0001447669-24-000034 | 10-K | XBRL Viewer

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Equity Method Investment - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	8 Months Ended	12 Months Ended
	May 31, 2022	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Marketable Securities [Line Items]
Intangible assets		$ 849,935	$ 350,490	$ 849,935
Deferred tax liabilities		3,782		3,782
Equity method investment		$ 699,911	593,582	699,911
Share of losses from equity method investment			121,897	35,315	$ 0
Share of other comprehensive (loss) income from equity method investment			$ 15,553	$ (14,940)	$ 0
Syniverse
Marketable Securities [Line Items]
Acquisition of voting stock (in percent)	44.60%	44.50%	44.00%	44.50%
Payments to acquire equity method investments	$ 750,000
Intangible assets	530,741	$ 508,900	$ 451,600	$ 508,900
Deferred tax liabilities	41,300	41,300	41,200	41,300
Estimated goodwill	$ 623,800	623,800	623,800	623,800
Equity method investment		699,900	593,600	699,900
Share of other comprehensive (loss) income from equity method investment			15,600	$ (14,900)
Impact of transaction		$ 89,600	$ 143,700

Stock-Based Compensation - Stock Option Fair Value (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Stock Based Compensation
Aggregate intrinsic value of stock options exercised	$ 15,242	$ 80,839	$ 508,539
Total estimated grant date fair value of options vested	$ 28,619	$ 77,403	$ 138,851
Weighted-average grant date fair value per share of options granted (in dollars per share)	$ 0	$ 50.66	$ 216.29

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands		3 Months Ended	12 Months Ended
	Jun. 28, 2023	Jun. 30, 2023 segment	Dec. 31, 2023 USD ($) vote segment shares	Dec. 31, 2022 USD ($) segment shares	Dec. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount			$ 144,000
Deferred revenue			144,500	$ 139,100
Revenue recognized out of adjusted deferred revenue balance			$ 120,500	124,900	$ 70,100
Amortization period for deferred incremental commission costs of obtaining new contracts			3 years
Total net capitalized costs			$ 200,100	239,100
Amortization of deferred commissions			72,892	57,913	31,541
Advertising expense			$ 71,100	$ 92,600	$ 78,800
Preferred stock, authorized (in shares) \| shares			100,000,000	100,000,000
Allowance for doubtful accounts			$ 42,000	$ 27,000
Number of operating segments \| segment		2		1
Number of reportable segments \| segment		2	2	1
Common Stock Class A
Disaggregation of Revenue [Line Items]
Votes per share \| vote			1
Conversion of shares of Class B common stock (in shares)	1
Incremental commission costs of obtaining new contracts
Disaggregation of Revenue [Line Items]
Amortization period for deferred incremental commission costs of obtaining new contracts			5 years
Usage Based Contracts \| Revenue Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue			71.00%	73.00%	72.00%
Non-Usage Based Contracts \| Minimum
Disaggregation of Revenue [Line Items]
Revenue recognized, period for recognition			1 year
Non-Usage Based Contracts \| Maximum
Disaggregation of Revenue [Line Items]
Revenue recognized, period for recognition			3 years
Non-Usage Based Contracts \| Revenue Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of revenue			29.00%	27.00%	28.00%
Next 12 Months \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, percentage			67.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period			12 months
Next 24 Months \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, percentage			93.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period			24 months

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Financial Assets

The following tables provide the financial assets measured at fair value on a recurring basis:


	Amortized Cost or Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months		Gross Unrealized Losses More Than 12 Months		Fair Value Hierarchy as of December 31, 2023						Aggregate Fair Value
									Level 1		Level 2		Level 3
Financial Assets:	(In thousands)
Cash and cash equivalents:
Money market funds	$	408,696	$	—	$	—	$	—	$	408,696	$	—	$	—	$	408,696


Total included in cash and cash equivalents	408,696		—		—		—		408,696		—		—		408,696
Marketable securities:
Debt securities:
U.S. Treasury securities	410,665		2,162		(7)		(1,665)		411,155		—		—		411,155
Non-U.S. government securities	83,576		55		(111)		(1,209)		82,311		—		—		82,311
Corporate debt securities and commercial paper	2,859,071		15,366		(10,818)		(5,922)		16,690		2,841,007		—		2,857,697
Total debt securities	3,353,312		17,583		(10,936)		(8,796)		510,156		2,841,007		—		3,351,163
Equity securities	4,901		—		—		—		4,901		—		—		4,901
Total marketable securities	3,358,213		17,583		(10,936)		(8,796)		515,057		2,841,007		—		3,356,064
Total financial assets	$	3,766,909	$	17,583	$	(10,936)	$	(8,796)	$	923,753	$	2,841,007	$	—	$	3,764,760


	Amortized Cost or Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months		Gross Unrealized Losses More Than 12 Months		Fair Value Hierarchy as of December 31, 2022						Aggregate Fair Value
									Level 1		Level 2		Level 3
Financial Assets:	(In thousands)
Cash and cash equivalents:
Money market funds	$	46,610	$	—	$	—	$	—	$	46,610	$	—	$	—	$	46,610
Reverse repurchase agreements	200,000		—		—		—		—		200,000		—		200,000
Commercial paper	2,249		—		—		—		—		2,249		—		2,249
Total included in cash and cash equivalents	248,859		—		—		—		46,610		202,249		—		248,859
Marketable securities:
U.S. Treasury securities	481,463		—		(1,269)		(11,347)		468,847		—		—		468,847
Non-U.S. government securities	149,901		—		(33)		(6,304)		143,564		—		—		143,564
Corporate debt securities and commercial paper	2,973,844		307		(12,202)		(71,043)		5,000		2,885,906		—		2,890,906
Total marketable securities	3,605,208		307		(13,504)		(88,694)		617,411		2,885,906		—		3,503,317
Total financial assets	$	3,854,067	$	307	$	(13,504)	$	(88,694)	$	664,021	$	3,088,155	$	—	$	3,752,176

Debt Securities

The aggregate fair value of corporate debt securities with unrealized losses is $1.5 billion as of December 31, 2023, of which $415.2 million have been in an unrealized loss position for more than 12 months and $1.1 billion have been in an unrealized loss position for less than 12 months. The aggregate fair value of corporate debt securities with unrealized losses was $2.7 billion as of December 31, 2022, of which $2.0 billion were in an unrealized loss position for more than 12 months and $620.5 million were in an unrealized loss position for less than 12 months. Unrealized losses related to other investments as of December 31, 2023 and 2022 were not significant.

The Company’s primary objective when investing excess cash is preservation of capital, hence the Company’s debt securities primarily consist of U.S. Treasury Securities, non-U.S government securities, high credit quality corporate debt securities and commercial paper. Because the Company views its debt securities as available to support current operations, it has classified all available for sale securities as short-term. As of December 31, 2023 and 2022, for all securities that were in

unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of December 31, 2023 and 2022, the Company anticipates that it will recover the entire amortized cost basis of such debt securities before maturity.

Interest earned on marketable securities was $77.7 million, $64.6 million and $55.7 million in the years ended December 31, 2023, 2022 and 2021, respectively. The interest is recorded as other income (expenses), net, in the accompanying consolidated statements of operations.

The following table summarizes the contractual maturities of marketable securities:


	As of December 31,
	2023				2022
	Amortized Cost		Aggregate Fair Value		Amortized Cost		Aggregate Fair Value
Financial Assets:	(In thousands)
Less than one year	$	1,448,256	$	1,434,149	$	1,943,836	$	1,909,218
One to three years	1,905,056		1,917,014		1,661,372		1,594,099
Total	$	3,353,312	$	3,351,163	$	3,605,208	$	3,503,317

Equity Securities

The equity securities consist of shares of a publicly traded company that were received as consideration in a divestiture transaction described further in Note 5.

Strategic Investments

As of December 31, 2023 and 2022, the Company held strategic investments with an aggregate carrying value of $30.7 million and $76.9 million, respectively, recorded as other long-term assets in the accompanying consolidated balance sheets. The carrying value of these securities is determined under the measurement alternative on a non-recurring basis and adjusted for observable changes in fair value or impairment. In the year ended December 31, 2023, the Company remeasured to fair value one of its strategic investments acquired in 2021 due to an assessed impairment. The fair value measurement of the strategic investment is classified as Level 2 in the fair value hierarchy and the primary input used in the fair value measurement was the publicly available stock price of the issuer’s unrestricted security of the same class. The impairment loss of $46.2 million is recorded in other expenses, net, in the accompanying consolidated statement of operations for the year ended December 31, 2023. There were no other impairments or adjustments recorded in the three years ended December 31, 2023, 2022 and 2021, related to these securities.

Financial Liabilities

The Company’s financial liabilities that are measured at fair value on a recurring basis consist of foreign currency derivative liabilities and are classified as Level 2 financial instruments in the fair value hierarchy. As of December 31, 2023 and 2022, the aggregate fair value of these liabilities and the associated unrealized losses were not significant.

The Company’s financial liabilities that are not measured at fair value on a recurring basis are its 2029 Notes and its 2031 Notes. As of December 31, 2023, the fair value of the 2029 Notes and 2031 Notes were $462.4 million and $452.3 million, respectively. As of December 31, 2022, the fair value of the 2029 Notes and 2031 Notes were $410.9 million and $399.4 million, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Schedule of reserved shares of common stock for issuance

The Company had reserved shares of common stock for issuance as follows:


	As of December 31,
	2023	2022
Stock options issued and outstanding	1,722,861	2,277,379
Unvested restricted stock units issued and outstanding	18,755,538	15,414,997
Shares of Class A common stock reserved for Twilio.org	442,041	530,449
Stock-based awards available for grant under 2016 Plan	19,869,260	19,851,399
Shares of Class A common stock reserved for issuance pursuant to ESPP	8,541,701	7,648,429
Total	49,331,401	45,722,653

Stock-Based Compensation - Restricted Stock Units Narrative (Details) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($) tranche $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Performance-Based Restricted Stock Units
Stock Based Compensation
Granted (in shares) \| shares	919,289
Granted (in dollars per share) \| $ / shares	$ 157.44
Outstanding performance based options, aggregate intrinsic value \| $	$ 144.7
Number of tranches \| tranche	3
Performance-Based Restricted Stock Units \| Maximum
Stock Based Compensation
Vesting percentage of target	100.00%
Unvested restricted stock units and awards
Stock Based Compensation
Granted (in shares) \| shares		14,716,790
Granted (in dollars per share) \| $ / shares		$ 65.73
Unrecognized compensation cost, other than options \| $		$ 1,500.0
Weighted-average remaining period		2 years 8 months 12 days

Stockholders' Equity - Common Stock Shares Reserved (Details) - shares	Dec. 31, 2023	Dec. 31, 2022
Stockholders' Equity
Total (in shares)	49,331,401	45,722,653
Stock-based awards available for grant under 2016 Plan
Stockholders' Equity
Stock-based awards available for grant under 2016 Plan and shares of class A common stock reserved for issuance pursuant to ESPP (in shares)	19,869,260	19,851,399
Common Stock Class A
Stockholders' Equity
Class A common stock reserved (in shares)	442,041	530,449
Stock options issued and outstanding
Stockholders' Equity
Stock options issued and outstanding (in shares)	1,722,861	2,277,379
Unvested restricted stock units issued and outstanding
Stockholders' Equity
Unvested restricted stock units issued and outstanding (in shares)	18,755,538	15,414,997
Shares of Class A common stock reserved for issuance pursuant to ESPP
Stockholders' Equity
Stock-based awards available for grant under 2016 Plan and shares of class A common stock reserved for issuance pursuant to ESPP (in shares)	8,541,701	7,648,429

Net Loss Per Share Attributable to Common Stockholders (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of the calculation of basic and diluted net loss per share attributable to common stockholders

The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented:


	Year Ended December 31,
	2023		2022		2021

Net loss attributable to common stockholders (in thousands)	$	(1,015,441)	$	(1,256,145)	$	(949,900)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	183,327,844		182,994,038		174,180,465
Net loss per share attributable to common stockholders, basic and diluted	$	(5.54)	$	(6.86)	$	(5.45)

Schedule of common stock equivalents excluded from the calculation of the diluted net loss per share attributable to common stockholders

The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive:


	As of December 31,
	2023	2022	2021
Stock options issued and outstanding	1,722,861	2,277,379	3,351,313
Unvested restricted stock units issued and outstanding	18,755,538	15,414,997	6,475,700
Shares of Class A common stock reserved for Twilio.org	442,041	530,449	618,857
Shares of Class A common stock committed under ESPP	426,199	766,334	147,947
Shares of Class A common stock in escrow	31,503	31,503	75,506
Shares of Class A common stock in escrow and restricted stock awards subject to future vesting	3,771	56,237	235,054
Total	21,381,913	19,076,899	10,904,377

Revenue by Geographic Area and Groups of Similar Products - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Long-lived assets by geographic area:
Total	$ 139,012	$ 233,097
United States
Long-lived assets by geographic area:
Total	$ 99,368	$ 178,624
United States \| Long Lived Asset by Geographic area \| Geographic Concentration Risk
Percentage of long-lived assets by geographic area:
Percentage of revenue	71.00%	77.00%
International
Long-lived assets by geographic area:
Total	$ 39,644	$ 54,473
International \| Long Lived Asset by Geographic area \| Geographic Concentration Risk
Percentage of long-lived assets by geographic area:
Percentage of revenue	29.00%	23.00%

Stock-Based Compensation - 2016 Stock Option Plan (Details) - shares			12 Months Ended
	Jan. 01, 2023	Jan. 01, 2022	Dec. 31, 2023	Jun. 22, 2016
Stock Based Compensation
Vesting period			4 years
Stock Options
Stock Based Compensation
Expiration term			10 years
Stock-based awards available for grant under 2016 Plan
Stock Based Compensation
Maximum automatic annual increase as a percentage of outstanding common shares			5.00%
Increase in shares available for grant (in shares)	9,298,785	9,023,405
Stock-based awards available for grant under 2016 Plan \| Stock Options
Stock Based Compensation
Minimum grant price as a percentage of fair market value per share of the underlying common stock on the date of grant (as a percent)			100.00%
Stock-based awards available for grant under 2016 Plan \| Common Stock Class A
Stock Based Compensation
Shares reserved for issuance (in shares)				11,500,000

Right-of-Use Assets and Lease Liabilities - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Renewal option	4 years
Impairment of long-lived assets	$ 34.8	$ 97.7
Operating lease, impairment loss	24.8	72.8
Operating lease, cost	$ 35.7	$ 57.8	$ 61.0
Minimum
Lessee, Lease, Description [Line Items]
Term of lease	3 months 18 days
Maximum
Lessee, Lease, Description [Line Items]
Term of lease	5 years 9 months 18 days

Revenue by Geographic Area and Groups of Similar Products

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue by Geographic Area and Groups of Similar Products

Revenue by geographic area is based on the IP address or the mailing address at the time of registration. The following table sets forth revenue by geographic area:


		Year Ended December 31,
		2023		2022		2021(1)
Revenue by geographic area:	(In thousands)
United States		$	2,757,470	$	2,510,525	$	1,927,302
International		1,396,475		1,315,796		914,537
Total		$	4,153,945	$	3,826,321	$	2,841,839


Percentage of revenue by geographic area:
United States	66	%	66	%	68	%
International	34	%	34	%	32	%

The following table sets forth long-lived assets by geographic area:


	As of December 31,
	2023			2022
Long-lived assets by geographic area:	(In thousands)
United States	$	99,368		$	178,624
International	39,644			54,473
Total	$	139,012		$	233,097
Percentage of long-lived assets by geographic area:
United States	71		%	77		%
International	29		%	23		%

The following table sets forth revenue by groups of similar products:


		Year Ended December 31,
		2023		2022(1)		2021(1)
Revenue by groups of similar products:	(In thousands)
Twilio Communications:
Messaging		$	2,184,752	$	2,066,300	$	1,416,265
Voice		511,728		474,790		428,484
Email and Marketing Campaigns		440,185		399,314		330,627
Other		722,028		609,683		465,498
Total Twilio Communications		3,858,693		3,550,087		2,640,874
Twilio Segment		295,252		276,234		200,965
Total		$	4,153,945	$	3,826,321	$	2,841,839

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Divestitures (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Divestitures (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Divestitures, net of cash divested		$ 38,194	$ 0	$ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| ValueFirst Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration	$ 45,500
Divestitures, net of cash divested	38,200
Divesture of tangible assets	17,400
Divesture of intangible assets	17,300
Divesture of goodwill	$ 34,600
Loss on divestiture		28,800
Divestiture transaction costs		$ 3,300
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Internet Of Things
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration amount					$ 15,800

Derivatives and Hedging - Gains (Losses) Associated With Foreign Currency Forward Contracts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cost of revenue
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gains (losses) recognized in income due to instruments maturing	$ 2,099	$ (34,862)	$ (7,545)
Foreign Currency Forward
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gains recognized in OCI	$ 898	$ 556	$ 294

Stock-Based Compensation - 2008 Stock Option Plan (Details)	Dec. 31, 2023 shares
2008 Stock Option Plan
Stock Based Compensation
Shares available for future issuance (in shares)	0

Summary of Significant Accounting Policies - Schedule of Useful Lives of Intangible Assets (Details)	Dec. 31, 2023
Supplier relationships
Finite-Lived Intangible Assets [Line Items]
Estimated life	5 years
Patents
Finite-Lived Intangible Assets [Line Items]
Estimated life	20 years
Minimum \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Estimated life	3 years
Minimum \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated life	4 years
Minimum \| Trade names
Finite-Lived Intangible Assets [Line Items]
Estimated life	5 years
Maximum \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Estimated life	7 years
Maximum \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated life	10 years

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	185
Auditor Name	KPMG LLP
Auditor Location	San Francisco, California

Impairment - Schedule of Impairment of Intangible Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Total impairment	$ 285,711
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Total impairment	209,350
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Total impairment	$ 76,361

Right-of-Use Assets and Lease Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of supplemental cash flows and other information related to operating leases

Supplemental cash flow and other information related to operating leases are as follows:


	Year Ended
	December 31,
	2023			2022
Operating cash flows paid for amounts included in operating lease liabilities (in thousands)	$	65,494		$	64,473
Weighted average remaining lease term (in years)	4.1			4.8
Weighted average discount rate	4.5		%	4.5		%

Schedule of maturities of operating lease liabilities

Maturities of operating lease liabilities are as follows:


	As of December 31, 2023
Year Ended December 31,	(In thousands)
2024	$	56,181
2025	39,120
2026	35,307
2027	27,779
2028	22,732
Thereafter	5,934
Total lease payments	187,053
Less: imputed interest	(16,411)
Total operating lease obligations	170,642
Less: current obligations	(49,872)
Long-term operating lease obligations	$	120,770

Supplemental Balance Sheet Information - Customer Credit Reserve (Details) - Sales credit reserve - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Sales credit reserve
Balance, beginning of period	$ 33,124	$ 18,577	$ 16,783
Additions	167,044	86,303	55,937
Deductions against reserve	(166,574)	(71,756)	(54,143)
Balance, end of period	$ 33,594	$ 33,124	$ 18,577

Fair Value Measurements - Narrative (Details) - USD ($)	12 Months Ended
Fair Value Measurements - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Unrealized Losses More Than 12 Months	$ 8,796,000	$ 88,694,000
Gross Unrealized Losses Less Than 12 Months	10,936,000	13,504,000
Interest earned on marketable securities	77,700,000	64,600,000	$ 55,700,000
Investment in equity securities, carrying value	30,700,000	76,900,000
Impairment of strategic investments	46,154,000	0	$ 0
2029 Senior Notes \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of the notes	462,400,000	410,900,000
2031 Senior Notes \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of the notes	452,300,000	399,400,000
Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized losses	1,500,000,000	2,700,000,000
Gross Unrealized Losses More Than 12 Months	415,200,000	2,000,000,000
Gross Unrealized Losses Less Than 12 Months	$ 1,100,000,000	$ 620,500,000

Impairment (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of impairment of intangible assets

The impairment was allocated to the assets within the impacted asset group reducing the respective carrying amounts of the assets as of the December 1, 2023, measurement date, as follows:


	Total Impairment Allocation
	(In thousands)
Developed technology	$	209,350
Customer relationships	76,361
Total impairment	$	285,711

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of stock options activity


	Number of options outstanding	Weighted- average exercise price (Per share)		Weighted- average remaining contractual term (In years)	Aggregate intrinsic value (In thousands)
Outstanding options as of December 31, 2022	2,277,379	$	75.54	5.32	$	39,167


Exercised	(366,456)	$	20.18
Forfeited and canceled	(188,062)	$	223.76
Outstanding options as of December 31, 2023	1,722,861	$	71.13	4.45	$	56,007
Options vested and exercisable as of December 31, 2023	1,567,840	$	63.06	4.10	$	55,831

Schedule of weighted average grant date fair value


	Year Ended December 31,
	2023		2022		2021
	(In thousands, except per share amounts)
Aggregate intrinsic value of stock options exercised (1)	$	15,242	$	80,839	$	508,539
Total estimated grant date fair value of options vested	$	28,619	$	77,403	$	138,851
Weighted-average grant date fair value per share of options granted	$	—	$	50.66	$	216.29

____________________________________
(1) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options.

Schedule of restricted stock unit


	Number of awards outstanding	Weighted- average grant date fair value (Per share)		Aggregate intrinsic value (In thousands)
Unvested RSUs as of December 31, 2022	15,414,997	$	130.97	$	754,718
Granted	14,716,790	$	65.73
Vested	(5,939,641)	$	116.30
Forfeited and canceled	(5,436,608)	$	120.16
Unvested RSUs as of December 31, 2023	18,755,538	$	87.56	$	1,422,983

Schedule of valuation assumptions, options

The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the employee stock options:


	Year Ended December 31,
Employee Stock Options:		2022	2021
Fair value of common stock		$85.17	$268.55 - $409.21
Expected term (in years)		6.02	0.30 - 6.39
Expected volatility		61.6%	42.9% - 61.5%
Risk-free interest rate		3.3%	0.1% - 1.4%
Dividend rate		—%	—%

Schedule of employee stock purchase plan

The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the purchase rights issued under the 2016 ESPP:


	Year Ended December 31,
Employee Stock Purchase Plan:	2023	2022	2021
Fair value of common stock	$47.36 - $61.55	$50.81 - $99.68	$297.20 - $310.80
Expected term (in years)	0.50	0.50	0.50
Expected volatility	45.8% - 57.1%	73.2% - 97.3%	46.4% - 58.7%
Risk-free interest rate	5.3% - 5.4%	1.5% - 4.5%	—% - 0.1%
Dividend rate	—%	—%	—%

Schedule of stock based compensation expense

The Company recorded stock-based compensation expense as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Cost of revenue	$	26,343	$	21,136	$	14,074
Research and development	331,526		374,846		258,672
Sales and marketing	183,389		240,109		213,351
General and administrative	121,584		148,194		146,188
Restructuring costs	13,015		14,275		—
Total	$	675,857	$	798,560	$	632,285

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Class A	Common Stock Class B	Common Stock Common Stock Class A	Common Stock Common Stock Class B	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020				153,496,222	10,551,302
Beginning balance at Dec. 31, 2020	$ 8,452,665			$ 151	$ 13	$ 9,613,246	$ 9,046	$ (1,169,791)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(949,900)							(949,900)
Exercises of vested stock options (in shares)				1,779,320	509,499
Exercises of vested stock options	87,695			$ 2		87,693
Vesting of restricted stock units (in shares)				3,515,913
Vesting of restricted stock units	0			$ 4		(4)
Value of equity awards withheld for tax liability (in shares)				(32,002)
Value of equity awards withheld for tax liability	(10,388)					(10,388)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)				1,218,696	(1,218,696)
Conversion of shares of Class B common stock into shares of Class A common stock	0			$ 1	$ (1)
Equity component from partial settlement and redemption of convertible senior notes due 2023 (in shares)				4,846,965
Equity component from partial settlement and redemption of convertible senior notes due 2023	335,642			$ 5		335,637
Settlement of capped call, net of related costs	225,233					225,233
Shares issued under ESPP (in shares)				198,926
Shares issued under ESPP	48,465					48,465
Shares of Class A common stock issued and donated to charity (in shares)				88,408
Shares of Class A common stock issued and donated to charity	31,169					31,169
Issuance of shares of Class A common stock in connection with a follow-on public offering, net of underwriters' discounts and issuance costs (in shares)				4,312,500
Issuance of shares of Class A common stock in connection with a follow-on public offering, net of underwriters' discounts and issuance costs	1,765,713			$ 4		1,765,709
Shares of Class A common stock issued in acquisition (in shares)				1,116,816
Shares of Class A common stock issued in acquisition	419,170			$ 1		419,169
Value of equity awards assumed in acquisition	1,511					1,511
Shares of Class A common stock subject to future vesting (in shares)				84,230
Unrealized gain (loss) on marketable securities	(27,215)						(27,215)
Foreign currency translation	(266)						(266)
Net change in market value of effective foreign currency forward exchange contracts	294						294
Share of other comprehensive loss from equity method investment	0
Stock-based compensation	651,678					651,678
Ending balance (in shares) at Dec. 31, 2021				170,625,994	9,842,105
Ending balance at Dec. 31, 2021	11,031,466			$ 168	$ 12	13,169,118	(18,141)	(2,119,691)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(1,256,145)							(1,256,145)
Exercises of vested stock options (in shares)				373,793	392,231
Exercises of vested stock options	22,500					22,500
Vesting of restricted stock units (in shares)				4,277,266
Vesting of restricted stock units	0			$ 4		(4)
Value of equity awards withheld for tax liability (in shares)				(6,250)
Value of equity awards withheld for tax liability	(1,098)					(1,098)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)				616,731	(616,731)
Shares issued under ESPP (in shares)				534,401
Shares issued under ESPP	37,065			$ 2		37,063
Shares of Class A common stock issued and donated to charity (in shares)				88,408
Shares of Class A common stock issued and donated to charity	9,541					9,541
Unrealized gain (loss) on marketable securities	(83,049)						(83,049)
Foreign currency translation	(5,587)						(5,587)
Shares returned from escrow (in shares)				(152,239)
Shares returned from escrow	(387)					(387)
Net change in market value of effective foreign currency forward exchange contracts	556						556
Share of other comprehensive loss from equity method investment	(14,940)						(14,940)
Stock-based compensation	804,845					804,845
Stock-based compensation - restructuring	$ 14,275					14,275
Ending balance (in shares) at Dec. 31, 2022	185,975,709	176,358,104	9,617,605	176,358,104	9,617,605
Ending balance at Dec. 31, 2022	$ 10,559,042			$ 174	$ 12	14,055,853	(121,161)	(3,375,836)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(1,015,441)							(1,015,441)
Exercises of vested stock options (in shares)				238,474	127,982
Exercises of vested stock options	7,344					7,344
Vesting of restricted stock units (in shares)				5,939,641
Vesting of restricted stock units	0			$ 7		(7)
Value of equity awards withheld for tax liability (in shares)				(38,655)
Value of equity awards withheld for tax liability	(2,565)					(2,565)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)				9,745,587	(9,745,587)
Conversion of shares of Class B common stock into shares of Class A common stock	0			$ 12	$ (12)
Shares issued under ESPP (in shares)				906,728
Shares issued under ESPP	36,496					36,496
Shares of Class A common stock issued and donated to charity (in shares)				88,408
Shares of Class A common stock issued and donated to charity	5,346					5,346
Unrealized gain (loss) on marketable securities	$ 99,742						99,742
Repurchases of shares of Class A common stock including related costs (in shares)	(11,300,000)			(11,292,516)
Repurchases of shares of Class A common stock including related costs	$ (674,706)			$ (11)				(674,695)
Foreign currency translation	5,587						5,587
Net change in market value of effective foreign currency forward exchange contracts	898						898
Share of other comprehensive loss from equity method investment	15,553						15,553
Stock-based compensation	682,241					682,241
Stock-based compensation - restructuring	$ 13,015					13,015
Ending balance (in shares) at Dec. 31, 2023	181,945,771	181,945,771	0	181,945,771	0
Ending balance at Dec. 31, 2023	$ 9,732,552			$ 182	$ 0	$ 14,797,723	$ 619	$ (5,065,972)

Revenue by Geographic Area and Groups of Similar Products (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of revenue by geographic area

The following table sets forth revenue by geographic area:


		Year Ended December 31,
		2023		2022		2021(1)
Revenue by geographic area:	(In thousands)
United States		$	2,757,470	$	2,510,525	$	1,927,302
International		1,396,475		1,315,796		914,537
Total		$	4,153,945	$	3,826,321	$	2,841,839


Percentage of revenue by geographic area:
United States	66	%	66	%	68	%
International	34	%	34	%	32	%

The following table sets forth revenue by groups of similar products:


		Year Ended December 31,
		2023		2022(1)		2021(1)
Revenue by groups of similar products:	(In thousands)
Twilio Communications:
Messaging		$	2,184,752	$	2,066,300	$	1,416,265
Voice		511,728		474,790		428,484
Email and Marketing Campaigns		440,185		399,314		330,627
Other		722,028		609,683		465,498
Total Twilio Communications		3,858,693		3,550,087		2,640,874
Twilio Segment		295,252		276,234		200,965
Total		$	4,153,945	$	3,826,321	$	2,841,839

Schedule of long-lived assets by geographic area

The following table sets forth long-lived assets by geographic area:


	As of December 31,
	2023			2022
Long-lived assets by geographic area:	(In thousands)
United States	$	99,368		$	178,624
International	39,644			54,473
Total	$	139,012		$	233,097
Percentage of long-lived assets by geographic area:
United States	71		%	77		%
International	29		%	23		%

Stockholders' Equity

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Preferred Stock

As of December 31, 2023 and 2022, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001, of which no shares were issued and outstanding.

Common Stock

As of December 31, 2023, the Company had authorized 1,000,000,000 shares of Class A common stock and 3,170,181 shares of Class B common stock, each par value of $0.001 per share. As of December 31, 2023, 181,945,771 shares of Class A common stock and no shares of Class B common stock were issued and outstanding.

As of December 31, 2022, the Company had authorized 1,000,000,000 shares of Class A common stock and 100,000,000 shares of Class B common stock, each par value of $0.001 per share. As of December 31, 2022, 176,358,104 shares of Class A common stock and 9,617,605 shares of Class B common stock were issued and outstanding.

The Company had reserved shares of common stock for issuance as follows:


	As of December 31,
	2023	2022
Stock options issued and outstanding	1,722,861	2,277,379
Unvested restricted stock units issued and outstanding	18,755,538	15,414,997
Shares of Class A common stock reserved for Twilio.org	442,041	530,449
Stock-based awards available for grant under 2016 Plan	19,869,260	19,851,399
Shares of Class A common stock reserved for issuance pursuant to ESPP	8,541,701	7,648,429
Total	49,331,401	45,722,653

Share Repurchase Program

In February 2023, the board of directors of the Company authorized the repurchase of up to $1.0 billion in aggregate value of its outstanding Class A common stock through a share repurchase program. Repurchases under this program can be made through open market, private transactions or other means, in compliance with applicable federal securities laws, and could include repurchases pursuant to the Rule 10b5-1 trading plans. The Company has discretion in determining the conditions under which shares may be repurchased from time to time. The program expires on December 31, 2024.

During the year ended December 31, 2023, the Company repurchased 11.3 million shares of its Class A common stock for an aggregate purchase price of $672.1 million. As of December 31, 2023, approximately $327.9 million of the originally authorized amount remained available for future repurchases.

Public Equity Offerings

In February 2021, the Company completed a public equity offering in which it sold 4,312,500 shares of its Class A common stock at a public offering price of $409.60 per share. The Company received total proceeds of $1.8 billion, net of underwriting discounts and offering expenses paid by the Company.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,015,441,000)	$ (1,256,145,000)	$ (949,900,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	284,413,000	279,127,000	258,378,000
Non-cash reduction to the right-of-use asset	26,971,000	47,160,000	48,786,000
Net amortization of investment premium and discount	(44,000)	33,165,000	36,158,000
Impairment of long-lived assets	320,504,000	97,722,000	0
Stock-based compensation including restructuring	675,857,000	798,560,000	632,285,000
Amortization of deferred commissions	72,892,000	57,913,000	31,541,000
Realized and unrealized losses on equity securities	8,043,000	0	0
Provision for doubtful accounts	51,859,000	35,012,000	7,210,000
Value of shares of Class A common stock issued and donated to charity	5,346,000	9,541,000	31,169,000
Share of losses from equity method investment	121,897,000	35,315,000	0
Impairment of strategic investments	46,154,000	0	0
Loss on net assets divested	32,277,000	0	0
Loss on extinguishment of debt	0	0	28,965,000
Other adjustments	14,669,000	4,905,000	2,329,000
Changes in operating assets and liabilities:
Accounts receivable	(85,093,000)	(194,655,000)	(117,943,000)
Prepaid expenses and other current assets	(56,283,000)	(94,326,000)	(78,012,000)
Other long-term assets	(2,328,000)	(146,458,000)	(121,225,000)
Accounts payable	12,370,000	30,336,000	10,191,000
Accrued expenses and other current liabilities	(51,816,000)	75,430,000	127,554,000
Deferred revenue and customer deposits	5,371,000	(2,688,000)	45,634,000
Operating lease liabilities	(56,340,000)	(54,450,000)	(49,046,000)
Other long-term liabilities	3,474,000	(9,832,000)	(2,266,000)
Net cash provided by (used in) operating activities	414,752,000	(254,368,000)	(58,192,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired and payments related to prior period acquisitions	(5,770,000)	(37,410,000)	(491,522,000)
Divestitures, net of cash divested	38,194,000	0	0
Purchases of marketable securities and other investments	(1,953,003,000)	(1,938,337,000)	(3,523,232,000)
Proceeds from sales and maturities of marketable securities	2,200,417,000	1,439,477,000	1,614,779,000
Capitalized software development costs	(39,925,000)	(45,761,000)	(43,973,000)
Purchases of long-lived and intangible assets	(11,310,000)	(34,421,000)	(46,048,000)
Net cash provided by (used in) investing activities	228,603,000	(616,452,000)	(2,489,996,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from public offerings, net of underwriters' discounts	0	0	1,766,400,000
Payments of costs related to public offerings	0	(35,000)	(687,000)
Proceeds from issuance of senior notes due 2029 and 2031, net of issuance costs	0	0	984,723,000
Proceeds from settlements of capped call, net of settlement costs	0	0	228,412,000
Principal payments on debt and finance leases	(16,134,000)	(13,423,000)	(8,295,000)
Value of equity awards withheld for tax liabilities	(2,565,000)	(1,098,000)	(10,388,000)
Repurchases of shares of Class A common stock and related costs	(668,751,000)	0	0
Proceeds from exercises of stock options and shares of Class A common stock issued under ESPP	43,840,000	59,563,000	136,160,000
Net cash (used in) provided by financing activities	(643,610,000)	45,007,000	3,096,325,000
Effect of exchange rate changes on cash, cash equivalents and restricted cash	108,000	60,000	(191,000)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(147,000)	(825,753,000)	547,946,000
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period	656,078,000	1,481,831,000	933,885,000
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	655,931,000	656,078,000	1,481,831,000
Cash paid for income taxes, net	37,818,000	7,413,000	6,147,000
Cash paid for interest	38,389,000	37,500,000	20,637,000
NON-CASH FINANCING ACTIVITIES:
Value of common stock issued and equity awards assumed in acquisition	0	0	420,681,000
Value of common stock issued to settle convertible senior notes due 2023	0	0	1,704,969,000
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents	655,931,000	651,752,000	1,479,452,000
Restricted cash in other current assets	0	4,314,000	1,536,000
Restricted cash in other long-term assets	0	12,000	843,000
Total cash, cash equivalents and restricted cash	$ 655,931,000	$ 656,078,000	$ 1,481,831,000

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, issued (in shares)	0	0
Common stock, authorized (in shares)	1,003,170,181	1,100,000,000
Common stock, issued (in shares)	181,945,771	185,975,709
Common stock, outstanding (in shares)	181,945,771	185,975,709
Common Stock Class A
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, issued (in shares)	181,945,771	176,358,104
Common stock, outstanding (in shares)	181,945,771	176,358,104
Common Stock Class B
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	3,170,181	100,000,000
Common stock, issued (in shares)	0	9,617,605
Common stock, outstanding (in shares)	0	9,617,605

Long-Term Debt - Narrative (Details) - USD ($)	1 Months Ended
Long-Term Debt - Narrative (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2023	Dec. 31, 2022
Senior Notes
Debt Instrument [Line Items]
Principal	$ 1,000,000,000
Net proceeds from the debt offering	$ 984,700,000
Senior Notes \| Change of control event
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	101.00%
2029 Senior Notes
Debt Instrument [Line Items]
Principal	$ 500,000,000	$ 500,000,000	$ 500,000,000
Interest rate	3.625%
2029 Senior Notes \| Redemption Period One
Debt Instrument [Line Items]
Debt instrument, maximum redemption price as a percentage of principal 180 days after equity offer	40.00%
Debt instrument, minimum redemption price as a percentage of principal outstanding	50.00%
2029 Senior Notes \| Redemption Period Two
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	101.813%
2029 Senior Notes \| Redemption Period Three
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.906%
2029 Senior Notes \| Redemption Period Four
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
2029 Senior Notes \| Maximum \| Redemption Period One
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	103.625%
2029 Senior Notes \| Minimum \| Redemption Period One
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
2031 Senior Notes
Debt Instrument [Line Items]
Principal	$ 500,000,000	$ 500,000,000	$ 500,000,000
Interest rate	3.875%
2031 Senior Notes \| Redemption Period One
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	103.875%
Debt instrument, maximum redemption price as a percentage of principal 180 days after equity offer	40.00%
Debt instrument, minimum redemption price as a percentage of principal outstanding	50.00%
2031 Senior Notes \| Redemption Period Two
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
2031 Senior Notes \| Redemption Period Three
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	101.938%
2031 Senior Notes \| Redemption Period Four
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	101.292%
2031 Senior Notes \| Redemption Period Five
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.646%
2031 Senior Notes \| Redemption Period Six
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Valuation allowance increase (decrease)	$ 176,600	$ 220,500
Unrecognized tax benefits	233,778	$ 228,966	$ 223,380	$ 191,183
Unrecognized tax benefits that would impact effective tax rate if recognized	$ 5,100

Net Loss Per Share Attributable to Common Stockholders

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share Attributable to Common Stockholders

The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented:


	Year Ended December 31,
	2023		2022		2021

Net loss attributable to common stockholders (in thousands)	$	(1,015,441)	$	(1,256,145)	$	(949,900)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted	183,327,844		182,994,038		174,180,465
Net loss per share attributable to common stockholders, basic and diluted	$	(5.54)	$	(6.86)	$	(5.45)


	As of December 31,
	2023	2022	2021
Stock options issued and outstanding	1,722,861	2,277,379	3,351,313
Unvested restricted stock units issued and outstanding	18,755,538	15,414,997	6,475,700
Shares of Class A common stock reserved for Twilio.org	442,041	530,449	618,857
Shares of Class A common stock committed under ESPP	426,199	766,334	147,947
Shares of Class A common stock in escrow	31,503	31,503	75,506
Shares of Class A common stock in escrow and restricted stock awards subject to future vesting	3,771	56,237	235,054
Total	21,381,913	19,076,899	10,904,377

Organization and Description of Business	12 Months Ended
Organization and Description of Business	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business Twilio Inc. (the “Company”) was incorporated in the state of Delaware on March 13, 2008. Today's leading companies trust Twilio's Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of their customers’ journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. The Company’s headquarters are located in San Francisco, California, and the Company has subsidiaries across North America, South America, Europe, Asia and Australia.

