Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37806 | |
Entity Registrant Name | TWILIO INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2574840 | |
Entity Address, Address Line One | 101 Spear Street | |
Entity Address, Address Line Two | First Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 390-2337 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | TWLO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001447669 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Common Stock Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 171,861,852 | |
Common Stock Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 9,817,605 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,617,022 | $ 1,479,452 |
Short-term marketable securities | 3,606,290 | 3,878,430 |
Accounts receivable, net | 406,736 | 388,215 |
Prepaid expenses and other current assets | 201,142 | 186,131 |
Total current assets | 5,831,190 | 5,932,228 |
Property and equipment, net | 259,003 | 255,316 |
Operating right-of-use assets | 225,951 | 234,584 |
Intangible assets, net | 1,006,692 | 1,050,012 |
Goodwill | 5,286,683 | 5,263,166 |
Other long-term assets | 281,283 | 263,292 |
Total assets | 12,890,802 | 12,998,598 |
Current liabilities: | ||
Accounts payable | 93,389 | 93,333 |
Accrued expenses and other current liabilities | 433,668 | 417,503 |
Deferred revenue and customer deposits | 139,671 | 140,389 |
Operating lease liability, current | 53,094 | 52,325 |
Total current liabilities | 719,822 | 703,550 |
Operating lease liability, noncurrent | 201,354 | 211,253 |
Finance lease liability, noncurrent | 22,053 | 25,132 |
Long-term debt, net | 986,243 | 985,907 |
Other long-term liabilities | 43,897 | 41,290 |
Total liabilities | 1,973,369 | 1,967,132 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Class A and Class B common stock | 181 | 180 |
Additional paid-in capital | 13,343,554 | 13,169,118 |
Accumulated other comprehensive loss | (84,984) | (18,141) |
Accumulated deficit | (2,341,318) | (2,119,691) |
Total stockholders’ equity | 10,917,433 | 11,031,466 |
Total liabilities and stockholders’ equity | $ 12,890,802 | $ 12,998,598 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 875,363 | $ 589,988 |
Cost of revenue | 450,292 | 291,684 |
Gross profit | 425,071 | 298,304 |
Operating expenses: | ||
Research and development | 240,611 | 174,800 |
Sales and marketing | 287,906 | 210,590 |
General and administrative | 114,362 | 110,253 |
Total operating expenses | 642,879 | 495,643 |
Loss from operations | (217,808) | (197,339) |
Other expenses, net | (6,677) | (8,313) |
Loss before benefit from (provision for) income taxes | (224,485) | (205,652) |
Benefit from (provision for) income taxes | 2,858 | (890) |
Net loss attributable to common stockholders | $ (221,627) | $ (206,542) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (1.23) | $ (1.24) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (1.23) | $ (1.24) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 180,898,713 | 167,160,458 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 180,898,713 | 167,160,458 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (221,627) | $ (206,542) |
Other comprehensive loss: | ||
Unrealized loss on marketable securities | (62,826) | (4,176) |
Foreign currency translation | (165) | (210) |
Net change in market value of effective foreign currency forward exchange contracts | (3,852) | 0 |
Total other comprehensive loss | (66,843) | (4,386) |
Comprehensive loss attributable to common stockholders | $ (288,470) | $ (210,928) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($) $ in Thousands | Total | Common StockCommon Stock Class A | Common StockCommon Stock Class B | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2020 | 153,496,222 | 10,551,302 | ||||
Balance at Dec. 31, 2020 | $ 8,452,665 | $ 151 | $ 13 | $ 9,613,246 | $ 9,046 | $ (1,169,791) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (206,542) | (206,542) | ||||
Exercises of vested stock options (in shares) | 248,008 | 211,371 | ||||
Exercises of vested stock options | 11,564 | 11,564 | ||||
Vesting of restricted stock units (in shares) | 913,966 | |||||
Vesting of restricted stock units | $ 1 | (1) | ||||
Value of equity awards withheld for tax liability (in shares) | (6,989) | |||||
Value of equity awards withheld for tax liability | (2,774) | (2,774) | ||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 419,371 | (419,371) | ||||
Equity component from partial settlement of 2023 convertible senior notes (in shares) | 1,158,381 | |||||
Equity component from partial settlement of 2023 convertible senior notes | 80,049 | $ 2 | 80,047 | |||
Shares of Class A common stock donated to charity (in shares) | 22,102 | |||||
Shares of Class A common stock donated to charity | 9,405 | 9,405 | ||||
Issuance of common stock in connection with a follow-on public offering, net of underwriter discounts (in shares) | 4,312,500 | |||||
Issuance of common stock in connection with a follow-on public offering, net of underwriter discounts | 1,766,400 | $ 4 | 1,766,396 | |||
Costs related to the follow-on public offering | (727) | (727) | ||||
Issuance of restricted stock awards (in shares) | 24,697 | |||||
Unrealized loss on marketable securities | (4,176) | (4,176) | ||||
Foreign currency translation | (210) | (210) | ||||
Net change in market value of effective foreign currency forward exchange contracts | 0 | |||||
Stock-based compensation | 141,542 | 141,542 | ||||
Balance (in shares) at Mar. 31, 2021 | 160,588,258 | 10,343,302 | ||||
Balance at Mar. 31, 2021 | 10,247,196 | $ 158 | $ 13 | 11,618,698 | 4,660 | (1,376,333) |
Balance (in shares) at Dec. 31, 2021 | 170,625,994 | 9,842,105 | ||||
Balance at Dec. 31, 2021 | 11,031,466 | $ 168 | $ 12 | 13,169,118 | (18,141) | (2,119,691) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (221,627) | (221,627) | ||||
Exercises of vested stock options (in shares) | 180,643 | 193,889 | ||||
Exercises of vested stock options | 11,727 | 11,727 | ||||
Vesting of restricted stock units (in shares) | 877,089 | |||||
Vesting of restricted stock units | $ 1 | (1) | ||||
Value of equity awards withheld for tax liability (in shares) | (5,804) | |||||
Value of equity awards withheld for tax liability | (1,065) | (1,065) | ||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 215,389 | (215,389) | ||||
Shares of Class A common stock donated to charity (in shares) | 22,102 | |||||
Shares of Class A common stock donated to charity | 4,232 | 4,232 | ||||
Shares returned from escrow (in shares) | (152,239) | |||||
Shares returned from escrow | (387) | (387) | ||||
Unrealized loss on marketable securities | (62,826) | (62,826) | ||||
Foreign currency translation | (165) | (165) | ||||
Net change in market value of effective foreign currency forward exchange contracts | (3,852) | (3,852) | ||||
Stock-based compensation | 159,930 | 159,930 | ||||
Balance (in shares) at Mar. 31, 2022 | 171,763,174 | 9,820,605 | ||||
Balance at Mar. 31, 2022 | $ 10,917,433 | $ 169 | $ 12 | $ 13,343,554 | $ (84,984) | $ (2,341,318) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (221,627) | $ (206,542) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 68,103 | 59,592 |
Non-cash reduction to the right-of-use asset | 12,415 | 11,711 |
Net amortization of investment premium and discount | 10,712 | 4,240 |
Amortization of debt discount and issuance costs | 338 | 3,373 |
Stock-based compensation | 155,275 | 137,155 |
Amortization of deferred commissions | 12,626 | 5,630 |
Allowance for credit losses | 2,558 | 1,985 |
Value of shares of Class A common stock donated to charity | 4,232 | 9,405 |
Loss on extinguishment of debt | 0 | 7,602 |
Other adjustments | (1,478) | 3,089 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (19,623) | 5,565 |
Prepaid expenses and other current assets | (14,176) | (29,912) |
Other long-term assets | (27,399) | (15,232) |
Accounts payable | 1,247 | (10,275) |
