Twilio Inc. (NYSE:TWLO) Q4 2024 Earnings Conference Call February 13, 2025 5:00 PM ET Company Participants Bryan Vaniman - Senior Vice President of Investor Relations and Corporate Development Khozema Shipchandler - Chief Executive Officer Aidan Viggiano - Chief Financial Officer Conference Call Participants James Fish - Piper Sandler Michael Turrin - Wells Fargo Securities Nicholas Altmann - Scotiabank Mark Murphy - JPMorgan Ryan Koontz - Needham & Company Meta Marshall - Morgan Stanley Arjun Bhatia - Will ...

For the quarter ended December 2024, Twilio (TWLO) reported revenue of $1.19 billion, up 11.1% over the same period last year. EPS came in at $1.00, compared to $0.86 in the year-ago quarter.The reported revenue represents a surprise of +0.11% over the Zacks Consensus Estimate of $1.19 billion. With the consensus EPS estimate being $1.02, the EPS surprise was -1.96%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

Twilio (TWLO) came out with quarterly earnings of $1 per share, missing the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.96%. A quarter ago, it was expected that this company would post earnings of $0.87 per share when it actually produced earnings of $1.02, delivering a surprise of 17.24%.Over the last four quarters, the company has surpasse ...

The cloud communications specialist's fourth-quarter revenue came in just above expectations, but it missed on earnings.Twilio (TWLO 1.86%), operator of a prominent cloud communications platform, released its fourth-quarter earnings results on Feb. 13. The highlight of the period was that it achieved GAAP operating profitability for the first time. However, its non-GAAP earnings per share (EPS) of $1.00 was slightly below analysts' consensus estimate of $1.03, while revenue stood at $1.195 billion, marginal ...

Q4 2024 Earnings Results February 13, 2025 ©2025 TWILIO INC. ALL RIGHTS RESERVED Legal Disclaimer This presentation and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, including statements about our future performance and goals. These statements involve substantial risks and uncertainties as further described in the Appendix, as well as in our most recent periodic reports filed with the SEC, including our Annual Report on Form 10-K and s ...

