Twilio (TWLO) 10-Q 5 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 29, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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	Fifth 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	Q2
Former Address
Entity Information [Line Items]
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
Common Stock Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		173,307,870
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	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 798,625	$ 1,479,452
Short-term marketable securities	3,593,659	3,878,430
Accounts receivable, net	471,915	388,215
Prepaid expenses and other current assets	240,192	186,131
Total current assets	5,104,391	5,932,228
Property and equipment, net	264,767	255,316
Operating right-of-use assets	213,464	234,584
Equity method investment	750,000	0
Intangible assets, net	953,522	1,050,012
Goodwill	5,285,563	5,263,166
Other long-term assets	297,522	263,292
Total assets	12,869,229	12,998,598
Current liabilities:
Accounts payable	102,039	93,333
Accrued expenses and other current liabilities	504,810	417,503
Deferred revenue and customer deposits	137,728	140,389
Operating lease liability, current	50,743	52,325
Total current liabilities	795,320	703,550
Operating lease liability, noncurrent	189,068	211,253
Finance lease liability, noncurrent	18,935	25,132
Long-term debt, net	986,619	985,907
Other long-term liabilities	37,292	41,290
Total liabilities	2,027,234	1,967,132
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock	0	0
Class A and Class B common stock	183	180
Additional paid-in capital	13,623,300	13,169,118
Accumulated other comprehensive loss	(117,401)	(18,141)
Accumulated deficit	(2,664,087)	(2,119,691)
Total stockholders’ equity	10,841,995	11,031,466
Total liabilities and stockholders’ equity	$ 12,869,229	$ 12,998,598

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenue	$ 943,354	$ 668,931	$ 1,818,717	$ 1,258,919
Cost of revenue	498,065	337,684	948,357	629,368
Gross profit	445,289	331,247	870,360	629,551
Operating expenses:
Research and development	279,641	181,280	520,252	356,080
Sales and marketing	334,958	238,058	622,864	448,648
General and administrative	142,626	114,183	256,988	224,436
Total operating expenses	757,225	533,521	1,400,104	1,029,164
Loss from operations	(311,936)	(202,274)	(529,744)	(399,613)
Other expenses, net	(8,239)	(24,293)	(14,916)	(32,606)
Loss before (provision for) benefit from income taxes	(320,175)	(226,567)	(544,660)	(432,219)
(Provision for) benefit from income taxes	(2,594)	(1,286)	264	(2,176)
Net loss attributable to common stockholders	$ (322,769)	$ (227,853)	$ (544,396)	$ (434,395)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.77)	$ (1.31)	$ (3)	$ (2.55)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.77)	$ (1.31)	$ (3)	$ (2.55)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	182,347,864	173,407,187	181,624,316	170,275,609
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	182,347,864	173,407,187	181,624,316	170,275,609