Accrued expenses and other current liabilities | 18,148 | 28,307 |
Deferred revenue and customer deposits | (1,453) | 3,435 |
Operating lease liabilities | (13,058) | (12,053) |
Other long-term liabilities | (4,415) | (2,570) |
Net cash (used in) provided by operating activities | (17,575) | 4,505 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions, net of cash acquired and other related payments | (27,682) | (66,926) |
Purchases of marketable securities and other investments | (246,874) | (1,640,499) |
Proceeds from sales and maturities of marketable securities | 442,753 | 356,824 |
Capitalized software development costs | (10,250) | (10,434) |
Purchases of long-lived and intangible assets | (6,980) | (4,986) |
Net cash provided by (used in) investing activities | 150,967 | (1,366,021) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from public offerings, net of underwriters' discount and issuance costs | 0 | 1,766,400 |
Payments of costs related to public offerings | (35) | (360) |
Proceeds from issuance of senior notes due 2029 and 2031 | 0 | 987,500 |
Payment of debt issuance costs | 0 | (130) |
Principal payments on debt and finance leases | (6,520) | (2,751) |
Value of equity awards withheld for tax liabilities | (1,065) | (2,774) |
Proceeds from exercises of stock options | 11,727 | 11,564 |
Net cash provided by financing activities | 4,107 | 2,759,449 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 27 | (44) |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 137,526 | 1,397,889 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 1,481,831 | 933,885 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | 1,619,357 | 2,331,774 |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for income taxes, net | 1,443 | 1,252 |
Cash paid for interest | 19,011 | 263 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Purchases of property and equipment through finance leases | 0 | 5,266 |
Value of common stock issued to settle convertible senior notes due 2023 | 0 | 422,716 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS | ||
Cash and cash equivalents | 1,617,022 | 2,331,774 |
Restricted cash in other current assets | 1,970 | 0 |
Restricted cash in other long-term assets | 365 | 0 |
Total cash, cash equivalents and restricted cash | $ 1,619,357 | $ 2,331,774 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Twilio Inc. (the “Company”) was incorporated in the state of Delaware on March 13, 2008. The Company is the leading cloud communications platform and enables developers to build, scale and operate real-time customer engagement within their software applications via simple-to-use Application Programming Interfaces (“API”). The power, flexibility, and reliability offered by the Company’s software building blocks empower entities of virtually every shape and size to build world-class engagement into their customer experience. The Company’s headquarters are located in San Francisco, California, and the Company has subsidiaries across North America, South America, Europe, Asia and Australia. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2022 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements as of that date, but may not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2022 or any future period. (b) Principles of Consolidation The condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair value of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. (d) Remaining Performance Obligations Revenue allocated to remaining performance obligations for contracts with durations of more than one year was $152.7 million as of March 31, 2022, of which 67% is expected to be recognized over the next 12 months and 94% is expected to be recognized over the next 24 months. (e) Deferred Revenue and Customer Deposits As of March 31, 2022 and December 31, 2021, the Company recorded $140.4 million and $141.5 million as its deferred revenue and customer deposits, respectively, that are included in deferred revenue and customer deposits and other long-term liabilities in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2022 and 2021, the Company recognized $64.9 million and $27.8 million of revenue, respectively, that was included in the deferred revenue and customer deposits balance as of the end of the previous year. (f) Deferred Sales Commissions Total net capitalized commission costs as of March 31, 2022 and December 31, 2021, were $196.4 million and $193.4 million, respectively, and are included in prepaid expenses and other current assets and other long‑term assets in the accompanying condensed consolidated balance sheets. (g) Concentration of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities and accounts receivable. The Company maintains cash, restricted cash, cash equivalents and marketable securities with financial institutions that management believes are financially sound and have minimal credit risk exposure although the balances will exceed insured limits. The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customer deteriorates substantially, operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of significant customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. During the three months ended March 31, 2022 and 2021, no customer organization accounted for more than 10% of the Company’s total revenue. As of March 31, 2022 and December 31, 2021, no customer organization represented more than 10% of the Company’s gross accounts receivable. (e) Changes to Significant Accounting Policies There have been no changes to the Company’s significant accounting policies as described in its Annual Report. (f) Recently Adopted Accounting Guidance In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets The following tables provide the financial assets measured at fair value on a recurring basis: Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 272,248 $ — $ — $ 272,248 $ — $ — $ 272,248 Reverse repurchase agreements 200,000 — — — 200,000 — 200,000 Commercial paper 24,900 — — — 24,900 — 24,900 Total included in cash and cash equivalents 497,148 — — 272,248 224,900 — 497,148 Marketable securities: U.S. Treasury securities 410,933 2 (9,694) 401,241 — — 401,241 Non-U.S. government securities 181,628 — (4,983) 176,645 — — 176,645 Corporate debt securities and commercial paper 3,095,397 180 (67,173) 11,000 3,017,404 — 3,028,404 Total marketable securities 3,687,958 182 (81,850) 588,886 3,017,404 — 3,606,290 Total financial assets $ 4,185,106 $ 182 $ (81,850) $ 861,134 $ 3,242,304 $ — $ 4,103,438 Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 786,548 $ — $ — $ 786,548 $ — $ — $ 786,548 Commercial paper 46,076 — — — 46,076 — 46,076 Total included in cash and cash equivalents 832,624 — — 786,548 46,076 — 832,624 Marketable securities: U.S. Treasury securities 375,305 6 (2,561) 372,750 — — 372,750 Non-U.S. government securities 221,641 — (1,355) 220,286 — — 220,286 Corporate debt securities and commercial paper 3,300,326 960 (15,892) 31,000 3,254,394 — 3,285,394 Total marketable securities 3,897,272 966 (19,808) 624,036 3,254,394 — 3,878,430 Total financial assets $ 4,729,896 $ 966 $ (19,808) $ 1,410,584 $ 3,300,470 $ — $ 4,711,054 The Company's primary objective when investing excess cash is preservation of capital, hence the Company's marketable securities primarily consist of U.S. Treasury Securities, non-U.S government securities, high credit quality corporate debt securities and commercial paper. As the Company views its marketable securities as available to support current operations, it has classified all available for sale securities as short-term. As of March 31, 2022 and 2021, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of March 31, 2022 and 2021, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities before maturity. Interest earned on marketable securities was $15.6 million and $3.9 million in the three months ended March 31, 2022 and 2021, respectively. The interest is recorded as other expenses, net, in the accompanying