Twilio Inc. (TWLO) Bundle
A Brief History of Twilio Inc.
Twilio Inc. (NYSE: TWLO) has established itself as a leader in cloud communications and customer engagement solutions. Founded in 2008, the company has experienced significant growth and transformation over the years.
Financial Performance Overview
As of September 30, 2024, Twilio reported total revenue of $1.13 billion for the third quarter, compared to $1.03 billion for the same period in 2023, representing a year-over-year increase of 9.6%. For the nine months ended September 30, 2024, total revenue reached $3.26 billion, a 6% increase from $3.08 billion in 2023.
| Period | Revenue (in billions) | Net Loss (in millions) | Gross Profit (in millions) |
|---|---|---|---|
| Q3 2024 | $1.13 | $(9.7) | $578.6 |
| Q3 2023 | $1.03 | $(141.7) | $516.3 |
| 9M 2024 | $3.26 | $(96.9) | $1,678.5 |
| 9M 2023 | $3.08 | $(650.0) | $1,512.8 |
Stock Performance and Share Repurchase Programs
Twilio's stock has faced volatility over the years, reflecting broader market trends and company-specific developments. As of September 30, 2024, the company has authorized a total of $3.0 billion for share repurchase programs, with approximately $412.0 million remaining available for future repurchases. In the nine months ended September 30, 2024, Twilio repurchased 32.0 million shares for an aggregate price of $1.9 billion.
Key Financial Metrics
| Metric | Value |
|---|---|
| Cash and Cash Equivalents (as of Sept 30, 2024) | $584.0 million |
| Short-term Marketable Securities (as of Sept 30, 2024) | $2.1 billion |
| Accumulated Deficit (as of Sept 30, 2024) | $(7.1 billion) |
| Total Stockholders' Equity (as of Sept 30, 2024) | $8.23 billion |
Recent Developments
In January 2024, Twilio underwent a significant leadership change with the resignation of co-founder Jeff Lawson as CEO. Khozema Shipchandler succeeded him, aiming to steer the company towards its growth objectives amidst evolving market conditions. The company's focus remains on enhancing its product offerings, particularly through the integration of AI technology into its customer engagement platform.
Market Position and Future Outlook
Twilio continues to capitalize on the growing demand for cloud-based communication services. Its strategic investments in AI and customer engagement technologies are expected to drive future growth. The company reported a Dollar-Based Net Expansion Rate of 104% for Twilio Communications, indicating strong customer retention and growth among existing clients.
| Segment | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Twilio Communications | $3,039.6 | $2,857.8 | +6% |
| Twilio Segment | $223.6 | $220.2 | +1.5% |
As Twilio moves forward, its ability to adapt to market dynamics and enhance its technological capabilities will be critical in maintaining its competitive edge and achieving sustainable profitability.
A Who Owns Twilio Inc. (TWLO)
Shareholder Composition
As of September 30, 2024, Twilio Inc. had a total of 155,386,309 shares of Class A common stock issued and outstanding. The company has authorized 1,000,000,000 shares of Class A common stock and 3,170,181 shares of Class B common stock.
Major Shareholders
The ownership of Twilio Inc. is comprised of institutional investors, insiders, and retail investors. The following table summarizes the major shareholders:
| Shareholder Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | ~90,000,000 | ~58% |
| Insiders | ~20,000,000 | ~13% |
| Retail Investors | ~45,386,309 | ~29% |
Top Institutional Investors
As of the latest filings, the top institutional investors in Twilio Inc. include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | ~15,000,000 | ~9.65% |
| BlackRock, Inc. | ~14,500,000 | ~9.32% |
| Fidelity Investments | ~12,000,000 | ~7.73% |
| State Street Corporation | ~10,000,000 | ~6.45% |
Insider Ownership
Insider ownership includes shares held by executives and board members. Key insiders include:
| Insider | Position | Shares Owned |
|---|---|---|
| Jeff Lawson | CEO & Co-founder | ~5,000,000 |
| Elena Donio | President | ~3,000,000 |
| Other Executives | Various | ~12,000,000 |
Recent Stock Performance and Trends
As of September 30, 2024, Twilio's stock was trading at approximately $53.87, reflecting an increase of 15% year-to-date. The market capitalization of Twilio Inc. was around $8.36 billion.
