Twilio Announces Second Quarter 2019 Results

July 31, 2019

Q2 Total Revenue of $275.0 million, up 86% year-over-year

Q2 Base Revenue of $256.7 million, up 90% year-over-year

Q2 Dollar-Based Net Expansion Rate of 140%

SAN FRANCISCO--(BUSINESS WIRE)-- Twilio (NYSE: TWLO), the leading cloud communications platform, today reported financial results for its second quarter ended June 30, 2019.

“We celebrated a big milestone in the second quarter, crossing the $1 billion annualized revenue run rate,” said Jeff Lawson, Twilio’s Co-Founder and Chief Executive Officer. “We see this as just the beginning, as we have the opportunity to change communications and customer engagement for decades to come. This is Day One and we're just getting started.”

Second Quarter 2019 Financial Highlights

  • Total revenue of $275.0 million for the second quarter of 2019, up 86% from the second quarter of 2018 and 18% sequentially from the first quarter of 2019. Total revenue includes revenue from Twilio SendGrid starting on February 1, 2019 (the date of acquisition).
  • Base revenue of $256.7 million for the second quarter of 2019, up 90% from the second quarter of 2018 and 16% sequentially from the first quarter of 2019. Base revenue includes revenue from Twilio SendGrid starting on February 1, 2019 (the date of acquisition).
  • GAAP loss from operations of $93.7 million for the second quarter of 2019, compared with GAAP loss from operations of $22.0 million for the second quarter of 2018. Non-GAAP income from operations of $1.5 million for the second quarter of 2019, compared with non-GAAP income from operations of $2.2 million for the second quarter of 2018.
  • GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.72 based on 129.3 million weighted average shares outstanding in the second quarter of 2019, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.25 based on 96.3 million weighted average shares outstanding in the second quarter of 2018.
  • Non-GAAP net income per share attributable to common stockholders, diluted, of $0.03 based on 143.7 million non-GAAP weighted average shares outstanding in the second quarter of 2019, compared with non-GAAP net income per share attributable to common stockholders, diluted, of $0.03 based on 106.6 million weighted average shares outstanding in the second quarter of 2018.

Key Metrics and Recent Business Highlights

  • 161,869 Active Customer Accounts as of June 30, 2019, compared to 57,350 Active Customer Accounts as of June 30, 2018. Active Customer Accounts in the current period include the contribution from Twilio SendGrid customer accounts.
  • Dollar-Based Net Expansion Rate was 140% for the second quarter of 2019, compared to 137% for the second quarter of 2018. Twilio SendGrid results do not impact the calculation of this metric in the current period.
  • 2,369 employees as of June 30, 2019.
  • Introduced Automation and Email Testing within Twilio SendGrid Marketing Campaigns, with workflows and integrated tools to build effective emails across one-time campaigns and automated series, all on a single platform for marketing and transactional email, with industry-leading deliverability.
  • Completed a follow-on offering of Class A Common Stock at a price of $124.00 per share, which resulted in aggregate proceeds of $979.0 million after deducting underwriting discounts and offering expenses. We intend to use the net proceeds for general corporate purposes, which may include acquisitions, refinancing or repayment of debt, capital expenditures, working capital and share repurchases.
  • Announced Trust Onboard, a feature for the Company's Internet of Things (IoT) SIMs that enables developers to identify and authenticate cellular connected devices against cloud services, accelerating IoT time to market. Trust Onboard also integrates with Microsoft Azure IoT, allowing developers to sync devices to their Azure cloud from the Twilio Console.
  • Welcomed Jeff Immelt, former chairman and CEO of General Electric and current venture partner at New Enterprise Associates, to the Company's Board of Directors.

