Slide 1: Q1 2024 Earnings Results
Q1 2024 Earnings Results May 7, 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 Q1 2024 Total Revenue $1,047M Y/Y Revenue Growth 4% Y/Y Organic Revenue Growth 7% Non-GAAP Income from Operations $160M Non-GAAP Operating Margin 15.2% Free Cash Flow $177M Dollar-Based Net Expansion Rate 102% Active Customer Accounts 313,000+ Note: Organic revenue growth, non-
Slide 5: Communications Results
Communications Results Q1 2024 Communications Revenue $972M Y/Y Communications Revenue Growth 4% Y/Y Communications Organic Revenue Growth 7% Communications Non-GAAP Gross Profit $508M Communications Non-GAAP Gross Margin 52.2% Communications Non-GAAP Income from Operations $249M Communications Non-G
Slide 6: Segment Results
Segment Results Q1 2024 Segment Revenue $75M Y/Y Segment Revenue Growth 2% Segment Non-GAAP Gross Profit $58M Segment Non-GAAP Gross Margin 77.6% Segment Non-GAAP Loss from Operations ($21M) Segment Non-GAAP Operating Margin (28.0%) Segment Dollar-Based Net Expansion Rate 92% Segment Active Customer
Slide 7: Q2 2024 & Full Year 2024 Guidance
Q2 2024 & Full Year 2024 Guidance Q2 2024 Guidance: ● Total revenue: $1.050 billion to $1.060 billion, up 1% to 2% and 4% to 5% year-over-year on a reported and organic basis, respectively ● Non-GAAP income from operations: $135 million to $145 million 1 ● Non-GAAP diluted earnings per share : $0.64
Slide 8: Quarterly Revenue
Quarterly Revenue 4% Q1’24 Total Revenue Growth Y/Y 4% Q1’24 Communications Revenue Growth Y/Y 2% Q1’24 Segment Revenue Growth Y/Y Note: Numbers are rounded to the nearest million (other than percentages). ©2023 TWILIO INC. ALL RIGHTS RESERVED ©2024 Note: Q1’23 reported revenue includes $28 million
Slide 9: Quarterly Organic Revenue
Quarterly Organic Revenue 7% Q1’24 Organic Revenue Growth Y/Y 7% Q1’24 Communications 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 n
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 from the calculation beginning in Q3 2023. ©2023 TWILIO INC. ALL RIGHTS RESERVED ©2024 10 10
Slide 11: Top 10 Active Customer Accounts by Revenue
Top 10 Active 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 ©2024 11 11
Slide 12: Non-GAAP Gross Profit
Non-GAAP Gross Profit 8% Q1’24 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 15% Q1’24 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: Free Cash Flow
Free Cash Flow 17% Q1’24 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: Q1 2024: Representative Customer Wins
Q1 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 & Segment: ● We signed a seven figure, multi-year deal with an existing Twilio Communications customer, a leading timeshare and vacation brand, to implement Segment CDP. This was a competitive win in which the customer chose Segment because
Slide 17: Representative Customer Wins from the Quarter (cont.)
Representative Customer Wins from the Quarter (cont.) Communications (continued): ● During the quarter, we signed a seven figure Verify deal with a leading on-demand streaming service company. With Verify, the customer is able to provide a trusted sign-up experience for its global customer base via b
Slide 18: Thank you!
Thank you! ©2024 TWILIO INC. ALL RIGHTS RESERVED
Slide 19: Appendix
Appendix ©2024 TWILIO INC. ALL RIGHTS RESERVED 19
Slide 20: 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 21: 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 22: 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 23: 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 24: 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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