condensed consolidated statements of operations. The following table summarizes the contractual maturities of marketable securities: As of March 31, 2022 As of December 31, 2021 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,066,875 $ 1,061,276 $ 1,084,751 $ 1,085,006 One to three years 2,621,083 2,545,014 2,812,521 2,793,424 Total $ 3,687,958 $ 3,606,290 $ 3,897,272 $ 3,878,430 Strategic Investments As of March 31, 2022 and December 31, 2021, the Company held strategic investments with a carrying value of $69.3 million and $68.3 million, respectively, recorded as other long-term assets in the accompanying condensed consolidated balance sheets. The carrying value of these securities is determined under the measurement alternative on a non-recurring basis and adjusted for observable changes in fair value. There were no impairments or other adjustments recorded in the three months ended March 31, 2022 and 2021 related to these securities. Financial Liabilities The Company’s financial liabilities that are measured at fair value on a recurring basis consist of foreign currency derivative liabilities and are classified as Level 2 financial instruments in the fair value hierarchy. As of March 31, 2022 and December 31, 2021, the aggregate fair value of these instruments and the associated gross unrealized losses were not significant. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of March 31, 2022 As of December 31, 2021 (In thousands) Capitalized internal-use software development costs $ 213,309 $ 198,589 Data center equipment (1) 78,210 77,946 Leasehold improvements 87,600 85,297 Office equipment 61,063 58,636 Furniture and fixtures 15,591 15,360 Software 10,731 10,506 Total property and equipment 466,504 446,334 Less: accumulated depreciation and amortization (1) (207,501) (191,018) Total property and equipment, net $ 259,003 $ 255,316 ____________________________________ ( 1 ) Data center equipment contains $63.0 million in assets held under finance leases as of each March 31, 2022, and December 31, 2021 . Accumulated depreciation and amortization contains $30.1 million and $26.8 million in accumulated amortization for assets held under finance leases as of March 31, 2022, and December 31, 2021, respectively. Depreciation and amortization expense was $16.6 million and $14.4 million in the three months ended March 31, 2022 and 2021, respectively. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging As of March 31, 2022, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $324.9 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of March 31, 2022, these contracts had maturities of less than 9 months. Gains and losses associated with these foreign currency forward contracts were as follows: Consolidated Statement of Operations and Statement of Comprehensive Loss Three Months Ended March 31, 2022 2021 (In thousands) Losses recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 3,852 $ — Losses recognized in income due to instruments maturing Cost of revenue $ 1,597 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During 2022, the Company completed a business combination for an aggregate accounting purchase price of $32.7 million, of which $25.7 million was allocated to goodwill and $8.2 million was allocated to intangible assets. Goodwill The goodwill balance as of March 31, 2022 and December 31, 2021 was as follows: Total (In thousands) Balance as of December 31, 2021 $ 5,263,166 Goodwill additions and adjustments 23,517 Balance as of March 31, 2022 $ 5,286,683 Intangible assets Intangible assets consisted of the following: As of March 31, 2022 Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 796,231 $ (251,248) $ 544,983 Customer relationships 539,264 (147,028) 392,236 Supplier relationships 57,471 (11,915) 45,556 Trade names 30,669 (15,442) 15,227 Order backlog 10,000 (10,000) — Patent 4,028 (553) 3,475 Total amortizable intangible assets 1,437,663 (436,186) 1,001,477 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,442,878 $ (436,186) $ 1,006,692 As of December 31, 2021 Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 794,831 $ (222,765) $ 572,066 Customer relationships 538,264 (128,035) 410,229 Supplier relationships 51,671 (9,491) 42,180 Trade names 30,669 (13,874) 16,795 Order backlog 10,000 (10,000) — Patent 4,035 (508) 3,527 Total amortizable intangible assets 1,429,470 (384,673) 1,044,797 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,434,685 $ (384,673) $ 1,050,012 Amortization expense was $51.5 million and $45.2 million for the three months ended March 31, 2022 and 2021, respectively. Total estimated future amortization expense is as follows: As of March 31, 2022 Year Ended December 31, (In thousands) 2022 (remaining nine months) $ 154,826 2023 203,128 2024 197,693 2025 194,119 2026 120,493 Thereafter 131,218 Total $ 1,001,477 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of March 31, 2022 As of December 31, 2021 (In thousands) Accrued payroll and related $ 84,255 $ 78,780 Accrued bonus and commission 30,533 64,665 Accrued cost of revenue 153,571 118,004 Sales and other taxes payable 67,123 61,975 ESPP contributions 26,181 10,284 Finance lease liability, current 12,254 12,370 Accrued other expense 59,751 71,425 Total accrued expenses and other current liabilities $ 433,668 $ 417,503 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2022 | |
Long-term Debt, Unclassified [Abstract] | |
Notes Payable | Notes Payable Long-term debt, net, consisted of the following: As of March 31, 2022 As of December 31, 2021 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (5,529) (5,701) Unamortized issuance costs (1,244) (1,286) Net carrying amount 493,227 493,013 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,701) (5,832) Unamortized issuance costs (1,283) (1,274) Net carrying amount 493,016 492,894 Total long-term debt, net $ 986,243 $ 985,907 |
Revenue by Geographic Area
Revenue by Geographic Area | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Geographic Area | Revenue by Geographic Area Revenue by geographic area is based on the IP address or the mailing address at the time of registration. The following table sets forth revenue by geographic area: Three Months Ended March 31, 2022 2021 Revenue by geographic area: (In thousands) United States $ 570,380 $ 421,531 International 304,983 168,457 Total $ 875,363 $ 589,988 Percentage of revenue by geographic area: United States 65 % 71 % International 35 % 29 % Long-lived assets outside of the United States were not significant. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesLease and Other Commitments The Company has entered into various non-cancelable operating lease agreements for its facilities. In the three months ended March 31, 2022, the Company did not enter into any significant new lease agreements. Additionally, the Company has non-cancelable contractual commitments with its cloud infrastructure provider, network service providers and other vendors. In the three months ended March 31, 2022, the Company entered into several such agreements with terms up to three years for a total purchase commitment of $30.2 million. In February 2021, the Company entered into a Framework Agreement, as subsequently amended, with Syniverse Corporation (“Syniverse”) and Carlyle Partners V Holdings, L.P. (“Carlyle”) (the “Framework Agreement”), pursuant to which Syniverse would issue to the Company shares of Syniverse common stock in consideration for an investment by the Company of $500.0 million to $750.0 million. In August 2021, Syniverse entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Blue Steel Merger Sub Inc. (the “Merger Sub”) and M-3 Brigade Acquisition II Corp. (“MBAC”), which would result in Syniverse being a wholly owned subsidiary of MBAC (the “Merger”). Concurrently, the Company and MBAC entered into the Twilio Subscription Agreement (the “Subscription Agreement”), pursuant to which the Company agreed, subject to the terms and conditions