Outlook

Twilio is providing guidance for the third quarter ending September 30, 2019 and full year ending December 31, 2019 as follows (guidance includes outlook for Twilio SendGrid from February 1, 2019, the date of acquisition):

Quarter ending September 30, 2019:

Total Revenue (millions)

 

$

 

286.0

 

 

to

 

$

 

289.0

 

Base Revenue (millions)

 

$

 

276.0

 

 

to

 

$

 

278.0

 

Non-GAAP loss from operations (millions)

 

$

 

(5.0

)

 

to

 

$

 

(4.0

)

Non-GAAP earnings per share

 

$

 

0.01

 

 

to

 

$

 

0.02

 

Non-GAAP weighted average shares outstanding (millions)

 

150

 

 

 

 

Non-GAAP income tax rate

 

 

25

%

 

 

 

 

 

 

 

 

 

 

 

Full year ending December 31, 2019:

Total Revenue (millions)

 

$

 

1,113.0

 

 

to

 

$

 

1,119.0

 

Base Revenue (millions)

 

$

 

1,064.0

 

 

to

 

$

 

1,068.0

 

Non-GAAP income from operations (millions)

 

$

 

5.0

 

 

to

 

$

 

8.0

 

Non-GAAP earnings per share

 

$

 

0.17

 

 

to

 

$

 

0.18

 

Non-GAAP weighted average shares outstanding (millions)

 

143

 

 

 

 

 

Non-GAAP income tax rate

 

 

25

%

 

 

 

 

Conference Call Information

Twilio will host a conference call today, July 31, 2019, to discuss second quarter financial results, as well as the third quarter and full year 2019 outlook, at 2:00 p.m. (PT) / 5:00 p.m. (ET). A live webcast of the conference call, as well as a replay of the call, will be available at https://investors.twilio.com. The conference call can also be accessed at (844) 453-4207 (United States) and at +1 (647) 253-8638 (non-U.S.), entering passcode 6466404. Following the completion of the call through 11:59 p.m. (ET) on August 7, 2019, a replay will be available by dialing (800) 585-8367 or +1 (416) 621-4642 (outside the U.S. and Canada) and entering passcode 6466404. Twilio has used, and intends to continue to use, its investor relations website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Twilio Inc.

Millions of developers around the world have used Twilio to unlock the magic of communications to improve any human experience. Twilio has democratized communications channels like voice, text, chat, video and email by virtualizing the world’s communications infrastructure through APIs that are simple enough for any developer to use, yet robust enough to power the world’s most demanding applications. By making communications a part of every software developer's toolkit, Twilio is enabling innovators across every industry — from emerging leaders to the world’s largest organizations — to reinvent how companies engage with their customers.

Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this press release include, but are not limited to, statements about: Twilio’s outlook for the quarter ending September 30, 2019 and full year ending December 31, 2019, Twilio’s expectations regarding its products and solutions, and Twilio’s acquisition of SendGrid. You should not rely upon forward-looking statements as predictions of future events.

The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors that may cause Twilio’s actual results, performance, or achievements to differ materially from those described in the forward-looking statements, including, among other things: adverse changes in general economic or market conditions; changes in the market for communications; Twilio’s ability to adapt its products to meet evolving market and customer demands and rapid technological change; Twilio’s ability to comply with modified or new industry standards, laws and regulations applying to its business; Twilio’s ability to generate sufficient revenues to achieve or sustain profitability; Twilio’s ability to retain customers and attract new customers; Twilio’s limited operating history, which makes it difficult to evaluate its prospects and future operating results; Twilio’s ability to effectively manage its growth; Twilio’s ability to compete effectively in an intensely competitive market, and risks that the anticipated benefits of the acquisition of SendGrid may not be fully realized or may take longer to realize than expected.

The forward-looking statements contained in this press release are also subject to additional risks, uncertainties, and factors, including those more fully described in Twilio’s most recent filings with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended March 31, 2019 filed on May 9, 2019. Further information on potential risks that could affect actual results will be included in the subsequent periodic and current reports and other filings that Twilio makes with the Securities and Exchange Commission from time to time. Moreover, Twilio operates in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release.

Forward-looking statements represent Twilio’s management’s beliefs and assumptions only as of the date such statements are made. Twilio undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Use of Non-GAAP Financial Measures

To provide investors and others with additional information regarding Twilio’s results, the following non-GAAP financial measures are disclosed: non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations and operating margin, non-GAAP net income (loss) attributable to common stockholders, and non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted.

