Twilio Q4 Earnings Call Highlights

Core Insights - Twilio reported a record fourth quarter with $1.4 billion in revenue and achieved its first full-year of GAAP profitability, generating $5.1 billion in revenue for the year [3][4][7] Financial Performance - Q4 revenue rose 14% year-over-year on a reported basis and 12% organically, while full-year revenue grew 14% reported and 13% organically [2] - Twilio generated $158 million in GAAP income from operations for the full year, including $57 million in Q4 [2] - Non-GAAP gross profit for Q4 was $682 million, with a non-GAAP gross margin of 49.9%, down 200 basis points year-over-year [13] - Non-GAAP operating margin in Q4 was 18.7%, up 220 basis points year-over-year, attributed to cost discipline [14] Voice and Product Momentum - Voice revenue growth accelerated to the high teens in Q4, with voice AI revenue growing above 60% year-over-year [1][6] - Branded Calling revenue surged roughly 6x year-over-year in Q4, while RCS volume grew approximately 5x quarter-over-quarter [8] - Software add-on revenue, led by Verify, grew over 20% year-over-year [8] Customer Engagement and Sales Channels - Twilio's self-serve revenue grew 28% year-over-year in Q4, and ISV revenue grew 26% [9][10] - The number of large deals of $500,000 or more increased 36% year-over-year in Q4 [11] - Multi-product customer count grew 26% year-over-year in Q4, indicating a shift from product selling to solution selling [12] Guidance and Future Outlook - For Q1, Twilio guided revenue of $1.335 billion to $1.345 billion, representing 14% to 15% reported growth [16] - For 2026, Twilio guided to 11.5% to 12.5% reported revenue growth and 8% to 9% organic growth, with an expected non-GAAP operating income of $1.04 billion to $1.06 billion [17][18] - Looking beyond 2026, Twilio set a target of at least $1.23 billion in non-GAAP operating income for 2027 [19]