Twilio Inc. · NYSE:TWLO
Twilio — Q3 2024 Earnings Presentation
34 slides from Twilio's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Earnings Results
Q3 2024 Earnings Results October 30, 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 Q3 2024 Total Revenue $1,134M Y/Y Revenue Growth 10% Non-GAAP Gross Profit $600M Non-GAAP Gross Margin 52.9% Non-GAAP Income from Operations $182M Non-GAAP Operating Margin 16.1% Free Cash Flow $189M Free Cash Flow Margin 16.7% Dollar-Based Net Expansion Rate 105% Active Custome
Slide 5: Communications Results
Communications Results Q3 2024 Communications Revenue $1,060M Y/Y Communications Revenue Growth 10% Communications Non-GAAP Gross Profit $549M Communications Non-GAAP Gross Margin 51.8% Communications Non-GAAP Income from Operations $268M Communications Non-GAAP Operating Margin 25.3% Communications
Slide 6: Segment Results
Segment Results Q3 2024 Segment Revenue $73M Y/Y Segment Revenue Growth 0% Segment Non-GAAP Gross Profit $51M Segment Non-GAAP Gross Margin 69.8% Segment Non-GAAP Loss from Operations ($16M) Segment Non-GAAP Operating Margin (21.5%) Segment Dollar-Based Net Expansion Rate 91% Segment Active Customer
Slide 7: Q4 2024 & Full Year 2024 Guidance
Q4 2024 & Full Year 2024 Guidance Q4 2024 Guidance: ● Total revenue: $1.150 billion to $1.160 billion, up 7% to 8% year-over-year ● Non-GAAP income from operations: $185 million to $195 million ● Non-GAAP diluted earnings per share1: $0.95 - $1.00 ● Non-GAAP weighted average diluted shares outstandi
Slide 8: Quarterly Revenue
Quarterly Revenue 10% Q3’24 Total Revenue Growth Y/Y 10% Q3’24 Communications Revenue Growth Y/Y 0% Q3’24 Segment Revenue Growth Y/Y Note: Numbers are rounded to the nearest million (other than percentages). ©2023 TWILIO INC. ALL RIGHTS RESERVED ©2024 8 8
Slide 9: Quarterly Organic Revenue Growth
Quarterly Organic Revenue Growth 10% Q3’24 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 their definitions and a reconciliation of each non-G
Slide 10: Dollar-Based Net Expansion Rate
Dollar-Based Net Expansion Rate Note: Refer to “Operating Metrics” in the appendix for our definition of Dollar-Based Net Expansion Rate. ©2023 TWILIO INC. ALL RIGHTS RESERVED ©2024 10 10
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 9% Q3’24 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% Q3’24 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 17% Q3’24 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: Q3 2024: Representative Customer Wins
Q3 2024: Representative Customer Wins ©2024 TWILIO INC. ALL RIGHTS RESERVED 15
Slide 16: Top Customer Wins from the Quarter
Top Customer Wins from the Quarter Communications: ● Twilio signed a deal with Xero, the global small business platform and an existing Segment customer, to support their new product currently in beta, Just Ask Xero (JAX). JAX completes tasks like generating an invoice or editing a quote, either in
Slide 17: Top Customer Wins from the Quarter (cont.)
Top Customer Wins from the Quarter (cont.) Communications (continued): ● We expanded our relationship with women's activewear brand Halara by winning a competitive messaging takeout. Halara chose Twilio based on our superior global scalability as well as proven success and trust built through a rece
Slide 18: Top Customer Wins from the Quarter (cont.)
Top Customer Wins from the Quarter (cont.) Segment: ● Twilio signed a multi-year new business deal with Zscaler, the World's largest security cloud. With Segment, Zscaler will enrich account profiles with behavioral data and build high propensity ABM campaigns to drive product recommendations and enh
Slide 19: Q3 Customer Success Stories
Q3 Customer Success Stories Click customer name to learn more ● Camping World - With Segment, “Data-driven paid media efforts saw a substantial 35% increase in conversions, defined as a lead submission. Additionally, they saw a 16% decrease in cost-per-lead due to cleaner and properly implemented data
Slide 20: Thank you!
Thank you! ©2024 TWILIO INC. ALL RIGHTS RESERVED
Slide 21: Appendix
Appendix ©2024 TWILIO INC. ALL RIGHTS RESERVED 21
Slide 22: 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 23: 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 24: 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 25: 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 26: 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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