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (322,769)	$ (227,853)	$ (544,396)	$ (434,395)
Other comprehensive loss:
Unrealized loss on marketable securities	(19,022)	(979)	(81,848)	(5,155)
Foreign currency translation	(2,289)	(66)	(2,454)	(276)
Net change in market value of effective foreign currency forward exchange contracts	(11,106)	(2,908)	(14,958)	(2,908)
Total other comprehensive loss	(32,417)	(3,953)	(99,260)	(8,339)
Comprehensive loss attributable to common stockholders	$ (355,186)	$ (231,806)	$ (643,656)	$ (442,734)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock Common Stock Class A	Common Stock Common Stock Class B	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) 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	0	$ 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)
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, 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	(434,395)
Unrealized loss on marketable securities	(5,155)
Foreign currency translation	(276)
Net change in market value of effective foreign currency forward exchange contracts	(2,908)
Balance (in shares) at Jun. 30, 2021		165,715,499	10,218,422
Balance at Jun. 30, 2021	10,694,112	$ 164	$ 12	12,297,415	707	(1,604,186)
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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(227,853)					(227,853)
Exercises of vested stock options (in shares)		294,430	63,164
Exercises of vested stock options	20,351			20,351
Vesting of restricted stock units (in shares)		839,472
Vesting of restricted stock units	0	$ 1		(1)
Value of equity awards withheld for tax liability (in shares)		(5,498)
Value of equity awards withheld for tax liability	(1,882)			(1,882)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)		188,044	(188,044)
Conversion of shares of Class B common stock into shares of Class A common stock	0	$ 1	$ (1)
Equity component from partial settlement of 2023 convertible senior notes (in shares)		3,688,584
Equity component from partial settlement of 2023 convertible senior notes	255,594	$ 4		255,590
Settlement of capped call, net of related costs	225,233			225,233
Shares issued under ESPP (in shares)		100,107
Shares issued under ESPP	23,699			23,699
Shares of Class A common stock donated to charity (in shares)		22,102
Shares of Class A common stock donated to charity	6,789			6,789
Costs related to the follow-on public offering	(50)			(50)
Unrealized loss on marketable securities	(979)				(979)
Foreign currency translation	(66)				(66)
Net change in market value of effective foreign currency forward exchange contracts	(2,908)				(2,908)
Stock-based compensation	148,988			148,988
Balance (in shares) at Jun. 30, 2021		165,715,499	10,218,422
Balance at Jun. 30, 2021	10,694,112	$ 164	$ 12	12,297,415	707	(1,604,186)
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	0	$ 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)
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	(544,396)
Unrealized loss on marketable securities	(81,848)
Foreign currency translation	(2,454)
Net change in market value of effective foreign currency forward exchange contracts	(14,958)
Balance (in shares) at Jun. 30, 2022		173,271,942	9,817,605
Balance at Jun. 30, 2022	10,841,995	$ 171	$ 12	13,623,300	(117,401)	(2,664,087)
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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(322,769)					(322,769)
Exercises of vested stock options (in shares)		98,111	77,732
Exercises of vested stock options	5,649			5,649
Vesting of restricted stock units (in shares)		1,049,640
Vesting of restricted stock units	0	$ 1		(1)
Value of equity awards withheld for tax liability (in shares)		(38)
Value of equity awards withheld for tax liability	(4)			(4)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)		80,732	(80,732)
Shares issued under ESPP (in shares)		258,221
Shares issued under ESPP	24,318	$ 1		24,317
Shares of Class A common stock donated to charity (in shares)		22,102
Shares of Class A common stock donated to charity	2,373			2,373
Unrealized loss on marketable securities	(19,022)				(19,022)
Foreign currency translation	(2,289)				(2,289)
Net change in market value of effective foreign currency forward exchange contracts	(11,106)				(11,106)
Stock-based compensation	247,412			247,412
Balance (in shares) at Jun. 30, 2022		173,271,942	9,817,605
Balance at Jun. 30, 2022	$ 10,841,995	$ 171	$ 12	$ 13,623,300	$ (117,401)	$ (2,664,087)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (544,396)	$ (434,395)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	137,744	119,405
Non-cash reduction to the right-of-use asset	25,539	23,200
Net amortization of investment premium and discount	20,274	13,834
Amortization of debt discount and issuance costs	713	5,081
Stock-based compensation	397,366	281,323
Amortization of deferred commissions	26,076	12,394
Value of shares of Class A common stock donated to charity	6,605	16,194
Loss on extinguishment of debt	0	28,986
Other adjustments	9,927	8,313
Changes in operating assets and liabilities:
Accounts receivable	(91,782)	(41,687)
Prepaid expenses and other current assets	(57,997)	(44,604)
Other long-term assets	(52,521)	(39,118)
Accounts payable	6,654	27,078
Accrued expenses and other current liabilities	78,430	65,923
Deferred revenue and customer deposits	(3,984)	7,615
Operating lease liabilities	(31,127)	(23,610)
Other long-term liabilities	(7,662)	290
Net cash (used in) provided by operating activities	(80,141)	26,222
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired and other related payments	(31,697)	(94,178)
Purchases of marketable securities and other investments	(1,325,366)	(2,807,798)
Proceeds from sales and maturities of marketable securities	754,574	754,466
Capitalized software development costs	(22,361)	(21,839)
Purchases of long-lived and intangible assets	(10,779)	(12,140)
Net cash used in investing activities	(635,629)	(2,181,489)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from public offerings, net of underwriters' discounts	0	1,766,400
Payments of costs related to public offerings	(35)	(394)
Proceeds from issuance of senior notes due 2029 and 2031	0	987,500
Payment of debt issuance costs	0	(1,362)
Proceeds from settlements of capped call, net of settlement costs	0	228,412
Principal payments on debt and finance leases	(6,188)	(6,658)
Value of equity awards withheld for tax liabilities	(1,069)	(4,656)
Proceeds from exercises of stock options and shares of Class A common stock issued under ESPP	41,694	55,614
Net cash provided by financing activities	34,402	3,024,856
Effect of exchange rate changes on cash, cash equivalents and restricted cash	313	(143)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(681,055)	869,446
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period	1,481,831	933,885
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	800,776	1,803,331
Supplemental Cash Flow Information [Abstract]
Cash paid for income taxes, net	4,147	3,240
Cash paid for interest	18,750	693
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Value of common stock issued to settle convertible senior notes due 2023	0	1,704,969
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents	798,625	1,799,602
Restricted cash in other current assets	2,151	2,620
Restricted cash in other long-term assets	0	1,109
Total cash, cash equivalents and restricted cash	$ 800,776	$ 1,803,331