Restructuring Activities - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Feb. 28, 2023	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 165,733	$ 76,636	$ 0
Stock-based compensation award expense			11,100
February 2023 Plan
Restructuring Cost and Reserve [Line Items]
Workforce elimination percentage	17.00%
Restructuring charges			$ 141,100
February 2023 Plan \| Corporate costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 22,800
February 2023 Plan \| Twilio Communications \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring charges	108,900
February 2023 Plan \| Segment \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 9,400
December 2023 Plan
Restructuring Cost and Reserve [Line Items]
Workforce elimination percentage			5.00%
September 2022 Plan
Restructuring Cost and Reserve [Line Items]
Workforce elimination percentage		11.00%
Restructuring charges				76,600
September 2022 Plan \| Corporate costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 7,600
September 2022 Plan \| Twilio Communications \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring charges		67,400
September 2022 Plan \| Segment \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 1,600
Employee Severance and Facilitation Costs \| February 2023 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 130,000
Employee Severance and Facilitation Costs \| September 2022 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges				62,361
Stock-Based Awards \| February 2023 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 11,100
Stock-Based Awards \| September 2022 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges				$ 14,300

Restructuring Activities

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring Activities

In February 2023, the Company announced a workforce reduction plan (the “February 2023 Plan”) that was designed to reduce operating costs, improve operating margins and accelerate profitability. The February 2023 Plan eliminated approximately 17% of the Company’s workforce. The execution of the February 2023 Plan was substantially completed in the first quarter of 2023. For the year ended December 31, 2023, restructuring charges related to the February 2023 Plan were $141.1 million, which consisted of $130.0 million related to employee severance, benefits and facilitation costs, and $11.1 million related to vesting of employee stock based compensation awards. Furthermore, the restructuring charges consisted of $108.9 million related to the Communications reportable segment, $9.4 million related to the Segment reportable segment and $22.8 million included in corporate costs. The estimated remaining expenses related to the February 2023 Plan are not expected to be significant.

The following table summarizes the Company’s restructuring liability related to the February 2023 Plan that is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets:


	Workforce Reduction Costs		Facilitation Costs		Total
	(In thousands)
Balance as of December 31, 2022	$	—	$	—	$	—
Restructuring charges	120,711		9,289		130,000
Cash payments	(111,852)		(8,895)		(120,747)
Balance as of December 31, 2023	$	8,859	$	394	$	9,253

The $11.1 million expenses related to vesting of the employee stock-based compensation awards is recorded in the additional-paid-in capital in the accompanying consolidated statement of stockholders’ equity.

In December 2023, the Company announced a workforce restructuring plan that was designed to streamline operations and accelerate the Company’s path to profitable growth (the “December 2023 Plan”). The December 2023 Plan eliminated approximately 5% of the Company’s workforce. Restructuring charges related to the December 2023 Plan were not significant.

In September 2022, the Company announced a workforce restructuring plan that was designed to reduce operating costs and improve operating margins (the “September 2022 Plan”). The September 2022 Plan eliminated approximately 11% of the Company’s workforce. In the year ended December 31, 2022, related to the September 2022 Plan, the Company recorded $76.6 million of restructuring charges, including a $14.3 million expense related to vesting of the employee stock-based compensation awards, in its accompanying consolidated statement of operations. The restructuring charges consisted of $67.4 million related to the Communications reportable segment, $1.6 million related to the Segment reportable segment and $7.6 million included in corporate costs.

The following table summarizes the Company’s restructuring liability related to the September 2022 Plan that is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet as of December 31, 2022:


	Workforce Reduction Costs		Facilitation Costs		Total
	(In thousands)
Balance as of December 31, 2021	$	—	$	—	$	—
Restructuring charges	60,553		1,808		62,361
Cash payments	(60,053)		(1,242)		(61,295)
Balance as of December 31, 2022	$	500	$	566	$	1,066

September 2022 Plan restructuring charges incurred in 2023 were not significant. No amounts were outstanding as of December 31, 2023 related to this plan.

Stock-Based Compensation - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Number of options outstanding
Outstanding options as of the beginning of the period (in shares)	2,277,379
Exercised (in shares)	(366,456)
Forfeited and cancelled (in shares)	(188,062)
Outstanding options as of the end of the period (in shares)	1,722,861	2,277,379
Weighted- average exercise price (Per share)
Outstanding options as of the beginning of the period (in dollars per share)	$ 75.54
Exercised (in dollars per share)	20.18
Forfeited and cancelled (in dollars per share)	223.76
Outstanding options as of the end of the period (in dollars per share)	$ 71.13	$ 75.54
Weighted- average remaining contractual term (In years)
Weighted-average remaining contractual term (in years)	4 years 5 months 12 days	5 years 3 months 25 days
Aggregate intrinsic value	$ 56,007	$ 39,167
Options vested and exercisable and options vested and expected to vest
Options vested and exercisable - number of options outstanding (in shares)	1,567,840
Options vested and exercisable - weighted-average exercise price (in dollars per share)	$ 63.06
Options vested and exercisable - weighted-average remaining contractual term	4 years 1 month 6 days
Options vested and exercisable - aggregate intrinsic value	$ 55,831

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

The following table presents domestic and foreign components of loss before income taxes for the periods presented:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
United States	$	(816,089)	$	(1,021,208)	$	(737,360)
International	(180,640)		(222,424)		(223,569)
Loss before (provision for) benefit from income taxes	$	(996,729)	$	(1,243,632)	$	(960,929)

Provision for (benefit from) income taxes consists of the following:


	Year Ended December 31,
	2023		2022		2021
Current:	(In thousands)
Federal	$	2,567	$	3,928	$	122
State	1,533		4,100		420
Foreign	31,354		17,450		8,274
Total	35,454		25,478		8,816
Deferred:
Federal	(1,337)		(5,155)		(13,772)
State	(208)		(818)		(4,083)
Foreign	(15,197)		(6,992)		(1,990)
Total	(16,742)		(12,965)		(19,845)
Provision for (benefit from) income taxes	$	18,712	$	12,513	$	(11,029)

The following table presents a reconciliation of the statutory federal tax rate and the Company's effective tax rate:


	Year Ended December 31,
	2023		2022		2021
Tax at federal statutory rate	21	%	21	%	21	%
State tax, net of federal benefit	3		3		8
Stock-based compensation	(7)		(7)		16
Credits	2		1		4
Foreign rate differential	1		(2)		(1)

Change in valuation allowance	(23)		(17)		(46)

Other	1		(1)		—
Effective tax rate	(2)	%	(2)	%	2	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company's deferred tax assets and liabilities:


	As of December 31,
	2023		2022
Deferred tax assets:	(In thousands)
Net operating loss carryforwards	$	983,652	$	959,864
Accruals and reserves	52,750		47,986
Stock-based compensation	29,572		37,981
Research and development credits	177,109		159,604




Intangibles	135,564		135,500
Capitalized research and development expenses	231,819		219,176
Lease liability	44,682		60,795
Unrealized losses on marketable securities	—		32,108
Investments and other basis differences	51,368		11,952
Other	31,852		24,878
Gross deferred tax assets	1,738,368		1,689,844
Valuation allowance	(1,533,933)		(1,357,300)
Net deferred tax assets	204,435		332,544
Deferred tax liabilities:
Capitalized software	(36,109)		(36,552)
Prepaid expenses	(1,073)		(1,587)
Acquired intangibles	(81,415)		(202,778)


Right-of-use asset	(19,964)		(35,734)
Deferred commissions	(50,703)		(59,675)

Net deferred tax asset (liability)	$	15,171	$	(3,782)

The following table summarizes the Company’s tax carryforwards, carryovers and credits:


	As of December 31, 2023		Expiration Date (If not utilized)
	(In thousands)

Federal tax credits	$	147,500	Various dates beginning in 2037
Federal net operating loss carryforwards	$	3,444,800	Indefinite
State net operating loss carryforwards	$	2,640,300	Various dates beginning in 2026
State tax credits	$	120,300	Indefinite
Foreign net operating loss carryforwards	$	1,011,800	Indefinite

A limitation may apply to the use of the net operating loss and credit carryforwards, under provisions of the Internal Revenue Code of 1986, as amended, and similar state tax provisions that are applicable if the Company experiences an “ownership change.” An ownership change may occur, for example, as a result of issuance of new equity. Should these limitations apply, the carryforwards would be subject to an annual limitation, resulting in a potential reduction in the gross deferred tax assets before considering the valuation allowance.

The Company's accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company's deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible.

At present, the Company does not believe that it is more likely than not that the federal, state and foreign net deferred tax assets will be realized, and accordingly, a valuation allowance has been established. The valuation allowance increased by approximately $176.6 million and $220.5 million during the years ended December 31, 2023 and 2022, respectively.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Unrecognized tax benefit, beginning of year	$	228,966	$	223,380	$	191,183
Gross increases for tax positions of prior years	3,427		3,250		3,496
Gross decreases for tax positions of prior years	(5,130)		(705)		(10,693)
Gross increases for tax positions of current year	7,754		4,081		39,394
Lapse of statute of limitations	(1,239)		(1,040)		—
Unrecognized tax benefit, end of year	$	233,778	$	228,966	$	223,380

As of December 31, 2023, the Company had approximately $233.8 million of unrecognized tax benefits. If the $233.8 million is recognized, $5.1 million would affect the effective tax rate. The remaining amount would be offset by the reversal of related deferred tax assets which are subject to a full valuation allowance.

The Company recognizes interest and penalties, if any, related to uncertain tax positions in its income tax provision. As of December 31, 2023, 2022 and 2021, such amounts are not significant.

The Company does not anticipate any significant changes within 12 months of December 31, 2023, in its uncertain tax positions that would be material to its consolidated financial statements taken as a whole because nearly all of the unrecognized tax benefit has been offset by a deferred tax asset, which has been reduced by a valuation allowance.

The Company files U.S. federal income tax returns as well as income tax returns in many U.S. states and foreign jurisdictions. As of December 31, 2023, the tax years 2008 through the current period remain open to examination by the major jurisdictions in which the Company is subject to tax. Years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years, which have been carried forward and may be audited in subsequent years when utilized. The Company is fully reserved for all open U.S. federal, state and local, or non-U.S. income tax examinations by any tax authorities.

On June 7, 2019, a three-judge panel from the U.S. Court of Appeals for the Ninth Circuit overturned the U.S. Tax Court's decision in Altera Corp. v. Commissioner and upheld the portion of the Treasury regulations under Section 482 of the Internal Revenue Code that requires related parties in a cost-sharing arrangement to share expenses related to share-based compensation. As a result of this decision, the Company's gross unrecognized tax benefits increased to reflect the impact of including share-based compensation in cost-sharing arrangements. On July 22, 2019, Altera filed a petition for a rehearing before the full Ninth Circuit and the request was denied on November 12, 2019. On February 10, 2020, Altera filed a petition to appeal the decision to the Supreme Court and on June 22, 2020 the Supreme Court denied the petition. There is no impact on the Company’s effective tax rate for years ended December 31, 2023 and 2022 due to a full valuation allowance against its deferred tax assets. We will continue to monitor future developments and their potential effects on our consolidated financial statements.

The provision for and benefit from income taxes recorded in the years ended December 31, 2023 and 2022, respectively, consist primarily of income taxes, withholding taxes in foreign jurisdictions in which the Company conducts business and the tax benefit related to the release of valuation allowance from acquisitions. The Company’s U.S. operations have been in a loss position and the Company maintains a full valuation allowance against its U.S. deferred tax assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 14
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 21
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Goodwill and Intangible Assets - Goodwill Balance (Details) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Goodwill
Beginning balance of period				$ 5,284,153	$ 5,263,166
Goodwill additions related to 2021 acquisitions					25,748
Measurement period and other adjustments					(4,761)
Foreign currency adjustments		$ 251		26
Reallocation to segments	$ 0		$ 0
Goodwill divested		(41,164)
Ending balance of period	5,243,266				5,284,153
Twilio Communications
Goodwill
Beginning balance of period				0	0
Goodwill additions related to 2021 acquisitions					0
Measurement period and other adjustments					0
Foreign currency adjustments		251
Reallocation to segments	656,964		4,321,130
Goodwill divested		(41,164)
Ending balance of period	4,937,181				0
Twilio Segment
Goodwill
Beginning balance of period				0	0
Goodwill additions related to 2021 acquisitions					0
Measurement period and other adjustments					0
Foreign currency adjustments		0
Reallocation to segments	(656,964)		$ 963,049
Goodwill divested		$ 0
Ending balance of period	$ 306,085				$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

The useful lives of property and equipment are as follows:


Capitalized internal-use software development costs						3 years
Data center equipment						2 - 4 years
Leasehold improvements						Shorter of 5 years or the remaining lease term
Office equipment						3 years
Furniture and fixtures						5 years
Software						3 years
Assets under financing lease						Shorter of 5 years or the remaining lease term

Property and equipment consist of the following:


	As of December 31,
	2023		2022
	(In thousands)
Capitalized internal-use software developments costs	$	297,655	$	257,983
Data center equipment (1)	104,543		100,207
Leasehold improvements	92,315		91,660
Office equipment	60,905		70,815
Furniture and fixtures	14,558		14,935
Software	14,639		14,675
Total property and equipment	584,615		550,275
Less: accumulated depreciation and amortization (1)	(374,976)		(286,296)
Total property and equipment, net	$	209,639	$	263,979

____________________________________

(1) Data center equipment includes $72.4 million in assets held under finance leases as of December 31, 2023 and 2022. Accumulated depreciation and amortization includes $55.9 million and $41.2 million of accumulated depreciation for assets held under finance leases as of December 31, 2023 and 2022, respectively.

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accrued Liabilities and Other Liabilities [Abstract]
Accrued payroll and related	$ 77,593	$ 79,703
Accrued bonus and commission	17,345	35,449
Accrued cost of revenue	155,721	161,455
Sales and other taxes payable	70,913	92,319
ESPP contributions	6,130	8,499
Finance lease liability	8,489	11,871
Restructuring liability	29,086	1,066
Employee sabbatical benefit accrual	5,515	30,683
Accrued other expense	53,519	69,176
Total accrued expenses and other current liabilities	$ 424,311	$ 490,221
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued expenses and other current liabilities	Total accrued expenses and other current liabilities

Net Loss Per Share Attributable to Common Stockholders - Common Stock Equivalents excluded from Calculation of Diluted Net Loss Per Share attributable to Common Stockholders (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	21,381,913	19,076,899	10,904,377
Stock options issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,722,861	2,277,379	3,351,313
Unvested restricted stock units issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	18,755,538	15,414,997	6,475,700
Shares of Class A common stock reserved for Twilio.org
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	442,041	530,449	618,857
Shares of Class A common stock committed under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	426,199	766,334	147,947
Shares of Class A common stock in escrow
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	31,503	31,503	75,506
Shares of Class A common stock in escrow and restricted stock awards subject to future vesting
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	3,771	56,237	235,054

Income Taxes - Reconciliation of the Statutory Federal Tax Rate and the Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Tax at federal statutory rate	21.00%	21.00%	21.00%
State tax, net of federal benefit	3.00%	3.00%	8.00%
Stock-based compensation	(7.00%)	(7.00%)	16.00%
Credits	2.00%	1.00%	4.00%
Foreign rate differential	1.00%	(2.00%)	(1.00%)
Change in valuation allowance	(23.00%)	(17.00%)	(46.00%)
Other	1.00%	(1.00%)	0.00%
Effective tax rate	(2.00%)	(2.00%)	2.00%

Right-of-Use Assets and Lease Liabilities

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Right-of-Use Assets and Lease Liabilities

The Company has entered into various operating lease agreements for office space and data centers and finance lease agreements for data centers, office equipment and furniture.

As of December 31, 2023, the Company had various leased properties with remaining lease terms from 0.3 years to 5.8 years, some of which include options to extend the leases for up to 4.0 years.

As a result of the office closures described in Note 6, the Company impaired several of its ROU assets related to office leases that will no longer be used to support its ongoing operations. In the years ended December 31, 2023 and 2022, the Company recorded $34.8 million and $97.7 million impairment expense, respectively, related to these office closures, of which $24.8 million and $72.8 million, respectively, related to the affected ROU assets. The remaining impairment expense related to the associated assets in the property, plant and equipment categories. For the years ended December 31, 2023, 2022 and 2021, the Company did not have significant sublease income related to any of its subleased office leases.

Operating lease costs recorded in the accompanying consolidated statements of operations were $35.7 million, $57.8 million and $61.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Lease costs associated with short-term leases, variable leases and finance leases were not significant.

Supplemental cash flow and other information related to operating leases are as follows:


	Year Ended
	December 31,
	2023			2022
Operating cash flows paid for amounts included in operating lease liabilities (in thousands)	$	65,494		$	64,473
Weighted average remaining lease term (in years)	4.1			4.8
Weighted average discount rate	4.5		%	4.5		%

Maturities of operating lease liabilities are as follows:


	As of December 31, 2023
Year Ended December 31,	(In thousands)
2024	$	56,181
2025	39,120
2026	35,307
2027	27,779
2028	22,732
Thereafter	5,934
Total lease payments	187,053
Less: imputed interest	(16,411)
Total operating lease obligations	170,642
Less: current obligations	(49,872)
Long-term operating lease obligations	$	120,770

Stock-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

2008 Stock Option Plan

In connection with the Company’s initial public offering on June 22, 2016, the 2008 Stock Option Plan, as amended and restated (the “2008 Plan”), was terminated and, accordingly, no shares were available for issuance after the termination. As of December 31, 2023 and 2022, all remaining outstanding stock options granted under the 2008 Plan were vested and exercisable and continue to be governed by the provisions of this plan.

2016 Stock Option Plan

The Company’s 2016 Stock Option and Incentive Plan (the “2016 Plan”) became effective on June 21, 2016. The 2016 Plan provides for the grant of ISOs, NSOs, restricted stock, RSUs, stock appreciation rights, unrestricted stock awards, performance share awards, dividend equivalent rights and cash-based awards to employees, directors and consultants of the Company. A total of 11,500,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 Plan. These available shares automatically increase each January 1, beginning on January 1, 2017, by 5% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. On January 1, 2023 and 2022, the shares available for grant under the 2016 Plan were automatically increased by 9,298,785 shares and 9,023,405 shares, respectively.

Under the 2016 Plan, the stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying common stock on the date of grant.

SendGrid 2009, 2012 and 2017 Stock Incentive Plans

In connection with its acquisition of SendGrid, the Company assumed and replaced all stock options and restricted stock units of the continuing employees issued under SendGrid’s 2009, 2012 and 2017 Stock Incentive Plans that were unvested and outstanding on the date of acquisition. The assumed equity awards continue to vest and are governed by the provisions of their respective plans. Additionally, the Company assumed shares of SendGrid common stock that were reserved and available for issuance under SendGrid's 2017 Equity Incentive Plan, on an as converted basis. These shares were utilized for equity grants under the Company’s 2016 Plan in the post-acquisition period, to the extent permitted by New York Stock Exchange rules.

Segment 2013 Stock Incentive Plan

In connection with its acquisition of Segment, the Company assumed and replaced all stock options and restricted stock units of the continuing employees issued under Segment’s 2013 Stock Incentive Plan (“Segment Plan”) that were unvested and outstanding on the acquisition date. The assumed equity awards continue to vest and are governed by the provisions of the Segment Plan.

Zipwhip 2008 Stock Plan and 2018 Equity Incentive Plan

In connection with its acquisition of Zipwhip, the Company assumed and replaced all stock options and restricted stock units of the continuing employees issued under Zipwhip’s Amended and Restated 2008 Stock Plan and 2018 Equity Incentive Plan (“Zipwhip Plans”) that were unvested and outstanding on the acquisition date. The assumed equity awards continue to vest and are governed by the provisions of the Zipwhip Plans.

Under all plans, stock options generally expire 10 years from the date of grant and vest over periods determined by the board of directors. The vesting period for stock options and restricted stock units is generally four years from the date of grant. For existing employees and, effective in 2022, for new-hires the stock options and restricted stock units vest in equal monthly and quarterly installments, respectively, over the service period.

2016 Employee Stock Purchase Plan

The Company’s 2016 ESPP was effective on June 21, 2016. A total of 2,400,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 ESPP. These available shares automatically increase each January 1, beginning on January 1, 2017, by the lesser of 1,800,000 shares of the Company's Class A common stock, 1% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee. On each of January 1, 2023 and 2022, the shares available for grant under the 2016 ESPP were automatically increased by 1,800,000 shares.

