Twilio (TWLO) Q4 Earnings and Revenues Surpass Estimates

Core Insights - Twilio Inc. reported better-than-expected fourth-quarter 2023 results with non-GAAP earnings of 86 cents per share, surpassing the Zacks Consensus Estimate of 57 cents and management's guidance range of 53-57 cents, showing significant improvement from 22 cents in the year-ago quarter [1] Revenue Details - The company registered revenues of $1.08 billion, a 5% year-over-year increase, exceeding the consensus mark of $1.04 billion [2] - Seasonal sales during the holiday season contributed to revenue growth, although challenges from customers in the crypto industry impacted the top line [2] - Twilio restructured its business segments, shifting $54 million of revenues from Data and Applications to Communications, and renamed its Data and Applications business unit to the Twilio Segment [2] Customer Metrics - The dollar-based net expansion rate was 102%, up from 101% in the previous quarter but down from 110% in the year-ago quarter [3] - Active customer accounts decreased to 305,000 as of December 31, 2023, from 306,000 at the end of the third quarter, but increased from 290,000 a year ago [3] Operating Results - Non-GAAP gross profit increased by 9% year over year to $564 million, with a non-GAAP gross margin of 52.4%, expanding 180 basis points year over year [4] - Non-GAAP operating income was $172.6 million, a significant improvement from a non-GAAP operating loss of $32.9 million in the year-ago quarter, resulting in a non-GAAP operating margin of 16% [4] - General & administrative expenses decreased by 29.1% to $62.1 million, accounting for 6% of quarterly revenues, down from 9% in the year-ago quarter [4] Balance Sheet - As of December 31, 2023, the company had cash and cash equivalents of $4.01 billion, up from $3.86 billion at the end of the third quarter [5] - Long-term debt stood at $988.6 million, with operating cash flow of $414.8 million generated during fiscal 2023 [5] - The company repurchased $656 million worth of stocks during the fiscal year and had bought back $730 million under a $1 billion share repurchase program authorized in February 2023 [5] Q1 Guidance - For the first quarter ending March 31, 2024, Twilio anticipates revenues between $1.025 billion and $1.035 billion, indicating a year-over-year increase of 2-3% on a reported basis and 5-6% on an organic basis [6] - The company forecasts non-GAAP earnings in the range of 56-60 cents per share for the upcoming quarter [6]