eastunder
2 weeks ago
Twilio Inc (TWLO) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
GuruFocus News
Thu, October 31, 2024 at 1:20 AM MDT
https://finance.yahoo.com/news/twilio-inc-twlo-q3-2024-072030043.html
Revenue: $1.134 billion, up 10% year-over-year.
Communications Revenue: $1.060 billion, up 10% year-over-year.
Segment Revenue: $73 million, flat year-over-year.
Non-GAAP Income from Operations: $182 million, up 34% year-over-year.
Free Cash Flow: $189 million for the quarter.
Non-GAAP Gross Margin: 52.9%, down 50 basis points year-over-year.
Dollar-Based Net Expansion Rate: 105% overall; 106% for Communications; 91% for Segment.
Non-GAAP Operating Margin: 16.1%, up 290 basis points year-over-year.
Stock-Based Compensation: 13.6% of revenue, flat quarter-over-quarter.
Share Repurchase Program: Over $2.7 billion repurchased, with total shares outstanding at 155 million.
Q4 Revenue Guidance: $1.15 billion to $1.16 billion, representing 7% to 8% growth.
Full Year 2024 Free Cash Flow Guidance: $650 million to $675 million.
Warning! GuruFocus has detected 5 Warning Signs with TWLO.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Twilio Inc (NYSE:TWLO) exceeded Q3 guidance with $1.134 billion in revenue, marking a 10% year-over-year increase.
The company generated $189 million in free cash flow, demonstrating strong cash generation capabilities.
Twilio Inc (NYSE:TWLO) is strategically positioned to leverage AI and machine learning, enhancing its platform's differentiation and customer engagement.
The communications business unit saw a 10% year-over-year revenue growth, driven by strength in messaging and email.
Twilio Inc (NYSE:TWLO) continues to innovate with new features like the messaging deliverability dashboard and RCS Business Messaging, enhancing customer engagement and trust.
Negative Points
Segment revenue remained flat year-over-year at $73 million, indicating challenges in this business unit.
Non-GAAP gross margin decreased by 50 basis points year-over-year, impacted by segment infrastructure migration efforts.
The dollar-based net expansion rate for the segment was 91%, reflecting ongoing challenges in customer retention and growth.
Twilio Inc (NYSE:TWLO) anticipates higher prepayments in Q4, which may lead to a sequential decline in free cash flow.
The company faces competitive pressures in the contact center market, with new entrants targeting this space.
Q & A Highlights
Q: Can you elaborate on the OpenAI partnership and its impact on Twilio's offerings? A: Khozema Shipchandler, CEO, explained that the partnership initially focuses on voice capabilities, using OpenAI's large language models to enhance Twilio's voice API. Over time, this will expand to other channels, aiming for a multichannel approach. While AI developments are rapid, significant revenue impact is not expected immediately. The integration of communications, contextual data, and AI is seen as a valuable combination for personalized interactions.
Q: How is Twilio's ISV channel performing, and what is its significance? A: Khozema Shipchandler, CEO, noted that while Twilio hasn't disclosed specific figures, the ISV channel is a meaningful contributor, growing faster than the consolidated revenue base and offering higher gross margins. This channel is crucial for leveraging distribution and supporting growth.
Q: What progress has been made in Twilio's self-service journey, and what are the future plans? A: Khozema Shipchandler, CEO, emphasized that Twilio aims to make it as easy as possible for developers to use their platform. Despite introducing some friction for trust and compliance, the focus remains on improving the developer experience. The journey is ongoing, with a long list of milestones to enhance self-service capabilities.
Q: How does Twilio view the potential for RCS adoption in the U.S., especially with recent developments? A: Khozema Shipchandler, CEO, expressed uncertainty about the near-term adoption of RCS, despite its potential for rich content delivery. While it's well-suited for certain industries like airlines, its broader impact on Twilio's business remains unclear. The company is supportive of RCS technology but does not expect it to significantly alter revenue or margin dynamics.
Q: What is Twilio's approach to integrating AI into its Flex product and contact center solutions? A: Khozema Shipchandler, CEO, highlighted that AI integration is not limited to Flex but spans all channels. The focus is on delivering outcomes through contextual data, which is crucial for personalized interactions. Twilio's strength lies in combining communications with contextual data, enabling AI to solve complex customer problems across various channels.
eastunder
9 months ago
Legion Partners Sends Letter to Twilio (TWLO) Board
https://www.streetinsider.com/Corporate+News/Legion+Partners+Sends+Letter+to+Twilio+%28TWLO%29+Board/22829490.html
February 26, 2024 7:00 AM EST
Legion Partners Asset Management, LLC, together with its affiliates (collectively, āLegion Partnersā), which beneficially owns 601,050 shares, of Twilio Inc. (āTwilioā or the āCompanyā) (NYSE: TWLO) common stock, today sent a letter to the Companyās Board of Directors encouraging it to announce a strategic alternative process to sell the Segment business and immediately expand its stock buyback program by at least an additional $3 billion.
