Q4 2024 Twilio Inc Earnings Call Transcript
Key Points
- Twilio Inc (TWLO) achieved a record revenue of $1.195 billion in Q4 2024, marking an 11% year-over-year growth and the second consecutive quarter of double-digit growth.
- The company reported its first-ever quarter of GAAP operating profitability, ahead of its initial target.
- Twilio Inc (TWLO) increased its annual free cash flow by nearly $1 billion since 2022, demonstrating strong financial discipline.
- The company launched 251 products, enhancements, and services in 2024, aligning with its strategy to build a trusted, simple, and smart platform.
- Twilio Inc (TWLO) has a strong presence in the AI sector, with 90% of the Forbes 50 AI start-ups building on its platform, showcasing its essential role in customer engagement.
- Segment revenue for Q4 was down 1% year-over-year, indicating challenges in this business unit.
- The company incurred $17 million in bad debt expenses related to a Brazilian telecom customer, impacting operating margins by 140 basis points.
- Non-GAAP gross margin for the Communications business unit declined by 110 basis points quarter-over-quarter due to higher hosting costs and increased messaging revenue mix.
- Twilio Inc (TWLO) faces challenges in the RCS market, with interoperability issues and limited use cases affecting its growth potential.
- The company's guidance for 2025 indicates a cautious approach, with expected revenue growth of 7% to 8%, reflecting the uncertainties in its usage-based revenue model.
Good day and thank you for standing by. Welcome to the Twilio Inc. fourth-quarter 2024 earnings conference call.
(Operator Instructions)
Please be advised that today's conference is being recorded.
I'd now like to hand the conference over to your speaker today, Bryan Vaniman, SVP of Investor Relations and Corporate Development. Please go ahead.
Good afternoon, everyone, and thank you for joining us for Twilio's fourth-quarter 2024 earnings conference call. Joining me today are Khozema Shipchandler, Chief Executive Officer; and Aidan Viggiano, Chief Financial Officer.
As a reminder, we will disclose non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings release and earnings presentation posted on our IR website at investors.twilio.com.
We will also make forward-looking statements on this call, including statements about our future
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