set forth therein, to subscribe for and purchase, and MBAC agreed to issue and sell to the Company, immediately prior to the closing of the Merger, shares of Class A common stock and, if applicable, shares of Class C common stock for an aggregate amount of $500.0 million to $750.0 million, depending on redemptions by MBAC’s shareholders. In connection with the closing of the investment, the Company and Syniverse (or their respective subsidiaries) would enter into a wholesale agreement. In February 2022, Syniverse, MBAC and the Merger Sub mutually terminated the Merger Agreement and the related proposed Merger. The parties agreed to this termination because t he rate of MBAC shareholder redemptions for the proposed transaction would have left MBAC with insufficient funds to meet the minimum cash condition for closing, which occurred as a result of the recent changes in market conditions. Consequently, the Company will not be purchasing any shares of common stock of, or making any investments in, MBAC. Notwithstanding the above, the Framework Agreement between the Company, Syniverse and Carlyle remains in full force and effect. Pursuant to the terms and subject to the closing conditions set forth in the Framework Agreement, the parties are pursuing the alternative transaction, whereby the Company will make a minority investment of $500.0 million to $750.0 million in Syniverse and the parties (or their applicable subsidiaries) will enter into a wholesale agreement. The transaction is expected to close in 2022. The City and County of San Francisco (“San Francisco”) has assessed the Company for additional Telephone Users Tax (“TUT”) and Access Line Tax (“ALT”) on certain of the Company’s services for the years 2009 through 2018. The assessments totaled $38.8 million, including interest and penalties. The Company paid the assessments under protest in the third quarter of 2020. On May 27, 2021, the Company filed a lawsuit against San Francisco in San Francisco Superior Court challenging the assessments. The Company raised numerous defenses to the assessments including that its services are not telecommunications services, application of the taxes to Twilio’s services violates the Internet Tax Freedom Act and San Francisco does not have jurisdiction to impose tax on services provided outside of San Francisco. The Company is seeking refunds of the taxes paid, waivers of interest and penalties, cost of suit and reasonable attorneys’ fees, and other legal and equitable relief as the court deems appropriate. A trial date has been set for March 6, 2023. The Company believes it has strong arguments against the assessments, but litigation is uncertain and there is no assurance that it will prevail in court. Should the Company lose on one or more of its arguments, it could incur additional losses associated with taxes, interest, and penalties that together, in aggregate, could be material. The Company regularly assesses the likelihood of adverse outcomes resulting from tax disputes such as this and examines all open years to determine the necessity and adequacy of any tax reserves. The Company’s tax reserves are further discussed in Note 10(d) of these condensed consolidated financial statements. In addition to the litigation discussed above, from time to time, the Company may be subject to legal actions and claims in the ordinary course of business. The Company has received, and may in the future continue to receive, claims from third parties asserting, among other things, infringement of their intellectual property rights. Future litigation may be necessary to defend the Company, its partners and its customers by determining the scope, enforceability and validity of third‑party proprietary rights, or to establish our proprietary rights. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. Legal fees and other costs related to litigation and other legal proceedings are expensed as incurred and are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The Company has signed indemnification agreements with all of its board members and executive officers. The agreements indemnify the board members and executive officers from claims and expenses on actions brought against the individuals separately or jointly with the Company for certain indemnifiable events. Indemnifiable events generally mean any event or occurrence related to the fact that the board member or the executive officer was or is acting in his or her capacity as a board member or an executive officer for the Company or was or is acting or representing the interests of the Company. In the ordinary course of business and in connection with our financing and business combinations transactions, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to business partners, customers and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties and other liabilities relating to or arising from the Company’s various products, or its acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments. The terms of such obligations may vary. As of March 31, 2022 and December 31, 2021, no amounts were accrued related to any outstanding indemnification agreements. The Company conducts operations in many tax jurisdictions within and outside the United States. In many of these jurisdictions, non-income-based taxes, such as sales, use, telecommunications, and other local taxes are assessed on the Company’s operations. In the last several years the Company has expanded to collect taxes in most jurisdictions where it operates. The Company continues to carry reserves for certain of its prior non-income-based tax exposures in certain jurisdictions when it is both probable that a liability was incurred and the amount of the exposure could be reasonably estimated. These reserves are based on estimates which include several key assumptions including, but not limited to, the taxability of the Company’s services, the jurisdictions in which its management believes it had nexus and the sourcing of revenues to those jurisdictions. The Company continues to remain in discussions with certain jurisdictions regarding its prior sales and other taxes that it may owe. In the event any of these jurisdictions disagree with management’s assumptions and analysis, the assessment of the Company’s tax exposure could differ materially from management’s current estimates. For example, as described in Note 10(b), the Company is currently involved in legal proceedings with San Francisco City and County challenging their assessment of the Company’s estimated tax liability for a specific period. The $38.8 million assessment of taxes, including interest and penalties, that the Company paid as required in 2020, net of the $11.5 million reserve the Company had accrued for the same period, was recorded as a deposit in other assets in the accompanying condensed consolidated balance sheets. As of March 31, 2022, the liabilities recorded for these taxes were $26.5 million for domestic jurisdictions and $18.5 million for jurisdictions outside of the United States. As of December 31, 2021, these liabilities were $25.4 million and $17.7 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock As of March 31, 2022 and December 31, 2021, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001, of which no shares were issued and outstanding. Common Stock As of March 31, 2022 and December 31, 2021, the Company had authorized 1,000,000,000 shares of Class A common stock and 100,000,000 shares of Class B common stock, each par value of $0.001 per share. As of March 31, 2022, 171,763,174 shares of Class A common stock and 9,820,605 shares of Class B common stock were issued and outstanding. As of December 31, 2021, 170,625,994 shares of Class A common stock and 9,842,105 shares of Class B common stock were issued and outstanding. The Company had reserved shares of common stock for issuance as follows: As of March 31, 2022 As of December 31, 2021 Stock options issued and outstanding 2,709,573 3,351,313 