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 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. Today's leading companies trust Twilio's Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. 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	6 Months Ended
	Jun. 30, 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 $140.8 million as of June 30, 2022, of which 69% is expected to be recognized over the next 12 months and 95% is expected to be recognized over the next 24 months. (e) Deferred Revenue and Customer Deposits As of June 30, 2022 and December 31, 2021, the Company recorded $137.8 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 June 30, 2022 and 2021, the Company recognized $29.9 million and $16.4 million of revenue, respectively, that was included in the deferred revenue and customer deposits balance as of the end of the previous year. During the six months ended June 30, 2022 and 2021, the Company recognized $94.7 million and $44.3 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 June 30, 2022 and December 31, 2021, were $212.4 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 and six months ended June 30, 2022 and 2021, no customer organization accounted for more than 10% of the Company’s total revenue. As of June 30, 2022 and December 31, 2021, no customer organization represented more than 10% of the Company’s gross accounts receivable. (h) Changes to Significant Accounting Policies Equity Method Investments Equity investment holdings in which the Company does not have a controlling financial interest in the investee but does exercise significant influence are accounted for under the equity method. Under this method, the investment, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee as they occur. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the investee. The Company determines the difference between its purchase price and its share of the carrying amount of net equity of the investee, which results in an excess basis in the investment. This excess basis is allocated to the identifiable assets and liabilities of the investee utilizing purchase accounting principles and is recorded within memo accounts that are then used to calculate the equity method adjustments every reporting period. Depending on the nature of the underlying identifiable assets and liabilities, the allocated excess basis amounts are either amortized over the applicable useful lives or determined to be indefinite lived. The Company elected to record the equity method adjustments on a one-quarter lag. The Company evaluates equity method investments for impairment whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. When such indicators exist, the other-than-temporary impairment model is utilized, which considers the severity and duration of a decline in fair value below book value and the Company’s ability and intent to hold the investment for a sufficient period of time to allow for recovery. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in the current period. There have been no other changes to the Company’s significant accounting policies as described in its Annual Report. (i) 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	6 Months Ended
	Jun. 30, 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 $ 131,658 $ — $ — $ 131,658 $ — $ — $ 131,658 Commercial paper 125,645 — — — 125,645 — 125,645 Total included in cash and cash equivalents 257,303 — — 131,658 125,645 — 257,303 Marketable securities: U.S. Treasury securities 464,902 — (12,111) 452,791 — — 452,791 Non-U.S. government securities 157,715 2 (5,816) 151,901 — — 151,901 Corporate debt securities and commercial paper 3,071,733 139 (82,905) 11,000 2,977,967 — 2,988,967 Total marketable securities 3,694,350 141 (100,832) 615,692 2,977,967 — 3,593,659 Total financial assets $ 3,951,653 $ 141 $ (100,832) $ 747,350 $ 3,103,612 $ — $ 3,850,962 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 June 30, 2022 and December 31, 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 June 30, 2022 and December 31, 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 $31.2 million in the three and six months ended June 30, 2022, respectively, and $5.6 million and $9.4 million in the three and six months ended June 30, 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 June 30, 2022 As of December 31, 2021 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,503,388 $ 1,483,243 $ 1,084,751 $ 1,085,006 One to three years 2,190,962 2,110,416 2,812,521 2,793,424 Total $ 3,694,350 $ 3,593,659 $ 3,897,272 $ 3,878,430 Strategic Investments As of June 30, 2022 and December 31, 2021, the Company held strategic investments with a carrying value of $74.3 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 and six months ended June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: As of June 30, 2022 As of December 31, 2021 (In thousands) Capitalized internal-use software development costs $ 230,089 $ 198,589 Data center equipment (1) 79,170 77,946 Leasehold improvements 88,551 85,297 Office equipment 64,798 58,636 Furniture and fixtures 14,980 15,360 Software 10,931 10,506 Total property and equipment 488,519 446,334 Less: accumulated depreciation and amortization (1) (223,752) (191,018) Total property and equipment, net $ 264,767 $ 255,316 ____________________________________ ( 1 ) Data center equipment contains $63.0 million in assets held under finance leases as of each June 30, 2022, and December 31, 2021. Accumulated depreciation and amortization contains $33.3 million and $26.8 million in accumulated amortization for assets held under finance leases as of June 30, 2022, and December 31, 2021, respectively. Depreciation and amortization expense was $17.4 million and $14.2 million in the three months ended June 30, 2022 and 2021, respectively, and $34.0 million and $28.7 million in the six months ended June 30, 2022 and 2021, respectively. The Company capitalized $17.2 million and $16.5 million in internal‑use software development costs in the three months ended June 30, 2022 and 2021, respectively, and $31.9 million and $31.5 million in the six months ended June 30, 2022 and 2021, respectively.

