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Sep 30, 2023

Twilio Q3 2023 Earnings Report

Twilio had a strong third quarter, delivering a record quarter of non-GAAP income from operations and free cash flow.

Key Takeaways

Twilio reported Q3 2023 revenue of $1.03 billion, a 5% year-over-year increase. GAAP loss from operations improved by 76% year-over-year to $109 million. Non-GAAP income from operations was $136 million, and the company raised its full year guidance to $475 to $485 million.

Total revenue was $1.03 billion, up 5% year-over-year.

GAAP loss from operations improved to $108.9 million, compared to $457.0 million in Q3 2022.

Non-GAAP income from operations reached $136.4 million, compared to a loss of $35.1 million in Q3 2022.

Active Customer Accounts exceeded 306,000, compared to 280,000 in Q3 2022.

Total Revenue
$1.03B
Previous year: $983M
+5.2%
EPS
$0.58
Previous year: -$0.27
-314.8%
Active Customer Accounts
306K
Previous year: 280K
+9.3%
Dollar-Based Net Expansion Rate
101%
Previous year: 122%
-17.2%
Gross Profit
$516M
Previous year: $462M
+11.7%
Cash and Equivalents
$678M
Previous year: $633M
+7.1%
Free Cash Flow
$267M
Previous year: -$134M
-299.9%
Total Assets
$11.9B
Previous year: $12.6B
-6.0%

Twilio

Twilio

Forward Guidance

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.

Positive Outlook

  • Q4 FY23 Revenue (millions): $1,030 - $1,040
  • Q4 FY23 Y/Y Revenue Growth: 1% - 2%
  • Q4 FY23 Y/Y Organic Revenue Growth: 4% - 5%
  • Q4 FY23 Non-GAAP income from operations (millions): $115 - $125
  • Q4 FY23 Non-GAAP diluted earnings per share: $0.53 - $0.57