The earnings call presents a positive outlook for Twilio, highlighting record revenue and profitability, significant progress in AI adoption, and strong large deal activity. However, there were some challenges, including a decline in Segment revenue, a notable bad debt expense, and a decrease in gross margin. Despite these issues, the positive aspects, such as achieving GAAP operating profitability and strong growth in key areas, outweigh the lowlights.

Company Guidance

During the Twilio Inc. Fourth Quarter 2024 Earnings Conference Call, key financial metrics and guidance for the future were discussed. Twilio reported a Q4 revenue of $1.195 billion, marking an 11% year-over-year increase and achieving GAAP operating profitability for the first time. For the full fiscal year, Twilio's revenue was $4.458 billion with a 9% organic growth rate. The company also generated a record non-GAAP income from operations of $197 million for Q4 and $714 million for 2024, alongside a significant free cash flow increase to $657 million for the year. Looking forward to 2025, Twilio aims for a 7% to 8% organic revenue growth with continued profitability and free cash flow generation, targeting $825 million to $850 million in non-GAAP income from operations. The company plans to achieve GAAP operating profitability in 2025 and maintain this trajectory in subsequent years, aiming for a 21% to 22% non-GAAP operating margin by 2027. Twilio also emphasized its strategic focus on cross-selling, innovation, and AI integration, with 9,000 AI companies building on its platform, and highlighted its $2 billion share repurchase program set to run through 2027.

Record Q4 Revenue

Twilio reached $1.195 billion in revenue for Q4 2024, marking an 11% increase year over year and the company's second consecutive quarter of double-digit growth.

First-ever GAAP Operating Profitability

Q4 2024 marked the first time Twilio delivered quarterly GAAP operating profitability, ahead of their initial target.

Strong Full Year Performance

For the full year 2024, Twilio generated $4.458 billion in revenue, representing 9% organic growth year over year.

Significant AI Adoption

90% of the Forbes 50 AI startups are building on Twilio, with more than 9,000 companies in the AI space utilizing Twilio services in 2024.

Record Non-GAAP Income and Free Cash Flow

Twilio achieved record non-GAAP income from operations of $197 million in Q4 and $93 million in free cash flow.

Strong Large Deal Activity

In Q4, Twilio closed 78 deals worth $500,000 or more, up 47% year over year, including the largest Segment deal ever.

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Twilio (DE:TWH) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:TWH Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 13, 2025	2025 (Q1)	0.92 / -	0.768	―	―	―
Feb 13, 2025	2024 (Q4)	0.99 / 0.96	0.825	16.28% (+0.13)
Oct 30, 2024	2024 (Q3)	0.82 / 0.98	0.557	75.86% (+0.42)
Aug 01, 2024	2024 (Q2)	0.70 / 0.83	0.518	61.11% (+0.32)
May 07, 2024	2024 (Q1)	0.57 / 0.77	0.451	70.21% (+0.32)
Feb 14, 2024	2023 (Q4)	0.55 / 0.83	0.211	290.91% (+0.61)
Nov 08, 2023	2023 (Q3)	0.36 / 0.56	-0.259	314.81% (+0.82)
Aug 08, 2023	2023 (Q2)	0.29 / 0.52	-0.106	590.91% (+0.62)
May 09, 2023	2023 (Q1)	0.20 / 0.45	0	―
Feb 15, 2023	2022 (Q4)	-0.08 / 0.21	-0.192	210.00% (+0.40)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:TWH Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 13, 2025	€138.80	€117.72	-15.19%
Oct 30, 2024	€65.29	€75.60	+15.79%
Aug 01, 2024	€54.25	€54.98	+1.35%
May 07, 2024	€59.18	€55.71	-5.86%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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