Derivatives and Hedging

Derivatives and Hedging	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging	Derivatives and Hedging As of June 30, 2022, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $448.6 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of June 30, 2022, these contracts had maturities of less than 12 months. Gains and losses associated with these foreign currency forward contracts were as follows: Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) Losses recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 11,106 $ 2,908 $ 14,958 $ 2,908 Losses recognized in income due to instruments maturing Cost of revenue $ 7,566 $ 467 $ 9,163 $ 467

Equity Method Investment

Equity Method Investment	6 Months Ended
	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Equity Method Investment	Equity Method Investment In May 2022, the Company paid $750.0 million in cash to acquire approximately 43% of the total number of Syniverse Corporation’s (“Syniverse”) common shares issued and outstanding after the closing of the transaction. The Company determined that it does not have a controlling financial interest in Syniverse but does exercise significant influence and therefore, the investment was accounted for under the equity method. Utilizing the purchase accounting principles, the Company determined that on the investment date there was an estimated preliminary excess investment basis of $507.3 million related to its share of the identifiable intangible assets of Syniverse. While the Company used its best estimates and assumptions as part of this allocation process to accurately value the investee’s assets and liabilities, these estimates are inherently uncertain and subject to refinement. The authoritative guidance allows a measurement period of up to one year from the date of investment to make adjustments to these preliminary allocations. Since the Company elected to recognize the proportionate share of its equity method adjustments on a one-quarter lag, there was no impact from these allocations on the Company’s condensed consolidated statements of operations for the three and six months ended June 30, 2022. In conjunction with the investment, the Company and Syniverse entered into a wholesale agreement, pursuant to which Syniverse will process, route and deliver application-to-person messages originating and/or terminating between the Company’s customers and mobile network operators. The impact of transactions that occurred from the date of investment through June 30, 2022, is not significant to the accompanying condensed consolidated statements of operations for the three months and six months ended June 30, 2022.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The goodwill balance as of June 30, 2022 and December 31, 2021 was as follows: Total (In thousands) Balance as of December 31, 2021 $ 5,263,166 Goodwill additions and adjustments 22,397 Balance as of June 30, 2022 $ 5,285,563 Intangible assets Intangible assets consisted of the following: As of June 30, 2022 Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 796,037 $ (279,964) $ 516,073 Customer relationships 538,941 (166,255) 372,686 Supplier relationships 57,248 (14,638) 42,610 Trade names 30,533 (17,019) 13,514 Order backlog 10,000 (10,000) — Patent 4,028 (604) 3,424 Total amortizable intangible assets 1,436,787 (488,480) 948,307 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,442,002 $ (488,480) $ 953,522 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 $52.2 million and $45.4 million for the three months ended June 30, 2022 and 2021, respectively, and $103.7 million and $90.6 million for the six months ended June 30, 2022 and 2021, respectively. Total estimated future amortization expense is as follows: As of June 30, 2022 Year Ended December 31, (In thousands) 2022 (remaining six months) $ 102,585 2023 202,945 2024 197,510 2025 193,937 2026 120,382 Thereafter 130,948 Total $ 948,307

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 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 June 30, 2022 As of December 31, 2021 (In thousands) Accrued payroll and related $ 86,502 $ 78,780 Accrued bonus and commission 38,662 64,665 Accrued cost of revenue 201,112 118,004 Sales and other taxes payable 74,901 61,975 ESPP contributions 5,449 10,284 Derivative liability 14,669 220 Finance lease liability, current 12,220 12,370 Accrued other expense 71,295 71,205 Total accrued expenses and other current liabilities $ 504,810 $ 417,503

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2022
Long-Term Debt, Unclassified [Abstract]
Notes Payable	Notes Payable Long-term debt, net, consisted of the following: As of June 30, 2022 As of December 31, 2021 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (5,355) (5,701) Unamortized issuance costs (1,205) (1,286) Net carrying amount 493,440 493,013 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,568) (5,832) Unamortized issuance costs (1,253) (1,274) Net carrying amount 493,179 492,894 Total long-term debt, net $ 986,619 $ 985,907

