Slide 1: Q4 2022 Earnings Results
Q4 2022 Earnings Results February 15, 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
Results Highlights Q4 2022 FY 2022 Revenue $1,025 million $3,826 million Revenue Y/Y Growth 22% 35% Data & Applications1 Revenue $118 million $441 million Data & Applications Revenue Y/Y Growth 25% 35% Organic Revenue $1,022 million $3,611 million Organic Revenue Y/Y Growth 21% 30% Non-GAAP Operatin
Slide 5: Guidance & Revised Financial Framework
Guidance & Revised Financial Framework Q1’23 Guidance: • Total revenue: $995 million to $1,005 million, up 14% to 15% year-over-year • Organic revenue growth: 13% to 14% year-over-year • Non-GAAP operating profit: $45 million to $55 million • Non-GAAP earnings per share1: $0.18 - $0.22 FY’23 Guidance
Slide 6: Quarterly Revenue
Quarterly Revenue 22% Q4’22 REPORTED REVENUE GROWTH Y/Y 25% Q4’22 DATA & 1 APPLICATIONS REVENUE GROWTH Y/Y 1 Data & Applications revenue includes revenue from Segment, Engage, Flex & Marketing Campaigns. 6
Slide 7: Organic Revenue Trend
Organic Revenue Trend 21% Q4’22 ORGANIC REVENUE GROWTH Y/Y Note: Organic revenue and organic revenue 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 comparable GAAP m
Slide 8: Annual Revenue
Annual Revenue 57% CAGR 35% FY’22 REPORTED REVENUE GROWTH Y/Y 35% FY’22 DATA & 1 APPLICATIONS REVENUE GROWTH Y/Y 1 Data & Applications revenue includes revenue from Segment, Engage, Flex & Marketing Campaigns. 8
Slide 9: Dollar-Based Net Expansion
Dollar-Based Net Expansion 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. 9
Slide 10: Top Customer Accounts
Top 10 Customer Accounts Note: Represents top 10 Active Customer Accounts as a percentage of total revenue in the respective quarter. 10
Slide 11: International Revenue Mix
International Revenue Mix 1 Note: We define international revenue as revenue from customers with IP addresses or mailing addresses at the time of registration outside of the United States. 11
Slide 12: Quarterly Non-GAAP Gross Profit
Quarterly Non-GAAP Gross Profit 20% Q4’22 NON-GAAP GROSS PROFIT GROWTH Y/Y Note: Non-GAAP gross profit is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” in the appendix for its definition and a reconciliation of non-GAAP gross profit to its most directly comparable GAAP measure. 12
Slide 13: Stock-Based Compensation (SBC) Example
Stock-Based Compensation (SBC) Example Summary Commentary on SBC: SBC declines ● We’re making active changes to reduce SBC and after year 4 we expect it will come down annually as a percent of revenue, but in the short term SBC is impacted by aggressive headcount ramp since 2020 ● Employees have typ
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 Net Income (Loss) Per Share Attributable to Common Stockholders. For the periods principles (“GAAP”), this presentation includes certain non-GAAP financial measures
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation Revenue GAAP gross profit GAAP gross margin Non-GAAP adjustments: Stock-based compensation Amortization of acquired intangibles Payroll taxes related to stock-based compensation Non-GAAP gross profit Non-GAAP gross margin December 31, March 31, June 30, Three Months Ended Sep
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation (In thousands) Three Months Ended Year Ended December 31, December 31, 2022 2022 Revenue $ 1024574 $ 3826321 GAAP gross profit s 481,142 $ 1,813,577 Non-GAAP adjustments: Stock-based compensation 6,505 21,136 Amortization of acquired intangibles 30,052 122,653 Payroll taxes r
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1 2 3 4 5 6 7 8 9 We calculate Organic Revenue Y/Y Growth by dividing (i) organic revenue for the period presented less organic revenue in the corresponding period in the prior year by (ii) organic revenue in the corresponding period in the prior year. If revenue from certain