Unvested restricted stock units issued and outstanding 7,745,115 6,475,700 Class A common stock reserved for Twilio.org 596,755 618,857 Stock-based awards available for grant under 2016 Plan 30,763,355 24,650,104 Stock-based awards available for grant under ESPP 8,182,830 6,382,830 Total 49,997,628 41,478,804 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2016 Stock Option and Incentive Plan (the “2016 Plan”) provides for granting stock options, restricted stock units (“RSU”), restricted stock awards (“RSA”), stock appreciation rights, unrestricted stock awards, performance share awards, dividend equivalent rights and cash-based awards to its employees, directors and consultants. Certain of the Company’s outstanding equity awards were granted under equity incentive plans that are no longer active but continue to govern the outstanding equity awards granted thereunder. The Company also offers an Employee Stock Purchase Plan (“ESPP”) to eligible employees. The ESPP provides for separate six-month offering periods beginning in May and November of each year. In March 2022, the Company granted 919,289 shares of performance-based restricted stock unit awards to its executive employees with a grant date fair value per share of $157.44 and an aggregate grant date fair value of $144.7 million. Each award consists of three tranches each of which will vest over a separate service period if its respective performance targets, as defined in the grant agreements, are achieved. The first tranche will vest if the revenue growth targets are achieved with respect to fiscal year 2022. The second and third tranches will vest if both (a) revenue growth targets are achieved with respect to fiscal years 2023 and 2024, and (b) profitability targets are achieved in each year. If performance targets are not achieved with respect to a particular fiscal year, the related tranche will be forfeited. Vesting of these performance-based restricted stock unit awards will range up to 100% above the target based on levels of performance and will be recorded in stock-based compensation expense in the fiscal year during which each tranche vests. The Company estimated the fair value of these awards based on the closing price of its Class A common stock on the date of grant. As of March 31, 2022, total unrecognized compensation cost was as follows: Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 99,727 2.1 Unvested restricted stock units and awards 1,591,704 3.1 ESPP 2,612 0.1 Class A shares in escrow subject to future vesting 17,027 2.3 Total $ 1,711,070 Stock-Based Compensation Expense The Company recorded total stock-based compensation expense as follows: Three Months Ended March 31, 2022 2021 (In thousands) Cost of revenue $ 4,521 $ 2,717 Research and development 79,369 56,959 Sales and marketing 47,586 41,636 General and administrative 23,799 35,843 Total $ 155,275 $ 137,155 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Basic and diluted net loss per common share is presented in conformity with the two-class method required for participating securities and is described in detail in the Company’s Annual Report. The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Three Months Ended March 31, 2022 2021 Net loss attributable to common stockholders (in thousands) $ (221,627) $ (206,542) Weighted-average shares used to compute net loss per share attributable to 180,898,713 167,160,458 Net loss per share attributable to common stockholders, basic and diluted $ (1.23) $ (1.24) The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of March 31, 2022 2021 Stock options issued and outstanding 2,709,573 5,216,385 Unvested restricted stock units issued and outstanding 7,745,115 6,758,222 Class A common stock reserved for Twilio.org 596,755 685,163 Class A common stock committed under ESPP 147,947 101,030 Convertible Notes (1) — 3,689,177 Class A common stock in escrow 31,503 75,612 Class A common stock in escrow and restricted stock awards subject to future vesting 76,080 289,618 Total 11,306,973 16,815,207 ____________________________________ |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its provision for interim periods by applying an estimated annual effective tax rate to anticipated annual pretax income or loss. The estimated annual effective tax rate is applied to the Company’s year to date income or loss, and is adjusted for discrete items recorded in the period. The Company recorded an income tax benefit of $2.9 million and an income tax provision of $0.9 million for the three months ended March 31, 2022 and 2021, respectively. The benefit for income taxes recorded in the three months ended March 31, 2022 consists primarily of a release of the valuation allowance related to intangible assets acquired in a current year business combination, offset by withholding taxes in foreign jurisdictions in which the Company conducts business. The provision for income taxes recorded in the three months ended March 31, 2021 consists primarily of income taxes and withholding taxes in foreign jurisdictions in which the Company conducts business, partially offset by an income tax benefit from the reversal of U.S. deferred tax liabilities related to acquired intangibles from prior year business combinations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2022 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements as of that date, but may not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2022 or any future period. |
Principles of Consolidation | Principles of ConsolidationThe condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair value of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities and accounts receivable. The Company maintains cash, restricted cash, cash equivalents and marketable securities with financial institutions that management believes are financially sound and have minimal credit risk exposure although the balances will exceed insured limits.The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customer deteriorates substantially, operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of significant customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following tables provide the financial assets measured at fair value on a recurring basis: Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 272,248 $ — $ — $ 272,248 $ — $ — $ 272,248 Reverse repurchase agreements 200,000 — — — 200,000 — 200,000 Commercial paper 24,900 — — — 24,900 — 24,900 Total included in cash and cash equivalents 497,148 — — 272,248 224,900 — 497,148 Marketable securities: U.S. Treasury securities 410,933 2 (9,694) 401,241 — — 401,241 Non-U.S. government securities 181,628 — (4,983) 176,645 — — 176,645 Corporate debt securities and commercial paper 3,095,397 180 (67,173) 11,000 3,017,404 — 3,028,404 Total marketable securities 3,687,958 182 (81,850) 588,886 3,017,404 — 3,606,290 Total financial assets $ 4,185,106 $ 182 $ (81,850) $ 861,134 $ 3,242,304 $ — $ 4,103,438 Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 786,548 $ — $ — $ 786,548 $ — $ — $ 786,548 Commercial paper 46,076 — — — 46,076 — 46,076 Total included in cash and cash equivalents 832,624 — — 786,548 46,076 — 832,624 Marketable securities: U.S. Treasury securities 375,305 6 (2,561) 372,750 — — 372,750 Non-U.S. government securities 221,641 — (1,355) 220,286 — — 220,286 Corporate debt securities and commercial paper 3,300,326 960 (15,892) 31,000 3,254,394 — 3,285,394 Total marketable securities 3,897,272 966 (19,808) 624,036 3,254,394 — 3,878,430 Total financial assets $ 4,729,896 $ 966 $ (19,808) $ 1,410,584 $ 3,300,470 $ — $ 4,711,054 |