Financial Performance - Twilio Inc. reported a revenue of $1.02 billion for the fiscal year 2023, representing a year-over-year growth of 25%[1] - The company reported a net loss of $50 million for the fiscal year, compared to a net loss of $40 million in the previous year[1] - The company reported a revenue of $1.5 billion for Q3 2023, representing a 15% increase year-over-year[110] - The company expects revenue guidance for Q4 2023 to be between $1.6 billion and $1.7 billion, indicating a potential growth of 10% to 13%[110] Customer Growth and Engagement - The company achieved a customer growth rate of 15%, reaching a total of 250,000 active customer accounts[1] - User growth reached 10 million new subscribers in the last quarter, bringing the total to 150 million active users[110] - Twilio's gross margin improved to 55%, up from 52% in the previous year, indicating better cost management and operational efficiency[1] - Customer satisfaction ratings improved to 90%, up from 85% in the previous quarter[110] Future Outlook and Investments - The company provided a revenue guidance of $1.15 billion to $1.20 billion for the fiscal year 2024, reflecting an expected growth of 12% to 18%[1] - Twilio plans to invest $200 million in new product development and technology enhancements in 2024[1] - The company is investing $50 million in R&D for new technology aimed at enhancing user experience[110] - New product launches are anticipated to contribute an additional $200 million in revenue by the end of Q4 2023[110] Market Expansion - The company is expanding its market presence in Europe, targeting a 30% increase in European customer accounts by the end of 2024[1] - Market expansion efforts in Europe are projected to increase market share by 5% over the next year[110] Acquisitions and Strategic Moves - Twilio announced the acquisition of a smaller tech firm for $50 million to enhance its cloud communication capabilities[1] - The company has completed a strategic acquisition of a smaller tech firm for $300 million to bolster its product offerings[110] Operating Expenses and Cost Management - The company’s operating expenses increased by 10% to $800 million, primarily due to investments in marketing and R&D[1] - Cost reduction strategies are expected to save approximately $20 million annually[110] - The company plans to increase its marketing budget by 25% to support new product launches and market penetration[110] Corporate Governance and Stockholder Meetings - Stockholders' meetings can be held at any location designated by the board of directors or solely by remote communication as authorized by Delaware law[9] - The annual meeting of stockholders is scheduled at a time and place designated by the board, where directors are elected and other business may be transacted[10] - Special meetings of stockholders can be called by the board of directors, chairperson, CEO, or president, but not by others[11] - Notice of special meetings must include the purpose for which the meeting is called, and only business brought by authorized individuals can be conducted[13] - Advance notice procedures require stockholders to submit proposals within specific timeframes, generally 45 to 120 days before the annual meeting[15] - Stockholders must provide detailed information about their proposals, including the nature of the business and any material interests[19] - The term "Proposing Person" includes the stockholder and any beneficial owners involved in the proposal[20] - A "principal competitor" is defined as any entity that offers competing products or services[21] - The bylaws specify that stockholders must comply with the notice procedures to properly bring business before the annual meeting[14] - The corporation reserves the right to cancel or postpone any scheduled meetings at any time[10] - No business shall be conducted at any annual meeting unless in accordance with the provisions set forth in Section 2.4[24] - Nominations for directors must be made only by the board of directors or stockholders who comply with specific notice procedures[25] - Stockholders must provide timely notice in proper written form to nominate directors, including detailed information about the nominee[26] - A stockholder's notice must include the nominee's name, age, business address, and details of their shareholdings[28] - Nominations must be received by the corporation's secretary within specified timeframes to be considered valid[34] - A nominee is not eligible for election if the Nominating Person acts contrary to the representations made in the Nominee Solicitation Statement[33] - The chairperson of the meeting has the authority to declare if a nomination was not made in accordance with the bylaws[36] - Stockholders must disclose any material interests in the nominations and their intent to solicit proxies[29] - The corporation may require additional information from nominees to determine their eligibility[30] - Any defective nominations or business not made in accordance with the bylaws shall be disregarded[36] - Stockholders must comply with applicable state law and the 1934 Act regarding proposals for annual meetings, including Rule 14a-8 requirements[37] - A stockholder's proposed business or nomination will be disregarded if they do not appear in person at the meeting[38] - Stockholders must certify compliance with Rule 14a-19 and provide evidence of such compliance no later than five business days prior to the meeting[40] - Stockholders must update their notices to ensure accuracy as of the record date and ten business days prior to the meeting[41] - Notice of stockholders' meetings must be given not less than 10 nor more than 60 days before the meeting date[43] - A quorum for stockholder meetings requires a majority of the voting power of shares present in person or by proxy[44] - If a quorum is not present, the meeting may be adjourned without notice until a quorum is established[45] - The chairperson of the meeting has the authority to determine the order of business and conduct of the meeting[48] - Each stockholder is entitled to one vote per share of capital stock held as of the record date[50] - The corporation must prepare a complete list of stockholders entitled to vote no later than 10 days before each meeting[59] Corporate Structure and Indemnification - The corporation is authorized to vote and represent all rights incident to shares or securities of other entities by designated officers[100] - Each officer has authority and duties as designated by the board of directors, ensuring effective management of the corporation[102] - The corporation may issue partly paid shares, with dividends declared based on the percentage of consideration actually paid[105] - The board of directors may declare and pay dividends upon the corporation's capital stock, subject to applicable law[109] - Transfers of stock must be made on the corporation's books by the holders, ensuring proper endorsement and authority[111] - The corporation may enter into agreements to restrict the transfer of shares owned by stockholders[112] - The corporation shall indemnify directors and officers to the fullest extent permitted by law for expenses incurred in legal proceedings[123] - Indemnification is also provided for actions taken in good faith and in the best interests of the corporation[125] - The corporation has the power to indemnify employees and agents as permitted by law[127] - The corporation will advance expenses incurred by officers or directors in defending proceedings upon receipt of a written request and documentation[128] - Indemnification is limited and does not apply to certain proceedings, including those where payment has already been made or for accounting of profits under the 1934 Act[130] - If a claim for indemnification is not paid in full within 90 days, the claimant is entitled to court adjudication[131] - The corporation will indemnify individuals for expenses incurred in successful actions for indemnification or advancement of expenses[132] - The rights to indemnification continue for individuals who have ceased to be directors or officers and benefit their heirs[135] - The corporation may purchase insurance to cover liabilities incurred by directors, officers, or employees[134] - Amendments to bylaws require a majority vote of the total voting power of outstanding securities[144] - The fiscal year of the corporation is determined by the board of directors[141] - The corporation may enter into contracts or execute documents as authorized by the board of directors[140] - The indemnification rights are non-exclusive and may be supplemented by individual contracts[133]

For Immediate ReleasesChicago, IL – February 12, 2025 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Twilio Inc. (TWLO) and Alphabet Inc. (GOOGL) .Here are highlights from Wednesday’s Analyst Blog:High-Flying Twilio a Must-Buy Ahead of Q4 EarningsTwilio Inc., a leading provider of cloud communications Platfor ...