The full text of the letter follows:
February 26, 2024
Board of Directors
Twilio Inc.
101 Spear Street, First Floor
San Francisco, CA 94105
Dear Members of the Board:
Legion Partners Asset Management, LLC, together with its affiliates (collectively, āweā or āLegion Partnersā) are stockholders of Twilio Inc. (āTwilioā, āTWLOā, or the āCompanyā), beneficially owning 601,050 shares of the Companyās outstanding stock. Legion Partnersā strategy entails highly concentrated equity positions, with a long-term investment horizon and active involvement with our portfolio companies. We are very focused on promoting strong operational and governance discipline at each of the companies in which we invest, as we believe this is essential in achieving sustained, superior long-term returns. We are writing to Twilioās Board of Directors (the āBoardā) as a follow up to our one-year long engagement with the Board to unlock shareholder value.
First, we would like to acknowledge the progress that has been made in the last year since we began our engagement:
Reducing costs by meaningfully rightsizing the employee count to the business during calendar year 2023;
Transitioning Jeff Lawson, Twilioās founder and CEO, out of the Company;
Adding an independent director with significant software expertise;
Announcing the Companyās first-ever stock buyback program of $1 billion and executing $730 million on the buyback to date; and
Breaking out segment operating profitability for both the Communications and Segment businesses.
However, our view is that Twilio is not achieving anywhere close to an appropriate valuation in its current form, and therefore significant work remains to be done to unlock meaningful value. To illustrate this view, we believe Twilioās Communication business (plus related corporate expense) is trading at a very low multiple of only 7.0x Legion Partnersā estimate of 2025 Adjusted EBITDA, as depicted below ($ in millions):
TWLO at $56.25/share - Current market cap. $10,184
Less: Cash (4,012)
Plus: Debt 988
Less: Segment value (1,000)
Net Communications + Corp. implied value $6,160
2025 Adj. EBITDA - Legion Partnersā estimate $881
Multiple 7.0x
After carefully studying Twilio for more than a year and digging into the numbers, we believe that the appropriate path forward for the Board to unlock shareholder value is as follows:
1. Announce a strategic alternatives process to sell Segment. We believe this business is highly valuable (we estimate value at $1.0 billion) and could flourish under new ownership. Segmentās ownership under Twilio has been challenged and this business has been underachieving its potential as the leading Customer Data Platform.
2. Immediately execute a stock buyback of at least an additional $3 billion. Over the last year, Twilio has generated nearly enough cash flow to entirely cover the previously referenced $1 billion stock buyback with almost no reduction in the level of cash on the balance sheet at December 31, 2023, as compared to a year earlier.
We believe these steps should unlock the fair value of Twilioās stock, which we conservatively estimate is greater than $90 per share. As always, you can feel free to contact us to discuss these matters further.
Sincerely,
Chris Kiper Managing Director
Ted White Managing Director
About Legion Partners
Legion Partners is an activist investment manager based in Los Angeles, CA, focused on U.S. small-cap companies. Legion Partners seeks to generate attractive long-term returns employing deep fundamental research, a concentrated portfolio and responsible, collaborative engagement as a catalyst for value creation. Founded in 2012, Legion Partners takes a value-driven approach to managing a high-conviction portfolio on behalf of sophisticated institutional and individual investors. Learn more at www.legionpartners.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226523989/en/
Media
Nathaniel Garnick/Liam Walsh
Gasthalter & Co.
(212) 257 - 4170
Source: Legion Partners Asset Management, LLC
eastunder
11 months ago
Ark Invest Stock Portfolio: 16 Biggest Positions
Sheryar Siddiq
Thu, December 14, 2023 at 2:02 AM MST
https://finance.yahoo.com/news/ark-invest-stock-portfolio-16-090218473.html
9. Twilio Inc. (NYSE:TWLO)
Cathie Wood & Ark Investās Q3 2023 Investment: $417.43 million
Number of Hedge Fund Investors: 43
Twilio Inc. (NYSE:TWLO), headquartered in San Francisco, California, is an American company that offers programmable communication tools. It facilitates making and receiving phone calls, sending and receiving text messages, and performing various communication functions through its web service APIs.
