Twilio Announces Third Quarter 2022 Results

Twilio (NYSE: TWLO) (LTSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, today reported financial results for its third quarter ended September 30, 2022.

“We delivered solid third quarter results, with revenue of $983 million and 33% year-over-year growth, as Twilio’s Customer Engagement Platform continues to drive success for our customers,” said Jeff Lawson, Twilio’s co-founder and CEO. “Like many companies, we are facing some short-term headwinds, but the long-term opportunity remains strong as companies continue building their customer engagement strategies, become more efficient, and aim to build better and more personalized relationships with their customers.”

Third Quarter 2022 Financial Highlights

• Revenue of $983.0 million for the third quarter of 2022, up 33% year-over-year, including $34.8 million from Zipwhip. Organic revenue¹ grew 32% year-over-year.

• GAAP loss from operations of $457.0 million for the third quarter of 2022, compared with GAAP loss from operations of $232.3 million for the third quarter of 2021.

• Non-GAAP loss from operations of $35.1 million for the third quarter of 2022 compared with non-GAAP income from operations of $8.2 million for the third quarter of 2021.

• GAAP net loss per share attributable to common stockholders, basic and diluted, of $2.63 based on 183.7 million weighted average shares outstanding in the third quarter of 2022, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $1.26 based on 177.2 million weighted average shares outstanding in the third quarter of 2021.

• Non-GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.27 based on 183.7 million non-GAAP weighted average shares outstanding in the third quarter of 2022, compared with non-GAAP net income per share attributable to common stockholders, diluted, of $0.01 based on 185.0 million non-GAAP weighted average shares outstanding in the third quarter of 2021.

¹ Organic revenue excludes revenue from Zipwhip and all other acquisitions closed after July 1, 2021.

Key Metrics

• More than 280,000 Active Customer Accounts as of September 30, 2022, compared to more than 250,000 Active Customer Accounts as of September 30, 2021.

• Dollar-Based Net Expansion Rate was 122% for the third quarter of 2022, compared to 131% for the third quarter of 2021. Results from acquisitions closed after July 1, 2021, including Zipwhip, do not impact the calculation of this metric in either period.

• 8,992 employees as of September 30, 2022, which includes 816 employees who were impacted by the restructuring activity and will be leaving Twilio in the fourth quarter.

Outlook

Twilio is initiating guidance for the fourth quarter ending December 31, 2022.

(1) Organic revenue growth guidance excludes all revenue from acquisitions that closed after October 1, 2021.

Conference Call Information

Twilio posted prepared remarks on its investor relations website at https://investors.twilio.com. Twilio is also hosting a virtual Investor Day today, November 3, 2022, and will host a Q&A discussion at the end of the event to discuss its third quarter 2022 financial results and Investor Day. The Investor Day will begin at 1:30 p.m. (PT) / 4:30 p.m. (ET), and investors and analysts should register for the event in advance by visiting https://event.on24.com/wcc/r/3975142/B5AA47957B4F82C717147195BA249CB8. A live webcast of the Investor Day, 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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