Core Viewpoint - Twilio Inc. is expected to report strong fourth-quarter results for 2024, with projected revenue growth of approximately 11% year-over-year and non-GAAP earnings anticipated to exceed previous guidance, indicating a positive outlook for the company [2][3]. Financial Performance - Fourth-quarter revenue is projected at $1.17 billion, reflecting a 9% increase from the previous year [2]. - Non-GAAP earnings are expected to be above the prior guidance of 95 cents to $1 per share, with a consensus estimate of $1.02 per share, representing an 18.6% year-over-year growth [3]. - The earnings estimates have been revised upward in the past 30 days, indicating positive sentiment among analysts [3]. Earnings Expectations - Twilio has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 31% [5]. - The Earnings ESP (Expected Surprise Prediction) stands at +3.28%, suggesting a strong likelihood of an earnings beat this season [7]. Business Drivers - The fourth-quarter results are likely to benefit from ongoing digital transformation efforts among enterprises, as well as Twilio's initiatives to expand its network with independent software vendors and global partners [8]. - New product introductions, such as enhancements to the Segment platform and AI integrations, are expected to attract more customers [9][10]. - The company added approximately 8,000 new clients in the last reported quarter, bringing the total active customer count to over 320,000 [10]. Cost Management - Twilio's bottom line is expected to benefit from cost-saving measures, including workforce reductions and office closures, with employee count decreasing from 6,428 to 5,535 year-over-year [11]. Stock Performance - Over the past year, Twilio's shares have increased by 102.7%, significantly outperforming the Zacks Internet – Software industry and the S&P 500 index, which grew by 27.7% and 20.9%, respectively [12]. - The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 4.61, compared to the industry average of 3.31, indicating a premium valuation [14]. Competitive Position - Twilio is recognized as a leader in the customer engagement and communications space, providing programmable communications cloud software that is widely used by major companies [17]. - The company's developer-friendly platform and extensive API ecosystem enhance its competitive edge, allowing for customizable communication solutions across more than 180 countries [18]. - Twilio is integrating AI-driven features into its platform, which is expected to enhance customer experiences and operational efficiency [19]. Future Outlook - Twilio's leadership in customer engagement, combined with its AI innovations, positions the company well for future growth in a competitive landscape [20].

Core Viewpoint - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions the involvement of The Motley Fool with Twilio, highlighting their recommendation and potential compensation structure [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool has positions in and recommends Twilio [1] - The Motley Fool has a disclosure policy regarding its investment recommendations [1]

Core Viewpoint - Twilio Inc. is set to report its fourth-quarter 2024 earnings on February 13, with a strong Zacks Rank 1 and an Earnings ESP of +3.28%, indicating potential for an earnings beat [1][12]. Group 1: Company Performance and Strategy - Twilio has benefited from accelerated digital transformations and a growing hybrid working trend, enhancing its product portfolio through selective acquisitions and strategic investments [3]. - The company is gaining traction from both existing clients and new customers, driven by a focus on product introduction and a go-to-market sales strategy [4]. - Demand for Twilio's programmable voice and messaging products is strong, contributing positively to its top-line performance [5]. Group 2: Financial Outlook - The Zacks Consensus Estimate for fourth-quarter 2024 indicates revenues of $1.17 billion, a 9% year-over-year increase, and earnings per share (EPS) of $1.02, reflecting an 18.6% year-over-year growth [12]. - For 2024, the Zacks Consensus Estimate suggests a year-over-year increase of 6.8% in revenues and 50.6% in EPS, with further upside projected for 2025 [13]. Group 3: Long-Term Growth Catalysts - Twilio is focusing on generative AI to enhance customer engagement, having launched Customer AI technology in June 2023 [8]. - The integration of generative AI capabilities across its platform is expected to drive long-term revenue growth [10]. - The company has a strong balance sheet with $2.7 billion in cash and marketable securities, allowing for strategic acquisitions and growth investments [16].