On November 8, Twilio Inc. (NYSE:TWLO) unveiled its financial results for Q3 2023, showcasing a 5% year-over-year revenue increase to $1.0 billion, accompanied by a remarkable 71% year-over-year reduction in net loss to $140 million. The company achieved a normalized EPS of $0.58, surpassing consensus estimates by $0.22. Following the earnings announcement, JMP Securities analyst Patrick Walravens reaffirmed a āMarket Outperformā rating for Twilio Inc. (NYSE:TWLO) shares, maintaining an unchanged target price of $110, indicative of a 78.72% upside potential based on the share price.
Insider Monkeyās third quarter of 2023 survey covering 910 hedge funds revealed 43 Twilio Inc. (NYSE:TWLO) investors. Out of these, the largest shareholder during Q3 2023 was David Blood and Al Goreās Generation Investment Management due to its $505.6 million stake. Catherine Wood was the firm's second largest stakeholder for the quarter, with a stake worth $417.43 million.
eastunder
12 months ago
Anson Funds Buys into Twilio, Urges Sale
https://www.baystreet.ca/stockstowatch/16519/Anson-Funds-Buys-into-Twilio-Urges-Sale16519
Activist investor Anson Funds has built a stake in Twilio (NYSE:TWLO) and sent a letter to the enterprise software companyās board pushing for the sale of the entire business.
Twilio shares rose as much as 2% on the news in Tuesday morning trading, but later gave back most of those gains.
Anson did not hold any Twilio stock for the period ending Sept. 30, according to securities filings, but has since built a stake valued at around $50 million, the person familiar said. The letter to the board urges Twilio to either sell itself or at a minimum, divest its data and applications business, the person familiar said.
The growth of the stake coincided with Ansonās hiring of Sagar Gupta from Legion Partners. Gupta led Legionās activist engagements with Twilio and Nutanix, a cloud computing firm.
āTwilio regularly engages with shareholders and appreciates constructive input that furthers our goal of creating sustainable long-term value,ā a Twilio spokesperson told the media.
The continued activist attention caps off a challenging year for Twilio, which makes software that helps businesses engage with their customers. The companyās stock is up around 28% year-to-date but remains well off its 2021 highs. In February, the company cut around 1,500 employees, or 17% of its workforce citing a need for heightened efficiency. Those layoffs followed a similar headcount reduction in September 2022.
TWLO shares neared noon EST on Tuesday in the green $2.30, or 3.7%, to $65.15.
eastunder
1 year ago
Twilio Announces Third Quarter 2023 Results
November 08 2023 - 04:05PM
https://ih.advfn.com/stock-market/NYSE/twilio-TWLO/stock-news/92504146/twilio-announces-third-quarter-2023-results
Third Quarter Revenue of $1.03 billion, up 5% year-over-year
Third Quarter GAAP Loss from Operations of $109 million, a 76% improvement year-over-year
Third Quarter Non-GAAP Income from Operations of $136 million; raised full year guidance to $475 to $485 million
Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for todayās leading brands, today reported financial results for its third quarter ended September 30, 2023.
āTwilio had a strong third quarter, delivering another record quarter of non-GAAP income from operations and free cash flow,ā said Jeff Lawson, Twilioās Co-Founder and CEO. āWe are building a foundation for profitable growth that enables us to invest in our CustomerAI vision to deliver even more compelling outcomes for our customers and our shareholders in the long-term."
Third Quarter 2023 Financial Highlights
Total revenue of $1.03 billion for the third quarter of 2023, up 5% year-over-year. Communications revenue of $906.7 million for the third quarter of 2023, up 5% year-over-year. Data & Applications revenue of $127.0 million for the third quarter of 2023, up 9% year-over-year.
Total organic revenue growth of 8% year-over-year for the third quarter of 2023. Communications organic revenue growth of 8% year-over-year for the third quarter of 2023.
GAAP loss from operations of $108.9 million for the third quarter of 2023, compared with GAAP loss from operations of $457.0 million for the third quarter of 2022.
Non-GAAP income from operations of $136.4 million for the third quarter of 2023, compared with non-GAAP loss from operations of $35.1 million for the third quarter of 2022.
GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.78 based on 181.7 million weighted average shares outstanding in the third quarter of 2023, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $2.63 based on 183.7 million weighted average shares outstanding in the third quarter of 2022.
Non-GAAP net income per share attributable to common stockholders, diluted, of $0.58 based on 184.0 million non-GAAP weighted average shares outstanding in the third quarter of 2023, compared with non-GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.27 based on 183.7 million non-GAAP weighted average shares outstanding in the third quarter of 2022.
Key Metrics
More than 306,000 Active Customer Accounts as of September 30, 2023 compared to more than 280,000 Active Customer Accounts as of September 30, 2022.