Non-GAAP Gross Profit and Non-GAAP Gross Margin. For the periods presented, Twilio defines non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, adjusted to exclude stock-based compensation and amortization of acquired intangibles.

Non-GAAP Operating Expenses. For the periods presented, Twilio defines non-GAAP operating expenses (including categories of operating expenses) as GAAP operating expenses (and categories of operating expenses) adjusted to exclude, as applicable, stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, and payroll taxes related to stock-based compensation.

Non-GAAP Income (Loss) from Operations and Non-GAAP Operating Margin. For the periods presented, Twilio defines non-GAAP income (loss) from operations and non-GAAP operating margin as GAAP loss from operations and GAAP operating margin, respectively, adjusted to exclude stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, and payroll taxes related to stock-based compensation.

Non-GAAP Net Income (Loss) Attributable to Common Stockholders and Non-GAAP Net Income (Loss) Per Share Attributable to Common Stockholders, Basic and Diluted. For the periods presented, Twilio defines non-GAAP net income (loss) attributable to common stockholders and non-GAAP net income (loss) per share attributable to common stockholders, basic and diluted, as GAAP net loss attributable to common stockholders and GAAP net loss per share attributable to common stockholders, basic and diluted, respectively, adjusted to exclude stock-based compensation, amortization of acquired intangibles, acquisition-related expenses, payroll taxes related to stock-based compensation, amortization of debt discount and issuance costs, income tax benefit related to acquisition, provision for income tax effects related to Non-GAAP adjustments, and dilutive securities.

Twilio’s management uses the foregoing non-GAAP financial information, collectively, to evaluate its ongoing operations and for internal planning and forecasting purposes. Twilio’s management believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of results of operations, and assists in comparisons with other companies, many of which use similar non-GAAP financial information to supplement their GAAP results. Non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. Whenever Twilio uses a non-GAAP financial measure, a reconciliation is provided to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

With respect to Twilio’s guidance as provided under “Outlook” above, Twilio has not reconciled its expectations as to non-GAAP income (loss) from operations to GAAP loss from operations or non-GAAP net income (loss) per share to GAAP net loss per share because stock-based compensation expense cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Operating Metrics

Twilio reviews a number of operating metrics to evaluate its business, measure performance, identify trends, formulate business plans, and make strategic decisions. These include the number of Active Customer Accounts, Base Revenue, and Dollar-Based Net Expansion Rate.

Number of Active Customer Accounts. Twilio believes that the number of Active Customer Accounts is an important indicator of the growth of its business, the market acceptance of its platform and future revenue trends. Twilio defines an Active Customer Account at the end of any period as an individual account, as identified by a unique account identifier, for which Twilio has recognized at least $5 of revenue in the last month of the period. Twilio believes that use of its platform by customers at or above the $5 per month threshold is a stronger indicator of potential future engagement than trial usage of its platform or usage at levels below $5 per month. A single organization may constitute multiple unique Active Customer Accounts if it has multiple account identifiers, each of which is treated as a separate Active Customer Account.

Base Revenue. Twilio monitors Base Revenue as one of the more reliable indicators of future revenue trends. Base Revenue consists of all revenue other than revenue from large Active Customer Accounts that have never entered into 12-month minimum revenue commitment contracts with Twilio, which the Company refers to as Variable Customer Accounts. While almost all of Twilio’s customers exhibit some level of variability in the usage of its products, based on the experience of Twilio’s management, Twilio believes that Variable Customer Accounts are more likely to have significant fluctuations in usage of its products from period to period, and therefore that revenue from Variable Customer Accounts may also fluctuate significantly from period to period. This behavior is best evidenced by the decision of such customers not to enter into contracts with Twilio that contain minimum revenue commitments, even though they may spend significant amounts on the use of the Company’s products, and they may be foregoing more favorable terms often available to customers that enter into committed contracts with Twilio. This variability adversely affects Twilio’s ability to rely upon revenue from Variable Customer Accounts when analyzing expected trends in future revenue.