The 2016 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discount of 15% through payroll deductions of their eligible compensation, subject to any plan limitations. The 2016 ESPP provides for separate six-month offering periods beginning in May and November of each year.

On each purchase date, eligible employees purchase the Company’s stock at a price per share equal to 85% of the lesser of (i) the fair market value of the Company’s Class A common stock on the offering date or (ii) the fair market value of the Company’s Class A common stock on the purchase date.

As of December 31, 2023, total unrecognized compensation cost related to the 2016 ESPP was not significant.

Stock-options and restricted stock units and awards activity under the Company’s equity incentive plans is as follows:

Stock Options


	Number of options outstanding	Weighted- average exercise price (Per share)		Weighted- average remaining contractual term (In years)	Aggregate intrinsic value (In thousands)
Outstanding options as of December 31, 2022	2,277,379	$	75.54	5.32	$	39,167


Exercised	(366,456)	$	20.18
Forfeited and canceled	(188,062)	$	223.76
Outstanding options as of December 31, 2023	1,722,861	$	71.13	4.45	$	56,007
Options vested and exercisable as of December 31, 2023	1,567,840	$	63.06	4.10	$	55,831


	Year Ended December 31,
	2023		2022		2021
	(In thousands, except per share amounts)
Aggregate intrinsic value of stock options exercised (1)	$	15,242	$	80,839	$	508,539
Total estimated grant date fair value of options vested	$	28,619	$	77,403	$	138,851
Weighted-average grant date fair value per share of options granted	$	—	$	50.66	$	216.29

As of December 31, 2023, total unrecognized compensation cost related to all unvested stock options was not significant.

Restricted Stock Units


	Number of awards outstanding	Weighted- average grant date fair value (Per share)		Aggregate intrinsic value (In thousands)
Unvested RSUs as of December 31, 2022	15,414,997	$	130.97	$	754,718
Granted	14,716,790	$	65.73
Vested	(5,939,641)	$	116.30
Forfeited and canceled	(5,436,608)	$	120.16
Unvested RSUs as of December 31, 2023	18,755,538	$	87.56	$	1,422,983

In March 2022, the Company granted 919,289 shares of performance-based restricted stock units (“PSU”) to certain of its executive employees. These awards activity is included in the table above. The PSUs were granted with a grant date fair value per share of $157.44 and an aggregate grant date fair value of $144.7 million. The Company estimated the fair value of these awards based on the closing price of its Class A common stock on the date of grant. Each PSU award consisted of three tranches that vest separately over distinct service periods if its respective performance targets, as defined in the grant agreements, are achieved in the respective periods. The final vesting is determined by the Company’s Compensation Committee subsequent to the completion of the vesting period. The vesting of the first tranche was based on achievement of revenue growth targets with respect to the year ended December 31, 2022. The vesting of the second and third tranches was based on both (a) revenue growth targets and (b) profitability targets achievement with respect to each of the years ended December 31, 2023 and 2024. If performance targets are not achieved, the related tranches are forfeited. Vesting of these performance-based restricted stock unit awards can range up to 100% above the target based on levels of performance and is recorded in stock-based compensation expense in the year during which each tranche vests.

As of December 31, 2023, total unrecognized compensation cost related to unvested RSUs was $1.5 billion, which will be amortized over a weighted-average period of 2.7 years.

Valuation Assumptions

The Company did not grant stock options in the year ended December 31, 2023. The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the employee stock options:


	Year Ended December 31,
Employee Stock Options:		2022	2021
Fair value of common stock		$85.17	$268.55 - $409.21
Expected term (in years)		6.02	0.30 - 6.39
Expected volatility		61.6%	42.9% - 61.5%
Risk-free interest rate		3.3%	0.1% - 1.4%
Dividend rate		—%	—%

The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the purchase rights issued under the 2016 ESPP:


	Year Ended December 31,
Employee Stock Purchase Plan:	2023	2022	2021
Fair value of common stock	$47.36 - $61.55	$50.81 - $99.68	$297.20 - $310.80
Expected term (in years)	0.50	0.50	0.50
Expected volatility	45.8% - 57.1%	73.2% - 97.3%	46.4% - 58.7%
Risk-free interest rate	5.3% - 5.4%	1.5% - 4.5%	—% - 0.1%
Dividend rate	—%	—%	—%

Stock-Based Compensation Expense

The Company recorded stock-based compensation expense as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Cost of revenue	$	26,343	$	21,136	$	14,074
Research and development	331,526		374,846		258,672
Sales and marketing	183,389		240,109		213,351
General and administrative	121,584		148,194		146,188
Restructuring costs	13,015		14,275		—
Total	$	675,857	$	798,560	$	632,285

Income Taxes - Tax Carryforwards, Carryovers and Credits (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Federal and state tax credits	$ 147,500
Federal net operating loss carryforwards	3,444,800
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Federal and state tax credits	120,300
State and foreign net operating loss carryforwards	2,640,300
Foreign net operating loss carryforwards
Operating Loss Carryforwards [Line Items]
State and foreign net operating loss carryforwards	$ 1,011,800

Commitments and Contingencies - Narrative (Details) - USD ($)	1 Months Ended	12 Months Ended
	Nov. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2020
Loss Contingencies [Line Items]
Term of non-cancellable agreement		3 years
Purchase commitment		$ 103,800,000
Taxes payable, jurisdictional estimate				$ 38,800,000
Claim settlement amount awarded from other party	$ 18,000,000
Minimum
Loss Contingencies [Line Items]
Term of non-cancellable agreement		1 year
Maximum
Loss Contingencies [Line Items]
Term of non-cancellable agreement		3 years
Domestic Tax Authority
Loss Contingencies [Line Items]
Taxes payable		$ 18,000,000	$ 29,100,000
Foreign net operating loss carryforwards
Loss Contingencies [Line Items]
Taxes payable		22,200,000	20,600,000
Indemnification Agreement
Loss Contingencies [Line Items]
Loss contingency accrual		$ 0	$ 0

Reorganization and Segment Reporting - Schedule of Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue	$ 4,153,945	$ 3,826,321	$ 2,841,839
Loss from operations	(876,541)	(1,205,308)	(915,584)
Amortization of acquired intangibles	(192,500)	(206,400)	(198,800)
Loss on net assets divested	(32,277)	0	0
Restructuring costs	(165,733)	(76,636)	0
Impairment of long-lived assets	(34,800)	(97,700)
Other expenses (income), net	(120,188)	(38,324)	(45,345)
Loss before provision for income taxes	(996,729)	(1,243,632)	(960,929)
Corporate costs
Segment Reporting Information [Line Items]
Loss from operations	(236,552)	(293,475)	(260,970)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Loss from operations	533,008	(4,490)	2,520
Stock-based compensation	(662,842)	(784,285)	(632,285)
Amortization of acquired intangibles	(192,307)	(206,181)	(198,784)
Acquisition and divestiture related expenses	(5,555)	(2,621)	(7,449)
Loss on net assets divested	(32,277)	0	0
Payroll taxes related to stock-based compensation	(12,985)	(23,832)	(48,417)
Charitable contributions	(17,346)	(9,541)	(31,169)
Restructuring costs	(165,733)	(76,636)	0
Impairment of long-lived assets	(320,504)	(97,722)	0
Communications \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	3,858,693	3,550,087	2,640,874
Loss from operations	841,990	318,680	276,496
Segment
Segment Reporting Information [Line Items]
Revenue	295,252	276,234	200,965
Segment \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	295,252	276,234	200,965
Loss from operations	$ (72,430)	$ (29,695)	$ (13,006)

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Supplemental Balance Sheet Information

A roll‑forward of the Company’s customer credit reserve is as follows:


	As of December 31,
	2023		2022		2021
	(In thousands)
Balance, beginning of period	$	33,124	$	18,577	$	16,783
Additions	167,044		86,303		55,937
Deductions against reserve	(166,574)		(71,756)		(54,143)
Balance, end of period	$	33,594	$	33,124	$	18,577

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 192.5	$ 206.4	$ 198.8

Reorganization and Segment Reporting

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Reorganization and Segment Reporting

In February 2023, the Company announced a reorganization of its business into two business units, Twilio Communications and Twilio Data & Applications (the “Reorganization”). With the Reorganization, the Company changed the organizational structure of its business, including the way management operated the business. In the second quarter of 2023, the Company concluded that it had two operating and reportable segments: Twilio Communications (“Communications”) and Twilio Data & Applications (“Data & Applications”).

In the fourth quarter of 2023, the Company further reorganized its business by shifting certain components of the business between its operating segments. This reorganization did not impact the segment structure of the business. The impact on the reporting unit structure is described in Note 12.

After the reorganization, the Company’s Data & Applications segment consisted of its Segment and Engage products and, therefore, the reportable segment was renamed from Data & Applications to Twilio Segment (“Segment”).

Twilio Communications: The Communications segment consists of a variety of application programming interfaces (“APIs”) and software solutions to optimize communications between Twilio customers and their end users. The key products from which the segment derives its revenue are Messaging, Voice and Email.

Twilio Segment: The Segment segment consists of software products that enable businesses to achieve more effective customer engagement by providing the tools necessary for customers to build direct, personalized relationships with their end users. The key products from which the segment derives its revenue are Segment and Engage.

Discrete financial information reviewed by the CODM

In January 2024, the Company’s newly appointed CEO, who is also the CODM, began reviewing segment operating results using non-GAAP income from operations as the measure of segment profitability. Presented below is the discrete financial information by reportable segment for the years ended December 31, 2023, 2022, and 2021, that reflects management’s current view of the business for performance assessment and resource allocation decisions. Prior period amounts were reclassified to conform to the current period’s presentation. Asset information is not presented below since it is not reviewed by the CODM on a segment by segment basis. Revenue, costs of revenue and operating expenses are generally directly attributable to each segment. Certain costs of revenue and operating expenses are allocated based on methodologies that best reflect the patterns of consumption of these costs. Corporate costs consist of costs that support company-wide processes and are managed on the company-wide level, and include costs related to corporate governance and communication, global brand awareness, information security, and certain legal, finance and accounting expenses.


		Year Ended
		December 31,
		2023		2022		2021
	(In thousands)
Revenue:
Communications		$	3,858,693	$	3,550,087	$	2,640,874
Segment		295,252		276,234		200,965
Total		$	4,153,945	$	3,826,321	$	2,841,839
Non-GAAP income (loss) from operations:
Communications		$	841,990	$	318,680	$	276,496
Segment		(72,430)		(29,695)		(13,006)
Corporate costs		(236,552)		(293,475)		(260,970)
Total		$	533,008	$	(4,490)	$	2,520

Reconciliation of non-GAAP income (loss) from operations to loss from operations:
Total non-GAAP income (loss) from operations		$	533,008	$	(4,490)	$	2,520
Stock-based compensation		(662,842)		(784,285)		(632,285)
Amortization of acquired intangibles		(192,307)		(206,181)		(198,784)
Acquisition and divestiture related expenses		(5,555)		(2,621)		(7,449)
Loss on net assets divested		(32,277)		—		—
Payroll taxes related to stock-based compensation		(12,985)		(23,832)		(48,417)
Charitable contributions		(17,346)		(9,541)		(31,169)
Restructuring costs		(165,733)		(76,636)		—
Impairment of long-lived assets		(320,504)		(97,722)		—
Loss from operations		(876,541)		(1,205,308)		(915,584)
Other expenses (income), net		(120,188)		(38,324)		(45,345)
Loss before (provision for) benefit from income taxes		$	(996,729)	$	(1,243,632)	$	(960,929)

Depreciation and amortization expenses included in non-GAAP income from operations for the Communications reportable segment was $74.1 million, $61.9 million and $53.5 million in the years ended December 31, 2023, 2022 and 2021, respectively. Amortization of deferred commissions included in non-GAAP income from operations for the Communications reportable segment was $60.0 million, $47.7 million and $27.8 million in the years ended December 31, 2023, 2022 and 2021, respectively.

Depreciation and amortization expenses included in non-GAAP loss from operations for the Segment reportable segment was $13.7 million, $6.1 million and $2.6 million in the years ended December 31, 2023, 2022 and 2021, respectively. Amortization of deferred commissions included in non-GAAP loss from operations for the Segment reportable segment was $12.9 million, $10.3 million and $3.7 million in the years ended December 31, 2023, 2022 and 2021, respectively.

Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2023	Feb. 28, 2023
Stockholders' Equity Note [Abstract]
Share repurchase program, authorized amount		$ 1,000,000,000
Stock repurchased (in shares)	11.3
Stock repurchased	$ 672,100,000
Stock repurchase remaining amount	$ 327,900,000

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

Equity Method Investment (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of estimated basis difference attributable to identifiable assets and useful lives

The following table presents the estimated basis differences attributable to the identifiable intangible assets as of the date of investment and their respective useful lives:


	Total		Estimated life
	(In thousands)		(In years)
Developed technology	$	62,767	6
Customer relationships	439,152		9
Trademarks	28,822		Indefinite
Total basis difference attributable to the identifiable intangible assets	$	530,741

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,015,441)	$ (1,256,145)	$ (949,900)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	99,742	(83,049)	(27,215)
Foreign currency translation	5,587	(5,587)	(266)
Net change in market value of effective foreign currency forward exchange contracts	898	556	294
Share of other comprehensive income (loss) from equity method investment	15,553	(14,940)	0
Total other comprehensive income (loss)	121,780	(103,020)	(27,187)
Comprehensive loss attributable to common stockholders	$ (893,661)	$ (1,359,165)	$ (977,087)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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-Topic 235
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue	$ 4,153,945,000	$ 3,826,321,000	$ 2,841,839,000
Cost of revenue	2,110,015,000	2,012,744,000	1,451,126,000
Gross profit	2,043,930,000	1,813,577,000	1,390,713,000
Operating expenses:
Research and development	942,790,000	1,079,081,000	789,219,000
Sales and marketing	1,022,985,000	1,248,032,000	1,044,618,000
General and administrative	468,459,000	517,414,000	472,460,000
Restructuring costs	165,733,000	76,636,000	0
Impairment of long-lived assets	320,504,000	97,722,000	0
Total operating expenses	2,920,471,000	3,018,885,000	2,306,297,000
Loss from operations	(876,541,000)	(1,205,308,000)	(915,584,000)
Other expenses, net:
Share of losses from equity method investment	(121,897,000)	(35,315,000)	0
Impairment of strategic investments	(46,154,000)	0	0
Other income (expenses), net	47,863,000	(3,009,000)	(45,345,000)
Total other expenses, net	(120,188,000)	(38,324,000)	(45,345,000)
Loss before provision for income taxes	(996,729,000)	(1,243,632,000)	(960,929,000)
Provision for income taxes	(18,712,000)	(12,513,000)	11,029,000
Net loss attributable to common stockholders	$ (1,015,441,000)	$ (1,256,145,000)	$ (949,900,000)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (5.54)	$ (6.86)	$ (5.45)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (5.54)	$ (6.86)	$ (5.45)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	183,327,844	182,994,038	174,180,465
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	183,327,844	182,994,038	174,180,465

Summary of Significant Accounting Policies - Property and Equipment (Details)	Dec. 31, 2023
Capitalized internal-use software developments costs
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	3 years
Data center equipment \| Minimum
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	2 years
Data center equipment \| Maximum
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	4 years
Leasehold improvements
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	5 years
Office equipment
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	3 years
Furniture and fixtures
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	5 years
Software
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	3 years
Assets under financing lease
Disaggregation of Revenue [Line Items]
Property, plant and equipment, estimated life	5 years

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 655,931	$ 651,752
Short-term marketable securities	3,356,064	3,503,317
Accounts receivable, net	562,773	547,507
Prepaid expenses and other current assets	329,204	281,510
Total current assets	4,903,972	4,984,086
Property and equipment, net	209,639	263,979
Operating right-of-use assets	73,959	121,341
Equity method investment	593,582	699,911
Intangible assets, net	350,490	849,935
Goodwill	5,243,266	5,284,153
Other long-term assets	234,799	360,899
Total assets	11,609,707	12,564,304
Current liabilities:
Accounts payable	119,615	124,605
Accrued expenses and other current liabilities	424,311	490,221
Deferred revenue and customer deposits	144,499	139,110
Operating lease liability, current	49,872	54,222
Total current liabilities	738,297	808,158
Operating lease liability, noncurrent	120,770	164,551
Finance lease liability, noncurrent	9,191	21,290
Long-term debt, net	988,953	987,382
Other long-term liabilities	19,944	23,881
Total liabilities	1,877,155	2,005,262
Commitments and contingencies (Note 17)
Stockholders' equity:
Preferred stock, $0.001 par value, 100,000,000 shares authorized, none issued	0	0
Class A and Class B common stock	182	186
Additional paid-in capital	14,797,723	14,055,853
Accumulated other comprehensive income (loss)	619	(121,161)
Accumulated deficit	(5,065,972)	(3,375,836)
Total stockholders’ equity	9,732,552	10,559,042
Total liabilities and stockholders’ equity	$ 11,609,707	$ 12,564,304

Divestitures	12 Months Ended
Divestitures	Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]
Divestitures	Divestitures In July 2023, the Company sold its ValueFirst business, which operated an enterprise communications platform in India, for a total cash sales price of $45.5 million, or $38.2 million in proceeds, net of cash divested. As part of the transaction, the Company divested $17.4 million of tangible net assets, $17.3 million of intangible assets and $34.6 million of goodwill. The sale resulted in a loss of $28.8 million, which is recorded within general and administrative expenses in the accompanying consolidated statement of operations for the year ended December 31, 2023. The Company also recorded an additional $3.3 million of divestiture-related expenses in the same period. Separately, in June 2023, the Company sold its Internet of Things (“IoT”) asset group for stock consideration of $15.8 million. The loss on divestiture and related expenses were not significant.

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2023

Accrued Liabilities and Other Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	As of December 31,
	2023		2022
	(In thousands)
Accrued payroll and related	$	77,593	$	79,703
Accrued bonus and commission	17,345		35,449
Accrued cost of revenue	155,721		161,455
Sales and other taxes payable	70,913		92,319
ESPP contributions	6,130		8,499

Finance lease liability	8,489		11,871
Restructuring liability	29,086		1,066
Employee sabbatical benefit accrual(1)	5,515		30,683
Accrued other expense	53,519		69,176
Total accrued expenses and other current liabilities	$	424,311	$	490,221
____________________________________
(1) In February 2023, the Company announced that it will sunset its employee sabbatical program. The accrued liability as of December 31, 2023 represents the accumulated benefit balance for the employees who remain eligible under this program through its termination date.

Reorganization and Segment Reporting - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Feb. 28, 2023 business_unit	Jun. 30, 2023 segment	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reporting units \| business_unit	2
Number of operating segments \| segment		2		1
Number of reportable segments \| segment		2	2	1
Depreciation and amortization			$ 284,413	$ 279,127	$ 258,378
Twilio Communications \| Segment Reconciling Items
Segment Reporting Information [Line Items]
Depreciation and amortization			74,100	61,900	53,500
Amortization of deferred commissions			60,000	47,700	27,800
Segment \| Segment Reconciling Items
Segment Reporting Information [Line Items]
Depreciation and amortization			13,700	6,100	2,600
Amortization of deferred commissions			$ 12,900	$ 10,300	$ 3,700

Income Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
Federal	$ 2,567	$ 3,928	$ 122
State	1,533	4,100	420
Foreign	31,354	17,450	8,274
Total	35,454	25,478	8,816
Deferred:
Federal	(1,337)	(5,155)	(13,772)
State	(208)	(818)	(4,083)
Foreign	(15,197)	(6,992)	(1,990)
Total	(16,742)	(12,965)	(19,845)
Provision for (benefit from) income taxes	$ 18,712	$ 12,513	$ (11,029)

Cover - USD ($) $ in Billions	12 Months Ended
Cover - USD ($) $ in Billions	Dec. 31, 2023	Feb. 20, 2024	Jun. 30, 2023
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-37806
Entity Registrant Name	TWILIO INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-2574840
Entity Address, Address Line One	101 Spear Street
Entity Address, Address Line Two	Fifth Floor
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94105
City Area Code	415
Local Phone Number	390-2337
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Trading Symbol	TWLO
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 11.1
Documents Incorporated by Reference	Portions of the registrant's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 202
Entity Central Index Key	0001447669
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Common Stock Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		182,060,920
Common Stock Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		0

Stock-Based Compensation - Valuation Assumptions Narrative (Details)	12 Months Ended
	Dec. 31, 2023 shares
Share-Based Payment Arrangement [Abstract]
Granted (in shares)	0

Impairment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Impairment - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of long-lived assets	$ 34.8	$ 97.7
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]	Impairment of long-lived assets

Derivatives and Hedging - Narrative (Details) - Foreign Currency Forward - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative, term of contract	1 year 4 months 24 days
Buy
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative, notional amount	$ 228.1

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Accrued Liabilities and Other Liabilities [Abstract]

Schedule of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:


	As of December 31,
	2023		2022
	(In thousands)
Accrued payroll and related	$	77,593	$	79,703
Accrued bonus and commission	17,345		35,449
Accrued cost of revenue	155,721		161,455
Sales and other taxes payable	70,913		92,319
ESPP contributions	6,130		8,499

Finance lease liability	8,489		11,871
Restructuring liability	29,086		1,066
Employee sabbatical benefit accrual(1)	5,515		30,683
Accrued other expense	53,519		69,176
Total accrued expenses and other current liabilities	$	424,311	$	490,221
____________________________________
(1) In February 2023, the Company announced that it will sunset its employee sabbatical program. The accrued liability as of December 31, 2023 represents the accumulated benefit balance for the employees who remain eligible under this program through its termination date.

Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Intangible Assets
2024	$ 112,042
2025	107,862
2026	42,149
2027	25,330
2028	19,055
Thereafter	38,837
Total	$ 345,275	$ 844,720

Stockholders' Equity - Preferred Stock (Details) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Preferred Stock
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net loss	$ (1,015,441)	$ (1,256,145)	$ (949,900)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Income Taxes - Domestic and Foreign Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
United States	$ (816,089)	$ (1,021,208)	$ (737,360)
International	(180,640)	(222,424)	(223,569)
Loss before provision for income taxes	$ (996,729)	$ (1,243,632)	$ (960,929)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Derivatives and Hedging (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of gains and losses associated with foreign currency forward contracts

Gains and losses associated with these foreign currency forward contracts are as follows:


	Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss	Year Ended December 31,
				2023		2022		2021
			(In thousands)
Gains recognized in OCI	Net change in market value of effective foreign currency forward exchange contracts			$	898	$	556	$	294
Gains (losses) recognized in income due to instruments maturing	Cost of revenue			$	2,099	$	(34,862)	$	(7,545)

Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Schedule of customer credit reserve

A roll‑forward of the Company’s customer credit reserve is as follows:


	As of December 31,
	2023		2022		2021
	(In thousands)
Balance, beginning of period	$	33,124	$	18,577	$	16,783
Additions	167,044		86,303		55,937
Deductions against reserve	(166,574)		(71,756)		(54,143)
Balance, end of period	$	33,594	$	33,124	$	18,577

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 675,857	$ 798,560	$ 632,285
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	26,343	21,136	14,074
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	331,526	374,846	258,672
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	183,389	240,109	213,351
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	121,584	148,194	146,188
Restructuring costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 13,015	$ 14,275	$ 0

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of financial assets measured at fair value on a recurring basis

The following tables provide the financial assets measured at fair value on a recurring basis:


	Amortized Cost or Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months		Gross Unrealized Losses More Than 12 Months		Fair Value Hierarchy as of December 31, 2023						Aggregate Fair Value
									Level 1		Level 2		Level 3
Financial Assets:	(In thousands)
Cash and cash equivalents:
Money market funds	$	408,696	$	—	$	—	$	—	$	408,696	$	—	$	—	$	408,696


Total included in cash and cash equivalents	408,696		—		—		—		408,696		—		—		408,696
Marketable securities:
Debt securities:
U.S. Treasury securities	410,665		2,162		(7)		(1,665)		411,155		—		—		411,155
Non-U.S. government securities	83,576		55		(111)		(1,209)		82,311		—		—		82,311
Corporate debt securities and commercial paper	2,859,071		15,366		(10,818)		(5,922)		16,690		2,841,007		—		2,857,697
Total debt securities	3,353,312		17,583		(10,936)		(8,796)		510,156		2,841,007		—		3,351,163
Equity securities	4,901		—		—		—		4,901		—		—		4,901
Total marketable securities	3,358,213		17,583		(10,936)		(8,796)		515,057		2,841,007		—		3,356,064
Total financial assets	$	3,766,909	$	17,583	$	(10,936)	$	(8,796)	$	923,753	$	2,841,007	$	—	$	3,764,760


	Amortized Cost or Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses Less Than 12 Months		Gross Unrealized Losses More Than 12 Months		Fair Value Hierarchy as of December 31, 2022						Aggregate Fair Value
									Level 1		Level 2		Level 3
Financial Assets:	(In thousands)
Cash and cash equivalents:
Money market funds	$	46,610	$	—	$	—	$	—	$	46,610	$	—	$	—	$	46,610
Reverse repurchase agreements	200,000		—		—		—		—		200,000		—		200,000
Commercial paper	2,249		—		—		—		—		2,249		—		2,249
Total included in cash and cash equivalents	248,859		—		—		—		46,610		202,249		—		248,859
Marketable securities:
U.S. Treasury securities	481,463		—		(1,269)		(11,347)		468,847		—		—		468,847
Non-U.S. government securities	149,901		—		(33)		(6,304)		143,564		—		—		143,564
Corporate debt securities and commercial paper	2,973,844		307		(12,202)		(71,043)		5,000		2,885,906		—		2,890,906
Total marketable securities	3,605,208		307		(13,504)		(88,694)		617,411		2,885,906		—		3,503,317
Total financial assets	$	3,854,067	$	307	$	(13,504)	$	(88,694)	$	664,021	$	3,088,155	$	—	$	3,752,176

Schedule of contractual maturities of marketable securities

The following table summarizes the contractual maturities of marketable securities:


	As of December 31,
	2023				2022
	Amortized Cost		Aggregate Fair Value		Amortized Cost		Aggregate Fair Value
Financial Assets:	(In thousands)
Less than one year	$	1,448,256	$	1,434,149	$	1,943,836	$	1,909,218
One to three years	1,905,056		1,917,014		1,661,372		1,594,099
Total	$	3,353,312	$	3,351,163	$	3,605,208	$	3,503,317

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum payments

Future minimum payments under these noncancellable purchase commitments are summarized in the table below. Unrecognized tax benefits are not included in these amounts because any amounts expected to be settled in cash are not significant:


	As of December 31, 2023
Year Ending December 31,	(In thousands)
2024	$	254,547
2025	241,056
2026	231,803



Total payments	$	727,406

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property and Equipment
Total property and equipment	$ 584,615	$ 550,275
Less: accumulated depreciation and amortization	(374,976)	(286,296)
Total property and equipment, net	209,639	263,979
Capitalized internal-use software developments costs
Property and Equipment
Total property and equipment	297,655	257,983
Data center equipment
Property and Equipment
Total property and equipment	104,543	100,207
Finance lease asset	72,400	72,400
Finance lease asset, accumulated amortization	55,900	41,200
Leasehold improvements
Property and Equipment
Total property and equipment	92,315	91,660
Office equipment
Property and Equipment
Total property and equipment	60,905	70,815
Furniture and fixtures
Property and Equipment
Total property and equipment	14,558	14,935
Software
Property and Equipment
Total property and equipment	$ 14,639	$ 14,675

Derivatives and Hedging

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

As of December 31, 2023, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $228.1 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of December 31, 2023, these contracts had maturities of up to 1.4 years.

Gains and losses associated with these foreign currency forward contracts are as follows:


	Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss	Year Ended December 31,
				2023		2022		2021
			(In thousands)
Gains recognized in OCI	Net change in market value of effective foreign currency forward exchange contracts			$	898	$	556	$	294
Gains (losses) recognized in income due to instruments maturing	Cost of revenue			$	2,099	$	(34,862)	$	(7,545)

The Company is subject to master netting agreements with certain counterparties of the foreign exchange contracts, under which it is permitted to net settle transactions of the same currency with a single net amount payable by one party to the other. It is the Company’s policy to present the derivatives at gross in its consolidated balance sheets. The Company’s foreign currency forward contracts are not subject to any credit contingent features or collateral requirements. The Company manages its exposure to counterparty risk by entering into contracts with a diversified group of major financial institutions and by actively monitoring its outstanding positions. As of December 31, 2023, the Company did not have any offsetting arrangements.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financial Assets:
Cash and cash equivalents:	$ 408,696	$ 248,859
Amortized Cost or Carrying Value	3,353,312	3,605,208
Amortized Cost or Carrying Value	4,901
Amortized Cost or Carrying Value	3,358,213
Gross Unrealized Gains	17,583	307
Gross Unrealized Losses Less Than 12 Months	(10,936)	(13,504)
Gross Unrealized Losses More Than 12 Months	(8,796)	(88,694)
Marketable securities, aggregate fair value	3,351,163	3,503,317
Equity securities, aggregate fair value	4,901
Investments, aggregate fair value	3,356,064
Total financial assets	3,766,909	3,854,067
Total financial assets	3,764,760	3,752,176
Level 1
Financial Assets:
Cash and cash equivalents:	408,696	46,610
Marketable securities, aggregate fair value	510,156	617,411
Equity securities, aggregate fair value	4,901
Investments, aggregate fair value	515,057
Total financial assets	923,753	664,021
Level 2
Financial Assets:
Cash and cash equivalents:	0	202,249
Marketable securities, aggregate fair value	2,841,007	2,885,906
Equity securities, aggregate fair value	0
Investments, aggregate fair value	2,841,007
Total financial assets	2,841,007	3,088,155
Level 3
Financial Assets:
Cash and cash equivalents:	0	0
Marketable securities, aggregate fair value	0	0
Equity securities, aggregate fair value	0
Investments, aggregate fair value	0
Total financial assets	0	0
U.S. Treasury securities
Financial Assets:
Amortized Cost or Carrying Value	410,665	481,463
Gross Unrealized Gains	2,162	0
Gross Unrealized Losses Less Than 12 Months	(7)	(1,269)
Gross Unrealized Losses More Than 12 Months	(1,665)	(11,347)
Marketable securities, aggregate fair value	411,155	468,847
U.S. Treasury securities \| Level 1
Financial Assets:
Marketable securities, aggregate fair value	411,155	468,847
U.S. Treasury securities \| Level 2
Financial Assets:
Marketable securities, aggregate fair value	0	0
U.S. Treasury securities \| Level 3
Financial Assets:
Marketable securities, aggregate fair value	0	0
Non-U.S. government securities
Financial Assets:
Amortized Cost or Carrying Value	83,576	149,901
Gross Unrealized Gains	55	0
Gross Unrealized Losses Less Than 12 Months	(111)	(33)
Gross Unrealized Losses More Than 12 Months	(1,209)	(6,304)
Marketable securities, aggregate fair value	82,311	143,564
Non-U.S. government securities \| Level 1
Financial Assets:
Marketable securities, aggregate fair value	82,311	143,564
Non-U.S. government securities \| Level 2
Financial Assets:
Marketable securities, aggregate fair value	0	0
Non-U.S. government securities \| Level 3
Financial Assets:
Marketable securities, aggregate fair value	0	0
Corporate debt securities and commercial paper
Financial Assets:
Amortized Cost or Carrying Value	2,859,071	2,973,844
Gross Unrealized Gains	15,366	307
Gross Unrealized Losses Less Than 12 Months	(10,818)	(12,202)
Gross Unrealized Losses More Than 12 Months	(5,922)	(71,043)
Marketable securities, aggregate fair value	2,857,697	2,890,906
Corporate debt securities and commercial paper \| Level 1
Financial Assets:
Marketable securities, aggregate fair value	16,690	5,000
Corporate debt securities and commercial paper \| Level 2
Financial Assets:
Marketable securities, aggregate fair value	2,841,007	2,885,906
Corporate debt securities and commercial paper \| Level 3
Financial Assets:
Marketable securities, aggregate fair value	0	0
Money market funds
Financial Assets:
Cash and cash equivalents:	408,696	46,610
Money market funds \| Level 1
Financial Assets:
Cash and cash equivalents:	408,696	46,610
Money market funds \| Level 2
Financial Assets:
Cash and cash equivalents:	0	0
Money market funds \| Level 3
Financial Assets:
Cash and cash equivalents:	$ 0	0
Reverse repurchase agreements
Financial Assets:
Cash and cash equivalents:		200,000
Reverse repurchase agreements \| Level 1
Financial Assets:
Cash and cash equivalents:		0
Reverse repurchase agreements \| Level 2
Financial Assets:
Cash and cash equivalents:		200,000
Reverse repurchase agreements \| Level 3
Financial Assets:
Cash and cash equivalents:		0
Commercial paper
Financial Assets:
Cash and cash equivalents:		2,249
Commercial paper \| Level 1
Financial Assets:
Cash and cash equivalents:		0
Commercial paper \| Level 2
Financial Assets:
Cash and cash equivalents:		2,249
Commercial paper \| Level 3
Financial Assets:
Cash and cash equivalents:		$ 0

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Total long-term debt, net	$ 988,953,000	$ 987,382,000
2029 Senior Notes
Debt Instrument [Line Items]
Principal	500,000,000	500,000,000	$ 500,000,000
Unamortized discount	(4,274,000)	(5,001,000)
Unamortized issuance costs	(962,000)	(1,126,000)
Total long-term debt, net	494,764,000	493,873,000
2031 Senior Notes
Debt Instrument [Line Items]
Principal	500,000,000	500,000,000	$ 500,000,000
Unamortized discount	(4,744,000)	(5,299,000)
Unamortized issuance costs	(1,067,000)	(1,192,000)
Total long-term debt, net	$ 494,189,000	$ 493,509,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
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+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Impairment

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Impairment

Operating right-of-use assets

In 2022, the Company announced its decision to become a remote-first company whereby employees would have the flexibility to work remotely on a permanent basis. As part of the new operating strategy, the Company permanently closed several of its offices in 2023 and 2022, which required the Company to reassess its operating right-of-use (“ROU”) assets and the associated leasehold improvements and property and equipment for impairment. The Company determined that the carrying amounts of these assets exceeded their respective fair values. The Company engaged a third‑party expert to assist with the valuation analysis. The Company regularly assesses recoverability of all impacted ROU assets and the related long-lived asset categories for indicators of impairment. In the years ended December 31, 2023 and 2022, the Company recorded $34.8 million and $97.7 million of impairment, respectively, related to its permanently closed offices. The impairment is recorded in the impairment of long-lived assets line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022.

Intangible assets

In the fourth quarter of 2023, the Company identified a change in its Segment reportable segment’s performance which it deemed to be an indicator that the carrying amounts of certain long-lived assets within the segment may not be recoverable. The Company performed a recoverability assessment and a fair value measurement of the impacted asset group and concluded that the asset group was impaired. The Company engaged a third-party expert to assist with the valuation analysis. The impairment was allocated to the assets within the impacted asset group reducing the respective carrying amounts of the assets as of the December 1, 2023, measurement date, as follows:


	Total Impairment Allocation
	(In thousands)
Developed technology	$	209,350
Customer relationships	76,361
Total impairment	$	285,711

The impairment is recorded within the impairment of long-lived assets line item in the accompanying consolidated statement of operations for the year ended December 31, 2023.

The Company used a relief-from-royalty method to estimate the fair values of the developed technology and the trade name and a distributor method to estimate the fair value of customer relationships. The trade name intangible asset was not impaired.

No other significant impairments were recorded during the years ended 2023, 2022 or 2021.

Right-of-Use Assets and Lease Liabilities - Lease Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 56,181
2025	39,120
2026	35,307
2027	27,779
2028	22,732
Thereafter	5,934
Total lease payments	187,053
Less: imputed interest	(16,411)
Total operating lease obligations	170,642
Less: current obligations	(49,872)	$ (54,222)
Long-term operating lease obligations	$ 120,770	$ 164,551

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(a)Lease and Other Commitments

The Company entered into various non-cancelable operating lease agreements for its facilities. Refer to Note 10 for additional detail on the Company's operating lease commitments.

Additionally, the Company has contractual commitments with its cloud infrastructure providers, network service providers and other vendors that are noncancellable and expire within one to three years. In the year ended December 31, 2023, the Company entered into several such agreements with terms of up to three years for a total purchase commitment of $103.8 million. Future minimum payments under these noncancellable purchase commitments are summarized in the table below. Unrecognized tax benefits are not included in these amounts because any amounts expected to be settled in cash are not significant:


	As of December 31, 2023
Year Ending December 31,	(In thousands)
2024	$	254,547
2025	241,056
2026	231,803



Total payments	$	727,406

Legal Matters

From time to time, the Company may be subject to legal actions, claims, and government investigations or inquiries arising in the ordinary course of business. These matters may include, but are not limited to, matters involving privacy, data protection, data security, intellectual property, competition, telecommunications, consumer protection, taxation, securities, employment, and contractual rights. While the Company currently believes that the final outcomes of these matters will not have a material adverse effect on its business, the results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

The Company accrues for contingencies when the Company believes that a loss is probable and that it can reasonably estimate the amount of any such loss. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred and the amount of such additional loss would be material, the Company will either disclose the estimated additional loss or state that such an estimate cannot be made. Significant judgment is required to determine the probability of a loss and to estimate the amount of any probable loss.

Legal fees and other costs related to litigation and other legal proceedings are expensed as incurred and are included in general and administrative expenses in the accompanying consolidated statements of operations.

In 2020, the City and County of San Francisco (“San Francisco”) assessed the Company for additional Telephone Users Tax (“TUT”) and Access Line Tax on certain of the Company’s services for the years 2009 through 2018. The assessments totaled $38.8 million, including interest and penalties. The Company paid the assessments under protest in the third quarter of 2020.

On May 27, 2021, the Company filed a lawsuit against San Francisco in San Francisco Superior Court challenging the assessments. The parties agreed to a settlement agreement that was approved by San Francisco’s Board of Supervisors and Mayor on November 7, 2023 and November 9, 2023, respectively, pursuant to which San Francisco paid the Company $18.0 million in November 2023 in settlement of the Company’s claims. The related impacts to the consolidated balance sheet as of December 31, 2023 and statement of operations for the year ended December 31, 2023 were not significant.

Indemnification Agreements

In the ordinary course of business and in connection with its financing and business combination transactions, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to business partners, customers and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties and other liabilities relating to or arising from the Company’s products or its acts or omissions.

The Company has also signed indemnification agreements with all of its board members and executive officers and certain employees that may require the Company to indemnify them for certain events in connection with their services to the Company or its direct or indirect subsidiaries.

As of December 31, 2023 and 2022, no amounts were accrued related to any outstanding indemnification agreements.

Other Taxes

The Company conducts operations in many tax jurisdictions within and outside the United States. In many of these jurisdictions, non-income-based taxes, such as sales, use, telecommunications and other local taxes are assessed on the Company’s operations. The Company carries reserves for certain of its non-income-based tax exposures in certain jurisdictions when it is both probable that a liability was incurred and the amount of the exposure can be reasonably estimated. These reserves are based on estimates which include several key assumptions including, but not limited to, the taxability of the Company’s services, the jurisdictions in which its management believes it had nexus and the sourcing of revenues to those jurisdictions.

The Company continues to remain in discussions with certain jurisdictions regarding its prior sales and other taxes that it may owe. In the event any of these jurisdictions disagree with management’s assumptions and analysis, the assessment of the Company’s tax exposure could differ materially from management’s current estimates.

As of December 31, 2023, the liabilities recorded for the non-income-based taxes were $18.0 million for domestic jurisdictions and $22.2 million for jurisdictions outside of the United States. As of December 31, 2022, these liabilities were $29.1 million and $20.6 million, respectively.

Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Less than one year, amortized cost	$ 1,448,256	$ 1,943,836
One to three years, amortized cost	1,905,056	1,661,372
Amortized Cost or Carrying Value	3,353,312	3,605,208
Less than one year, aggregate fair value	1,434,149	1,909,218
One to three years, aggregate fair value	1,917,014	1,594,099
Total aggregate fair value	$ 3,351,163	$ 3,503,317

Net Loss Per Share Attributable to Common Stockholders - Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Net Loss Per Share Attributable to Common Stockholders
Net loss attributable to common stockholders (in thousands)	$ (1,015,441)	$ (1,256,145)	$ (949,900)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares)	183,327,844	182,994,038	174,180,465
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares)	183,327,844	182,994,038	174,180,465
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (5.54)	$ (6.86)	$ (5.45)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (5.54)	$ (6.86)	$ (5.45)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Restructuring Activities (Tables)

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of restructuring activities


	Workforce Reduction Costs		Facilitation Costs		Total
	(In thousands)
Balance as of December 31, 2022	$	—	$	—	$	—
Restructuring charges	120,711		9,289		130,000
Cash payments	(111,852)		(8,895)		(120,747)
Balance as of December 31, 2023	$	8,859	$	394	$	9,253


	Workforce Reduction Costs		Facilitation Costs		Total
	(In thousands)
Balance as of December 31, 2021	$	—	$	—	$	—
Restructuring charges	60,553		1,808		62,361
Cash payments	(60,053)		(1,242)		(61,295)
Balance as of December 31, 2022	$	500	$	566	$	1,066

Stock-Based Compensation - 2016 Employee Stock Purchase Plan (Details) - ESPP - shares			12 Months Ended
	Jan. 01, 2023	Jan. 01, 2022	Dec. 31, 2023	Jun. 22, 2016
Stock Based Compensation
Maximum automatic annual increase (in shares)			1,800,000
Maximum automatic annual increase as a percentage of outstanding common shares			1.00%
Increase in shares available for grant (in shares)	1,800,000	1,800,000
Stock plan offering period			6 months
Common Stock Class A
Stock Based Compensation
Shares reserved for issuance (in shares)				2,400,000
Discount from market price, offering date (as a percent)			15.00%
Purchase price, percentage of fair market value (as a percent)			85.00%

Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of long-term debt

Long-term debt, net, consists of the following:


	As of December 31,
	2023		2022
	(In thousands)
2029 Senior Notes
Principal	$	500,000	$	500,000
Unamortized discount	(4,274)		(5,001)
Unamortized issuance costs	(962)		(1,126)
Net carrying amount	494,764		493,873
2031 Senior Notes
Principal	500,000		500,000
Unamortized discount	(4,744)		(5,299)
Unamortized issuance costs	(1,067)		(1,192)
Net carrying amount	494,189		493,509
Total long-term debt, net	$	988,953	$	987,382

Reorganization and Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of financial information

Presented below is the discrete financial information by reportable segment for the years ended December 31, 2023, 2022, and 2021, that reflects management’s current view of the business for performance assessment and resource allocation decisions. Prior period amounts were reclassified to conform to the current period’s presentation. Asset information is not presented below since it is not reviewed by the CODM on a segment by segment basis. Revenue, costs of revenue and operating expenses are generally directly attributable to each segment. Certain costs of revenue and operating expenses are allocated based on methodologies that best reflect the patterns of consumption of these costs. Corporate costs consist of costs that support company-wide processes and are managed on the company-wide level, and include costs related to corporate governance and communication, global brand awareness, information security, and certain legal, finance and accounting expenses.


		Year Ended
		December 31,
		2023		2022		2021
	(In thousands)
Revenue:
Communications		$	3,858,693	$	3,550,087	$	2,640,874
Segment		295,252		276,234		200,965
Total		$	4,153,945	$	3,826,321	$	2,841,839
Non-GAAP income (loss) from operations:
Communications		$	841,990	$	318,680	$	276,496
Segment		(72,430)		(29,695)		(13,006)
Corporate costs		(236,552)		(293,475)		(260,970)
Total		$	533,008	$	(4,490)	$	2,520

Reconciliation of non-GAAP income (loss) from operations to loss from operations:
Total non-GAAP income (loss) from operations		$	533,008	$	(4,490)	$	2,520
Stock-based compensation		(662,842)		(784,285)		(632,285)
Amortization of acquired intangibles		(192,307)		(206,181)		(198,784)
Acquisition and divestiture related expenses		(5,555)		(2,621)		(7,449)
Loss on net assets divested		(32,277)		—		—
Payroll taxes related to stock-based compensation		(12,985)		(23,832)		(48,417)
Charitable contributions		(17,346)		(9,541)		(31,169)
Restructuring costs		(165,733)		(76,636)		—
Impairment of long-lived assets		(320,504)		(97,722)		—
Loss from operations		(876,541)		(1,205,308)		(915,584)
Other expenses (income), net		(120,188)		(38,324)		(45,345)
Loss before (provision for) benefit from income taxes		$	(996,729)	$	(1,243,632)	$	(960,929)

Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$ 983,652	$ 959,864
Accruals and reserves	52,750	47,986
Stock-based compensation	29,572	37,981
Research and development credits	177,109	159,604
Intangibles	135,564	135,500
Capitalized research and development expenses	231,819	219,176
Lease liability	44,682	60,795
Unrealized losses on marketable securities	0	32,108
Investments and other basis differences	51,368	11,952
Other	31,852	24,878
Gross deferred tax assets	1,738,368	1,689,844
Valuation allowance	(1,533,933)	(1,357,300)
Net deferred tax assets	204,435	332,544
Deferred tax liabilities:
Capitalized software	(36,109)	(36,552)
Prepaid expenses	(1,073)	(1,587)
Acquired intangibles	(81,415)	(202,778)
Right-of-use asset	(19,964)	(35,734)
Deferred commissions	(50,703)	(59,675)
Net deferred tax asset	$ 15,171
Net deferred tax liability		$ (3,782)

Equity Method Investment - Estimated Basis Difference attributable to Identifiable Assets and Useful Lives (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	May 31, 2022
Marketable Securities [Line Items]
Intangible assets	$ 350,490	$ 849,935
Syniverse
Marketable Securities [Line Items]
Intangible assets	$ 451,600	$ 508,900	$ 530,741
Syniverse \| Trademarks
Marketable Securities [Line Items]
Intangible assets			28,822
Syniverse \| Developed technology
Marketable Securities [Line Items]
Intangible assets			$ 62,767
Estimated life			6 years
Syniverse \| Customer relationships
Marketable Securities [Line Items]
Intangible assets			$ 439,152
Estimated life			9 years

Revenue by Geographic Area and Groups of Similar Products - Revenue by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue by geographic area:
Revenue	$ 4,153,945	$ 3,826,321	$ 2,841,839
Twilio Segment
Revenue by geographic area:
Revenue	295,252	276,234	200,965
Twilio Communications \| Twilio Communications
Revenue by geographic area:
Revenue	3,858,693	3,550,087	2,640,874
Messaging \| Twilio Communications
Revenue by geographic area:
Revenue	2,184,752	2,066,300	1,416,265
Voice \| Twilio Communications
Revenue by geographic area:
Revenue	511,728	474,790	428,484
Email and Marketing Campaigns \| Twilio Communications
Revenue by geographic area:
Revenue	440,185	399,314	330,627
Other \| Twilio Communications
Revenue by geographic area:
Revenue	722,028	609,683	465,498
United States
Revenue by geographic area:
Revenue	$ 2,757,470	$ 2,510,525	$ 1,927,302
United States \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	66.00%	66.00%	68.00%
International
Revenue by geographic area:
Revenue	$ 1,396,475	$ 1,315,796	$ 914,537
International \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	34.00%	34.00%	32.00%

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning of year	$ 228,966	$ 223,380	$ 191,183
Gross increases for tax positions of prior years	3,427	3,250	3,496
Gross decreases for tax positions of prior years	(5,130)	(705)	(10,693)
Gross increases for tax positions of current year	7,754	4,081	39,394
Lapse of statute of limitations	(1,239)	(1,040)	0
Unrecognized tax benefit, end of year	$ 233,778	$ 228,966	$ 223,380

Restructuring Activities - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Restructuring Reserve [Roll Forward]
Restructuring charges	$ 165,733	$ 76,636	$ 0
February 2023 Plan
Restructuring Reserve [Roll Forward]
Restructuring charges	141,100
September 2022 Plan
Restructuring Reserve [Roll Forward]
Restructuring charges		76,600
Employee Severance and Facilitation Costs \| February 2023 Plan
Restructuring Reserve [Roll Forward]
Beginning balance of period	0
Restructuring charges	130,000
Cash payments	(120,747)
Ending balance of period	9,253	0
Employee Severance and Facilitation Costs \| September 2022 Plan
Restructuring Reserve [Roll Forward]
Beginning balance of period	1,066	0
Restructuring charges		62,361
Cash payments		(61,295)
Ending balance of period		1,066	0
Workforce Reduction Costs \| February 2023 Plan
Restructuring Reserve [Roll Forward]
Beginning balance of period	0
Restructuring charges	120,711
Cash payments	(111,852)
Ending balance of period	8,859	0
Workforce Reduction Costs \| September 2022 Plan
Restructuring Reserve [Roll Forward]
Beginning balance of period	500	0
Restructuring charges		60,553
Cash payments		(60,053)
Ending balance of period		500	0
Facilitation Costs \| February 2023 Plan
Restructuring Reserve [Roll Forward]
Beginning balance of period	0
Restructuring charges	9,289
Cash payments	(8,895)
Ending balance of period	394	0
Facilitation Costs \| September 2022 Plan
Restructuring Reserve [Roll Forward]
Beginning balance of period	$ 566	0
Restructuring charges		1,808
Cash payments		(1,242)
Ending balance of period		$ 566	$ 0

Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consist of the following:


	As of December 31,
	2023		2022
	(In thousands)
Capitalized internal-use software developments costs	$	297,655	$	257,983
Data center equipment (1)	104,543		100,207
Leasehold improvements	92,315		91,660
Office equipment	60,905		70,815
Furniture and fixtures	14,558		14,935
Software	14,639		14,675
Total property and equipment	584,615		550,275
Less: accumulated depreciation and amortization (1)	(374,976)		(286,296)
Total property and equipment, net	$	209,639	$	263,979

____________________________________

Depreciation and amortization expense was $89.9 million, $71.7 million and $59.6 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The Company capitalized $57.2 million, $65.4 million and $63.1 million in internal‑use software development costs in the years ended December 31, 2023, 2022 and 2021, respectively.

Stock-Based Compensation - Restricted Stock Units Activity (Details) - Unvested restricted stock units and awards - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Number of awards outstanding
Unvested RSUs at the beginning of the period (in shares)	15,414,997
Granted (in shares)	14,716,790
Vested (in shares)	(5,939,641)
Forfeited and canceled (in shares)	(5,436,608)
Unvested RSUs at the end of the period (in shares)	18,755,538
Weighted- average grant date fair value (Per share)
Unvested RSUs at the beginning of the period (in dollars per share)	$ 130.97
Granted (in dollars per share)	65.73
Vested (in dollars per share)	116.30
Forfeited and canceled (in dollars per share)	120.16
Unvested RSUs at the end of the period (in dollars per share)	$ 87.56
Aggregate intrinsic value
Aggregate intrinsic value	$ 1,422,983	$ 754,718

Stockholders' Equity - Common Stock (Details) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Common Stock
Common stock, authorized (in shares)	1,003,170,181	1,100,000,000
Common stock, issued (in shares)	181,945,771	185,975,709
Common stock, outstanding (in shares)	181,945,771	185,975,709
Common Stock Class A
Common Stock
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, issued (in shares)	181,945,771	176,358,104
Common stock, outstanding (in shares)	181,945,771	176,358,104
Common Stock Class B
Common Stock
Common stock, authorized (in shares)	3,170,181	100,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, issued (in shares)	0	9,617,605
Common stock, outstanding (in shares)	0	9,617,605

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

The business reorganization activities described in Note 8 impacted the Company’s reporting unit structure and, as a result, in 2023 the Company had multiple reporting units. These changes required the Company to reallocate goodwill to its newly formed reporting units and test the goodwill for impairment on the reporting unit level immediately before and immediately after each reorganization. The Company engaged a third-party expert to assist in the valuation analysis. The Company concluded that its goodwill was not impaired immediately before and immediately after the reorganizations.

The Company estimates the fair value of its reporting units using a weighting of fair values derived from an income and a market approach. Estimating the fair value by these methods involves the use of various assumptions that the Company believes are reasonable under then current circumstances. Under the income approach, the Company determines the fair value of a reporting unit based on the present value of estimated future cash flows using the cash flow projections prepared by management. The market approach estimates the fair value based on market multiples of revenue or adjusted EBITDA, as applicable, derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. While these assumptions reflect management’s best estimates of future performance at the time, these estimates are inherently complex and uncertain and the Company’s actual results could differ materially from these estimates.

The following table presents the goodwill allocated to the Company’s reportable segments as of December 31, 2023 and 2022, and the changes during the period:


	Twilio Communications		Twilio Segment		Total
	(In thousands)
Balance as of December 31, 2021	$	—	$	—	$	5,263,166
Goodwill additions related to 2021 acquisitions	—		—		25,748
Measurement period and other adjustments	—		—		(4,761)
Balance as of December 31, 2022	$	—	$	—	$	5,284,153
Foreign currency adjustments					26
Reallocation to segments in the second quarter of 2023(1)	$	4,321,130	$	963,049	$	—
Foreign currency adjustments	251		—		251
Goodwill divested(2)	(41,164)		—		(41,164)
Reallocation to segments in the fourth quarter of 2023(1)	656,964		(656,964)		—
Balance as of December 31, 2023	$	4,937,181	$	306,085	$	5,243,266
____________________________________
(1) Represents reallocation of goodwill as a result of the reorganization activities, as described in Note 8.
(2) Represents goodwill related to the divestitures of the ValueFirst business and IoT asset group, as described in Note 5.

Intangible assets

Intangible assets consist of the following:


	As of December 31, 2023
	Cost		Accumulated Amortization		Net
Amortizable intangible assets:	(In thousands)
Developed technology*	$	397,473	$	(259,635)	$	137,838
Customer relationships**	349,074		(170,511)		178,563
Supplier relationships	49,756		(26,316)		23,440
Trade names	25,968		(23,600)		2,368
Order backlog	10,000		(10,000)		—
Patent	3,968		(902)		3,066
Total amortizable intangible assets	836,239		(490,964)		345,275
Non-amortizable intangible assets:
Telecommunication licenses	4,920		—		4,920
Trademarks and other	295		—		295
Total	$	841,454	$	(490,964)	$	350,490
____________________________________
* As a result of the impairment described in Note 6, the developed technology cost basis and the related accumulated amortization decreased by $381.1 million and $171.8 million, respectively.
** As a result of the impairment described in Note 6, the customer relationship cost basis and the related accumulated amortization decreased by $174.0 million and $97.6 million, respectively.


	As of December 31, 2022
	Cost		Accumulated Amortization		Net
Amortizable intangible assets:	(In thousands)
Developed technology	$	795,753	$	(335,893)	$	459,860
Customer relationships	538,466		(204,241)		334,225
Supplier relationships	56,922		(19,846)		37,076
Trade names	30,342		(20,106)		10,236
Order backlog	10,000		(10,000)		—
Patent	4,028		(705)		3,323
Total amortizable intangible assets	1,435,511		(590,791)		844,720
Non-amortizable intangible assets:
Telecommunication licenses	4,920		—		4,920
Trademarks and other	295		—		295
Total	$	1,440,726	$	(590,791)	$	849,935

Amortization expense was $192.5 million, $206.4 million and $198.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.

In the year ended December 31, 2023, the Company recorded an impairment charge related to certain of its intangible assets, as described in Note 6.

Total estimated future amortization expense is as follows:


	As of December 31, 2023
Year Ended December 31,	(In thousands)
2024	$	112,042
2025	107,862
2026	42,149
2027	25,330
2028	19,055
Thereafter	38,837
Total	$	345,275

Stock-Based Compensation - Valuation Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Employee stock options
Valuation Assumptions
Expected volatility, low end of range		61.60%	42.90%
Expected volatility, high end of range			61.50%
Risk-free interest rate, low end of range		3.30%	0.10%
Risk-free interest rate, high end of range			1.40%
Dividend rate		0.00%	0.00%
ESPP
Valuation Assumptions
Expected term (in years)	6 months	6 months	6 months
Expected volatility, low end of range	45.80%	73.20%	46.40%
Expected volatility, high end of range	57.10%	97.30%	58.70%
Risk-free interest rate, low end of range	5.30%	1.50%	0.00%
Risk-free interest rate, high end of range	5.40%	4.50%	0.10%
Dividend rate	0.00%	0.00%	0.00%
Minimum \| Employee stock options
Valuation Assumptions
Fair value of common stock (in dollars per share)		$ 85.17	$ 268.55
Expected term (in years)		6 years 7 days	3 months 18 days
Minimum \| ESPP
Valuation Assumptions
Fair value of common stock (in dollars per share)	$ 47.36	$ 50.81	$ 297.20
Maximum \| Employee stock options
Valuation Assumptions
Fair value of common stock (in dollars per share)			$ 409.21
Expected term (in years)			6 years 4 months 20 days
Maximum \| ESPP
Valuation Assumptions
Fair value of common stock (in dollars per share)	$ 61.55	$ 99.68	$ 310.80

Long-Term Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt, net, consists of the following:


	As of December 31,
	2023		2022
	(In thousands)
2029 Senior Notes
Principal	$	500,000	$	500,000
Unamortized discount	(4,274)		(5,001)
Unamortized issuance costs	(962)		(1,126)
Net carrying amount	494,764		493,873
2031 Senior Notes
Principal	500,000		500,000
Unamortized discount	(4,744)		(5,299)
Unamortized issuance costs	(1,067)		(1,192)
Net carrying amount	494,189		493,509
Total long-term debt, net	$	988,953	$	987,382

2029 and 2031 Senior Notes

In March 2021, the Company issued $1.0 billion aggregate principal amount of senior notes, consisting of $500.0 million principal amount of 3.625% notes due 2029 (the “2029 Notes”) and $500.0 million principal amount of 3.875% notes due 2031 (the “2031 Notes” and together with the 2029 Notes, the “Notes”). Initially, none of the Company’s subsidiaries guaranteed the Notes. However, under certain circumstances in the future the Notes can be guaranteed by each of the Company’s material domestic subsidiaries. The 2029 Notes and 2031 Notes will mature on March 15, 2029 and March 15, 2031, respectively. Interest payments are payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2021.

The aggregate net proceeds from offering of the Notes were approximately $984.7 million after deducting underwriting discounts and issuance costs paid by the Company.

The Company may voluntarily redeem the 2029 Notes, in whole or in part, under the following circumstances:

(1)at any time prior to March 15, 2024 with the net cash proceeds received by the Company from an equity offering at a redemption price equal to 103.625% of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40% of the original aggregate principal amount of the 2029 Notes. Such redemption shall occur within 180 days after the closing of an equity offering and at least 50% of the then-outstanding aggregate principal amount of the 2029 Notes shall remain outstanding, unless all 2029 Notes are redeemed concurrently;

(2)at any time prior to March 15, 2024 at 100% of the principal amount, plus a “make-whole” premium;

(3)at any time on or after March 15, 2024 at a prepayment price equal to 101.813% of the principal amount;

(4)at any time on or after March 15, 2025 at a prepayment price equal to 100.906% of the principal amount; and

(5)at any time on or after March 15, 2026 at a prepayment price equal to 100.000% of the principal amount;

in each case, the redemption will include the accrued and unpaid interest, as applicable.

The Company may voluntarily redeem the 2031 Notes, in whole or in part, under the following circumstances:

(1)at any time prior to March 15, 2024 with the net cash proceeds received by the Company from an equity offering at a redemption price equal to 103.875% of the principal amount, provided the aggregate principal amount of all such redemptions does not to exceed 40% of the original aggregate principal amount of the 2031 Notes. Such redemption shall occur within 180 days after the closing of an equity offering and at least 50% of the then-outstanding aggregate principal amount of the 2031 Notes shall remain outstanding, unless all 2031 Notes are redeemed concurrently;

(2)at any time prior to March 15, 2026 at 100% of the principal amount, plus a “make-whole” premium;

(3)at any time on or after March 15, 2026 at a prepayment price equal to 101.938% of the principal amount;

(4)at any time on or after March 15, 2027 at a prepayment price equal to 101.292% of the principal amount;

(5)at any time on or after March 15, 2028 at a prepayment price equal to 100.646% of the principal amount; and

(6)at any time on or after March 15, 2029 at a prepayment price equal to 100.000% of the principal amount;

in each case, the redemption will include accrued and unpaid interest, as applicable.

