Twilio Announces Second Quarter 2022 Results
Twilio reported second-quarter revenue of $943.4 million, marking a 41% year-over-year increase. The company achieved a Dollar-Based Net Expansion Rate of 123%. Despite revenue growth, Twilio faced a GAAP loss from operations of $311.9 million, up from $202.3 million a year earlier. Non-GAAP losses were reported at $7.3 million. Twilio anticipates third-quarter revenue between $965-$975 million, reflecting 30%-32% year-over-year growth. Additionally, Miyuki Suzuki joined the Board of Directors, enhancing expertise in key growth markets.
- Second quarter revenue of $943.4 million, up 41% year-over-year.
- Dollar-Based Net Expansion Rate of 123%.
- Anticipated Q3 FY22 revenue guidance of $965-$975 million, indicating 30%-32% year-over-year growth.
- GAAP loss from operations increased to $311.9 million from $202.3 million year-over-year.
- Non-GAAP loss from operations of $7.3 million compared to a non-GAAP income of $4.2 million in the prior year.
-
Second Quarter Revenue of
, up$943.4 million 41% Year-Over-Year -
Second Quarter Revenue Dollar-Based Net Expansion Rate of
123%
“We closed a strong second quarter, delivering
Second Quarter 2022 Financial Highlights
-
Revenue of
for the second quarter of 2022, up$943.4 million 41% year-over-year, including from Zipwhip. Organic revenue1 grew$34.0 million 33% year-over-year.
-
GAAP loss from operations of
for the second quarter of 2022, compared with GAAP loss from operations of$311.9 million for the second quarter of 2021.$202.3 million
-
Non-GAAP loss from operations of
for the second quarter of 2022 compared with non-GAAP income from operations of$7.3 million for the second quarter of 2021.$4.2 million
-
GAAP net loss per share attributable to common stockholders, basic and diluted, of
based on 182.3 million weighted average shares outstanding in the second quarter of 2022, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of$1.77 based on 173.4 million weighted average shares outstanding in the second quarter of 2021.$1.31
-
Non-GAAP net loss per share attributable to common stockholders, basic and diluted, of
based on 182.3 million non-GAAP weighted average shares outstanding in the second quarter of 2022, compared with non-GAAP net loss per share attributable to common stockholders, basic and diluted, of$0.11 based on 173.4 million non-GAAP weighted average shares outstanding in the second quarter of 2021.$0.11
_________________________________
1Organic revenue excludes revenue from Zipwhip and all other acquisitions closed after |
Key Metrics
-
More than 275,000 Active Customer Accounts as of
June 30, 2022 , compared to 240,000 Active Customer Accounts as ofJune 30, 2021 .
-
Dollar-Based Net Expansion Rate was
123% for the second quarter of 2022, compared to135% for the second quarter of 2021. Results from acquisitions closed afterApril 1, 2021 , including Zipwhip, do not impact the calculation of this metric in either period.
-
8,510 employees as of
June 30, 2022 .
New Addition to the Board of Directors
The Company announced that
Outlook
|
|
Q3 FY22
|
|
Revenue (millions) |
|
|
|
Y/Y Growth |
|
|
|
Organic Y/Y Growth (1) |
|
|
|
Non-GAAP loss from operations (millions) (2) |
|
( |
|
Non-GAAP loss per share (2) |
|
( |
|
Non-GAAP basic shares outstanding (millions) |
|
183 |
|
(1) Organic revenue growth guidance excludes all revenue from Zipwhip and all other acquisitions that closed after |
|||
(2) Includes an estimated |
Conference Call Information
About
Today's leading companies trust
Forward-Looking Statements
This press release and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “can,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this press release and the accompanying conference call include, but are not limited to, statements about: Twilio’s outlook for the quarter ending
The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause Twilio’s actual results, performance, or achievements to differ materially from those described in the forward-looking statements, including, among other things: adverse changes in general economic or market conditions, including labor shortages, supply chain disruptions, a downturn, recession and inflation; changes in the market for communications; the impact of COVID-19 on
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
Forward-looking statements represent Twilio’s management’s beliefs and assumptions only as of the date such statements are made.
Use of Non-GAAP Financial Measures
To provide investors and others with additional information regarding Twilio’s results, the following non-GAAP financial measures are disclosed:
Non‑GAAP Gross Profit and Non‑GAAP Gross Margin. For the periods presented,
Non‑GAAP Operating Expenses. For the periods presented,
Non‑GAAP Income (Loss) from Operations and Non‑GAAP Operating Margin. For the periods presented,
Non-GAAP Tax Rate.