For historical periods through March 31, 2016, Twilio defined a Variable Customer Account as an Active Customer Account that (i) had never signed a minimum revenue commitment contract with the Company for a term of at least 12 months and (ii) has met or exceeded 1% of the Company’s revenue in any quarter in the periods presented through March 31, 2016. To allow for consistent period-to-period comparisons, in the event a customer account qualified as a Variable Customer Account as of March 31, 2016, or a previously Variable Customer Account ceased to be an Active Customer Account as of such date, Twilio included such customer account as a Variable Customer Account in all periods presented. For reporting periods starting with the three months ended June 30, 2016, Twilio defines a Variable Customer Account as a customer account that (a) has been categorized as a Variable Customer Account in any prior quarter, as well as (b) any new customer account that (i) is with a customer that has never signed a minimum revenue commitment contract with Twilio for a term of at least 12 months and (ii) meets or exceeds 1% of the Company’s revenue in a quarter. Once a customer account is deemed to be a Variable Customer Account in any period, they remain a Variable Customer Account in subsequent periods unless they enter into a minimum revenue commitment contract with Twilio for a term of at least 12 months.

Dollar-Based Net Expansion Rate. Twilio’s ability to drive growth and generate incremental revenue depends, in part, on the Company’s ability to maintain and grow its relationships with existing Active Customer Accounts and to increase their use of the platform. An important way in which Twilio tracks its performance in this area is by measuring the Dollar-Based Net Expansion Rate for Active Customer Accounts, other than Variable Customer Accounts. Twilio’s Dollar-Based Net Expansion Rate increases when such Active Customer Accounts increase their usage of a product, extend their usage of a product to new applications or adopt a new product. Twilio’s Dollar-Based Net Expansion Rate decreases when such Active Customer Accounts cease or reduce their usage of a product or when the Company lowers usage prices on a product. As our customers grow their businesses and extend the use of our platform, they sometimes create multiple customer accounts with us for operational or other reasons. As such, for reporting periods starting with the three months ended December 31, 2016, when we identify a significant customer organization (defined as a single customer organization generating more than 1% of revenue in a quarterly reporting period) that has created a new Active Customer Account, this new Active Customer Account is tied to, and revenue from this new Active Customer Account is included with, the original Active Customer Account for the purposes of calculating this metric. Twilio believes that measuring Dollar-Based Net Expansion Rate on revenue generated from Active Customer Accounts, other than Variable Customer Accounts, provides a more meaningful indication of the performance of the Company’s efforts to increase revenue from existing customers.

Twilio’s Dollar-Based Net Expansion Rate compares the revenue from Active Customer Accounts, other than Variable Customer Accounts, in a quarter to the same quarter in the prior year. To calculate the Dollar-Based Net Expansion Rate, the Company first identifies the cohort of Active Customer Accounts, other than Variable Customer Accounts, that were Active Customer Accounts in the same quarter of the prior year. The Dollar-Based Net Expansion Rate is the quotient obtained by dividing the revenue generated from that cohort in a quarter, by the revenue generated from that same cohort in the corresponding quarter in the prior year. When Twilio calculates Dollar-Based Net Expansion Rate for periods longer than one quarter, it uses the average of the applicable quarterly Dollar-Based Net Expansion Rates for each of the quarters in such period.

Source: Twilio Inc.

TWILIO INC.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended
June 30,

2019

2018

Revenue

 

$

 

275,039

 

 

$

 

147,754

 

Cost of revenue

 

 

125,024

 

 

 

67,940

 

Gross profit

 

 

150,015

 

 

 

79,814

 

Operating expenses:

 

 

 

 

Research and development

 

 

98,783

 

 

 

39,811

 

Sales and marketing

 

 

90,421

 

 

 

37,749

 

General and administrative

 

 

54,543

 

 

 

24,212

 

Total operating expenses

 

 

243,747

 

 

 

101,772

 

Loss from operations

 

 

(93,732

)

 

 

