Twilio(US:TWLO)2025-10-30 20:09Financial Performance - Revenue for Q3 2025 was $1.3 billion, representing a 15% increase year-over-year and a 13% organic growth[6]. - Non-GAAP income from operations reached $235 million, up 29% from $182.4 million in Q3 2024[6][7]. - GAAP income from operations improved to $41 million, compared to a loss of $4.9 million in Q3 2024[6][7]. - Revenue for the three months ended September 30, 2025, was $1,300,402,000, an increase from $1,133,649,000 in the same period of 2024, representing a growth of approximately 14.7%[38]. - Gross profit for the same period was $632,077,000, compared to $578,629,000 in 2024, indicating an increase of about 9.2%[38]. - Net income attributable to common stockholders for Q3 2025 was $37,248,000, a significant improvement from a net loss of $9,726,000 in Q3 2024[38]. - Non-GAAP net income per share attributable to common stockholders was $1.25, compared to $1.02 in Q3 2024[7]. - The company reported a basic net income per share of $0.24 for Q3 2025, compared to a loss of $0.06 per share in Q3 2024[38]. - GAAP revenue for the three months ended September 30, 2025, was $1,300,402, representing a year-over-year growth of 15%[45]. - Non-GAAP gross profit for Q3 2025 was $652,097, with a non-GAAP gross margin of 50.1%[42]. - Non-GAAP income from operations increased to $234,508, resulting in a non-GAAP operating margin of 18.0%[43]. - GAAP net income attributable to common stockholders for Q3 2025 was $37,248, compared to a loss of $9,726 in Q3 2024[43]. - Non-GAAP net income attributable to common stockholders was $198,258, with a non-GAAP net income margin of 15.2%[43]. - Free cash flow for Q3 2025 was $247,516, with a free cash flow margin of 19%[46]. - Operating cash flow for Q3 2025 was $263,563, resulting in an operating cash flow margin of 20%[46]. - Free cash flow for Q3 2025 was $247.5 million, compared to $189.1 million in Q3 2024[7]. - Free cash flow for the nine months ended September 30, 2025, was $731,689,000, compared to $607,795,000 for the same period in 2024, reflecting an increase of approximately 20.3%[41]. Customer Metrics - Active customer accounts increased to over 392,000, up from more than 320,000 a year ago[7]. - The Dollar-Based Net Expansion Rate was 109% for Q3 2025, compared to 105% in Q3 2024[7]. - Active Customer Accounts are defined as accounts generating at least $5 of revenue in the last month of the period, with the number rounded down to the nearest thousand[32]. - The Dollar-Based Net Expansion Rate measures revenue growth from existing customers, with revenue from acquisitions not impacting this metric until one year after the acquisition[34]. Guidance and Strategic Initiatives - Twilio raised its fiscal year 2025 revenue growth guidance to 12.4% - 12.6%, up from 10% - 11% previously[10]. - The company initiated a share repurchase program with an authorization of up to $2.0 billion, having repurchased $349.8 million in Q3 2025[9]. - Twilio announced the acquisition of Stytch, Inc., an identity platform for AI agents, expected to close in mid-November 2025[12]. Balance Sheet Highlights - Cash and cash equivalents as of September 30, 2025, totaled $734,843,000, up from $421,297,000 at the end of 2024[40]. - Total assets as of September 30, 2025, were $9,712,319,000, a decrease from $9,865,472,000 at the end of 2024[40]. - Total liabilities decreased to $1,817,030,000 as of September 30, 2025, from $1,912,506,000 at the end of 2024[40]. Expense Ratios - Research and development expenses as a percentage of revenue were 13.4% for Q3 2025[42]. - Non-GAAP sales and marketing expenses as a percentage of revenue were 13.2% for Q3 2025[42].