Share of losses of equity method investment |
|
|
121,897 |
|
|
|
35,315 |
|
Restructuring costs |
|
|
165,733 |
|
|
|
76,636 |
|
Impairment of long-lived assets |
|
|
320,504 |
|
|
|
97,722 |
|
Impairment of (gains on) strategic investments |
|
|
46,154 |
|
|
|
(631 |
) |
Non-GAAP net income (loss) attributable to common stockholders |
|
$ |
454,304 |
|
|
$ |
(26,770 |
) |
Non-GAAP net income (loss) attributable to common stockholders as % of revenue |
|
|
11 |
% |
|
|
(1 |
)% |
TWILIO INC. Reconciliation to Non-GAAP Financial Measures (In thousands, except shares, per share amounts and percentages) (Unaudited) |
||||||||
|
|
Year Ended December 31, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
GAAP net loss per share attributable to common stockholders, basic and diluted* |
|
$ |
(5.54 |
) |
|
$ |
(6.86 |
) |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
3.58 |
|
|
|
4.29 |
|
Amortization of acquired intangibles |
|
|
1.04 |
|
|
|
1.13 |
|
Acquisition and divestiture related expenses |
|
|
0.03 |
|
|
|
0.01 |
|
Loss on net assets divested |
|
|
0.17 |
|
|
|
— |
|
Payroll taxes related to stock-based compensation |
|
|
0.07 |
|
|
|
0.13 |
|
Accretion of debt discount and issuance costs |
|
|
0.01 |
|
|
|
0.01 |
|
Income tax benefit related to acquisition |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
Provision for income tax effects related to non-GAAP adjustments |
|
|
(0.58 |
) |
|
|
— |
|
Charitable contributions |
|
|
0.09 |
|
|
|
0.05 |
|
Share of losses of equity method investment |
|
|
0.66 |
|
|
|
0.19 |
|
Restructuring costs |
|
|
0.89 |
|
|
|
0.42 |
|
Impairment of long-lived assets |
|
|
1.73 |
|
|
|
0.53 |
|
Impairment of (gains on) strategic investments |
|
|
0.25 |
|
|
|
— |
|
Other dilutive |
|
|
0.06 |
|
|
|
— |
|
Non-GAAP net income (loss) per share attributable to common stockholders, diluted |
|
$ |
2.45 |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
||||
GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
|
|
183,327,844 |
|
|
|
182,994,038 |
|
|
|
|
|
|
||||
Weighted average dilutive shares outstanding |
|
|
2,052,559 |
|
|
|
— |
|
|
|
|
|
|
||||
Non-GAAP weighted-average shares used to compute Non-GAAP net income (loss) per share attributable to common stockholders, diluted |
|
|
185,380,403 |
|
|
|
182,994,038 |
|
* Some columns may not add due to rounding. |
||||||||
TWILIO INC. Reconciliation to Non-GAAP Financial Measures (In thousands, except percentages) (Unaudited) |
||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||
|
|
|
2023 |
|
|
|
2023 |
|
GAAP Revenue |
|
$ |
1,075,950 |
|
|
$ |
4,153,945 |
|
Acquisition revenue |
|
|
— |
|
|
|
(2,088 |
) |
Divestiture revenue |
|
|
— |
|
|
|
(6,142 |
) |
Organic revenue |
|
$ |
1,075,950 |
|
|
$ |
4,145,715 |
|
GAAP Revenue Y/Y Growth |
|
|
5 |
% |
|
|
9 |
% |
Organic Revenue Y/Y Growth |
|
|
|
|
|
|
|
|
1 Organic revenue for the three months ended December 31, 2022, when used as the denominator for Organic Revenue Growth for the three months ended December 31, 2023, excludes
2 Organic revenue for the year ended December 31, 2022, when used as the denominator for Organic Revenue Growth for the year ended December 31, 2023, excludes |