(21,958

)

Other expenses, net

 

 

(880

)

 

 

(1,898

)

Loss before provision for income taxes

 

 

(94,612

)

 

 

(23,856

)

Income tax benefit (provision)

 

 

2,033

 

 

 

(150

)

Net loss attributable to common stockholders

 

$

 

(92,579

)

 

$

 

(24,006

)

 

 

 

 

 

Net loss per share attributable to common stockholders, basic and diluted

 

$

 

(0.72

)

 

$

 

(0.25

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

 

129,310,641

 

 

 

96,348,356

 

TWILIO INC.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

As of
June 30,
2019

 

As of
December 31,
2018

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

 

535,911

 

 

$

 

487,215

 

Short-term marketable securities

 

 

1,346,371

 

 

 

261,128

 

Accounts receivable, net

 

 

126,780

 

 

 

97,712

 

Prepaid expenses and other current assets

 

 

50,451

 

 

 

26,893

 

Total current assets

 

 

2,059,513

 

 

 

872,948

 

Restricted cash

 

 

862

 

 

 

18,119

 

Property and equipment, net

 

 

106,480

 

 

 

63,534

 

Operating right of use asset

 

 

151,946

 

 

 

Intangible assets, net

 

 

485,410

 

 

 

27,558

 

Goodwill

 

 

2,283,578

 

 

 

38,165

 

Other long-term assets

 

 

21,316

 

 

 

8,386

 

Total assets

 

$

 

5,109,105

 

 

$

 

1,028,710

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

 

29,361

 

 

$

 

18,495

 

Accrued expenses and other current liabilities

 

 

117,625

 

 

 

96,343

 

Deferred revenue and customer deposits

 

 

24,898

 

 

 

22,972

 

Operating lease liability, current

 

 

21,858

 

 

 

Financing lease liability, current

 

 

5,920

 

 

 

Note payable, current

 

 

2,119

 

 

 

Total current liabilities

 

 

201,781

 

 

 

137,810

 

Operating lease liability, noncurrent

 

 

138,819

 

 

 

Financing lease liability, noncurrent

 

 

7,752

 

 

 

Note payable, noncurrent

 

 

2,237

 

 

 

Convertible senior notes, net

 

 

446,177

 

 

 

434,496

 

Other long-term liabilities

 

 

15,479

 

 

 

18,169

 

Total liabilities

 

 

812,245

 

 

 

590,475

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

 

 

 

Class A and Class B common stock

 

 

136

 

 

 

100

 

Additional paid-in capital

 

 

4,794,177

 

 

 

808,527

 

Accumulated other comprehensive income

 

 

3,303

 

 

 

1,282

 

Accumulated deficit

 

 

(500,756

)

 

 

(371,674

)

Total stockholders’ equity

4,296,860

438,235

 

Total liabilities and stockholders’ equity

 

$

 

5,109,105

 

 

$

 

1,028,710

 

TWILIO INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Six Months Ended
June 30,

 

 

2019

 

 

2018

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net loss

 

$

 

(129,082

)

 

$

 

(47,735

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

49,610

 

 

 

11,392

 

Right-of-use asset amortization

 

 

10,707

 

 

 

Net amortization of investment premium and discount

 

 

(2,948

)

 

 

(237

)

Amortization of debt discount and issuance costs

 

 

11,682

 

 

 

2,695

 

Stock-based compensation

 

 

129,064

 

 

 

38,546

 

Amortization of deferred commissions

 

 

1,585

 

 

 

478

 

Provision for doubtful accounts

 

 

697

 

 

 

1,515

 

Tax benefit related to release of valuation allowance

 

 

(53,502

)

 

 

Write-off of long lived assets

 

 

769

 

 

 

515

 

Other tax benefit realized in the period

 

 

(692

)

 

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(22,523

)

 

 

(26,048

)

Prepaid expenses and other current assets

 

 

(15,688

)

 

 

(2,847

)

Other long-term assets

 

 

(5,969

)

 

 

(1,908

)

Accounts payable

 

 

8,306

 