Revenue by Geographic Area

Revenue by Geographic Area	6 Months Ended
	Jun. 30, 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 Six Months Ended 2022 2021 2022 2021 Revenue by geographic area: (In thousands) United States $ 616,306 $ 452,912 $ 1,186,687 $ 874,443 International 327,048 216,019 632,030 384,476 Total $ 943,354 $ 668,931 $ 1,818,717 $ 1,258,919 Percentage of revenue by geographic area: United States 65 % 68 % 65 % 69 % International 35 % 32 % 35 % 31 % Long-lived assets outside of the United States were not significant.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2022, the Company did not enter into any significant new lease agreements. The Company has non-cancelable contractual commitments with its cloud infrastructure provider, network service providers and other vendors. In the three and six months ended June 30, 2022, the Company entered into several such agreements with terms up to four years for a total purchase commitment of $24.3 million and $54.5 million, respectively. 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 the Company’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 11(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 June 30, 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 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 11(b), the Company is currently involved in legal proceedings with the City and County of San Francisco 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 June 30, 2022, the liabilities recorded for the non-income-based taxes were $27.8 million for domestic jurisdictions and $19.7 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	6 Months Ended
	Jun. 30, 2022
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders' Equity Preferred Stock As of June 30, 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 June 30, 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 June 30, 2022, 173,271,942 shares of Class A common stock and 9,817,605 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 June 30, 2022 As of December 31, 2021 Stock options issued and outstanding 2,654,461 3,351,313 Unvested restricted stock units issued and outstanding 14,496,487 6,475,700 Class A common stock reserved for Twilio.org 574,653 618,857 Stock-based awards available for grant under 2016 Plan 22,891,134 24,650,104 Stock-based awards available for grant under ESPP 7,924,609 6,382,830 Total 48,541,344 41,478,804

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 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, with each vesting 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 and (b) profitability targets are achieved with respect to each of fiscal years 2023 and 2024. If performance targets are not achieved, 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 June 30, 2022, total unrecognized compensation cost related to all outstanding equity awards was as follows: Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 87,478 2.1 Unvested restricted stock units and awards 2,247,100 3.2 ESPP 5,676 0.4 Class A shares in escrow subject to future vesting 15,173 2.0 Total $ 2,355,427 Stock-Based Compensation Expense The Company recorded total stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended 2022 2021 2022 2021 (In thousands) Cost of revenue $ 3,996 $ 3,024 $ 8,517 $ 5,741 Research and development 109,524 58,871 188,893 115,830 Sales and marketing 78,492 47,940 126,078 89,576 General and administrative 50,078 34,333 73,877 70,176 Total $ 242,090 $ 144,168 $ 397,365 $ 281,323

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended 2022 2021 2022 2021 Net loss attributable to common stockholders (in thousands) $ (322,769) $ (227,853) $ (544,396) $ (434,395) Weighted-average shares used to compute net loss per share attributable to 182,347,864 173,407,187 181,624,316 170,275,609 Net loss per share attributable to common stockholders, basic and diluted $ (1.77) $ (1.31) $ (3.00) $ (2.55) 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 June 30, 2022 2021 Stock options issued and outstanding 2,654,461 4,786,740 Unvested restricted stock units issued and outstanding 14,496,487 7,008,107 Class A common stock reserved for Twilio.org 574,653 663,061 Class A common stock committed under ESPP 226,082 106,054 Class A common stock in escrow 31,503 75,612 Class A common stock in escrow and restricted stock awards subject to future vesting 76,080 288,755 Total 18,059,266 12,928,329