Dollar-Based Net Expansion Rate of 101% for the third quarter of 2023 compared to Dollar-Based Net Expansion Rate of 122% for the third quarter of 2022.
5,905 employees as of September 30, 2023.
Share Repurchase Program
In February, Twilio announced the authorization of a share repurchase program pursuant to which it may repurchase up to $1.0 billion of its outstanding Class A common stock. As of today, Twilio has completed over $620 million of repurchases, representing over 62% of the total program amount. Twilio intends to continue making progress against the balance of its share repurchase authorization in future quarters. The program expires on December 31, 2024.
Divestitures
Twilio divested its ValueFirst business on July 3, 2023. The results of this business are excluded from Twilioās results of operations in the third quarter of 2023 and will continue to be excluded in all future periods.
Executive Leadership Update
Twilio also announced that on November 3, 2023, Elena Donio informed the company of her intention to resign as President, Twilio Data & Applications, effective December 15, 2023. Ms. Donio will remain with Twilio as an employee in an advisory role during a transition period expected to conclude in the first quarter of 2024. Upon the effectiveness of Ms. Donioās resignation, Jeff Lawson, Twilioās Chief Executive Officer, will run the Twilio Data & Applications business unit until Ms. Donioās replacement is appointed.
Outlook
Twilio is initiating guidance for the fourth quarter ending December 31, 2023 and raising its non-GAAP income from operations range for fiscal year 2023, originally provided on February 15, 2023 and subsequently revised upwards on May 9, 2023 and August 8, 2023.
eastunder
1 year ago
Twilio to Announce Third Quarter 2023 Results on Nov 8, 2023 After close
4:10 PM ET, 10/11/2023 - Business Wire
SAN FRANCISCO--(BUSINESS WIRE)--Oct. 11, 2023--Twilio Inc. (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for todayās leading brands, today announced that its third quarter 2023 results will be released on Wednesday, November 8, 2023, after market close. Twilio will host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) on Wednesday, November 8, 2023, to discuss its results with the investment community. Investors and analysts should register for the call in advance by visiting https://conferencingportals.com/event/unKcrkys. A live webcast will also be available on the Twilio Investor Relations website at https://investors.twilio.com. A replay will be available at (800) 770-2030 (U.S.) or (647) 362-9199 (non-U.S.) with conference ID 80378 until 11:59 p.m. (ET) on November 15, 2023.
Twilio uses its investor relations website (https://investors.twilio.com) and the X (formerly Twitter) accounts of the company (@twilio) and its Chief Executive Officer (@jeffiel) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Twilio
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 the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. Across 180 countries and territories, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers. For more information about Twilio (NYSE: TWLO), visit: www.twilio.com.
Source: Twilio Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231011567680/en/
Investor Contact:
Bryan Vaniman
ir@twilio.com
or
Media Contact:
Caitlin Epstein
press@twilio.com
Source: Twilio Inc.
eastunder
1 year ago
Twilio to Announce Second Quarter 2023 Results on August 8, 2023
SAN FRANCISCO--(BUSINESS WIRE)--Jul. 11, 2023--Twilio Inc. (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for todayās leading brands, today announced that its second quarter 2023 results will be released on Tuesday, August 8, 2023, after market close. Twilio will host a conference call at 2:00 p.m. (PT) / 5:00 p.m. (ET) on Tuesday, August 8, 2023, to discuss its results with the investment community. Investors and analysts should register for the call in advance by visiting https://conferencingportals.com/event/unKcrkys. A live webcast will also be available on the Twilio Investor Relations website at https://investors.twilio.com. A replay will be available at (800) 770-2030 (U.S.) or (647) 362-9199 (non-U.S.) with conference ID 80378 until 11:59 p.m. (ET) on August 15, 2023.
Twilio uses its investor relations website (https://investors.twilio.com), its Twitter feed (@twilio), and the Twitter feed of Twilio's Chief Executive Officer, Jeff Lawson (@jeffiel), as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Twilio
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 the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. Across 180 countries and territories, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers. For more information about Twilio (NYSE: TWLO), visit: www.twilio.com.
eastunder
2 years ago
Twilio Announces Fourth Quarter and Full Year 2022 Results
February 15 2023 - 04:05PM
Fourth Quarter Revenue of $1.02 billion, up 22% Year-Over-Year
Moving to a Business Unit structure and announcing four executive updates
Authorized a $1.0 billion share repurchase program
Reduced workforce by 17% and further rationalizing cost base
https://ih.advfn.com/stock-market/NYSE/twilio-TWLO/stock-news/90256733/twilio-announces-fourth-quarter-and-full-year-2022
Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for todayās leading brands, today reported financial results for its fourth quarter and full year ended December 31, 2022.