Non‑GAAP Net Income (Loss) Attributable to Common Stockholders and Non‑GAAP Net Income (Loss) Per Share Attributable to Common Stockholders, Basic and Diluted. For the periods presented,
Twilio’s management uses the foregoing non-GAAP financial information, collectively, to evaluate its ongoing operations and for internal planning and forecasting purposes. Twilio’s management believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar non-GAAP financial information to supplement their GAAP results. Non‑GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from similarly‑titled non‑GAAP measures used by other companies. Whenever
With respect to Twilio’s guidance as provided under “Outlook” above,
Operating Metrics
Number of Active Customer Accounts.
Dollar-Based Net Expansion Rate. Twilio’s ability to drive growth and generate incremental revenue depends, in part, on the Company’s ability to maintain and grow its relationships with existing Active Customer Accounts and to increase their use of the platform. An important way in which
Twilio’s Dollar-Based Net Expansion Rate compares the total revenue from all Active Customer Accounts in a quarter to the same quarter in the prior year. To calculate the Dollar-Based Net Expansion Rate,
Source:
Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
$ |
943,354 |
|
|
$ |
668,931 |
|
Cost of revenue |
|
|
498,065 |
|
|
|
337,684 |
|
Gross profit |
|
|
445,289 |
|
|
|
331,247 |
|
Operating expenses: |
|
|
|
|
||||
Research and development |
|
|
279,641 |
|
|
|
181,280 |
|
Sales and marketing |
|
|
334,958 |
|
|
|
238,058 |
|
General and administrative |
|
|
142,626 |
|
|
|
114,183 |
|
Total operating expenses |
|
|
757,225 |
|
|
|
533,521 |
|
Loss from operations |
|
|
(311,936 |
) |
|
|
(202,274 |
) |
Other expenses, net |
|
|
(8,239 |
) |
|
|
(24,293 |
) |
Loss before provision for income taxes |
|
|
(320,175 |
) |
|
|
(226,567 |
) |
Provision for income taxes |
|
|
(2,594 |
) |
|
|
(1,286 |
) |
Net loss attributable to common stockholders |
|
$ |
(322,769 |
) |
|
$ |
(227,853 |
) |
|
|
|
|
|
||||
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(1.77 |
) |
|
$ |
(1.31 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
|
182,347,864 |
|
|
|
173,407,187 |
|
Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
||||||||
|
|
As of
|
|
As of
|
||||
|
|
|
2022 |
|
|
|
2021 |
|
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
798,625 |
|
|
$ |
1,479,452 |
|
Short-term marketable securities |
|
|
3,593,659 |
|
|
|
3,878,430 |
|
Accounts receivable, net |
|
|
471,915 |
|
|
|
388,215 |
|
Prepaid expenses and other current assets |
|
|
240,192 |
|
|
|
186,131 |
|
Total current assets |
|
|
5,104,391 |
|
|
|
5,932,228 |
|
Property and equipment, net |
|
|
264,767 |
|
|
|
255,316 |
|
Operating right-of-use assets |
|
|
213,464 |
|
|
|
234,584 |
|
Equity method investment |
|
|
750,000 |
|
|
|
— |
|
Intangible assets, net |
|
|
953,522 |
|
|
|
1,050,012 |
|
|
|
|
5,285,563 |
|
|
|
5,263,166 |
|
Other long-term assets |
|
|
297,522 |
|
|
|
263,292 |
|
Total assets |
|
$ |
12,869,229 |
|
|
$ |
12,998,598 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
102,039 |
|
|
$ |
93,333 |
|
Accrued expenses and other current liabilities |
|
|
504,810 |
|
|
|
417,503 |
|
Deferred revenue and customer deposits |
|
|
137,728 |
|
|
|
140,389 |
|
Operating lease liability, current |
|
|
50,743 |
|
|
|
52,325 |
|
Total current liabilities |
|
|
795,320 |
|
|
|
703,550 |
|
Operating lease liability, noncurrent |
|
|
189,068 |
|
|
|
211,253 |
|
Finance lease liability, noncurrent |
|
|
18,935 |
|
|
|
25,132 |
|
Long-term debt, net |
|
|
986,619 |
|
|
|
985,907 |
|
Other long-term liabilities |
|
|
37,292 |
|
|
|
41,290 |
|
Total liabilities |
|
|
2,027,234 |
|
|
|
1,967,132 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
183 |
|
|
|
180 |
|
Additional paid-in capital |
|
|
13,623,300 |
|
|
|
13,169,118 |
|
Accumulated other comprehensive loss |
|
|
(117,401 |
) |
|
|
(18,141 |
) |
Accumulated deficit |
|
|
(2,664,087 |
) |
|
|
(2,119,691 |
) |
Total stockholders’ equity |
|
|
10,841,995 |
|
|
|
11,031,466 |
