Q2 2025 Earnings Results August 7, 2025 1 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 subsequent Quarterly Reports on Form 10- ...

Company Overview - Twilio (TWLO) shares increased by 6.5% to close at $126.16, with notable trading volume compared to typical sessions, and a 1.6% gain over the past four weeks [1] - The stock's recent performance is driven by optimism surrounding its AI-driven platform, enhancing personalized customer interactions through voice, messaging, and web [2] Financial Performance - Twilio is expected to report quarterly earnings of $1.02 per share, reflecting a year-over-year increase of 17.2%, with revenues projected at $1.19 billion, up 9.5% from the previous year [3] - The consensus EPS estimate for Twilio has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Twilio operates within the Zacks Internet - Software industry, where Block (XYZ) closed 3.9% lower at $66.01, with a 6% return over the past month [5] - Block's consensus EPS estimate has decreased by 1.3% to $0.6, representing a significant year-over-year decline of 35.5% [6]

Core Viewpoint - Needham analyst Joshua Reilly maintains a Buy rating on Twilio (TWLO) with a price target of $125, expressing positive sentiment after attending the Twilio Signal customer conference, highlighting increased product usage and favorable customer feedback [1][2]. Group 1: Company Performance and Strategy - Reilly noted an increasing pipeline of projects and a more efficient implementation process utilizing AI, which positions Twilio strategically for cross-selling opportunities, particularly with the recent Microsoft partnership [2][4]. - The collaboration with Microsoft enhances Twilio's capabilities in building multi-channel AI agents and improving customer engagement through advanced features like Twilio Agent Copilot [3][7]. - Twilio has addressed many operational challenges over the past 24 months, allowing a stronger focus on product development and customer benefits moving forward [4][9]. Group 2: Product Development and Customer Experience - Twilio is working to streamline the billing process for its services, which currently operate on separate platforms, to improve customer experience and facilitate easier bundling [5][6]. - The company launched several new products at the Signal 2025 event, with Verify and Lookup receiving particularly positive feedback from customers [7][8]. - Discussions with management indicated a projected growth trajectory for voice volumes that could significantly exceed 2024 levels, reflecting sustained optimism among partners and customers [9][10]. Group 3: Financial Projections - Reilly projects fiscal 2025 revenue for Twilio at $4.82 billion and earnings per share (EPS) at $4.45, indicating confidence in the company's financial outlook [10].