Stock Repurchase Programs
In February 2023, Twilio announced a share repurchase program of up to $1.0 billion. In March 2024, a second program was authorized for an additional $2.0 billion. In the three months ended September 30, 2024, Twilio repurchased approximately 10.6 million shares for $633 million.
Conclusion on Ownership Dynamics
Twilio Inc. exhibits a diverse ownership structure characterized by significant institutional investment and active insider participation. This mix reflects confidence in the company's growth trajectory and strategic initiatives moving forward.
Twilio Inc. (TWLO) Mission Statement
Company Overview
Twilio Inc. focuses on enabling businesses to engage with their customers through various communication channels by providing a platform that allows developers to build, scale, and operate customer engagement solutions. The mission statement emphasizes the importance of customer engagement and the evolution of communication technologies.
Mission Statement
As of 2024, Twilio's mission is to “fuel the future of communications by providing a platform that makes it easy for developers to build and manage customer engagement solutions.” This mission reflects Twilio's commitment to innovation and enhancing customer experiences through technology.
Financial Performance
In the third quarter of 2024, Twilio reported a total revenue of $1.13 billion, an increase from $1.03 billion in the same period of 2023. The revenue breakdown is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Communications | $1,060,250 | $960,289 |
| Segment | $73,399 | $73,381 |
| Total | $1,133,649 | $1,033,670 |
Net Loss and Earnings
For the three months ended September 30, 2024, Twilio reported a net loss of $9.7 million, compared to a net loss of $141.7 million in the same quarter of 2023. The net loss per share attributable to common stockholders was $(0.06) for Q3 2024, improving from $(0.78) in Q3 2023.
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $583.5 million, a decrease from $625.2 million in the same quarter of 2023. Key components include:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Research and Development | $260,903 | $241,654 |
| Sales and Marketing | $212,576 | $262,898 |
| General and Administrative | $106,350 | $114,071 |
| Restructuring Costs | $3,694 | $3,437 |
| Total Operating Expenses | $583,523 | $625,222 |
Cash Flow and Liquidity
Twilio had cash and cash equivalents of $584 million and short-term marketable securities amounting to $2.1 billion as of September 30, 2024. The cash flow from investing activities was $1.2 billion, primarily from the maturities and sales of marketable securities.
Customer Engagement Strategy
Twilio's strategy is focused on enhancing customer engagement through its platform by leveraging predictive and generative AI technologies. The company aims to provide personalized and intelligent interactions between businesses and their customers, which is integral to achieving its mission.
Dollar-Based Net Expansion Rate
The Communications Dollar-Based Net Expansion Rate was reported at 104% for the nine months ended September 30, 2024, indicating strong growth in revenue from existing customers. This metric reflects Twilio's effectiveness in driving customer engagement and upselling its services.
Conclusion
The mission statement of Twilio Inc. as of 2024 highlights its determination to lead in customer engagement technologies, supported by strong financial performance and innovative strategies aimed at enhancing user experiences.
How Twilio Inc. (TWLO) Works
Business Overview
Twilio Inc. operates a customer engagement platform that combines communications APIs and software solutions to enhance interactions between businesses and their customers. The company segments its operations into two primary units: Communications and Segment. The Communications unit includes offerings such as messaging, voice, email, and marketing campaigns, while the Segment unit focuses on customer data management.
Financial Performance
As of the third quarter of 2024, Twilio reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $1,133,649,000 | $1,033,670,000 | +10% |
| Cost of Revenue | $555,020,000 | $517,351,000 | +7% |
| Gross Profit | $578,629,000 | $516,319,000 | +12% |
| Net Loss | ($9,726,000) | ($141,707,000) | Improvement |
| Weighted-Average Shares | 159,091,110 | 181,749,309 | -12.5% |
Revenue Breakdown
The revenue generated from Twilio's two business segments for Q3 2024 is as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change |
|---|---|---|---|
| Communications | $1,060,250,000 | $960,289,000 | +10% |
| Segment | $73,399,000 | $73,381,000 | — |
Operating Expenses
For the three months ended September 30, 2024, Twilio's operating expenses were as follows:
| Expense Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Research and Development | $260,903,000 | $241,654,000 | +8% |
| Sales and Marketing | $212,576,000 | $262,898,000 | -19% |
| General and Administrative | $106,350,000 | $114,071,000 | -7% |
| Total Operating Expenses | $583,523,000 | $625,222,000 | -7% |
Cash Flow Analysis
For the nine months ended September 30, 2024, Twilio's cash flows were as follows:
| Cash Flow Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Cash Provided by Operating Activities | $607,795,000 | $192,207,000 |
| Cash Provided by Investing Activities | $1,241,739,000 | $365,745,000 |
| Cash Used in Financing Activities | ($1,903,802,000) | ($536,221,000) |
Market Position and Strategy
Twilio focuses on driving growth through product innovation, leveraging AI technologies, and enhancing partnerships. The company aims to optimize operational efficiency and reduce costs through automation and modernization of business processes.