|
Total liabilities and stockholders’ equity |
|
$ |
12,869,229 |
|
|
$ |
12,998,598 |
|
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
||||||
Net loss |
|
$ |
(544,396 |
) |
|
$ |
(434,395 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
137,744 |
|
|
|
119,405 |
|
Non-cash reduction to the right-of-use asset |
|
|
25,539 |
|
|
|
23,200 |
|
Net amortization of investment premium and discount |
|
|
20,274 |
|
|
|
13,834 |
|
Amortization of debt discount and issuance costs |
|
|
713 |
|
|
|
5,081 |
|
Stock-based compensation |
|
|
397,366 |
|
|
|
281,323 |
|
Amortization of deferred commissions |
|
|
26,076 |
|
|
|
12,394 |
|
Value of shares of Class A common stock donated to charity |
|
|
6,605 |
|
|
|
16,194 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
28,986 |
|
Other adjustments |
|
|
9,927 |
|
|
|
8,313 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
(91,782 |
) |
|
|
(41,687 |
) |
Prepaid expenses and other current assets |
|
|
(57,997 |
) |
|
|
(44,604 |
) |
Other long-term assets |
|
|
(52,521 |
) |
|
|
(39,118 |
) |
Accounts payable |
|
|
6,654 |
|
|
|
27,078 |
|
Accrued expenses and other current liabilities |
|
|
78,430 |
|
|
|
65,923 |
|
Deferred revenue and customer deposits |
|
|
(3,984 |
) |
|
|
7,615 |
|
Operating lease liabilities |
|
|
(31,127 |
) |
|
|
(23,610 |
) |
Other long-term liabilities |
|
|
(7,662 |
) |
|
|
290 |
|
Net cash (used in) provided by operating activities |
|
|
(80,141 |
) |
|
|
26,222 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
||||
Acquisitions, net of cash acquired and other related payments |
|
|
(31,697 |
) |
|
|
(94,178 |
) |
Purchases of marketable securities and other investments |
|
|
(1,325,366 |
) |
|
|
(2,807,798 |
) |
Proceeds from sales and maturities of marketable securities |
|
|
754,574 |
|
|
|
754,466 |
|
Capitalized software development costs |
|
|
(22,361 |
) |
|
|
(21,839 |
) |
Purchases of long-lived and intangible assets |
|
|
(10,779 |
) |
|
|
(12,140 |
) |
Net cash used in investing activities |
|
|
(635,629 |
) |
|
|
(2,181,489 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
||||
Proceeds from public offerings, net of underwriters' discounts |
|
|
— |
|
|
|
1,766,400 |
|
Payments of costs related to public offerings |
|
|
(35 |
) |
|
|
(394 |
) |
Proceeds from issuance of senior notes due 2029 and 2031 |
|
|
— |
|
|
|
987,500 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(1,362 |
) |
Proceeds from settlements of capped call, net of settlement costs |
|
|
— |
|
|
|
228,412 |
|
Principal payments on debt and finance leases |
|
|
(6,188 |
) |
|
|
(6,658 |
) |
Value of equity awards withheld for tax liabilities |
|
|
(1,069 |
) |
|
|
(4,656 |
) |
Proceeds from exercises of stock options and shares of Class A common stock issued under ESPP |
|
|
41,694 |
|
|
|
55,614 |
|
Net cash provided by financing activities |
|
|
34,402 |
|
|
|
3,024,856 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
313 |
|
|
|
(143 |
) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
(681,055 |
) |
|
|
869,446 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period |
|
|
1,481,831 |
|
|
|
933,885 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period |
|
$ |
800,776 |
|
|
$ |
1,803,331 |
|
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In thousands, except shares, per share amounts and percentages) (Unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
|
2022 |
|
|
|
2021 |
|
GAAP gross profit |
|
$ |
445,289 |
|
|
$ |
331,247 |
|
GAAP gross margin |
|
|
47 |
% |
|
|
50 |
% |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
3,996 |
|
|
|
3,024 |
|
Amortization of acquired intangibles |
|
|
31,236 |
|
|
|
26,204 |
|
Payroll taxes related to stock-based compensation |
|
|
242 |
|
|
|
— |
|
Non-GAAP gross profit |
|
$ |
480,763 |
|
|
$ |
360,475 |
|
Non-GAAP gross margin |
|
|
51 |
% |
|
|
54 |
% |
GAAP research and development |
|
$ |
279,641 |
|
|
$ |
181,280 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(109,524 |
) |
|
|
(58,871 |
) |
Amortization of acquired intangibles |
|
|
(420 |
) |
|
|
(378 |
) |