Schedule of contractual maturities of marketable securities | The following table summarizes the contractual maturities of marketable securities: As of March 31, 2022 As of December 31, 2021 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,066,875 $ 1,061,276 $ 1,084,751 $ 1,085,006 One to three years 2,621,083 2,545,014 2,812,521 2,793,424 Total $ 3,687,958 $ 3,606,290 $ 3,897,272 $ 3,878,430 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of March 31, 2022 As of December 31, 2021 (In thousands) Capitalized internal-use software development costs $ 213,309 $ 198,589 Data center equipment (1) 78,210 77,946 Leasehold improvements 87,600 85,297 Office equipment 61,063 58,636 Furniture and fixtures 15,591 15,360 Software 10,731 10,506 Total property and equipment 466,504 446,334 Less: accumulated depreciation and amortization (1) (207,501) (191,018) Total property and equipment, net $ 259,003 $ 255,316 ____________________________________ ( 1 ) Data center equipment contains $63.0 million in assets held under finance leases as of each March 31, 2022, and December 31, 2021 . Accumulated depreciation and amortization contains $30.1 million and $26.8 million in accumulated amortization for assets held under finance leases as of March 31, 2022, and December 31, 2021, respectively. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | Gains and losses associated with these foreign currency forward contracts were as follows: Consolidated Statement of Operations and Statement of Comprehensive Loss Three Months Ended March 31, 2022 2021 (In thousands) Losses recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 3,852 $ — Losses recognized in income due to instruments maturing Cost of revenue $ 1,597 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill balance | The goodwill balance as of March 31, 2022 and December 31, 2021 was as follows: Total (In thousands) Balance as of December 31, 2021 $ 5,263,166 Goodwill additions and adjustments 23,517 Balance as of March 31, 2022 $ 5,286,683 |
Schedule of intangible assets | Intangible assets consisted of the following: As of March 31, 2022 Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 796,231 $ (251,248) $ 544,983 Customer relationships 539,264 (147,028) 392,236 Supplier relationships 57,471 (11,915) 45,556 Trade names 30,669 (15,442) 15,227 Order backlog 10,000 (10,000) — Patent 4,028 (553) 3,475 Total amortizable intangible assets 1,437,663 (436,186) 1,001,477 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,442,878 $ (436,186) $ 1,006,692 As of December 31, 2021 Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 794,831 $ (222,765) $ 572,066 Customer relationships 538,264 (128,035) 410,229 Supplier relationships 51,671 (9,491) 42,180 Trade names 30,669 (13,874) 16,795 Order backlog 10,000 (10,000) — Patent 4,035 (508) 3,527 Total amortizable intangible assets 1,429,470 (384,673) 1,044,797 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,434,685 $ (384,673) $ 1,050,012 |
Schedule of total estimated future amortization expense | Total estimated future amortization expense is as follows: As of March 31, 2022 Year Ended December 31, (In thousands) 2022 (remaining nine months) $ 154,826 2023 203,128 2024 197,693 2025 194,119 2026 120,493 Thereafter 131,218 Total $ 1,001,477 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: As of March 31, 2022 As of December 31, 2021 (In thousands) Accrued payroll and related $ 84,255 $ 78,780 Accrued bonus and commission 30,533 64,665 Accrued cost of revenue 153,571 118,004 Sales and other taxes payable 67,123 61,975 ESPP contributions 26,181 10,284 Finance lease liability, current 12,254 12,370 Accrued other expense 59,751 71,425 Total accrued expenses and other current liabilities $ 433,668 $ 417,503 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term debt | Long-term debt, net, consisted of the following: As of March 31, 2022 As of December 31, 2021 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (5,529) (5,701) Unamortized issuance costs (1,244) (1,286) Net carrying amount 493,227 493,013 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,701) (5,832) Unamortized issuance costs (1,283) (1,274) Net carrying amount 493,016 492,894 Total long-term debt, net $ 986,243 $ 985,907 |
Revenue by Geographic Area (Tab
Revenue by Geographic Area (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by geographic area | Revenue by geographic area is based on the IP address or the mailing address at the time of registration. The following table sets forth revenue by geographic area: Three Months Ended March 31, 2022 2021 Revenue by geographic area: (In thousands) United States $ 570,380 $ 421,531 International 304,983 168,457 Total $ 875,363 $ 589,988 Percentage of revenue by geographic area: United States 65 % 71 % International 35 % 29 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of reserved shares of common stock for issuance | The Company had reserved shares of common stock for issuance as follows: As of March 31, 2022 As of December 31, 2021 Stock options issued and outstanding 2,709,573 3,351,313 Unvested restricted stock units issued and outstanding 7,745,115 6,475,700 Class A common stock reserved for Twilio.org 596,755 618,857 Stock-based awards available for grant under 2016 Plan 30,763,355 24,650,104 Stock-based awards available for grant under ESPP 8,182,830 6,382,830 Total 49,997,628 41,478,804 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of unrecognized compensation cost | As of March 31, 2022, total unrecognized compensation cost was as follows: Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 99,727 2.1 Unvested restricted stock units and awards 1,591,704 3.1 ESPP 2,612 0.1 Class A shares in escrow subject to future vesting 17,027 2.3 Total $ 1,711,070 |
Schedule of stock based compensation expense | The Company recorded total stock-based compensation expense as follows: Three Months Ended March 31, 2022 2021 (In thousands) Cost of revenue $ 4,521 $ 2,717 Research and development 79,369 56,959 Sales and marketing 47,586 41,636 General and administrative 23,799 35,843 Total $ 155,275 $ 137,155 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of the calculation of basic and diluted net loss per share attributable to common stockholders | The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Three Months Ended March 31, 2022 2021 Net loss attributable to common stockholders (in thousands) $ (221,627) $ (206,542) Weighted-average shares used to compute net loss per share attributable to 180,898,713 167,160,458 Net loss per share attributable to common stockholders, basic and diluted $ (1.23) $ (1.24) |
Schedule of common stock equivalents excluded from the computation of the diluted net loss per share attributable to common stockholders | The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of March 31, 2022 2021 Stock options issued and outstanding 2,709,573 5,216,385 Unvested restricted stock units issued and outstanding 7,745,115 6,758,222 Class A common stock reserved for Twilio.org 596,755 685,163 Class A common stock committed under ESPP 147,947 101,030 Convertible Notes (1) — 3,689,177 Class A common stock in escrow 31,503 75,612 Class A common stock in escrow and restricted stock awards subject to future vesting 76,080 289,618 Total 11,306,973 16,815,207 ____________________________________ |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Revenue, remaining performance obligation, amount | $ 152.7 | ||
Deferred revenue | 140.4 | $ 141.5 | |
Revenue recognized out of adjusted deferred revenue balance | 64.9 | $ 27.8 | |
Total net capitalized costs | $ 196.4 | $ 193.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Revenue, remaining performance obligation, percentage | 67.00% | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Revenue, remaining performance obligation, percentage | 94.00% | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | $ 497,148 | $ 832,624 |
Amortized Cost or Carrying Value | 3,687,958 | 3,897,272 |
Gross Unrealized Gains | 182 | 966 |
Gross Unrealized Losses | (81,850) | (19,808) |
Marketable securities, aggregate fair value | 3,606,290 | 3,878,430 |
Total financial assets | 4,185,106 | 4,729,896 |
Total financial assets | 4,103,438 | 4,711,054 |
Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 272,248 | 786,548 |