The Notes are general unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes that the Company may incur in the future and equal in right of payment with the Company’s existing and future unsecured and unsubordinated liabilities.

In certain circumstances involving a change of control event, the Company will be required to make an offer to repurchase the Notes of the applicable series at a repurchase price equal to 101% of the principal amount of the Notes of such series to be repurchased, plus accrued and unpaid interest, if any, to the applicable repurchase date.

The indenture governing the Notes (the “Indenture”) contains restrictive covenants limiting the Company’s ability and the ability of its subsidiaries to: (i) create liens on certain assets to secure debt; (ii) grant a subsidiary guarantee of certain debt without also providing a guarantee of the Notes; and (iii) consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the Notes are rated investment grade by either Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services.

As of December 31, 2023, the Company was in compliance with all of its covenants under the Indenture.

Stockholders' Equity - Public Equity Offerings (Details) - Common Stock Class A $ / shares in Units, $ in Billions	1 Months Ended
	Feb. 28, 2021 USD ($) $ / shares shares
Class of Stock [Line Items]
Shares sold in offering (in shares) \| shares	4,312,500
Offering price per share (in dollars per share) \| $ / shares	$ 409.60
Aggregate proceeds from stock offering \| $	$ 1.8

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

+ Details

Right-of-Use Assets and Lease Liabilities - Supplemental Cash Flows and Other Information related to Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating cash flows paid for amounts included in operating lease liabilities (in thousands)	$ 65,494	$ 64,473
Weighted average remaining lease term (in years)	4 years 1 month 6 days	4 years 9 months 18 days
Weighted average discount rate	4.50%	4.50%

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net [Abstract]
Cost	$ 836,239	$ 1,435,511
Accumulated Amortization	(490,964)	(590,791)
Total	345,275	844,720
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Cost	841,454	1,440,726
Accumulated Amortization	(490,964)	(590,791)
Total	350,490	849,935
Telecommunication licenses
Indefinite-Lived Intangible Assets [Line Items]
Non-amortizable intangible assets:	4,920	4,920
Trademarks and other
Indefinite-Lived Intangible Assets [Line Items]
Non-amortizable intangible assets:	295	295
Developed technology
Finite-Lived Intangible Assets, Net [Abstract]
Cost	397,473	795,753
Accumulated Amortization	(259,635)	(335,893)
Decrease in accumulated amortization	(171,800)
Decrease in cost basis	(381,100)
Total	137,838	459,860
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(259,635)	(335,893)
Decrease in cost basis	381,100
Decrease in accumulated amortization	171,800
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Cost	349,074	538,466
Accumulated Amortization	(170,511)	(204,241)
Decrease in accumulated amortization	(97,600)
Decrease in cost basis	(174,000)
Total	178,563	334,225
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(170,511)	(204,241)
Decrease in cost basis	174,000
Decrease in accumulated amortization	97,600
Supplier relationships
Finite-Lived Intangible Assets, Net [Abstract]
Cost	49,756	56,922
Accumulated Amortization	(26,316)	(19,846)
Total	23,440	37,076
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(26,316)	(19,846)
Trade names
Finite-Lived Intangible Assets, Net [Abstract]
Cost	25,968	30,342
Accumulated Amortization	(23,600)	(20,106)
Total	2,368	10,236
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(23,600)	(20,106)
Order backlog
Finite-Lived Intangible Assets, Net [Abstract]
Cost	10,000	10,000
Accumulated Amortization	(10,000)	(10,000)
Total	0	0
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(10,000)	(10,000)
Patent
Finite-Lived Intangible Assets, Net [Abstract]
Cost	3,968	4,028
Accumulated Amortization	(902)	(705)
Total	3,066	3,323
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ (902)	$ (705)

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill balance

The following table presents the goodwill allocated to the Company’s reportable segments as of December 31, 2023 and 2022, and the changes during the period:


	Twilio Communications		Twilio Segment		Total
	(In thousands)
Balance as of December 31, 2021	$	—	$	—	$	5,263,166
Goodwill additions related to 2021 acquisitions	—		—		25,748
Measurement period and other adjustments	—		—		(4,761)
Balance as of December 31, 2022	$	—	$	—	$	5,284,153
Foreign currency adjustments					26
Reallocation to segments in the second quarter of 2023(1)	$	4,321,130	$	963,049	$	—
Foreign currency adjustments	251		—		251
Goodwill divested(2)	(41,164)		—		(41,164)
Reallocation to segments in the fourth quarter of 2023(1)	656,964		(656,964)		—
Balance as of December 31, 2023	$	4,937,181	$	306,085	$	5,243,266
____________________________________
(1) Represents reallocation of goodwill as a result of the reorganization activities, as described in Note 8.
(2) Represents goodwill related to the divestitures of the ValueFirst business and IoT asset group, as described in Note 5.

Schedule of intangible assets

Intangible assets consist of the following:


	As of December 31, 2023
	Cost		Accumulated Amortization		Net
Amortizable intangible assets:	(In thousands)
Developed technology*	$	397,473	$	(259,635)	$	137,838
Customer relationships**	349,074		(170,511)		178,563
Supplier relationships	49,756		(26,316)		23,440
Trade names	25,968		(23,600)		2,368
Order backlog	10,000		(10,000)		—
Patent	3,968		(902)		3,066
Total amortizable intangible assets	836,239		(490,964)		345,275
Non-amortizable intangible assets:
Telecommunication licenses	4,920		—		4,920
Trademarks and other	295		—		295
Total	$	841,454	$	(490,964)	$	350,490
____________________________________
* As a result of the impairment described in Note 6, the developed technology cost basis and the related accumulated amortization decreased by $381.1 million and $171.8 million, respectively.
** As a result of the impairment described in Note 6, the customer relationship cost basis and the related accumulated amortization decreased by $174.0 million and $97.6 million, respectively.


	As of December 31, 2022
	Cost		Accumulated Amortization		Net
Amortizable intangible assets:	(In thousands)
Developed technology	$	795,753	$	(335,893)	$	459,860
Customer relationships	538,466		(204,241)		334,225
Supplier relationships	56,922		(19,846)		37,076
Trade names	30,342		(20,106)		10,236
Order backlog	10,000		(10,000)		—
Patent	4,028		(705)		3,323
Total amortizable intangible assets	1,435,511		(590,791)		844,720
Non-amortizable intangible assets:
Telecommunication licenses	4,920		—		4,920
Trademarks and other	295		—		295
Total	$	1,440,726	$	(590,791)	$	849,935

Schedule of total estimated future amortization expense

Total estimated future amortization expense is as follows:


	As of December 31, 2023
Year Ended December 31,	(In thousands)
2024	$	112,042
2025	107,862
2026	42,149
2027	25,330
2028	19,055
Thereafter	38,837
Total	$	345,275

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
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-Name Accounting Standards Codification
-Section 55
-Paragraph 24
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-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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-Subparagraph (g)
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(a)Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

(b)Principles of Consolidation

The consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

(c)Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair values of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation.

(d)Concentration of Credit Risk

Financial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities and accounts receivable. The Company maintains cash, restricted cash, cash equivalents and marketable securities with financial institutions. Certain balances held by such financial institutions exceed insured limits.

The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customer deteriorate substantially, the Company’s operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of new customers and periodic re-evaluations, as needed, of existing customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. During the years ended December 31, 2023, 2022 and 2021, no customer organization accounted for more than 10% of the Company’s total revenue.

As of December 31, 2023 and 2022, no customer organization represented more than 10% of the Company’s gross accounts receivable.

(e)Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for credits and any taxes collected from customers, which are subsequently remitted to governmental authorities.

The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and,

•Recognition of revenue when, or as, the Company satisfies a performance obligation.

Nature of Products and Services

The Company recognizes revenue from its products on either a usage basis or a subscription basis, depending on the nature of the product and the type of customer contract. The Company’s reportable segments may contain products that follow either revenue recognition model.

The majority of the revenue in the Communications segment is derived from usage‑based fees. These fees are earned when customers access the Company’s cloud-based platform and start using the Company’s products. Platform access is considered a monthly series comprised of one performance obligation and usage-based fees are recognized as revenue in the period in which the usage occurs. Some examples of the usage-based products are Messaging and Voice. For the Messaging products, the fees relate to the number of text messages sent or received. For the Voice products, the fees primarily relate to minutes of call duration. In the years ended December 31, 2023, 2022 and 2021, the revenue from usage-based fees represented 71%, 73% and 72% of total revenue, respectively.

Subscription-based fees are derived from various products in both the Communications and Segment segments. Subscription-based products include products such as Segment, Engage, Flex, Email and others. Subscription-based contracts revenue is recognized on a ratable basis over the contractual term which is generally between one to three years. In the years ended December 31, 2023, 2022 and 2021, the revenue from non-usage-based fees represented 29%, 27%, and 28% of total revenue, respectively. When usage-based products are embedded into subscription-based products, the Company charges for each product separately and records the respective revenue into the reportable segment in which each product resides.

No significant judgments are required in determining whether products and services are considered distinct performance obligations and should be accounted for separately versus together, or to determine the stand-alone selling price.

The Company's arrangements do not contain general rights of return. However, credits may be issued on a case-by-case basis. The contracts do not provide customers with the right to take possession of the software supporting the applications. Amounts that have been invoiced are recorded in accounts receivable and in revenue or deferred revenue depending on whether the revenue recognition criteria have been met.

The Company defines U.S. revenue as revenue from customers with IP addresses or mailing addresses at the time of registration in the United States. The Company defines international revenue as revenue from customers with IP addresses or mailing addresses at the time of registration outside of the United States.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents unearned revenue and amounts that were and will be invoiced and recognized as revenue in future periods for non-cancelable subscription arrangements with terms greater than one year. The Company applies the optional exemption of not disclosing the transaction price allocated to the remaining performance obligations for its usage-based contracts and contracts with original duration of less than one year. Revenue allocated to remaining performance obligations for contracts with durations of greater than one year was $144.0 million as of December 31, 2023, of which 67% is expected to be recognized over the next 12 months and 93% is expected to be recognized over the next 24 months.

(f)Deferred Revenue and Customer Deposits

Deferred revenue is recorded when a non-cancellable contractual right to bill exists or when cash payments are received in advance of future usage on non-cancelable contracts. Customer refundable prepayments are recorded as customer deposits. As of December 31, 2023 and 2022, the Company recorded $144.5 million and $139.1 million as its deferred revenue and customer deposits, respectively, that are included in deferred revenue and customer deposits in the accompanying consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $120.5 million, $124.9 million and $70.1 million of revenue, respectively, that was included in the deferred revenue and customer deposits balance as of the end of the previous year.

(g)Deferred Sales Commissions

The Company records an asset for the incremental costs of obtaining a contract with a customer, for example, sales commissions that are earned upon execution of contracts. The Company uses the portfolio of data method to determine the estimated period of benefit of capitalized commissions which is generally determined to be up to five years. Amortization expense related to these capitalized costs related to initial contracts, upsells and renewals, is recognized on a straight line basis over the estimated period of benefit of the capitalized commissions. The Company applies the optional exemption of expensing these costs as incurred with amortization periods of one year or less.

Total net capitalized commission costs as of December 31, 2023 and 2022, were $200.1 million and $239.1 million, respectively, and are included in prepaid expenses and other current assets and other long‑term assets in the accompanying consolidated balance sheets. Amortization of these assets was $72.9 million, $57.9 million and $31.5 million in the years ended December 31, 2023, 2022 and 2021, respectively, and is included in sales and marketing expense in the accompanying consolidated statements of operations.

(h)Cost of Revenue

Cost of revenue consists primarily of fees paid to network service providers. Cost of revenue also includes cloud infrastructure fees, direct costs of personnel, such as salaries and stock‑based compensation for our customer support employees, and other non‑personnel costs, such as depreciation and amortization expense related to data centers and hosting equipment, amortization of capitalized internal-use software development costs and acquired intangible assets. Costs of revenue are generally directly attributable to each segment. Certain costs of revenue are allocated to segments based on methodologies that best reflect the patterns of consumptions of these costs.

(i)Research and Development Expense

Research and development expenses consist primarily of personnel costs, outsourced engineering services, cloud infrastructure fees for staging and development of the Company’s products, depreciation, amortization of capitalized internal-use software development costs and an allocation of general overhead expenses. The Company capitalizes the portion of its software development costs that meets the criteria for capitalization. Research and development expenses are generally directly attributable to each segment. Certain research and development expenses are allocated to segments based on methodologies that best reflect the patterns of consumptions of these costs. Certain research and development costs are not allocated to segments because they support company-wide processes and are managed on a company-wide level.

(j)Internal-Use Software Development Costs

Certain costs of platform and other software applications developed for internal use are capitalized. The Company capitalizes qualifying internal-use software development costs that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred for maintenance, minor upgrades and enhancements are expensed. Costs related to preliminary project activities and post-implementation operating activities are also expensed as incurred.

Capitalized costs of platform and other software applications are included in property and equipment. These costs are amortized over the estimated useful life of the software on a straight-line basis over three years. Management evaluates the useful life of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The amortization of costs related to the platform applications is included in cost of revenue, while the amortization of costs related to software applications developed for internal use is included in operating expenses.

(k)Advertising Costs

Advertising costs are expensed as incurred and were $71.1 million, $92.6 million and $78.8 million in the years ended December 31, 2023, 2022 and 2021, respectively. Advertising costs are included in sales and marketing expenses in the accompanying consolidated statements of operations.

(l)Restructuring Costs

The Company records restructuring expenses when management commits to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the plan are not likely and employees who are impacted have been notified of the pending involuntary termination.

(m)Stock-Based Compensation

All stock-based compensation to employees is measured on the grant date based on the fair value of the awards on the date of grant. These costs are recognized as an expense following straight-line attribution method over the requisite service period. The Company uses the Black-Scholes option pricing model to measure the fair value of its stock options and the purchase rights issued under the Company's 2016 Employee Stock Purchase Plan, as amended (the “ESPP”). The fair value of the restricted stock units is determined using the closing fair value of the Company's Class A common stock on the date of grant and recognized as an expense following straight-line attribution method over the requisite service period. Forfeitures are recorded in the period in which they occur.

The Black-Scholes option pricing model requires the use of complex assumptions, which determine the fair value of stock options and the purchase rights issued under the ESPP. If any of the assumptions used in the Black-Scholes model change, stock-based compensation for future options may differ materially compared to that associated with previous grants. These assumptions include:

•Fair value of the common stock. The Company uses the market closing price of its Class A common stock, as reported on the New York Stock Exchange, for the fair value.

•Expected term. The expected term represents the period that the stock option or the purchase right is expected to be outstanding. The Company uses the simplified calculation of expected term, which reflects the weighted-average time-to-vest and the contractual life of the stock option or the purchase right;

•Expected volatility. Prior to July 2021, the expected volatility was derived from an average of the historical volatilities of the Class A common stock of the Company and several other entities with characteristics similar to those of the Company, such as the size and operational and economic similarities to the Company's principal business operations. Beginning in July 2021, the expected volatility was derived from the average of the historical volatilities of the Class A common stock of the Company.

•Risk -free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock-based awards; and

•Expected dividend. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock.

(n)Income Taxes

The Company accounts for income taxes in accordance with authoritative guidance which requires the use of the asset and liability approach. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carry-forwards. Deferred tax amounts are determined by using the enacted tax rates expected to be in effect when the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized.

The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

The Company records interest and penalties related to uncertain tax positions in the provision for income taxes in the consolidated statements of operations.

(o)Foreign Currency

The functional currency of the Company's foreign subsidiaries is primarily the U.S. dollar. Accordingly, the subsidiaries remeasure monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenue and expense accounts are remeasured at the average exchange rate in effect during the month in which the transactions occur. Remeasurement adjustments are recognized in the consolidated statements of operations as other income (expense), net, in the year of occurrence. Foreign currency transaction gains and losses are included in other income (expenses), net, in the accompanying consolidated statements of operations.

For those entities where the functional currency is a foreign currency, adjustments resulting from translating the financial statements into U.S. dollars are recorded as a component of accumulated other comprehensive income (loss) as part of the total stockholders' equity. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the weighted average exchange rates in effect during the month in which the transactions occur. Equity transactions are translated using historical exchange rates.

(p)Comprehensive Income (Loss)

Comprehensive income (loss) refers to net loss and other revenue, expenses, gains and losses that, under U.S. GAAP, are recorded as an element of stockholders' equity but are excluded from the calculation of net loss.

(q)Net Loss Per Share Attributable to Common Stockholders

The Company calculates its basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company has 100,000,000 shares of preferred stock that was authorized but never issued or outstanding.

Class A common stock was the only outstanding class of equity securities of the Company as of December 31, 2023. Each share of Class A common stock is entitled to one vote per share.

Prior to June 28, 2023, the Company also had outstanding equity securities of Class B common stock. On June 28, 2023, each outstanding share of the Company’s Class B common stock automatically converted (the “Conversion”) into one share of the Company’s Class A common stock pursuant to the terms of the Company’s certificate of incorporation. In addition, upon the Conversion, all outstanding stock options that were exercisable for shares of Class B common stock prior to the Conversion became exercisable for shares of Class A common stock. The Company filed a Certificate of Retirement with the Secretary of State of the State of Delaware effecting the retirement of all of the shares of its Class B common stock that were issued but not outstanding following the Conversion.

The Company also has dilutive securities, such as potential or restricted common shares or common stock equivalents, that were excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect was antidilutive in all periods presented. These securities are presented in Note 20 to these consolidated financial statements.

(r)Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents may consist of cash deposited into money market funds, reverse repurchase agreements and commercial paper. All credit and debit card transactions that process as of the last day of each month and settle within the first few days of the subsequent month are also classified as cash and cash equivalents as of the end of the month in which they were processed.

(s)Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded net of the allowance for doubtful accounts. The allowance for doubtful accounts is estimated based on the Company's assessment of its ability to collect on customer accounts receivable. The Company regularly reviews the allowance by considering certain factors such as historical experience, credit quality, age of accounts receivable balances and other known conditions that may affect a customer's ability to pay. In cases where the Company is aware of circumstances that may impair a specific customer's ability to meet their financial obligations, a specific allowance is recorded against amounts due from the customer which reduces the net recognized receivable to the amount the Company reasonably believes will be collected. The Company writes-off accounts receivable against the allowance when a determination is made that the balance is uncollectible and collection of the receivable is no longer being actively pursued. As of December 31, 2023 and 2022, the allowance for doubtful accounts was $42.0 million and $27.0 million, respectively, and is recorded in accounts receivable, net, in the accompanying consolidated balance sheets.

(t)Costs Related to Public Offerings

Costs related to public offerings, which consist of direct incremental legal, printing and accounting fees are deferred until the offering is completed. Upon completion of the offering, these costs are offset against the offering proceeds within the consolidated statements of stockholders' equity.

(u)Property and Equipment

Property and equipment, both owned and under finance leases, is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset. Maintenance and repairs are expensed as incurred.

The useful lives of property and equipment are as follows:


Capitalized internal-use software development costs						3 years
Data center equipment						2 - 4 years
Leasehold improvements						Shorter of 5 years or the remaining lease term
Office equipment						3 years
Furniture and fixtures						5 years
Software						3 years
Assets under financing lease						Shorter of 5 years or the remaining lease term

(v)Leases

The Company determines if an arrangement is or contains a lease at contract inception. The Company presents the operating leases in long-term assets and current and long-term liabilities. Finance lease assets are included in property and equipment, net, and finance lease liabilities are presented in current and long-term liabilities in the accompanying consolidated balance sheets.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are measured and recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. As the Company’s leases do not generally provide an implicit rate, the Company uses its incremental borrowing rate based on the information available on the commencement date to determine the present value of lease payments. The Company’s lease agreements may have lease and non-lease components, which the Company accounts for as a single lease component. When estimating the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain such options will be exercised. Operating lease costs are recognized in operating expenses in the accompanying consolidated statements of operations on a straight-line basis over the lease term and variable payments are recognized in the period they are incurred. The Company’s lease agreements do not contain any residual value guarantees. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

Within the consolidated statements of cash flows, the Company presents the lease payments made on the operating leases as cash flows from operations and principal payments made on the finance leases as part of financing activities.