Payroll taxes related to stock-based compensation |
|
|
(2,610 |
) |
|
|
(3,767 |
) |
Non-GAAP research and development |
|
$ |
167,087 |
|
|
$ |
118,264 |
|
Non-GAAP research and development as a % of revenue |
|
|
18 |
% |
|
|
18 |
% |
|
|
|
|
|
||||
GAAP sales and marketing |
|
$ |
334,958 |
|
|
$ |
238,058 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(78,492 |
) |
|
|
(47,940 |
) |
Amortization of acquired intangibles |
|
|
(20,509 |
) |
|
|
(18,762 |
) |
Payroll taxes related to stock-based compensation |
|
|
(2,667 |
) |
|
|
(2,633 |
) |
Non-GAAP sales and marketing |
|
$ |
233,290 |
|
|
$ |
168,723 |
|
Non-GAAP sales and marketing as a % of revenue |
|
|
25 |
% |
|
|
25 |
% |
|
|
|
|
|
||||
GAAP general and administrative |
|
$ |
142,626 |
|
|
$ |
114,183 |
|
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
(50,078 |
) |
|
|
(34,333 |
) |
Amortization of acquired intangibles |
|
|
— |
|
|
|
(10 |
) |
Acquisition-related expenses |
|
|
(1,840 |
) |
|
|
(2,836 |
) |
Charitable contributions |
|
|
(2,373 |
) |
|
|
(6,789 |
) |
Payroll taxes related to stock-based compensation |
|
|
(647 |
) |
|
|
(929 |
) |
Non-GAAP general and administrative |
|
$ |
87,688 |
|
|
$ |
69,286 |
|
Non-GAAP general and administrative as a % of revenue |
|
|
9 |
% |
|
|
10 |
% |
GAAP loss from operations |
|
$ |
(311,936 |
) |
|
$ |
(202,274 |
) |
Operating margin |
|
|
(33 |
)% |
|
|
(30 |
)% |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
242,090 |
|
|
|
144,168 |
|
Amortization of acquired intangibles |
|
|
52,165 |
|
|
|
45,354 |
|
Acquisition-related expenses |
|
|
1,840 |
|
|
|
2,836 |
|
Charitable contributions |
|
|
2,373 |
|
|
|
6,789 |
|
Payroll taxes related to stock-based compensation |
|
|
6,166 |
|
|
|
7,329 |
|
Non-GAAP income from operations |
|
$ |
(7,302 |
) |
|
$ |
4,202 |
|
Non-GAAP operating margin |
|
|
(1 |
)% |
|
|
1 |
% |
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (In thousands, except shares, per share amounts and percentages) (Unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
|
2022 |
|
|
|
2021 |
|
GAAP net loss attributable to common stockholders |
|
$ |
(322,769 |
) |
|
$ |
(227,853 |
) |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
242,090 |
|
|
|
144,168 |
|
Amortization of acquired intangibles |
|
|
52,165 |
|
|
|
45,354 |
|
Acquisition-related expenses |
|
|
1,840 |
|
|
|
2,836 |
|
Charitable contributions |
|
|
2,373 |
|
|
|
6,789 |
|
Payroll taxes related to stock-based compensation |
|
|
6,166 |
|
|
|
7,329 |
|
Amortization of debt discount and issuance costs |
|
|
375 |
|
|
|
1,708 |
|
Income tax benefit related to acquisition |
|
|
(1,487 |
) |
|
|
(143 |
) |
Benefit from income tax effects related to Non-GAAP adjustments ** |
|
|
— |
|
|
|
1,465 |
|
Non-GAAP net loss attributable to common stockholders |
|
$ |
(19,247 |
) |
|
$ |
(18,347 |
) |
Non-GAAP net loss attributable to common stockholders as a % of revenue |
|
|
(2 |
)% |
|
|
(3 |
)% |
|
|
|
|
|
||||
GAAP net loss per share attributable to common stockholders, basic and diluted* |
|
$ |
(1.77 |
) |
|
$ |
(1.31 |
) |
Non-GAAP adjustments: |
|
|
|
|
||||
Stock-based compensation |
|
|
1.33 |
|
|
|
0.83 |
|
Amortization of acquired intangibles |
|
|
0.29 |
|
|
|
0.26 |
|
Acquisition-related expenses |
|
|
0.01 |
|
|
|
0.02 |
|
Charitable contributions |
|
|
0.01 |
|
|
|
0.04 |
|
Payroll taxes related to stock-based compensation |
|
|
0.03 |
|
|
|
0.04 |
|
Amortization of debt discount and issuance costs |
|
|
— |
|
|
|
0.01 |
|
Income tax benefit related to acquisition |
|
|
(0.01 |
) |
|
|
— |
|
Benefit from income tax effects related to Non-GAAP adjustments ** |
|
|
— |
|
|
|
0.01 |
|
Non-GAAP net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
|
|
|
|
||||
GAAP and non-GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted |
|
|
182,347,864 |
|
|
|
173,407,187 |
|
* Some columns may not add due to rounding |
|
** In 2021 represents the tax effect of the non-GAAP adjustments based on the estimated non-GAAP tax rate of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005910/en/
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