- Second Quarter Revenue of $1.04 billion, up 10% year-over-year
- Second Quarter GAAP Loss from Operations of $142 million, a 55% improvement year-over-year
- Second Quarter Non-GAAP Income from Operations of $120 million; raised full year guidance to $350 to $400 million
Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, today reported financial results for its second quarter ended June 30, 2023.
“We closed a strong second quarter, delivering record quarterly revenue, non-GAAP income from operations and free cash flow,” said Jeff Lawson, Twilio’s Co-Founder and CEO. “We enter the second half of the year confident about our ability to generate meaningful levels of non-GAAP income from operations, and committed to our focus of driving efficient growth across our business.”
Second Quarter 2023 Financial Highlights
- Total revenue of $1.04 billion for the second quarter of 2023, up 10% year-over-year. Communications revenue of $913.1 million for the second quarter of 2023, up 10% year-over-year. Data & Applications revenue of $124.6 million for the second quarter of 2023, up 12% year-over-year.
- Total second quarter organic revenue grew 10% year-over-year. Communications second quarter organic revenue grew 10% year-over-year.
- GAAP loss from operations of $141.8 million for the second quarter of 2023, compared with GAAP loss from operations of $311.9 million for the second quarter of 2022.
- Non-GAAP income from operations of $120.1 million for the second quarter of 2023, compared with non-GAAP loss from operations of $7.3 million for the second quarter of 2022.
- GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.91 based on 183.5 million weighted average shares outstanding in the second quarter of 2023, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $1.77 based on 182.3 million weighted average shares outstanding in the second quarter of 2022.
- Non-GAAP net income per share attributable to common stockholders, diluted, of $0.54 based on 185.6 million non-GAAP weighted average shares outstanding in the second quarter of 2023, compared with non-GAAP net loss per share attributable to common stockholders, diluted, of $0.11 based on 182.3 million non-GAAP weighted average shares outstanding in the second quarter of 2022.
Key Metrics
- More than 304,000 Active Customer Accounts as of June 30, 2023 compared to more than 275,000 Active Customer Accounts as of June 30, 2022.
- Dollar-Based Net Expansion Rate of 103% for the second quarter of 2023 compared to Dollar-Based Net Expansion Rate of 123% for the second quarter of 2022.
- 6,428 employees as of June 30, 2023.
Segment Reporting
- In February 2023, Twilio announced a reorganization of its business into two business units – Communications and Data & Applications. In connection with this reorganization, Twilio changed the organizational structure of its business, including the way management operates the business. Beginning with Twilio’s results for the second quarter of 2023, Twilio determined that it had two operating and reportable segments – Communications and Data & Applications – which align with Twilio’s business units. The Communications segment consists of a variety of application programming interfaces and software solutions to optimize communications between Twilio customers and their end users, including Messaging, Voice and Email. The Data & Applications segment consists of software products that enable businesses to achieve more effective customer engagement by providing the tools necessary for customers to build direct, personalized relationships with their end users, including Segment, Engage, Flex and Marketing Campaigns.
Twilio’s management team evaluates the performance of each segment based upon several factors, of which the primary financial measures are revenue and non-GAAP gross profit. Twilio is providing these segment financial measures below under “Segment Operating Results.”
Share Repurchase Program
- In February, Twilio announced the authorization of a share repurchase program pursuant to which Twilio may repurchase up to $1.0 billion of its outstanding Class A common stock. Twilio announced its intention to execute up to $500 million of this in the first six months of the program, subject to legal requirements, price, and economic market conditions. As of today, Twilio has completed $500 million of repurchases, representing 50% of the total program amount. Twilio intends to continue to make progress against the balance of its share repurchase authorization moving forward. The program expires on December 31, 2024.
Divestitures
- Twilio divested its IoT business in June 2023 and its ValueFirst business in July 2023. These businesses will be excluded from Twilio’s results of operations in future periods.
Outlook
Twilio is initiating guidance for the third quarter ending September 30, 2023 and raising its non-GAAP income from operations range for fiscal year 2023, originally provided on February 15, 2023 and subsequently updated on May 9, 2023.
Conference Call Information
Twilio posted prepared remarks on its investor relations website at https://investors.twilio.com. Twilio is hosting a Q&A conference call today, August 8, 2023, to discuss its second quarter 2023 financial results. The conference call will begin at 2:00 p.m. (PT) / 5:00 p.m. (ET), and investors and analysts should register for the call in advance by visiting https://conferencingportals.com/event/unKcrkys. A live webcast of the conference call, as well as a replay, will be available on the investor relations website.
Twilio uses its investor relations website, its Twitter feed (@twilio), and the Twitter feed of Twilio’s Chief Executive Officer, Jeff Lawson (@jeffiel), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
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