āThis week, we announced meaningful changes to Twilioās leadership group, organizational structure, team size and capital allocation strategy that will both accelerate our path to profitability and most importantly, improve our execution in delivering our Engagement Platform strategy for our customers,ā said Jeff Lawson. āWhile our vision remains, the way we operate and execute has changed ā all in service of driving better focus for the business and ultimately enhancing value creation for our shareholders.ā
Fourth Quarter 2022 Financial Highlights
Revenue of $1.02 billion for the fourth quarter of 2022, up 22% year-over-year. Organic revenue grew 21% year-over-year.
GAAP loss from operations of $218.6 million for the fourth quarter of 2022, compared with GAAP loss from operations of $283.6 million for the fourth quarter of 2021.
Non-GAAP income from operations of $32.9 million for the fourth quarter of 2022, compared with non-GAAP loss from operations of $27.2 million for the fourth quarter of 2021.
GAAP net loss per share attributable to common stockholders, basic and diluted, of $1.24 based on 185.1 million weighted average shares outstanding in the fourth quarter of 2022, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $1.63 based on 178.9 million weighted average shares outstanding in the fourth quarter of 2021.
Non-GAAP net income per share attributable to common stockholders, diluted, of $0.22 based on 187.2 million non-GAAP weighted average shares outstanding in the fourth quarter of 2022, compared with non-GAAP net loss per share attributable to common stockholders, diluted, of $0.20 based on 178.9 million non-GAAP weighted average shares outstanding in the fourth quarter of 2021.
Full Year 2022 Financial Highlights
Revenue of $3.83 billion for the full year 2022, up 35% year-over-year. Organic revenue for the full year grew 30% year-over-year.
GAAP loss from operations of $1.2 billion for the full year 2022, compared with GAAP loss from operations of $915.6 million for the full year 2021.
Non-GAAP loss from operations of $4.5 million for the full year 2022 compared with non-GAAP income from operations of $2.5 million for the full year 2021.
GAAP net loss per share attributable to common stockholders, basic and diluted, of $6.86 based on 183.0 million weighted average shares outstanding in the full year 2022, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $5.45 based on 174.2 million weighted average shares outstanding in the full year 2021.
Non-GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.15 based on 183.0 million non-GAAP weighted average shares outstanding in the full year 2022, compared with non-GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.25 based on 174.2 million non-GAAP weighted average shares outstanding in the full year 2021.
Key Metrics
More than 290,000 Active Customer Accounts as of December 31, 2022, compared to more than 256,000 Active Customer Accounts as of December 31, 2021.
Dollar-Based Net Expansion Rate was 110% for the fourth quarter of 2022, compared to 126% for the fourth quarter of 2021. Results from acquisitions closed after October 1, 2021, do not impact the calculation of this metric in either period. For the full year 2022, Dollar-Based Net Expansion Rate was 121%.
8,156 employees as of December 31, 2022.
Workforce Reduction
On Monday, February 13, Twilio announced the decision to reduce its workforce by approximately 17%, as well as pursue further expense rationalization. Leadership believes these changes will drive meaningful cost savings, and in conjunction with this announcement, Twilio has updated its Financial Framework to reflect a range for 2023 non-GAAP operating profit, as well as accelerated non-GAAP operating margin improvements and lowered stock-based compensation as a percentage of revenue in the medium term, which we define as fiscal years 2025 through 2027.
Organizational and Leadership Updates
Twilio also announced that moving forward, it will operate two separate business units: Twilio Communications, led by Khozema Shipchandler, and Twilio Data & Applications, led by Elena Donio. This strategic realignment enables Twilio to better execute on the key priorities for each business ā driving efficiencies for Twilio Communications and accelerating growth for Twilio Data & Applications ā while taking into consideration each business unitās unique economic, customer, and product needs. Additionally, it was announced that Aidan Viggiano is being promoted to the role of Chief Financial Officer. Aidan joined Twilio in 2019 and has led the FP&A function for the past 1.5 years. She is a world-class leader and executive. These leadership changes will go into effect as of March 1, 2023. And finally, Eyal Manor has decided to leave Twilio, and will be stepping down from his position as Chief Product Officer effective February 28, 2023.
Share Repurchase Program
Twilio announced today that its Board of Directors has authorized a share repurchase program of up to $1.0 billion of Twilioās outstanding Class A common stock. Under the program, Twilio may purchase shares from time to time through open market transactions, privately negotiated transactions, and other means in compliance with applicable securities laws, including through Rule 10b5-1 plans. The program is set to expire on December 31, 2024. The timing, manner, price and amount of any repurchases, are determined by Twilio at its discretion and depend on a variety of factors, including legal requirements, price and economic market conditions.