(w)Equity Method Investments

Equity investment holdings in which the Company does not have a controlling financial interest but can exercise significant influence over the investee are accounted for under the equity method. Equity method investments are originally recorded at cost and are increased or reduced in subsequent periods to reflect the Company’s proportionate share of the investee’s net earnings or losses and other comprehensive income or losses, as those occur. The Company records the investee losses on a three-month lag and up to the carrying amount of the investment. Investments are also increased or decreased by contributions made to and distributions received from the investee, basis difference amortization and other-than-temporary impairments, if any. All costs directly associated with the acquisition of the investment are included in the carrying amount of the investment. Profits or losses related to intra-entity sales are eliminated until realized by the Company or the investee.

The Company determines the difference between its purchase price and its proportionate share of the net assets of the investee, which results in an excess basis in the investment. This excess basis is allocated to the identifiable assets and liabilities of the investee utilizing purchase accounting principles and is used to calculate the amortization of basis differences every reporting period. Basis differences related to intangible assets with determinable economic lives and liabilities are generally amortized on a straight-line basis over the useful lives of the associated assets and the expected term for the liabilities. Basis differences related to intangible assets without determinable economic lives are not amortized.

Equity method goodwill is not amortized or tested for impairment. Instead, the Company evaluates its equity method investments for impairment whenever events or changes in circumstance indicate that the carrying amounts of such investments may be in excess of their fair value. When such indicators exist, the other-than-temporary impairment model is utilized, which considers the severity and duration of a decline in fair value below book value and the Company’s ability and intent to hold the investment for a sufficient period of time to allow for recovery. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in the period of such determination.

(x)Segment Information

The Company determines its operating and reportable segments in accordance with Accounting Standards Codification 280 Segment Reporting (“ASC 280”), which requires financial information to be reported based on how the chief operating decision maker (“CODM”), who is the Company's Chief Executive Officer (“CEO”), reviews and manages the business, and establishes criteria for aggregating operating segments into reportable segments. Prior to 2023, the Company had one operating and reportable segment. As a result of the restructuring activities in 2023, as described in Note 8, the Company operated in and reported its results in two reportable segments.

(y)Business Combinations

The Company records identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the consideration transferred over the fair value of the net assets acquired on the acquisition date. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed, these estimates are inherently uncertain and subject to refinement. The authoritative guidance allows a measurement period of up to one year from the date of acquisition to make adjustments to the preliminary allocation of the purchase price. As a result, during the measurement period the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations.

(z)Goodwill

Goodwill represents the excess of the aggregate purchase price over the fair value of net identifiable assets acquired in a business combination. Goodwill is not amortized and is tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Goodwill is allocated within the operating segments of the Company to the reporting units. Prior to 2023, the Company had one reporting unit. During 2023, as a result of restructuring activities described in Note 8, the Company then had multiple reporting units. The Company reassigns its assets and liabilities to the reporting units based on which reporting units’ operations the assets and liabilities were employed in or were related to. Goodwill is reassigned using a relative fair value allocation approach.

The Company has selected November 30 as the date to perform its annual goodwill impairment test. The goodwill impairment test is performed on a reporting unit level. In the valuation of goodwill, management must make assumptions regarding estimated future cash flows to be derived from the respective reporting unit. If these estimates or their related assumptions change in the future, the Company may be required to record an impairment of goodwill. The Company has the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. However, the Company may elect to bypass the qualitative assessment and proceed directly to the quantitative impairment tests. The impairment test involves comparing the fair value of the reporting unit to its carrying value, including goodwill. A goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value. The impairment is limited to the carrying amount of goodwill.

(aa)Intangible Assets

Intangible assets recorded by the Company include the fair values of identifiable intangible assets acquired in business combinations and costs directly associated with securing legal registration of patents and trademarks and acquiring domain names.

Intangible assets with determinable economic lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful life of each asset on a straight-line basis. The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors the Company considers when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset and other economic factors, including competition and specific market conditions. Intangible assets without determinable economic lives are carried at cost, not amortized and reviewed for impairment at least annually.

The useful lives of the intangible assets are as follows:


Developed technology						3 - 7 years
Customer relationships						4 - 10 years
Supplier relationships						5 years
Trade names						5 years

Patents						20 years
Telecommunication licenses						Indefinite
Trademarks						Indefinite
Domain names						Indefinite

(ab)Impairment of Long-Lived Assets

The Company evaluates its long-lived assets, including property, equipment and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If such evaluation indicates that the carrying amount of the asset or the asset group is not recoverable, any impairment loss would be equal to the amount the carrying value exceeds the fair value. The impairment is allocated to the long-lived assets within the asset group on a pro-rata basis using the relative carrying amounts of the assets. Values of individual long-lived assets are not reduced in excess of their respective fair values.

In the valuation of an asset or an asset group, management must make assumptions regarding estimated future revenue and cash flows to be derived from the respective asset or asset group, discount rates used and other assumptions. If these estimates or their related assumptions change in the future, the Company may be required to record impairment of these assets.

(ac)Derivatives and Hedging

The Company is exposed to a wide variety of risks arising from its business operations and overall economic conditions. These risks include exposure to fluctuations in various foreign currencies against its functional currency and can impact the value of cash receipts and payments. The Company minimizes its exposure to these risks through management of its core business activities, specifically, the amounts, sources and duration of its assets and liabilities, and the use of derivative financial instruments. The Company uses foreign currency derivative forward contracts, and in the future may also use foreign currency option contacts.

Foreign currency derivative forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date. These agreements are typically cash settled in U.S. dollars for their fair value at or close to their settlement date. Foreign currency option contracts will require the Company to pay a premium for the right to sell a specified amount of foreign currency prior to the maturity date of the option. The Company does not enter into derivative financial instruments trading for speculative purposes.

Derivative instruments are carried at fair value and recorded as either an asset or a liability until they mature. Gains and losses resulting from changes in fair value of these instruments are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. For derivative instruments designated as cash flow hedges, gains or losses are initially recorded in accumulated other comprehensive income (loss) on the balance sheet, then reclassified into the statement of operations in the period in which the derivative instruments mature. These realized gains and losses are recorded within the same financial statement line item as the hedged transaction.

The Company’s foreign currency derivative contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates.

(ad)Share Repurchases

The Company elected to record the excess of the repurchase price over the par value of the repurchased shares of its Class A common stock in accumulated deficit, along with the associated transaction costs and excise taxes. Immediately upon repurchase, the shares are retired and returned to the status of unauthorized and unissued.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax.

(ae)Fair Value of Financial Instruments

The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

•Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

•Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

•Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The Company applies fair value accounting for all financial instruments on a recurring basis. The Company's financial instruments, which include cash, restricted cash, cash equivalents, accounts receivable and accounts payable are recorded at their carrying amounts, which approximate their fair values due to their short-term nature. Marketable securities consist of U.S. treasury securities, non-U.S government securities, high credit quality corporate debt securities and commercial paper. All marketable securities are considered to be available-for-sale and recorded at their estimated fair values. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive loss. In valuing these items, the Company uses inputs and assumptions that market participants would use to determine their fair value, utilizing valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair values of the senior notes due 2029 and 2031 (“2029 Notes” and “2031 Notes,” respectively) are determined based on their respective closing prices on the last trading day of the reporting period and are classified as Level 2 in the fair value hierarchy.

The carrying value of the strategic investments, which consist of restricted equity securities of a publicly held company and equity securities of privately held companies, is determined under the measurement alternative on a non-recurring basis adjusting for observable changes in fair value. The Company does not have a controlling interest nor it can exercise significant influence over any of these entities.

The Company regularly reviews changes to the rating of its debt securities by rating agencies and monitors the surrounding economic conditions to assess the risk of expected credit losses. As of December 31, 2023, the risk of expected credit losses was not significant.

Impairments are considered to be other than temporary if they are related to deterioration in credit risk or if it is likely that the security will be sold before the recovery of its cost basis. Realized gains and losses and declines in value deemed to be other than temporary are determined based on the specific identification method and are reported in other expenses, net.

(af)Recently Issued Accounting Guidance, Not yet Adopted

In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2022-03, “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which clarifies and amends the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. ASU 2022-03 is effective for interim and annual periods beginning after December 15, 2023, with early adoption permitted. The Company will adopt ASU 2022-03 in the first quarter of 2024 with no material impact to the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosures. The ASU expands segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. It also requires disclosure of the amount and description of the composition of other segment items and interim disclosures of a reportable segment's profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with retrospective application required. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 and may be applied on a prospective basis. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of domestic and foreign components of loss before income taxes

The following table presents domestic and foreign components of loss before income taxes for the periods presented:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
United States	$	(816,089)	$	(1,021,208)	$	(737,360)
International	(180,640)		(222,424)		(223,569)
Loss before (provision for) benefit from income taxes	$	(996,729)	$	(1,243,632)	$	(960,929)

Schedule of provision for (benefit from) income taxes

Provision for (benefit from) income taxes consists of the following:


	Year Ended December 31,
	2023		2022		2021
Current:	(In thousands)
Federal	$	2,567	$	3,928	$	122
State	1,533		4,100		420
Foreign	31,354		17,450		8,274
Total	35,454		25,478		8,816
Deferred:
Federal	(1,337)		(5,155)		(13,772)
State	(208)		(818)		(4,083)
Foreign	(15,197)		(6,992)		(1,990)
Total	(16,742)		(12,965)		(19,845)
Provision for (benefit from) income taxes	$	18,712	$	12,513	$	(11,029)

Schedule of reconciliation of statutory federal tax rate and effective tax rate

The following table presents a reconciliation of the statutory federal tax rate and the Company's effective tax rate:


	Year Ended December 31,
	2023		2022		2021
Tax at federal statutory rate	21	%	21	%	21	%
State tax, net of federal benefit	3		3		8
Stock-based compensation	(7)		(7)		16
Credits	2		1		4
Foreign rate differential	1		(2)		(1)

Change in valuation allowance	(23)		(17)		(46)

Other	1		(1)		—
Effective tax rate	(2)	%	(2)	%	2	%

Schedule of deferred tax assets and liabilities

The following table presents the significant components of the Company's deferred tax assets and liabilities:


	As of December 31,
	2023		2022
Deferred tax assets:	(In thousands)
Net operating loss carryforwards	$	983,652	$	959,864
Accruals and reserves	52,750		47,986
Stock-based compensation	29,572		37,981
Research and development credits	177,109		159,604




Intangibles	135,564		135,500
Capitalized research and development expenses	231,819		219,176
Lease liability	44,682		60,795
Unrealized losses on marketable securities	—		32,108
Investments and other basis differences	51,368		11,952
Other	31,852		24,878
Gross deferred tax assets	1,738,368		1,689,844
Valuation allowance	(1,533,933)		(1,357,300)
Net deferred tax assets	204,435		332,544
Deferred tax liabilities:
Capitalized software	(36,109)		(36,552)
Prepaid expenses	(1,073)		(1,587)
Acquired intangibles	(81,415)		(202,778)


Right-of-use asset	(19,964)		(35,734)
Deferred commissions	(50,703)		(59,675)

Net deferred tax asset (liability)	$	15,171	$	(3,782)

Schedule of operating loss carryforwards

The following table summarizes the Company’s tax carryforwards, carryovers and credits:


	As of December 31, 2023		Expiration Date (If not utilized)
	(In thousands)

Federal tax credits	$	147,500	Various dates beginning in 2037
Federal net operating loss carryforwards	$	3,444,800	Indefinite
State net operating loss carryforwards	$	2,640,300	Various dates beginning in 2026
State tax credits	$	120,300	Indefinite
Foreign net operating loss carryforwards	$	1,011,800	Indefinite

Schedule of tax credit carryforwards

The following table summarizes the Company’s tax carryforwards, carryovers and credits:


	As of December 31, 2023		Expiration Date (If not utilized)
	(In thousands)

Federal tax credits	$	147,500	Various dates beginning in 2037
Federal net operating loss carryforwards	$	3,444,800	Indefinite
State net operating loss carryforwards	$	2,640,300	Various dates beginning in 2026
State tax credits	$	120,300	Indefinite
Foreign net operating loss carryforwards	$	1,011,800	Indefinite

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Unrecognized tax benefit, beginning of year	$	228,966	$	223,380	$	191,183
Gross increases for tax positions of prior years	3,427		3,250		3,496
Gross decreases for tax positions of prior years	(5,130)		(705)		(10,693)
Gross increases for tax positions of current year	7,754		4,081		39,394
Lapse of statute of limitations	(1,239)		(1,040)		—
Unrecognized tax benefit, end of year	$	233,778	$	228,966	$	223,380

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of property and equipment

The useful lives of property and equipment are as follows:


Capitalized internal-use software development costs						3 years
Data center equipment						2 - 4 years
Leasehold improvements						Shorter of 5 years or the remaining lease term
Office equipment						3 years
Furniture and fixtures						5 years
Software						3 years
Assets under financing lease						Shorter of 5 years or the remaining lease term

Property and equipment consist of the following:


	As of December 31,
	2023		2022
	(In thousands)
Capitalized internal-use software developments costs	$	297,655	$	257,983
Data center equipment (1)	104,543		100,207
Leasehold improvements	92,315		91,660
Office equipment	60,905		70,815
Furniture and fixtures	14,558		14,935
Software	14,639		14,675
Total property and equipment	584,615		550,275
Less: accumulated depreciation and amortization (1)	(374,976)		(286,296)
Total property and equipment, net	$	209,639	$	263,979

____________________________________

Schedule of useful lives of intangible assets

The useful lives of the intangible assets are as follows:


Developed technology						3 - 7 years
Customer relationships						4 - 10 years
Supplier relationships						5 years
Trade names						5 years

Patents						20 years
Telecommunication licenses						Indefinite
Trademarks						Indefinite
Domain names						Indefinite

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 89.9	$ 71.7	$ 59.6
Capitalized internal use software development costs	$ 57.2	$ 65.4	$ 63.1

Commitment and Contingencies - Future Minimum Payments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 254,547
2025	241,056
2026	231,803
Total payments	$ 727,406

Equity Method Investment

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Equity Method Investment

In May 2022, the Company acquired 44.6% equity interests in Syniverse Corporation (“Syniverse”) for $750.0 million in cash. The Company determined that it does not have a controlling financial interest in Syniverse but does exercise significant influence and therefore, the investment was accounted for under the equity method. The Company estimated that on the investment closing date there was an excess investment basis of $530.7 million related to its proportionate share of the identifiable intangible assets and $41.3 million related to the associated deferred tax liability. The equity method goodwill was estimated at $623.8 million.

The Company engaged a third‑party expert to assist with the valuation analysis. The following table presents the estimated basis differences attributable to the identifiable intangible assets as of the date of investment and their respective useful lives:


	Total		Estimated life
	(In thousands)		(In years)
Developed technology	$	62,767	6
Customer relationships	439,152		9
Trademarks	28,822		Indefinite
Total basis difference attributable to the identifiable intangible assets	$	530,741

As of December 31, 2023, the Company held 44.0% equity interests in Syniverse and the carrying amount of its equity method investment recorded in the accompanying consolidated balance sheet was $593.6 million. As of December 31, 2023, the Company’s net excess investment basis was $451.6 million related to its proportionate share of the identifiable intangible assets of the investee, $41.2 million related to the associated deferred tax liability and $623.8 million related to the equity method goodwill.

As of December 31, 2022, the Company held 44.5% equity interests in Syniverse and the carrying amount of its equity method investment recorded in the accompanying consolidated balance sheet was $699.9 million. As of December 31, 2022, the Company’s net excess investment basis was $508.9 million related to its proportionate share of the identifiable intangible assets of the investee, $41.3 million related to the associated deferred tax liability and $623.8 million related to the equity method goodwill.

In the years ended December 31, 2023 and 2022, the Company recorded its proportionate share of the investee's net operating results and the amortization of the basis difference of $121.9 million and $35.3 million, respectively, as part of other expenses, net in the accompanying consolidated statements of operations. The Company also recorded $15.6 million of its proportionate share of the investee’s other comprehensive income for the year ended December 31, 2023 and $14.9 million of its proportionate share of the investee’s other comprehensive loss for the year ended December 31, 2022 in the accompanying

consolidated statements of other comprehensive income (loss). Results of operations and other comprehensive income (loss) were recorded on a 90-day lag.

In conjunction with this investment, the Company and Syniverse entered into a wholesale agreement, pursuant to which Syniverse will process, route and deliver application-to-person messages originating and/or terminating between the Company’s customers and mobile network operators. The values of the transactions that occurred between the Company and Syniverse were $143.7 million for the year ended December 31, 2023 and $89.6 million for the period from the investment closing date on May 13, 2022 through December 31, 2022. These transactions were recorded as cost of revenue in the accompanying consolidated statements of operations.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Principles of Consolidation

The consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated.

Use of Estimates

Concentration of Credit Risk

Revenue Recognition

The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and,

•Recognition of revenue when, or as, the Company satisfies a performance obligation.

Nature of Products and Services

Remaining Performance Obligations

Deferred Revenue and Customer Deposits and Deferred Sales Commissions

Deferred Revenue and Customer Deposits

(g)Deferred Sales Commissions

Cost of Revenue

Research and Development Expense

Internal-Use Software Development Costs

Advertising Costs

Restructuring Costs

Stock-Based Compensation

•Fair value of the common stock. The Company uses the market closing price of its Class A common stock, as reported on the New York Stock Exchange, for the fair value.

•Expected dividend. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock.

Income Taxes

The Company records interest and penalties related to uncertain tax positions in the provision for income taxes in the consolidated statements of operations.

Foreign Currency

Comprehensive Income (Loss)

Net Loss Per Share Attributable to Common Stockholders

Class A common stock was the only outstanding class of equity securities of the Company as of December 31, 2023. Each share of Class A common stock is entitled to one vote per share.

Cash and Cash Equivalents

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful AccountsAccounts receivable are recorded net of the allowance for doubtful accounts. The allowance for doubtful accounts is estimated based on the Company's assessment of its ability to collect on customer accounts receivable. The Company regularly reviews the allowance by considering certain factors such as historical experience, credit quality, age of accounts receivable balances and other known conditions that may affect a customer's ability to pay. In cases where the Company is aware of circumstances that may impair a specific customer's ability to meet their financial obligations, a specific allowance is recorded against amounts due from the customer which reduces the net recognized receivable to the amount the Company reasonably believes will be collected. The Company writes-off accounts receivable against the allowance when a determination is made that the balance is uncollectible and collection of the receivable is no longer being actively pursued.

Costs Related to Public Offerings

Costs Related to Public OfferingsCosts related to public offerings, which consist of direct incremental legal, printing and accounting fees are deferred until the offering is completed. Upon completion of the offering, these costs are offset against the offering proceeds within the consolidated statements of stockholders' equity.

Property and Equipment

The useful lives of property and equipment are as follows:


Capitalized internal-use software development costs						3 years
Data center equipment						2 - 4 years
Leasehold improvements						Shorter of 5 years or the remaining lease term
Office equipment						3 years
Furniture and fixtures						5 years
Software						3 years
Assets under financing lease						Shorter of 5 years or the remaining lease term

Leases

Equity Method Investments

Segment Information

Business Combinations

Goodwill

Intangible Assets

The useful lives of the intangible assets are as follows:


Developed technology						3 - 7 years
Customer relationships						4 - 10 years
Supplier relationships						5 years
Trade names						5 years

Patents						20 years
Telecommunication licenses						Indefinite
Trademarks						Indefinite
Domain names						Indefinite

Impairment of Long-Lived Assets

Derivatives and Hedging

Share Repurchases

Fair Value of Financial Instruments

•Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Recently Issued Accounting Guidance, Not yet Adopted