Key Metrics
As of September 30, 2024, Twilio reported the following key performance indicators:
| Metric | Value |
|---|---|
| Dollar-Based Net Expansion Rate (Communications) | 106% |
| Dollar-Based Net Expansion Rate (Segment) | 91% |
| Free Cash Flow Margin | 17% |
In summary, Twilio has demonstrated significant improvement in its financial performance and is strategically positioning itself for future growth by focusing on innovation and efficiency.
How Twilio Inc. (TWLO) Makes Money
Revenue Streams
Twilio generates revenue primarily through two business segments: Communications and Segment. The revenue breakdown for the three months ended September 30, 2024, is as follows:
| Segment | Revenue (in thousands) | Growth Rate |
|---|---|---|
| Twilio Communications | $1,060,250 | 10% |
| Twilio Segment | $73,399 | 0% |
| Total Revenue | $1,133,649 | 10% |
For the nine months ended September 30, 2024, the revenue figures are:
| Segment | Revenue (in thousands) | Growth Rate |
|---|---|---|
| Twilio Communications | $3,039,558 | 6% |
| Twilio Segment | $223,643 | 2% |
| Total Revenue | $3,263,201 | 6% |
Cost of Revenue and Gross Profit
The cost of revenue for Twilio for the three months ended September 30, 2024, was $555,020, leading to a gross profit of $578,629, representing a gross margin of approximately 51%.
| Period | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| Q3 2024 | $555,020 | $578,629 | 51% |
| Q3 2023 | $517,351 | $516,319 | 50% |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $583,523, with the following breakdown:
| Category | Expense (in thousands) |
|---|---|
| Research and Development | $260,903 |
| Sales and Marketing | $212,576 |
| General and Administrative | $106,350 |
| Restructuring Costs | $3,694 |
| Total Operating Expenses | $583,523 |
Net Loss
For the three months ended September 30, 2024, Twilio reported a net loss of $9,726, a significant improvement compared to the net loss of $141,707 for the same period in 2023.
| Period | Net Loss (in thousands) | Net Loss per Share |
|---|---|---|
| Q3 2024 | $(9,726) | $(0.06) |
| Q3 2023 | $(141,707) | $(0.78) |
Active Customer Accounts
As of September 30, 2024, Twilio had a total of 320,000 Active Customer Accounts, an increase from 306,000 in the prior year.
| Metric | Value |
|---|---|
| Active Customer Accounts | 320,000 |
| Total Revenue (Q3 2024) | $1,133,649 |
| Dollar-Based Net Expansion Rate | 105% |
Key Business Metrics
Twilio's performance is also measured by the Dollar-Based Net Expansion Rate, which reflects the revenue growth from existing customers. For Q3 2024, this rate was 105%, indicating solid growth from existing accounts despite churn in some segments.
| Metric | Value |
|---|---|
| Dollar-Based Net Expansion Rate | 105% |
| Communications Dollar-Based Net Expansion Rate | 106% |
| Segment Dollar-Based Net Expansion Rate | 91% |
Conclusion
Twilio's revenue model is diversified, with a focus on usage-based fees in its Communications segment and subscription fees in the Segment business. The company continues to invest in product innovation and operational efficiency to drive future growth.
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Article updated on 8 Nov 2024
Resources:
- Twilio Inc. (TWLO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Twilio Inc. (TWLO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Twilio Inc. (TWLO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.