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes its provision for income taxes 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 primary difference between the Company’s effective tax rate and the federal statutory rate is the full valuation allowance the Company has established on its federal, state and foreign net operating losses and credits. The Company recorded an income tax provision of $2.6 million and an income tax benefit of $0.3 million for the three and six months ended June 30, 2022, respectively, and a provision of $1.3 million and $2.2 million for the three and six months ended June 30, 2021. The provision for income taxes recorded in the three months ended June 30, 2022, and three and six months ended June 30, 2021, and the benefit for income taxes recorded in the six months ended June 30, 2022, 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 the acquired intangibles from business combinations.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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.
Equity Method Investments	Equity Method Investments Equity investment holdings in which the Company does not have a controlling financial interest in the investee but does exercise significant influence are accounted for under the equity method. Under this method, the investment, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee as they occur. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the investee. The Company determines the difference between its purchase price and its share of the carrying amount of net equity of the investee, which results in an excess basis in the investment. This excess basis is allocated to the identifiable assets and liabilities of the investee utilizing purchase accounting principles and is recorded within memo accounts that are then used to calculate the equity method adjustments every reporting period. Depending on the nature of the underlying identifiable assets and liabilities, the allocated excess basis amounts are either amortized over the applicable useful lives or determined to be indefinite lived. The Company elected to record the equity method adjustments on a one-quarter lag. The Company evaluates equity method investments for impairment whenever events or changes in circumstance indicate that the carrying amounts of such investments may be impaired. When such indicators exist, the other-than-temporary impairment model is utilized, which considers the severity and duration of a decline in fair value below book value and the Company’s ability and intent to hold the investment for a sufficient period of time to allow for recovery. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in the current period.
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)	6 Months Ended
	Jun. 30, 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 $ 131,658 $ — $ — $ 131,658 $ — $ — $ 131,658 Commercial paper 125,645 — — — 125,645 — 125,645 Total included in cash and cash equivalents 257,303 — — 131,658 125,645 — 257,303 Marketable securities: U.S. Treasury securities 464,902 — (12,111) 452,791 — — 452,791 Non-U.S. government securities 157,715 2 (5,816) 151,901 — — 151,901 Corporate debt securities and commercial paper 3,071,733 139 (82,905) 11,000 2,977,967 — 2,988,967 Total marketable securities 3,694,350 141 (100,832) 615,692 2,977,967 — 3,593,659 Total financial assets $ 3,951,653 $ 141 $ (100,832) $ 747,350 $ 3,103,612 $ — $ 3,850,962 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 June 30, 2022 As of December 31, 2021 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,503,388 $ 1,483,243 $ 1,084,751 $ 1,085,006 One to three years 2,190,962 2,110,416 2,812,521 2,793,424 Total $ 3,694,350 $ 3,593,659 $ 3,897,272 $ 3,878,430

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consisted of the following: As of June 30, 2022 As of December 31, 2021 (In thousands) Capitalized internal-use software development costs $ 230,089 $ 198,589 Data center equipment (1) 79,170 77,946 Leasehold improvements 88,551 85,297 Office equipment 64,798 58,636 Furniture and fixtures 14,980 15,360 Software 10,931 10,506 Total property and equipment 488,519 446,334 Less: accumulated depreciation and amortization (1) (223,752) (191,018) Total property and equipment, net $ 264,767 $ 255,316 ____________________________________ ( 1 ) Data center equipment contains $63.0 million in assets held under finance leases as of each June 30, 2022, and December 31, 2021. Accumulated depreciation and amortization contains $33.3 million and $26.8 million in accumulated amortization for assets held under finance leases as of June 30, 2022, and December 31, 2021, respectively.

Derivatives and Hedging (Tables

Derivatives and Hedging (Tables)	6 Months Ended
	Jun. 30, 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: Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In thousands) Losses recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 11,106 $ 2,908 $ 14,958 $ 2,908 Losses recognized in income due to instruments maturing Cost of revenue $ 7,566 $ 467 $ 9,163 $ 467

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill balance	The goodwill balance as of June 30, 2022 and December 31, 2021 was as follows: Total (In thousands) Balance as of December 31, 2021 $ 5,263,166 Goodwill additions and adjustments 22,397 Balance as of June 30, 2022 $ 5,285,563
Schedule of intangible assets	Intangible assets consisted of the following: As of June 30, 2022 Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 796,037 $ (279,964) $ 516,073 Customer relationships 538,941 (166,255) 372,686 Supplier relationships 57,248 (14,638) 42,610 Trade names 30,533 (17,019) 13,514 Order backlog 10,000 (10,000) — Patent 4,028 (604) 3,424 Total amortizable intangible assets 1,436,787 (488,480) 948,307 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,442,002 $ (488,480) $ 953,522 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 June 30, 2022 Year Ended December 31, (In thousands) 2022 (remaining six months) $ 102,585 2023 202,945 2024 197,510 2025 193,937 2026 120,382 Thereafter 130,948 Total $ 948,307

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2022 As of December 31, 2021 (In thousands) Accrued payroll and related $ 86,502 $ 78,780 Accrued bonus and commission 38,662 64,665 Accrued cost of revenue 201,112 118,004 Sales and other taxes payable 74,901 61,975 ESPP contributions 5,449 10,284 Derivative liability 14,669 220 Finance lease liability, current 12,220 12,370 Accrued other expense 71,295 71,205 Total accrued expenses and other current liabilities $ 504,810 $ 417,503

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2022
Long-Term Debt, Unclassified [Abstract]
Schedule of Long-term debt	Long-term debt, net, consisted of the following: As of June 30, 2022 As of December 31, 2021 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (5,355) (5,701) Unamortized issuance costs (1,205) (1,286) Net carrying amount 493,440 493,013 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,568) (5,832) Unamortized issuance costs (1,253) (1,274) Net carrying amount 493,179 492,894 Total long-term debt, net $ 986,619 $ 985,907