||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||
|
|
|
2023 |
|
|
|
2023 |
|
GAAP Communications Revenue |
|
$ |
1,000,920 |
|
|
$ |
3,858,693 |
|
Acquisition revenue |
|
|
— |
|
|
|
(2,088 |
) |
Divestiture revenue |
|
|
— |
|
|
|
(6,142 |
) |
Communications organic revenue |
|
$ |
1,000,920 |
|
|
$ |
3,850,463 |
|
GAAP Communications Revenue Y/Y Growth |
|
|
5 |
% |
|
|
9 |
% |
Communications Organic Revenue Y/Y Growth |
|
|
|
|
|
|
|
|
1 Communications organic revenue for the three months ended December 31, 2022, when used as the denominator for Communications Organic Revenue Growth for the three months ended December 31, 2023, excludes
2 Communications organic revenue for the year ended December 31, 2022, when used as the denominator for Communications Organic Revenue Growth for the year ended December 31, 2023, excludes |
||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||
|
|
|
2023 |
|
|
|
2023 |
|
Free cash flow |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
222,545 |
|
|
$ |
414,752 |
|
Capitalized software development costs |
|
|
(9,399 |
) |
|
|
(39,925 |
) |
Purchase of long-lived and intangible assets |
|
|
(2,291 |
) |
|
|
(11,310 |
) |
Free cash flow |
|
$ |
210,855 |
|
|
$ |
363,517 |
|
TWILIO INC. Segment Operating Results (In thousands) (Unaudited) |
||||||||
|
|
Three Months Ended
|
Year Ended December 31, |
|||||
|
|
|
2023 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
||||
Communications |
|
$ |
1,000,920 |
|
|
$ |
3,858,693 |
|
Segment |
|
|
75,030 |
|
|
|
295,252 |
|
Total |
|
$ |
1,075,950 |
|
|
$ |
4,153,945 |
|
Non-GAAP income (loss) from operations: |
|
|
|
|
||||
Communications |
|
$ |
248,391 |
|
|
$ |
841,990 |
|
Segment |
|
|
(18,493 |
) |
|
|
(72,430 |
) |
Corporate costs |
|
|
(57,258 |
) |
|
|
(236,552 |
) |
Total |
|
$ |
172,640 |
|
|
$ |
533,008 |
|
|
|
|
|
|
||||
Reconciliation of non-GAAP income from operations to loss from operations: |
|
|
|
|
||||
Total non-GAAP income from operations |
|
$ |
172,640 |
|
|
$ |
533,008 |
|
Stock-based compensation |
|
|
(164,571 |
) |
|
|
(662,842 |
) |
Amortization of acquired intangibles |
|
|
(42,471 |
) |
|
|
(192,307 |
) |
Acquisition and divestiture related expenses |
|
|
(40 |
) |
|
|
(5,555 |
) |
Loss on net assets divested |
|
|
— |
|
|
|
(32,277 |
) |
Payroll taxes related to stock-based compensation |
|
|
(2,246 |
) |
|
|
(12,985 |
) |
Charitable contributions |
|
|
(13,361 |
) |
|
|
(17,346 |
) |
Restructuring costs |
|
|
(25,452 |
) |
|
|
(165,733 |
) |
Impairment of long-lived assets |
|
|
(286,226 |
) |
|
|
(320,504 |
) |
Loss from operations |
|
|
(361,727 |
) |
|
|
(876,541 |
) |
Other income (expenses), net |
|
|
2,073 |
|
|
|
(120,188 |
) |
Loss before provision for income taxes |
|
$ |
(359,654 |
) |
|
$ |
(996,729 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214524395/en/
Investor Contact:
Bryan Vaniman
ir@Twilio.com
or
Media Contact:
Caitlin Epstein
press@Twilio.com
Source: Twilio Inc.
FAQ
What was Twilio's total revenue for the fourth quarter of 2023?
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What is the Dollar-Based Net Expansion Rate for the full year 2023?
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