Marketable securities, aggregate fair value | 588,886 | 624,036 |
Total financial assets | 861,134 | 1,410,584 |
Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 224,900 | 46,076 |
Marketable securities, aggregate fair value | 3,017,404 | 3,254,394 |
Total financial assets | 3,242,304 | 3,300,470 |
Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 0 | 0 |
Marketable securities, aggregate fair value | 0 | 0 |
Total financial assets | 0 | 0 |
U.S. Treasury securities | ||
Fair Value Measurements, Financial Assets | ||
Amortized Cost or Carrying Value | 410,933 | 375,305 |
Gross Unrealized Gains | 2 | 6 |
Gross Unrealized Losses | (9,694) | (2,561) |
Marketable securities, aggregate fair value | 401,241 | 372,750 |
U.S. Treasury securities | Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 401,241 | 372,750 |
U.S. Treasury securities | Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 0 | 0 |
U.S. Treasury securities | Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 0 | 0 |
Non-U.S. government securities | ||
Fair Value Measurements, Financial Assets | ||
Amortized Cost or Carrying Value | 181,628 | 221,641 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (4,983) | (1,355) |
Marketable securities, aggregate fair value | 176,645 | 220,286 |
Non-U.S. government securities | Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 176,645 | 220,286 |
Non-U.S. government securities | Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 0 | 0 |
Non-U.S. government securities | Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 0 | 0 |
Corporate debt securities and commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Amortized Cost or Carrying Value | 3,095,397 | 3,300,326 |
Gross Unrealized Gains | 180 | 960 |
Gross Unrealized Losses | (67,173) | (15,892) |
Marketable securities, aggregate fair value | 3,028,404 | 3,285,394 |
Corporate debt securities and commercial paper | Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 11,000 | 31,000 |
Corporate debt securities and commercial paper | Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 3,017,404 | 3,254,394 |
Corporate debt securities and commercial paper | Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 0 | 0 |
Money market funds | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 272,248 | 786,548 |
Money market funds | Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 272,248 | 786,548 |
Money market funds | Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 0 | 0 |
Reverse repurchase agreements | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 200,000 | |
Reverse repurchase agreements | Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 0 | |
Reverse repurchase agreements | Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 200,000 | |
Reverse repurchase agreements | Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 0 | |
Commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 24,900 | 46,076 |
Commercial paper | Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 24,900 | 46,076 |
Commercial paper | Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest earned on marketable securities | $ 15,600,000 | $ 3,900,000 | ||
Investment in equity securities, carrying value | 69,300,000 | $ 68,300,000 | ||
Impairment of long-lived assets | $ 0 | $ 0 | ||
2029 Senior Notes | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of the notes | 474,400,000 | 510,200,000 | ||
2031 Senior Notes | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of the notes | $ 466,500,000 | $ 512,800,000 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Less than one year, amortized cost | $ 1,066,875 | $ 1,084,751 |
One to three years, amortized cost | 2,621,083 | 2,812,521 |
Amortized Cost or Carrying Value | 3,687,958 | 3,897,272 |
Less than one year, aggregate fair value | 1,061,276 | 1,085,006 |
One to three years, aggregate fair value | 2,545,014 | 2,793,424 |
Total aggregate fair value | $ 3,606,290 | $ 3,878,430 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property and Equipment | ||
Total property and equipment | $ 466,504 | $ 446,334 |
Less: accumulated depreciation and amortization | (207,501) | (191,018) |
Total property and equipment, net | 259,003 | 255,316 |
Capitalized internal-use software development costs | ||
Property and Equipment | ||
Total property and equipment | 213,309 | 198,589 |
Data center equipment | ||
Property and Equipment | ||
Total property and equipment | 78,210 | 77,946 |
Finance lease asset | 63,000 | 63,000 |
Finance lease asset, accumulated amortization | 30,100 | 26,800 |
Leasehold improvements | ||
Property and Equipment | ||
Total property and equipment | 87,600 | 85,297 |
Office equipment | ||
Property and Equipment | ||
Total property and equipment | 61,063 | 58,636 |
Furniture and fixtures | ||
Property and Equipment | ||
Total property and equipment | 15,591 | 15,360 |
Software | ||
Property and Equipment | ||
Total property and equipment | $ 10,731 | $ 10,506 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 16.6 | $ 14.4 |
Capitalized internal use software development costs | $ 14.7 | $ 15.1 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - Foreign Currency Forward - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Derivative, term of contract | 9 months |
Buy | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Derivative, notional amount | $ 324.9 |
Derivatives and Hedging - Gains
Derivatives and Hedging - Gains (Losses) Associated With Foreign Currency Forward Contracts (Details) - Foreign Currency Forward - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Losses recognized in OCI | $ 3,852 | $ 0 |
Cost of revenue | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Losses recognized in income due to instruments maturing | $ 1,597 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Purchase price | $ 32.7 | |
Goodwill additions and adjustments | 25.7 | |
Intangible assets | 8.2 | |
Amortization expense | $ 51.5 | $ 45.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Rollforward (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill | |
Beginning balance of period | $ 5,263,166 |
Goodwill additions and adjustments | 23,517 |
Ending balance of period | $ 5,286,683 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Amortizable intangible assets: | ||
Gross | $ 1,437,663 | $ 1,429,470 |
Accumulated Amortization | (436,186) | (384,673) |
Net | 1,001,477 | 1,044,797 |
Intangible assets, gross | 1,442,878 | 1,434,685 |
Total | 1,006,692 | 1,050,012 |
Telecommunication licenses | ||
Amortizable intangible assets: | ||
Non-amortizable intangible assets: | 4,920 | 4,920 |
Trademarks and other | ||
Amortizable intangible assets: | ||
Non-amortizable intangible assets: | 295 | 295 |
Developed technology | ||
Amortizable intangible assets: | ||
Gross | 796,231 | 794,831 |
Accumulated Amortization | (251,248) | (222,765) |
Net | 544,983 | 572,066 |
Customer relationships | ||
Amortizable intangible assets: | ||
Gross | 539,264 | 538,264 |
Accumulated Amortization | (147,028) | (128,035) |
Net | 392,236 | 410,229 |
Supplier relationships | ||
Amortizable intangible assets: | ||
Gross | 57,471 | 51,671 |
Accumulated Amortization | (11,915) | (9,491) |
Net | 45,556 | 42,180 |
Trade names | ||
Amortizable intangible assets: | ||
Gross | 30,669 | 30,669 |
Accumulated Amortization | (15,442) | (13,874) |
Net | 15,227 | 16,795 |
Order backlog | ||
Amortizable intangible assets: | ||
Gross | 10,000 | 10,000 |
Accumulated Amortization | (10,000) | (10,000) |
Net | 0 | 0 |
Patent | ||
Amortizable intangible assets: | ||
Gross | 4,028 | 4,035 |
Accumulated Amortization | (553) | (508) |
Net | $ 3,475 | $ 3,527 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Intangible Assets | ||
2022 (remaining nine months) | $ 154,826 | |
2023 | 203,128 | |
2024 | 197,693 | |
2025 | 194,119 | |
2026 | 120,493 | |
Thereafter | 131,218 | |
Net | $ 1,001,477 | $ 1,044,797 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued payroll and related | $ 84,255 | $ 78,780 |
