Slide 1: Q2 2022 Earnings Results
Q2 2022 Earnings Results August 4, 2022 © 2022 TWILIO INC. ALL RIGHTS RESERVED.
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation 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 finan
Slide 3: Financial Overview
FINANCIAL OVERVIEW © 2022 TWILIO INC. ALL RIGHTS RESERVED. 3
Slide 4: Results Highlights
Results Highlights • Second quarter revenue of $943 million, up 41% year-over-year 1 • Second quarter organic revenue of $862 million, up 33% year-over-year • Second quarter revenue dollar-based net expansion of 123% • More than 275,000 active customer accounts, as of June 30, 2022 • Initiates Q3’22
Slide 5: Q3 Non-GAAP Loss From Operations Guidance Bridge
Q3 Non-GAAP Loss From Operations Guidance Bridge Q3’22 Guidance Range Non-GAAP loss from operations ($70M) - ($60M) Less: Estimated $35M non-cash accrual for the adoption ($35M) of a new sabbatical program Non-GAAP loss from operations excluding the non-cash ($35M) - ($25M) accrual for the adoption
Slide 6: Quarterly Revenue
Quarterly Revenue $943 $875 $843 $740 41% $669 $590 $548 $448 $401 Q2’22 REPORTED REVENUE GROWTH Y/Y 65% 62% 67% 65% 52% 54% 48% 46% 41% 1 1 1 1 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Reported Revenue ($M) Reported Revenue Growth Y/Y 1 Includes revenue from Zipwhip, which closed July
Slide 7: Q2'22 Organic Revenue Bridge
Q2’22 Organic Revenue Bridge $943M $37M $44M $862M $649M 33% Q2’22 ORGANIC REVENUE GROWTH Y/Y Q2’22 Reported Acquisitions 10DLC A2P Q2’22 Organic Q2’21 Organic Revenue ($M) Revenue 1 Fee Revenue 2 Revenue Revenue 1 Represents all acquisitions closed after April 1, 2021, including $16M in 10DLC A2P f
Slide 8: Organic Revenue Trend
Organic Revenue Trend $862 $780 $685 33% $590 $606 $510 $531 $438 $394 Q2’22 ORGANIC REVENUE GROWTH Y/Y 48% 54% 50% 43% 47% 38% 34% 35% 33% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Organic Revenue ($M) Organic Revenue Growth Y/Y Note: Organic revenue excludes revenue from 10DLC A2P and
Slide 9: Dollar-Based Net Expansion
Dollar-Based Net Expansion 137% 139% 133% 135% 132% 131% 126% 127% 123% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Note: Zipwhip, which closed July 14, 2021, will not be included in the calculation until Q4 2022. Segment, which closed on November 2, 2020 is excluded from the calculation u
Slide 10: Top Customer Accounts
Top 10 Customer Accounts Represents top 10 customer accounts as a percentage of total revenue in the respective quarter 15% 14% 13% 12% 12% 12% 12% 11% 11% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 © 2022 TWILIO INC. ALL RIGHTS RESERVED. 10
Slide 11: International Revenue Mix
International Revenue Mix 34% 35% 35% 32% 33% 29% 27% 27% 27% 1 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 1 Revised from previous misclassification of domestic customer revenue as reported in Q4 2021. For more information, refer to the appendix. Note: We define U.S. revenue as revenue fr
Slide 12: Non-GAAP Gross Margin Bridge
Non-GAAP Gross Margin Bridge 0.9% 54.3% 2.4% 51.0% 54.3% Q2’22 ADJUSTED GM % EXCLUDING 10DLC A2P FEES Q2’22 Reported 10DLC A2P Zipwhip 10DLC Q2’22 Adjusted Non-GAAP Fees1 A2P Fees Non-GAAP Gross Margin Gross Margin 1Represents 10DLC A2P and related fees imposed by major U.S. carriers on Twilio’s cor
Slide 13: Quarterly Non-GAAP Gross Profit
Quarterly Non-GAAP Gross Profit $481 $460 $432 $400 33% $360 $327 $307 $246 $224 Q2’22 NON-GAAP GROSS PROFIT GROWTH Y/Y 62% 58% 61% 63% 37% 42% 41% 41% 33% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Reported Non-GAAP Gross Profit ($M) Reported Non-GAAP Gross Profit Growth Y/Y See Twilio's
Slide 14: Thank You
THANK YOU
Slide 15: Appendix
APPENDIX © 2022 TWILIO INC. ALL RIGHTS RESERVED. 15
Slide 16: Operating Metrics
Operating Metrics 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 . Customer Accounts and to increase their use of the platform. An important way in whic