Outlook
Twilio is initiating guidance for the first quarter ending March 31, 2023 and fiscal year 2023.
Q1 FY23 Guidance
Revenue (millions) $995 - $1,005
Y/Y Growth 14% - 15%
Organic Y/Y Growth 13% - 14%
Non-GAAP profit from operations (millions) (1)$45 - $55
Non-GAAP profit per share (2) $0.18 - $0.22
Non-GAAP weighted average diluted shares outstanding (millions) 188
FY23 Guidance
Non-GAAP profit from operations (millions) (1) $250 - $350
(1)Includes an estimated $10 million one-time, non-cash benefit for termination of the employee sabbatical program.
(2)Non-GAAP profit per share guidance assumes no impact from volatility of foreign exchange rates.
eastunder
2 years ago
Twilio (TWLO) To Cut Approximately 17% Of Workforce
https://www.streetinsider.com/Corporate+News/Twilio+%28TWLO%29+To+Cut+Approximately+17%25+Of+Workforce/21205626.html
This is an email that was sent out to all Twilio (NYSE: TWLO employees today from Twilio CEO Jeff Lawson.
Team,
A company optimizes for its environment. For the last 15 years, we ran Twilio for growth, building a tremendous customer base, product set, and revenue base. But environments change ā and so must we. Now we have to prioritize profit far more than before. Weāre exiting the last phase with a great market position, and very strong cash reserves, but unfortunately that's not enough to get us through the next phase. We have to spend less, streamline, and become more efficient. To do that, weāre forming two business units: Twilio Communications and Twilio Data & Applications. And today, I'm unfortunately bearing the news that weāre parting ways with approximately 17% of our team.
This is upsetting to be sure, so I want to share with you the reasons for making this tough decision, as well as some other changes.
Why
As weāve refined our strategy over the past several months, it's become apparent we need significant structural changes to better execute our strategy. This is because the two parts of our business ā communications and software ā are at different lifecycle stages and have different operating needs. In Communications, we have to get more efficient. For Segment, Flex, and Engage, we must accelerate growth. These are distinctly different tasks for our teams, and our current structure is slowing our progress toward both these goals, which are critical to our growth, our profit, and our Customer Engagement Platform ambitions.
As a result, weāre forming two business units: Twilio Data & Applications, led by Elena Donio, and Twilio Communications, led by Khozema Shipchandler. Both will include Sales, R&D, and operational resources, and each will be empowered to optimize based on the needs of their respective customers and businesses. Each will be able to sprint toward their goals with more focus and independence ā but theyāre also highly complementary. I have said many times that Twilio's products are better together ā that we are One Twilio ā and that belief has not changed.
When we look at these two business units on their own, it's clear that we've gotten too big, especially in Communications. And that's why we're also letting go of some colleagues today. It is painful to part ways with so many talented people ā but it's necessary to get our two businesses into the right shape to succeed.
I'm sure you're wondering why we're making additional cuts to the team after the September layoffs. At that time, we sought to streamline the company as it was then structured. Today's news, however, is more driven by the need to organize ourselves differently for success ā and the changes needed to enact this new structure. Both the reorganization and the reductions increase our ability to drive profit and growth, both of which are required in this new environment.
For our departing colleagues
At Twilio, we care about each other, our customers, and the world around us ā and in this situation, it means we generously care for our departing colleagues. Here's what to expect for those who are departing:
Inside the U.S.
You will get an email in the next three hours at your personal email address. You'll be eligible for 12 weeks of base pay, plus one week for every year of completed service at Twilio, continued health coverage, career resources, and other support to help with your transition. You'll also receive the full value of Twilioās February 15 vest.
Outside the U.S.
Youāll receive an email or meeting invitation within the next three hours letting you know if youāre impacted or may be impacted. You'll be eligible for at least 12 weeks of base pay, plus one week for every year of completed service at Twilio, career resources, and other support in line with local practices. You'll also receive the full value of Twilioās February 15 stock vest. Outside the U.S., there is a broad range of employment laws, and weāll take great care to guide these Twilions and their managers through these processes, such as required consultation periods.
I know many of you who are impacted. I've worked alongside you, and I've seen the amazing work you've done. Thank you ā you're a permanent part of Twilio and I'm sorry that we're parting ways like this.
Getting more judicious with our spending
Weāre winding down some of the perks weāve historically offered, including our book and wellness allowances. Weāve also decided to sunset Twilio Recharge, which I believe in, but which (in retrospect) was ill-timed given our profitability goals. Those who are already eligible or will become eligible for Recharge by the end of 2023 will still be able to take it. (Other perk changes will vary by country, so we will share that with each of you individually via email this week.)
