Slide 1: Q3 2023 Earnings Results
Q3 2023 Earnings Results November 8, 2023 ©2023 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 operating metrics, including Active Customer Accounts and Dollar-Based laws, inc
Slide 3: Financial Overview
Financial Overview ©2023 TWILIO INC. ALL RIGHTS RESERVED
Slide 4: Results Highlights - Total Company - Q3 2023
Results Highlights - Total Company - Q3 2023 Metrics Q3 2023 Total Revenue $1,034 million Y/Y Revenue Growth 5% Organic Revenue $1,034 million Y/Y Organic Revenue Growth 8% Non-GAAP Income from Operations $136 million Non-GAAP Operating Margin 13% Dollar-Based Net Expansion Rate 101% Active Customer
Slide 5: Results Highlights - Communications - Q3 2023
Results Highlights - Communications - Q3 2023 Metrics Q3 2023 Communications Revenue $907 million Y/Y Communications Revenue Growth 5% Communications Organic Revenue1 $907 million Y/Y Communications Organic Revenue Growth2 8% Communications Non-GAAP Gross Profit $451 million Communications Non-GAAP
Slide 6: Results Highlights - Data & Applications - Q3 2023
Results Highlights - Data & Applications - Q3 2023 Metrics Q3 2023 Data & Applications Revenue $127 million Y/Y Data & Applications Revenue Growth 9% Data & Applications Non-GAAP Gross Profit $101 million Data & Applications Non-GAAP Gross Margin 79.8% Data & Applications Dollar-Based Net Expansion
Slide 7: Q4'23 & FY23 Guidance
Q4’23 & FY23 Guidance Q4’23 Guidance: ● Total revenue: $1.030 billion to $1.040 billion, up 1% to 2% and 4% to 5% year-over-year on a reported and organic basis, respectively ● Non-GAAP income from operations: $115 million to $125 million ● Non-GAAP diluted earnings per share1: $0.53 - $0.57 2 FY’23
Slide 8: Total Revenue
Total Revenue 5% Q3’23 TOTAL REVENUE GROWTH Y/Y 5% Q3’23 COMMUNICATIONS REVENUE GROWTH Y/Y 9% Q3’23 DATA & APPLICATIONS REVENUE GROWTH Y/Y Note: Numbers are rounded to the nearest million (other than percentages). ©2023 TWILIO INC. ALL RIGHTS RESERVED Note: Q2’23 reported revenue includes $25 millio
Slide 9: Organic Revenue Trend
Organic Revenue Trend 8% Q3’23 ORGANIC REVENUE GROWTH Y/Y 8% Q3’23 COMMUNICATIONS ORGANIC REVENUE 1 GROWTH Y/Y 1 Q3 Communications organic revenue is equal to reported Communications revenue. Communications organic revenue for the three months ended September 30, 2022, when used as the denominator f
Slide 10: Dollar-Based Net Expansion Rate
Dollar-Based Net Expansion Rate Note: Zipwhip, which closed on July 14, 2021, is excluded from the calculation until Q4 2022. Segment, which closed on November 2, 2020, is excluded from the calculation until Q1 2022. IoT, which was divested on June 1, 2023, is excluded from the calculation beginning
Slide 11: Top 10 Customer Accounts by Revenue
Top 10 Customer Accounts by Revenue Note: Represents top 10 Active Customer Accounts as a percentage of total revenue in the respective quarter. ©2023 TWILIO INC. ALL RIGHTS RESERVED 11
Slide 12: Non-GAAP Gross Profit
Non-GAAP Gross Profit 11% Q3’23 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 co
Slide 13: Non-GAAP Stock-Based Compensation Expense
Non-GAAP Stock-Based Compensation Expense 18% Q3’23 NON-GAAP STOCK-BASED COMPENSATION AS A PERCENT 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
Slide 14: Thank you!
Thank you! ©2023 TWILIO INC. ALL RIGHTS RESERVED
Slide 15: Appendix
Appendix ©2023 TWILIO INC. ALL RIGHTS RESERVED
Slide 16: Forward-Looking Statements
Forward-Looking Statements This presentation and the accompanying conference call contain forward-looking statements within the The forward-looking statements contained in this presentation and the accompanying conference call meaning of the federal securities laws, which statements involve substant
Slide 17: Operating Metrics
Operating Metrics We review the following operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Our metrics are not based on any standardized industry methodology and are not necessarily calc
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to financial information presented in accordance with U.S. generally accepted accounting Non‑GAAP Income (Loss) from Operations and Non‑GAAP Operating Margin. For the periods presented, principles (“GAAP”), this presentation and the accompanying conference call
Slide 19: 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
Slide 20: ©2023 TWILIO INC. ALL RIGHTS RESERVED
©2023 TWILIO INC. ALL RIGHTS RESERVED 20
Slide 21: ©2023 TWILIO INC. ALL RIGHTS RESERVED
©2023 TWILIO INC. ALL RIGHTS RESERVED
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Slide 23: ©2023 TWILIO INC. ALL RIGHTS RESERVED
©2023 TWILIO INC. ALL RIGHTS RESERVED 23
Slide 24: ©2023 TWILIO INC. ALL RIGHTS RESERVED
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