Accrued bonus and commission | 30,533 | 64,665 |
Accrued cost of revenue | 153,571 | 118,004 |
Sales and other taxes payable | 67,123 | 61,975 |
ESPP contributions | 26,181 | 10,284 |
Finance lease liability, current | 12,254 | 12,370 |
Accrued other expense | 59,751 | 71,425 |
Total accrued expenses and other current liabilities | $ 433,668 | $ 417,503 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total accrued expenses and other current liabilities | Total accrued expenses and other current liabilities |
Notes Payable - Summary of Long
Notes Payable - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 986,243 | $ 985,907 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized discount | (5,529) | (5,701) |
Unamortized issuance costs | (1,244) | (1,286) |
Net carrying amount | 493,227 | 493,013 |
2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized discount | (5,701) | (5,832) |
Unamortized issuance costs | (1,283) | (1,274) |
Net carrying amount | $ 493,016 | $ 492,894 |
Revenue by Geographic Area - Pe
Revenue by Geographic Area - Percentage of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue by geographic area: | ||
Revenue | $ 875,363 | $ 589,988 |
United States | ||
Revenue by geographic area: | ||
Revenue | $ 570,380 | $ 421,531 |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Percentage of revenue by geographic area: | ||
Percentage of revenue | 65.00% | 71.00% |
International | ||
Revenue by geographic area: | ||
Revenue | $ 304,983 | $ 168,457 |
International | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Percentage of revenue by geographic area: | ||
Percentage of revenue | 35.00% | 29.00% |
Commitments and Contingencies -
Commitments and Contingencies - Lease and Other Commitments (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Long-term Purchase Commitment [Line Items] | |||
Term of non-cancellable agreement | 3 years | ||
Purchase commitment | $ 30,200,000 | ||
Payments to acquire investments | $ 246,874,000 | $ 1,640,499,000 | |
Syniverse | |||
Long-term Purchase Commitment [Line Items] | |||
Payments to acquire investments | $ 750,000,000 | ||
Minimum | Syniverse | |||
Long-term Purchase Commitment [Line Items] | |||
Common stock, value, subscriptions | 500,000,000 | ||
Maximum | Syniverse | |||
Long-term Purchase Commitment [Line Items] | |||
Common stock, value, subscriptions | $ 750,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Legal Matters (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Taxes payable, jurisdictional estimate | $ 38.8 | $ 38.8 |
Commitments and Contingencies_3
Commitments and Contingencies - Indemnification Agreements (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 0 | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies - Other Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2020 |
Loss Contingencies [Line Items] | |||
Taxes payable, jurisdictional estimate | $ 38.8 | $ 38.8 | |
Accrued taxes | 11.5 | ||
Domestic Tax Authority | |||
Loss Contingencies [Line Items] | |||
Taxes payable | 26.5 | $ 25.4 | |
Foreign Tax Authority | |||
Loss Contingencies [Line Items] | |||
Taxes payable | $ 18.5 | $ 17.7 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Preferred Stock | ||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Common Stock Class A | ||
Common Stock | ||
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, issued (in shares) | 171,763,174 | 170,625,994 |
Common stock, outstanding (in shares) | 171,763,174 | 170,625,994 |
Common Stock Class B | ||
Common Stock | ||
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, issued (in shares) | 9,820,605 | 9,842,105 |
Common stock, outstanding (in shares) | 9,820,605 | 9,842,105 |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Stock Shares Reserved (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Stockholders' Equity | ||
Total (in shares) | 49,997,628 | 41,478,804 |
2016 Stock Option and Incentive Plan | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan and ESPP (in shares) | 30,763,355 | 24,650,104 |
Common Stock Class A | ||
Stockholders' Equity | ||
Class A common stock reserved for Twilio.org (in shares) | 596,755 | 618,857 |
Stock options issued and outstanding | ||
Stockholders' Equity | ||
Stock options issued and outstanding (in shares) | 2,709,573 | 3,351,313 |
Unvested restricted stock units issued and outstanding | ||
Stockholders' Equity | ||
Unvested restricted stock units issued and outstanding (in shares) | 7,745,115 | 6,475,700 |
Stock-based awards available for grant under ESPP | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan and ESPP (in shares) | 8,182,830 | 6,382,830 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2022USD ($)tranche$ / sharesshares | Mar. 31, 2022USD ($) | |
Performance-Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 919,289 | |
Granted (in dollars per share) | $ / shares | $ 157.44 | |
Outstanding performance based options, aggregate intrinsic value | $ | $ 144.7 | $ 144.7 |
Number of tranches | tranche | 3 | |
Performance-Based Restricted Stock Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage of target | 100.00% | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock plan offering period | 6 months |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total | $ 1,711,070 |
Unvested stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested stock options | $ 99,727 |
Weighted-average remaining period | 2 years 1 month 6 days |
Unvested restricted stock units and awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost, other than options | $ 1,591,704 |
Weighted-average remaining period | 3 years 1 month 6 days |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost, other than options | $ 2,612 |
Weighted-average remaining period | 1 month 6 days |
Class A shares in escrow subject to future vesting | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost, other than options | $ 17,027 |
Weighted-average remaining period | 2 years 3 months 18 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 155,275 | $ 137,155 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 4,521 | 2,717 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 79,369 | 56,959 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 47,586 | 41,636 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 23,799 | $ 35,843 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Loss Per Share Attributable to Common Stockholders | ||
Net loss attributable to common stockholders, basic | $ (221,627) | $ (206,542) |
Net loss attributable to common stockholders, diluted | $ (221,627) | $ (206,542) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares) | 180,898,713 | 167,160,458 |
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares) | 180,898,713 | 167,160,458 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (1.23) | $ (1.24) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (1.23) | $ (1.24) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Anti-Dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 11,306,973 | 16,815,207 |
Stock options issued and outstanding | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 2,709,573 | 5,216,385 |
Unvested restricted stock units issued and outstanding | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 7,745,115 | 6,758,222 |
Class A common stock reserved for Twilio.org | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 596,755 | 685,163 |
Class A common stock committed under ESPP | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 147,947 | 101,030 |
Convertible Notes | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 0 | 3,689,177 |
Class A common stock in escrow | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 31,503 | 75,612 |
Class A common stock in escrow and restricted stock awards subject to future vesting | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 76,080 | 289,618 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (2,858) | $ 890 |