 

 

12,566

 

Accrued expenses and other current liabilities

 

 

13,976

 

 

 

28,040

 

Deferred revenue and customer deposits

 

 

1,927

 

 

 

3,300

 

Operating right of use liability

 

 

(9,367

)

 

 

Long-term liabilities

 

 

(2,371

)

 

 

(1,047

)

Net cash (used in) provided by operating activities

 

 

(13,819

)

 

 

19,225

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Acquisitions, net of cash acquired

 

 

146,957

 

 

 

Purchases of marketable securities and other investments

 

 

(1,377,072

)

 

 

(184,364

)

Proceeds from sales and maturities of marketable securities

 

 

286,653

 

 

 

58,520

 

Capitalized software development costs

 

 

(10,520

)

 

 

(9,958

)

Purchases of long-lived assets

 

 

(7,882

)

 

 

(2,315

)

Net cash used in investing activities

 

 

(961,864

)

 

 

(138,117

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Proceeds from a public offering, net of underwriting discount

 

 

980,000

 

 

 

Payments of costs related to the public offering

 

 

(347

)

 

 

Proceeds from issuance of convertible senior notes

 

 

 

 

550,000

 

Payment of debt issuance costs

 

 

 

 

(12,513

)

Purchase of capped call

 

 

 

 

(58,465

)

Principal payments on notes payable

 

 

(997

)

 

 

Principal payments on financing leases

 

 

(2,463

)

 

 

Proceeds from exercises of stock options

 

 

25,255

 

 

 

13,715

 

Proceeds from shares issued under ESPP

 

 

8,254

 

 

 

4,474

 

Value of equity awards withheld for tax liabilities

 

 

(2,580

)

 

 

(910

)

Net cash provided by financing activities

 

 

1,007,122

 

 

 

496,301

 

 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

 

 

818

 

 

 

 

 

 

NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

31,439

 

 

 

378,227

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period

 

 

505,334

 

 

 

120,788

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period

 

$

 

536,773

 

 

$

 

499,015

 

TWILIO INC.

Reconciliation to Non-GAAP Financial Measures

(In thousands, except shares, per share amounts and percentages)

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

 

2019

 

2018

Gross profit

 

$

150,015

 

 

$

79,814

 

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

1,623

 

 

266

 

Amortization of acquired intangibles

 

11,857

 

 

1,125

 

Payroll taxes related to stock-based compensation

 

58

 

 

 

Non-GAAP gross profit

 

$

163,553

 

 

$

81,205

 

Non-GAAP gross margin

 

59

%

 

55

%

 

Research and development

 

$

98,783

 

 

$

39,811

 

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

(33,701

)

 

(9,749

)

Payroll taxes related to stock-based compensation

 

(2,186

)

 

(1,215

)

Non-GAAP research and development

 

$

62,896

 

 

$

28,847

 

Non-GAAP research and development as a % of revenue

 

23

%

 

20

%

 

 

 

 

 

Sales and marketing

 

$

90,421

 

 

$

37,749

 

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

(14,564

)

 

(5,049

)

Amortization of acquired intangibles

 

(7,329

)

 

(206

)

Payroll taxes related to stock-based compensation

 

(990

)

 

(349

)

Non-GAAP sales and marketing

 

$

67,538

 

 

$

32,145

 

Non-GAAP sales and marketing as a % of revenue

 

25

%

 

22

%

 

 

 

 

 

General and administrative

 

$

54,543

 

 

$

24,212

 

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

(20,852

)

 

(5,942

)

Amortization of acquired intangibles

 

(62

)

 

(20

)

Acquisition-related expenses

 

(1,274

)

 

 

Payroll taxes related to stock-based compensation

 

(746

)

 

(247

)

Non-GAAP general and administrative

 

$

31,609

 

 

$

18,003

 

Non-GAAP general and administrative as a % of revenue

 

11

%

 

12

%

 

Loss from operations

 

$

(93,732

)

 

$

(21,958

)

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

70,740

 

 

21,006

 

Amortization of acquired intangibles

 

19,248

 

 

1,351

 

Acquisition-related expenses

 

1,274

 

 

 

Payroll taxes related to stock-based compensation

 

3,980

 

 

1,811

 

Non-GAAP income from operations

 

$

1,510

 

 

$

2,210

 

Non-GAAP operating margin

 

1

%

 

1

%

TWILIO INC.

