Twilio
🇺🇸 NYSE:TWLO
•
Dec 31, 2024
Twilio Q4 2024 Earnings Report
Twilio reported strong revenue growth and achieved its first-ever GAAP operating profit.
Key Takeaways
Twilio delivered 11% YoY revenue growth in Q4 2024, reaching $1.19 billion. The company achieved its first-ever GAAP operating profit at $13.7 million, while non-GAAP EPS increased to $1.00. Strong performance in Communications revenue offset a slight decline in the Segment business.
Twilio achieved its first-ever GAAP operating profit of $13.7 million.
Revenue grew 11% YoY, driven by a 12% increase in Communications revenue.
Non-GAAP EPS rose to $1.00, up from $0.86 in Q4 2023.
The company generated $93.5 million in free cash flow.
Twilio Revenue
Twilio EPS
Twilio Revenue by Segment
Forward Guidance
Twilio expects revenue growth of 8-9% in Q1 2025, with strong non-GAAP operating income and cash flow projections.
Positive Outlook
- Q1 2025 revenue guidance of $1.13B - $1.14B (+8% to +9% YoY).
- Non-GAAP income from operations expected to reach $180M - $190M.
- Strong free cash flow projection of $825M - $850M for FY 2025.
- Continued focus on cost efficiencies and operational discipline.
- Ongoing investment in AI and customer engagement solutions to drive growth.
Challenges Ahead
- Segment revenue declined 1% YoY, showing weakness in the customer data platform business.
- Bad debt expenses of $16.8M due to payment issues from a key Brazilian customer.
- Cash and cash equivalents decreased from $656M to $421M YoY.
- Slight decline in gross margin from 52.4% to 52.0%.
- Macroeconomic conditions may impact enterprise customer spending in 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income