Revenue by Geographic Area (Tab

Revenue by Geographic Area (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2022 2021 2022 2021 Revenue by geographic area: (In thousands) United States $ 616,306 $ 452,912 $ 1,186,687 $ 874,443 International 327,048 216,019 632,030 384,476 Total $ 943,354 $ 668,931 $ 1,818,717 $ 1,258,919 Percentage of revenue by geographic area: United States 65 % 68 % 65 % 69 % International 35 % 32 % 35 % 31 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2022 As of December 31, 2021 Stock options issued and outstanding 2,654,461 3,351,313 Unvested restricted stock units issued and outstanding 14,496,487 6,475,700 Class A common stock reserved for Twilio.org 574,653 618,857 Stock-based awards available for grant under 2016 Plan 22,891,134 24,650,104 Stock-based awards available for grant under ESPP 7,924,609 6,382,830 Total 48,541,344 41,478,804

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of unrecognized compensation cost of outstanding equity awards	As of June 30, 2022, total unrecognized compensation cost related to all outstanding equity awards was as follows: Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 87,478 2.1 Unvested restricted stock units and awards 2,247,100 3.2 ESPP 5,676 0.4 Class A shares in escrow subject to future vesting 15,173 2.0 Total $ 2,355,427
Schedule of stock based compensation expense	The Company recorded total stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended 2022 2021 2022 2021 (In thousands) Cost of revenue $ 3,996 $ 3,024 $ 8,517 $ 5,741 Research and development 109,524 58,871 188,893 115,830 Sales and marketing 78,492 47,940 126,078 89,576 General and administrative 50,078 34,333 73,877 70,176 Total $ 242,090 $ 144,168 $ 397,365 $ 281,323

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Stockholders (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended 2022 2021 2022 2021 Net loss attributable to common stockholders (in thousands) $ (322,769) $ (227,853) $ (544,396) $ (434,395) Weighted-average shares used to compute net loss per share attributable to 182,347,864 173,407,187 181,624,316 170,275,609 Net loss per share attributable to common stockholders, basic and diluted $ (1.77) $ (1.31) $ (3.00) $ (2.55)
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 June 30, 2022 2021 Stock options issued and outstanding 2,654,461 4,786,740 Unvested restricted stock units issued and outstanding 14,496,487 7,008,107 Class A common stock reserved for Twilio.org 574,653 663,061 Class A common stock committed under ESPP 226,082 106,054 Class A common stock in escrow 31,503 75,612 Class A common stock in escrow and restricted stock awards subject to future vesting 76,080 288,755 Total 18,059,266 12,928,329

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, amount	$ 140.8		$ 140.8
Deferred revenue	137.8		137.8		$ 141.5
Revenue recognized out of adjusted deferred revenue balance	29.9	$ 16.4	94.7	$ 44.3
Total net capitalized costs	$ 212.4		$ 212.4		$ 193.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, percentage	69%		69%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months		12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, percentage	95%		95%
Revenue, remaining performance obligation, expected timing of satisfaction, period	24 months		24 months

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	$ 257,303	$ 832,624
Amortized Cost or Carrying Value	3,694,350	3,897,272
Gross Unrealized Gains	141	966
Gross Unrealized Losses	(100,832)	(19,808)
Marketable securities, aggregate fair value	3,593,659	3,878,430
Total financial assets	3,951,653	4,729,896
Total financial assets	3,850,962	4,711,054
Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	131,658	786,548
Marketable securities, aggregate fair value	615,692	624,036
Total financial assets	747,350	1,410,584
Level 2
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	125,645	46,076
Marketable securities, aggregate fair value	2,977,967	3,254,394
Total financial assets	3,103,612	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	464,902	375,305
Gross Unrealized Gains	0	6
Gross Unrealized Losses	(12,111)	(2,561)
Marketable securities, aggregate fair value	452,791	372,750
U.S. Treasury securities | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	452,791	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	157,715	221,641
Gross Unrealized Gains	2	0
Gross Unrealized Losses	(5,816)	(1,355)
Marketable securities, aggregate fair value	151,901	220,286
Non-U.S. government securities | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	151,901	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	3,071,733	3,300,326
Gross Unrealized Gains	139	960
Gross Unrealized Losses	(82,905)	(15,892)
Marketable securities, aggregate fair value	2,988,967	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	2,977,967	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:	131,658	786,548
Money market funds | Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	131,658	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
Commercial paper
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	125,645	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:	125,645	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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest earned on marketable securities	$ 15,600,000	$ 5,600,000	$ 31,200,000	$ 9,400,000
Investment in equity securities, carrying value	74,300,000		74,300,000		$ 68,300,000
Impairment of long-lived assets	0	$ 0	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	425,800,000		425,800,000		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	$ 417,100,000		$ 417,100,000		$ 512,800,000

