Slide 1: Q2 2024 Earnings Results
Q2 2024 Earnings Results August 1, 2024 ©2024 TWILIO INC. ALL RIGHTS RESERVED
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation and the accompanying conference call contain This presentation and the accompanying conference call also contain forward-looking statements within the meaning of the federal securities non-GAAP financial measures. The non-GAAP financial measures, laws, including stat
Slide 3: Financial Overview
Financial Overview ©2024 TWILIO INC. ALL RIGHTS RESERVED 3
Slide 4: Total Company Results
Total Company Results Q2 2024 Total Revenue $1,083M Y/Y Revenue Growth 4% Y/Y Organic Revenue Growth 7% Non-GAAP Gross Profit $577M Non-GAAP Gross Margin 53.3% Non-GAAP Income from Operations $175M Non-GAAP Operating Margin 16.2% Free Cash Flow $198M Free Cash Flow Margin 18.3% Dollar-Based Net Expan
Slide 5: Communications Results
Communications Results Q2 2024 Communications Revenue $1,007M Y/Y Communications Revenue Growth 4% Y/Y Communications Organic Revenue Growth 7% Communications Non-GAAP Gross Profit $522M Communications Non-GAAP Gross Margin 51.8% Communications Non-GAAP Income from Operations $250M Communications Non
Slide 6: Segment Results
Segment Results Q2 2024 Segment Revenue $75M Y/Y Segment Revenue Growth 3% Segment Non-GAAP Gross Profit $55M Segment Non-GAAP Gross Margin 73.4% Segment Non-GAAP Loss from Operations ($16M) Segment Non-GAAP Operating Margin (21.0%) Segment Dollar-Based Net Expansion Rate 93% Segment Active Customer
Slide 7: Q3 2024 & Full Year 2024 Guidance
Q3 2024 & Full Year 2024 Guidance Q3 2024 Guidance: ● Total revenue: $1.085 billion to $1.095 billion, up 5% to 6% year-over-year on both a reported and organic basis1 ● Non-GAAP income from operations: $160 million to $170 million 2 ● Non-GAAP diluted earnings per share : $0.81 - $0.86 ● Non-GAAP w
Slide 8: Quarterly Revenue
Quarterly Revenue 4% Q2’24 Total Revenue Growth Y/Y 4% Q2’24 Communications Revenue Growth Y/Y 3% Q2’24 Segment Revenue Growth Y/Y Note: Numbers are rounded to the nearest million (other than percentages). ©2023 TWILIO INC. ALL RIGHTS RESERVED ©2024 Note: Q2’23 reported revenue includes $25 million
Slide 9: Quarterly Organic Revenue Growth
Quarterly Organic Revenue Growth 7% Q2’24 Organic Revenue Growth Y/Y 7% Q2’24 Communications Organic Revenue Growth Y/Y Note: Organic revenue, organic revenue growth and Communications organic revenue growth are non-GAAP financial measures. Refer to "Non-GAAP Financial Measures" in the appendix for t
Slide 10: Dollar-Based Net Expansion Rate
Dollar-Based Net Expansion Rate Note: IoT, which was divested on June 1, 2023, is excluded from the calculation beginning in Q2 2023, and ValueFirst, which was divested on July 3, 2023, is excluded ©2023 TWILIO INC. ALL RIGHTS RESERVED ©2024 from the calculation beginning in Q3 2023. Refer to “Opera
Slide 11: Top Active Customer Accounts as a % of Total Revenue
Top 10 Active Customer Accounts as a % of Total Revenue Note: Refer to "Operating Metrics" in the appendix for our definition of Active Customer Accounts. ©2023 TWILIO INC. ALL RIGHTS RESERVED ©2024 11 11
Slide 12: Non-GAAP Gross Profit
Non-GAAP Gross Profit 7% Q2’24 NON-GAAP GROSS PROFIT GROWTH Y/Y Note: Non-GAAP gross profit and non-GAAP gross profit growth are non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” in the appendix for their definitions and a reconciliation of each non-GAAP measure to its most directly com
Slide 13: Non-GAAP Stock-Based Compensation Expense
Non-GAAP Stock-Based Compensation Expense 14% Q2’24 NON-GAAP STOCK-BASED COMPENSATION AS A % OF REVENUE Note: Non-GAAP stock-based compensation expense and non-GAAP stock-based compensation expense as a percentage of revenue are non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” in t
Slide 14: Free Cash Flow
Free Cash Flow 18% Q2’24 FREE CASH FLOW MARGIN Note: Free cash flow and free cash flow margin are non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” in the appendix for their definitions and a reconciliation of each non-GAAP measure to its most directly comparable GAAP measure. ©2023 TW
Slide 15: Q2 2024: Representative Customer Wins
Q2 2024: Representative Customer Wins ©2024 TWILIO INC. ALL RIGHTS RESERVED 15
Slide 16: Representative Customer Wins from the Quarter
Representative Customer Wins from the Quarter Communications: ● A major global airline implemented Twilio Engagement Suite and rolled it out to millions of customers around the globe. With Engagement Suite, the airline now uses shortened hyperlinks for its customer travel notification SMS, resulting
Slide 17: Representative Customer Wins from the Quarter (cont.)
Representative Customer Wins from the Quarter (cont.) Communications (continued): ● We signed an eight figure messaging expansion with a global payments provider. Additionally, the company has started to adopt Silent Network Authentication to provide consumers with two-factor authentication and creat
Slide 18: Representative Customer Wins from the Quarter (cont.)
Representative Customer Wins from the Quarter (cont.) Segment: ● We signed a seven-figure deal with IBM, our largest Segment deal of the second quarter. ● The Motley Fool, an investing and stock market research company, quickly saw results after deploying Twilio’s CustomerAI Predictions. During the q
Slide 19: Thank you!
Thank you! ©2024 TWILIO INC. ALL RIGHTS RESERVED
Slide 20: Appendix
Appendix ©2024 TWILIO INC. ALL RIGHTS RESERVED 20
Slide 21: Forward-Looking Statements
Forward-Looking Statements This presentation and the accompanying conference call contain forward-looking statements within the The outcome of the events described in these forward-looking statements is subject to known and meaning of the federal securities laws, which statements involve substantial
Slide 22: Operating Metrics
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 met
Slide 23: Operating Metrics
Operating Metrics 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 identif
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to financial information presented in accordance with U.S. generally accepted accounting Non-GAAP Gross Profit and Non-GAAP Gross Margin. For the periods presented, we define non-GAAP principles (“GAAP”), this presentation and the accompanying conference call inc
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 un
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