Twilio(US:TWLO)2025-10-31 20:09Revenue and Income - Revenue for the three months ended September 30, 2025, was $1.30 billion, a 15% increase from $1.13 billion in the same period of 2024[108]. - Net income for the three months ended September 30, 2025, was $37.2 million, compared to a net loss of $(9.7) million in the same period of 2024[108]. - Revenue for Q3 2025 was $1,300,402, an increase of 14.7% from $1,133,649 in Q3 2024[145]. - Revenue for the three months ended September 30, 2025, increased by $166.8 million, or 15%, to $1,300.4 million compared to $1,133.6 million in the same period last year[149]. - For the nine months ended September 30, 2025, revenue increased by $438.1 million, or 13%, to $3,701.3 million compared to $3,263.2 million in the same period last year[157]. Customer Growth - Active Customer Accounts increased from 320,000 in September 2024 to 392,000 in September 2025, representing a growth of 22.5%[115]. - The Dollar-Based Net Expansion Rate decreased from 109% in September 2024 to 105% in September 2025[115]. - The Dollar-Based Net Expansion Rate was 109%, indicating increased usage of products by existing customers, along with a $61.0 million increase in revenue from new Active Customer Accounts[149]. Expenses and Profitability - GAAP gross profit for Q3 2025 was $632,077, compared to $578,629 in Q3 2024, resulting in a gross margin of 49%[140]. - Non-GAAP income from operations for Q3 2025 was $234,508, with a non-GAAP operating margin of 18%, up from 16% in Q3 2024[142]. - Operating expenses for Q3 2025 totaled $591,129, slightly up from $583,523 in Q3 2024[141]. - Total operating expenses as a percentage of revenue decreased to 45% in Q3 2025 from 51% in Q3 2024[147]. - Gross profit for the three months ended September 30, 2025, increased by $53.4 million, or 9%, to $632.1 million compared to $578.6 million in the same period last year[152]. Cash Flow and Investments - Free cash flow for Q3 2025 was $247,516, representing a free cash flow margin of 19%, compared to 17% in Q3 2024[143]. - Cash provided by operating activities in the nine months ended September 30, 2025, was $731.7 million, compared to $607.8 million in the same period last year[172]. - Cash provided by investing activities in the nine months ended September 30, 2025, was $221.4 million, primarily from $263.7 million of maturities and sales of marketable securities[175]. - Cash used in financing activities in the nine months ended September 30, 2025, was $649.7 million, primarily for repurchasing 6.4 million shares of Class A common stock[177]. Strategic Initiatives - The company entered into a definitive agreement to acquire Stytch, Inc., with the transaction expected to close in Q4 2025[107]. - The company realigned its business unit structure into a functional support model effective January 1, 2025, resulting in one operating and reportable segment[106]. - The company is focusing on product innovation and international expansion to drive revenue growth and market share[109]. - The company is investing strategically in research and development to enhance its customer engagement platform[131]. Market and Financial Position - Cash and cash equivalents as of September 30, 2025, totaled $734.8 million, with short-term marketable securities amounting to $1.7 billion[164]. - The company issued $1.0 billion aggregate principal amount of 2029 and 2031 Notes with fixed interest rates of 3.625% and 3.875% respectively[184]. - A major U.S. mobile carrier increased network service provider fees for A2P messages, which may create a modest headwind to gross margins going forward[112]. - The company has not experienced significant fluctuations in interest income due to the short-term nature of its investments and fixed-rate debt[184]. - A hypothetical 10% change in foreign exchange rates would not have had a material impact on the company's financial statements[188].