We have not, however, touched the most impactful benefits that are most essential to Twilionsā health and financial security, including, medical, retirement, and the Employee Stock Purchase Program (ESPP).
As part of our shift to remote work, we plan to close some Twilio offices over the next few months, with the intent of maintaining at least a handful of global hubs and satellite offices. Weāve seen very low office utilization, so weāre going to redirect some of our cost savings into higher travel budgets so you can see one another more often ā something weāve all been missing a lot. These closures will happen and be communicated in phases starting this week and continuing into the next few months.
What's next
For those of you remaining on this mission ā this will be hard. I know you have a lot of questions today. I hope youāll understand that our priority for today will be your impacted colleagues globally so we can do our best to support them.
Beginning tomorrow morning at approximately 8 a.m. PST, youāll hear from your BU or function leader via email so you can have clarity about where your role sits and your team structure. Then, weāll hold a Company All Hands meeting to answer your questions about todayās news. Weāll also make sure you know if your manager has changed by the end of the day tomorrow.
I know this company ā the great people, the tremendous empathy, our collective desire to do the right thing. These changes hurt. The weeks ahead will be about processing all this change and working together to acclimate to our new structure. While tremendously difficult, I believe these actions will put us on the right path for executing our strategy and creating an even stronger, more efficient, and more effective Twilio.
-jeffiel
eastunder
2 years ago
Twilio takes a tumble as growth rate sharply decelerates and margin contraction continues
1:05 PM ET, 11/04/2022 - Briefing.com
Twilio (TWLO), a cloud communications platform provider, beat analysts' 3Q22 EPS and revenue estimates, continuing a winning streak that extends beyond five years. However, the stock is still getting crushed today because the company issued weak Q4 guidance, confirming fears that macroeconomic headwinds are causing its customers to pull back on spending. Specifically, its outlook for revenue of $995-$1.005 bln equates to yr/yr growth of just 18% at the midpoint, representing a steep deceleration from this quarter's growth of 33%. In fact, since 2Q21, TWLO's top-line growth rate has been trending lower, steadily dropping from the mid-60% level seen last year.
Until this quarter's earnings conference call, TWLO had maintained a relatively upbeat posture regarding its near-term prospects, while highlighting the resiliency of its business. For instance, during the Q2 earnings call, President Elena Donia commented that the company hadn't seen a significant deterioration in demand and that companies are prioritizing investments in solutions like TWLO's that drive revenue and efficiency. She did acknowledge, though, that a couple of isolated areas of softness were emerging, including crypto, social, and consumer on-demand. Not only did those verticals weaken further in Q3, but new cracks also formed in areas such as e-Commerce and retail.
Compounding the problem is that TWLO decided after the 2020 election cycle to off-board political traffic from its platform to avoid friction with some of its customers. Consequently, Q3 and Q4 will not experience the typical spike in political-based traffic that typically occurs during election cycles.
Unfortunately, the troubles aren't relagated to TWLO's Q4 revenue outlook.
Non-GAAP gross margin continues to contract, sinking to 25% in Q3 from 33% last quarter, and from 41% in 1Q22. The company is moving further and further away from its long-term gross margin target of 60% and investors are clearly losing confidence that it will reach that mark any time soon.TWLO attributes the erosion to a higher mix of lower margin international revenue. In Q3, international revenue accounted for 34% of total revenue, which was actually down from 35% in Q2 and Q1.When asked about this contradiction during the earnings call, COO Khozema Shipchandler explained that the 35% figure is based on where the customer's address is, not necessarily where the traffic ends up. Shipchandler added that TWLO has U.S. and international customers that reside internationally, and that send messages internationally, which have a slightly lower gross margin. As a result of the eroding gross margin and declining revenue growth, TWLO's profits are heading in the wrong direction. This quarter's ($0.27)/share loss was its worst showing in over five years and the company is forecasting another loss for Q4, guiding for EPS of ($0.11)-($0.06).Despite this backslide, TWLO maintained its expectation of achieving non-GAAP operating profitability in FY23. To help reach that goal, the company announced an 11% workforce reduction in September, but more changes to its cost structure may be needed.