Reconciliation to Non-GAAP Financial Measures

(In thousands, except shares, per share amounts and percentages)

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

 

2019

 

2018

Net loss attributable to common stockholders

 

$

(92,579

)

 

$

(24,006

)

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

70,740

 

 

21,006

 

Amortization of acquired intangibles

 

19,248

 

 

1,351

 

Acquisition-related expenses

 

1,274

 

 

 

Payroll taxes related to stock-based compensation

 

3,980

 

 

1,811

 

Amortization of debt discount and issuance costs

 

5,841

 

 

2,695

 

Income tax benefit related to acquisition

 

(63

)

 

 

Provision for income tax effects related to Non-GAAP adjustments **

 

(3,588

)

 

 

Non-GAAP net income attributable to common stockholders

 

$

4,853

 

 

$

2,857

 

Non-GAAP net income attributable to common stockholders as a % of revenue

 

2

%

 

2

%

 

 

 

 

 

Net loss per share attributable to common shareholders, basic *

 

$

(0.72

)

 

$

(0.25

)

Non-GAAP adjustments:

 

 

 

 

Stock-based compensation

 

0.49

 

 

0.20

 

Amortization of acquired intangibles

 

0.13

 

 

0.01

 

Acquisition-related expenses

 

0.01

 

 

 

Payroll taxes related to stock-based compensation

 

0.03

 

 

0.02

 

Amortization of debt discount and issuance costs

 

0.04

 

 

0.03

 

Income tax benefit related to acquisition

 

 

 

 

Provision for income tax effects related to Non-GAAP adjustments **

 

(0.02

)

 

 

Dilutive securities

 

0.07

 

 

0.02

 

Non-GAAP net income per share attributable to common shareholders, diluted

 

$

0.03

 

 

$

0.03

 

 

 

 

 

 

GAAP weighted-average shares used to compute net loss per share attributable to common stockholders, basic

 

129,310,641

 

96,348,356

 

 

 

 

 

Effect of dilutive securities (stock options and restricted stock units)

 

14,349,437

 

10,255,515

 

 

 

 

 

Non-GAAP weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, diluted

 

143,660,078

 

106,603,871

* Some columns may not add due to rounding
** Represents the tax effect of the non-GAAP adjustments based on the estimated annual effective tax rate of 25%

 

TWILIO INC.

Key Metrics

(Unaudited)

 

 

 

Three Months Ended

 

 

Jun 30,
2017

 

Sep 30,
2017

 

Dec 31,
2017

 

Mar 31,
2018

 

Jun 30,
2018

 

Sep 30,
2018

 

Dec 31,
2018

 

Mar 31,
2019

 

Jun 30,
2019

Number of Active Customers (as of period end date)

 

43,431

 

 

46,489

 

 

48,979

 

 

53,985

 

 

57,350

 

 

61,153

 

 

64,286

 

 

154,797

 

 

161,869

 

Base Revenue (in thousands)

 

$

87,583

 

 

$

91,965

 

 

$

105,299

 

 

$

117,507

 

 

$

135,004

 

 

$

154,348

 

 

$

186,158

 

 

$

220,885

 

 

$

256,737

 

Base Revenue Growth Rate

 

55

%

 

43

%

 

40

%

 

46

%

 

54

%

 

68

%

 

77

%

 

88

%

 

90

%

Dollar-Based Net Expansion Rate

 

131

%

 

122

%

 

118

%

 

132

%

 

137

%

 

145

%

 

147

%

 

146

%

 

140

%

 

Investor Contact:
Andrew Zilli
ir@Twilio.com

or

Media Contact:
Caitlin Epstein
press@Twilio.com

Source: Twilio Inc.

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