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Dec 31, 2022

Twilio Q4 2022 Earnings Report

Reported revenue growth and organizational restructuring.

Key Takeaways

Twilio announced Q4 2022 results with revenue of $1.02 billion, up 22% year-over-year. The company is undergoing organizational changes including a workforce reduction of 17% and moving to a business unit structure.

Q4 revenue reached $1.02 billion, a 22% increase year-over-year.

GAAP loss from operations was $218.6 million, an improvement from $283.6 million in Q4 2021.

Non-GAAP income from operations was $32.9 million, compared to a non-GAAP loss of $27.2 million in Q4 2021.

The company authorized a $1.0 billion share repurchase program.

Total Revenue
$1.03B
Previous year: $843M
+21.6%
EPS
$0.22
Previous year: -$0.2
-210.0%
Active Customer Accounts
290K
Previous year: 256K
+13.3%
Dollar-Based Net Expansion Rate
110%
Previous year: 126%
-12.7%
Gross Profit
$481M
Previous year: $397M
+21.3%
Cash and Equivalents
$652M
Previous year: $1.48B
-55.9%
Total Assets
$12.6B
Previous year: $13B
-3.3%

Twilio

Twilio

Forward Guidance

Twilio is initiating guidance for the first quarter ending March 31, 2023 and fiscal year 2023.

Positive Outlook

  • Q1 FY23 Revenue (millions): $995 - $1,005
  • Q1 FY23 Y/Y Growth: 14% - 15%
  • Q1 FY23 Organic Y/Y Growth: 13% - 14%
  • Q1 FY23 Non-GAAP profit from operations (millions): $45 - $55
  • Q1 FY23 Non-GAAP profit per share: $0.18 - $0.22

Challenges Ahead

  • FY23 Non-GAAP profit from operations (millions): $250 - $350
  • Includes an estimated $10 million one-time, non-cash benefit for termination of the employee sabbatical program.
  • Non-GAAP profit per share guidance assumes no impact from volatility of foreign exchange rates.
  • Workforce reduction of approximately 17%.
  • Pursue further expense rationalization.