Slide 1: Q2 2023 Earnings Results
Q2 2023 Earnings Results August 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 - Q2 2023
Results Highlights - Total Company - Q2 2023 Metrics Q2 2023 Total Revenue $1,038 million Revenue Y/Y Growth 10% Organic Revenue $1,032 million Organic Revenue Y/Y Growth 10% Non-GAAP Income from Operations $120 million Non-GAAP Operating Margin 12% Dollar-Based Net Expansion Rate 103% Active Custom
Slide 5: Results Highlights - Communications - Q2 2023
Results Highlights - Communications - Q2 2023 Metrics Q2 2023 Q1 20232 Communications Revenue1 $913 million $883 million Communications Revenue Y/Y Growth 10% 14% Communications Organic Revenue1 $907 million $881 million Communications Organic Revenue Y/Y Growth 10% 14% Communications Non-GAAP Gross
Slide 6: Results Highlights - Data & Applications - Q2 2023
Results Highlights - Data & Applications - Q2 2023 Metrics Q2 2023 Q1 20232 Data & Applications Revenue1 $125 million $123 million Data & Applications Revenue Y/Y Growth 12% 19% Data & Applications Non-GAAP Gross Profit1 $102 million $101 million Data & Applications Non-GAAP Gross Margin 81.7% 81.9%
Slide 7: Q2'23 & FY23 Guidance
Q2’23 & FY23 Guidance Q3’23 Guidance: ● Total revenue: $980 million to $990 million, up 0% to 1% and 3% to 4% year-over-year on a reported and organic basis, respectively ● Non-GAAP income from operations: $75 million to $85 million ● Non-GAAP diluted earnings per share1: $0.33 - $0.37 2 FY’23 Updat
Slide 8: Total Revenue
Total Revenue 10% Q2’23 TOTAL REVENUE GROWTH Y/Y 12% Q2’23 DATA & APPLICATIONS1 REVENUE GROWTH Y/Y 10% Q2’23 COMMUNICATIONS 2 REVENUE GROWTH Y/Y 1 Data & Applications revenue primarily includes revenue from Segment, Engage, Flex, and Marketing Campaigns. ©2023 TWILIO INC. ALL RIGHTS RESERVED 2 Commu
Slide 9: Q2'23 Organic Revenue Bridge
Q2’23 Organic Revenue Bridge $6M 10% Q2’23 ORGANIC REVENUE GROWTH Y/Y 1 1 Represents revenue contribution from IoT, divested on June 1, 2023. ©2023 TWILIO INC. ALL RIGHTS RESERVED Note: Numbers are rounded to the nearest million. 9
Slide 10: Organic Revenue Trend
Organic Revenue Trend 10% Q2’23 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 ©2023 TWILIO INC. ALL RIGHTS RESERVED non-GAAP measure
Slide 11: Historical IoT & ValueFirst Revenue
Historical IoT & ValueFirst Revenue 1 1 Represents historical revenue contribution from our IoT & ValueFirst businesses, which were part of our Communications segment. Q2’23 contains two months of contribution from IoT given timing of divestiture closing on June 1, 2023. ©2023 TWILIO INC. ALL RIGHTS
Slide 12: 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 in Q2 202
Slide 13: Top 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 13
Slide 14: Non-GAAP Gross Profit
Non-GAAP Gross Profit 13% Q2’23 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 to its most directly ©2023 TWILIO INC. ALL RIGHTS RESERVED comparable GAAP measure.
Slide 15: Non-GAAP Stock-Based Compensation Expense
Non-GAAP Stock-Based Compensation Expense 15% Q2’23 NON-GAAP STOCK-BASED COMPENSATION AS A PERCENT OF REVENUE Note: Excludes amounts reflected in restructuring costs. Non-GAAP stock-based compensation expense is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" for a reconciliation
Slide 16: Thank you!
Thank you! ©2023 TWILIO INC. ALL RIGHTS RESERVED
Slide 17: Appendix
Appendix ©2023 TWILIO INC. ALL RIGHTS RESERVED
Slide 18: 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 19: 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 20: 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) Attributable to Common Stockholders and Non‑GAAP Net Income (Loss) principles (“GAAP”), this presentation includes certain non-GAAP financial meas
Slide 21: 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 22: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (In thousands, unaudited) ©2023 TWILIO INC. ALL RIGHTS RESERVED 22
Slide 23: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (In thousands, unaudited) ©2023 TWILIO INC. ALL RIGHTS RESERVED 23
Slide 24: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (In thousands, unaudited) 1 2 3 4 5 6 7 8 9 1 Q2’20 organic revenue, when used as the denominator for Q2'21 Y/Y growth, excludes $7 million of A2P 10DLC fee revenue. Q2'20 revenue was $401 million. 2 Q3’20 organic revenue, when used as the denominator for Q
Slide 25: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (In thousands, unaudited) 1 2 1 Q1’22 organic revenue, when used as the denominator for Q1'23 Y/Y growth, excludes $1 million of acquisition revenue. 2 Q2’22 organic revenue, when used as the denominator for Q2'23 Y/Y growth, excludes $7 million of divestit
Slide 26: Segment Operating Results
Segment Operating Results (In thousands, unaudited) The following table provides selected financial data for our reportable segments for the periods indicated: ©2023 TWILIO INC. ALL RIGHTS RESERVED 26