TWLO is getting punished because the slowdown in growth is much more pronounced than investors were anticipating. Coming off of the Q2 earnings report, it seemed that demand was holding up relatively well, outside of a few weak spots. Conditions have soured significantly since then, though, and TWLO is now experiencing a broad-based downturn in customer spending levels. Making matters worse, TWLO's margins are on the downtrend, putting its profitability aspirations into question for next year.
eastunder
3 years ago
Twilio Inc. (NYSE:TWLO) Expected to Post Quarterly Sales of $861.73 Million
https://www.marketbeat.com/instant-alerts/nyse-twlo-consensus-analyst-rating-2022-03-2-3/
SUNDAY, MARCH 20, 2022 | MARKETBEAT
Equities research analysts expect that Twilio Inc. (NYSE:TWLO) will announce sales of $861.73 million for the current fiscal quarter, according to Zacks. Eleven analysts have provided estimates for Twilio's earnings, with the lowest sales estimate coming in at $854.70 million and the highest estimate coming in at $867.30 million. Twilio posted sales of $589.99 million during the same quarter last year, which suggests a positive year-over-year growth rate of 46.1%. The company is expected to announce its next quarterly earnings report on Wednesday, May 4th.
According to Zacks, analysts expect that Twilio will report full year sales of $3.80 billion for the current financial year, with estimates ranging from $3.69 billion to $3.88 billion. For the next year, analysts anticipate that the business will post sales of $4.89 billion, with estimates ranging from $4.63 billion to $5.08 billion. Zacks Investment Research's sales calculations are an average based on a survey of sell-side analysts that cover Twilio.
Twilio (NYSE:TWLO) last announced its quarterly earnings results on Wednesday, February 9th. The technology company reported ($1.25) earnings per share for the quarter, missing analysts' consensus estimates of ($0.94) by ($0.31). The business had revenue of $842.74 million for the quarter, compared to analyst estimates of $768.89 million. Twilio had a negative return on equity of 6.13% and a negative net margin of 33.43%. During the same period last year, the firm earned ($0.80) EPS.
Several equities analysts have recently commented on TWLO shares. BTIG Research upped their target price on Twilio from $260.00 to $270.00 and gave the company a "buy" rating in a research report on Thursday, February 10th.
Barclays raised Twilio from an "equal weight" rating to an "overweight" rating and set a $375.00 target price on the stock in a research report on Thursday, December 9th. They noted that the move was a valuation call.
Mizuho upped their target price on Twilio from $250.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday, February 10th.
Atlantic Securities started coverage on Twilio in a research note on Tuesday, January 25th. They issued an "overweight" rating and a $240.00 price target for the company.
Finally, The Goldman Sachs Group cut their price target on Twilio from $350.00 to $300.00 and set a "buy" rating for the company in a research note on Thursday, February 10th.
One investment analyst has rated the stock with a sell rating, one has issued a hold rating and twenty-one have issued a buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $352.82.
Twilio stock opened at $159.66 on Friday. Twilio has a 12 month low of $123.05 and a 12 month high of $412.68. The stock's 50 day moving average is $178.38 and its 200-day moving average is $261.47. The company has a current ratio of 8.43, a quick ratio of 8.43 and a debt-to-equity ratio of 0.09. The company has a market capitalization of $28.98 billion, a price-to-earnings ratio of -29.35 and a beta of 1.40.
In other news, COO Khozema Shipchandler sold 3,550 shares of the stock in a transaction on Tuesday, February 22nd. The stock was sold at an average price of $156.78, for a total value of $556,569.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jeff Lawson sold 14,000 shares of the stock in a transaction on Monday, January 3rd. The shares were sold at an average price of $264.00, for a total value of $3,696,000.00. The disclosure for this sale can be found here. Insiders have sold 35,010 shares of company stock valued at $8,049,361 over the last 90 days. Corporate insiders own 4.96% of the company's stock.
Institutional investors and hedge funds have recently made changes to their positions in the company. Lumature Wealth Partners LLC acquired a new stake in Twilio in the third quarter valued at $32,000. Gables Capital Management Inc. acquired a new stake in Twilio in the fourth quarter valued at $26,000. Cornerstone Advisory LLC acquired a new stake in Twilio in the fourth quarter valued at $35,000. Liberty Wealth Management LLC increased its holdings in Twilio by 81.4% in the third quarter. Liberty Wealth Management LLC now owns 107 shares of the technology company's stock valued at $33,000 after purchasing an additional 48 shares during the period. Finally, Greycroft LP acquired a new stake in Twilio in the fourth quarter valued at $29,000. Institutional investors own 77.97% of the company's stock.
Twilio Company Profile
Twilio, Inc engages in the development of communications software, cloud-based platform, and services. Its products include Twilio flex, messaging, programmable voice, programmable video, elastic SIP trunking, and IoT. The company was founded by John Wolthuis, Jeffery G. Lawson, and Evan Cooke in March 2008 and is headquartered in San Francisco, CA.
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