Fair Value Measurements - Contr

Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Less than one year, amortized cost	$ 1,503,388	$ 1,084,751
One to three years, amortized cost	2,190,962	2,812,521
Amortized Cost or Carrying Value	3,694,350	3,897,272
Less than one year, aggregate fair value	1,483,243	1,085,006
One to three years, aggregate fair value	2,110,416	2,793,424
Total aggregate fair value	$ 3,593,659	$ 3,878,430

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property and Equipment
Total property and equipment	$ 488,519	$ 446,334
Less: accumulated depreciation and amortization	(223,752)	(191,018)
Total property and equipment, net	264,767	255,316
Capitalized internal-use software development costs
Property and Equipment
Total property and equipment	230,089	198,589
Data center equipment
Property and Equipment
Total property and equipment	79,170	77,946
Finance lease asset	63,000	63,000
Finance lease asset, accumulated amortization	33,300	26,800
Leasehold improvements
Property and Equipment
Total property and equipment	88,551	85,297
Office equipment
Property and Equipment
Total property and equipment	64,798	58,636
Furniture and fixtures
Property and Equipment
Total property and equipment	14,980	15,360
Software
Property and Equipment
Total property and equipment	$ 10,931	$ 10,506

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 17.4	$ 14.2	$ 34	$ 28.7
Capitalized internal use software development costs	$ 17.2	$ 16.5	$ 31.9	$ 31.5

Derivatives and Hedging - Narra

Derivatives and Hedging - Narrative (Details) - Foreign Currency Forward - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative, term of contract	12 months
Buy
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative, notional amount	$ 448.6

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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Foreign Currency Fair Value Hedge Derivative [Line Items]
Losses recognized in OCI	$ 11,106	$ 2,908	$ 14,958	$ 2,908
Cost of revenue
Foreign Currency Fair Value Hedge Derivative [Line Items]
Losses recognized in income due to instruments maturing	$ 7,566	$ 467	$ 9,163	$ 467

Equity Method Investment (Detai

Equity Method Investment (Details) $ in Millions	1 Months Ended
	May 31, 2022 USD ($)
Marketable Securities [Line Items]
Preliminary basis difference	$ 507.3
Syniverse
Marketable Securities [Line Items]
Payments to acquire equity method investments	$ 750
Acquisition of voting stock (in percent)	43%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 52.2	$ 45.4	$ 103.7	$ 90.6

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Goodwill Rollforward (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill
Beginning balance of period	$ 5,263,166
Goodwill additions and adjustments	22,397
Ending balance of period	$ 5,285,563

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Amortizable intangible assets:
Gross	$ 1,436,787	$ 1,429,470
Accumulated Amortization	(488,480)	(384,673)
Net	948,307	1,044,797
Intangible assets, gross	1,442,002	1,434,685
Total	953,522	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	796,037	794,831
Accumulated Amortization	(279,964)	(222,765)
Net	516,073	572,066
Customer relationships
Amortizable intangible assets:
Gross	538,941	538,264
Accumulated Amortization	(166,255)	(128,035)
Net	372,686	410,229
Supplier relationships
Amortizable intangible assets:
Gross	57,248	51,671
Accumulated Amortization	(14,638)	(9,491)
Net	42,610	42,180
Trade names
Amortizable intangible assets:
Gross	30,533	30,669
Accumulated Amortization	(17,019)	(13,874)
Net	13,514	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	(604)	(508)
Net	$ 3,424	$ 3,527

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Intangible Assets
2022 (remaining six months)	$ 102,585
2023	202,945
2024	197,510
2025	193,937
2026	120,382
Thereafter	130,948
Net	$ 948,307	$ 1,044,797

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accrued Liabilities and Other Liabilities [Abstract]
Accrued payroll and related	$ 86,502	$ 78,780
Accrued bonus and commission	38,662	64,665
Accrued cost of revenue	201,112	118,004
Sales and other taxes payable	74,901	61,975
ESPP contributions	5,449	10,284
Derivative liability	14,669	220
Finance lease liability, current	12,220	12,370
Accrued other expense	71,295	71,205
Total accrued expenses and other current liabilities	$ 504,810	$ 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	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Net carrying amount	$ 986,619	$ 985,907
2029 Senior Notes
Debt Instrument [Line Items]
Principal	500,000	500,000
Unamortized discount	(5,355)	(5,701)
Unamortized issuance costs	(1,205)	(1,286)
Net carrying amount	493,440	493,013
2031 Senior Notes
Debt Instrument [Line Items]
Principal	500,000	500,000
Unamortized discount	(5,568)	(5,832)
Unamortized issuance costs	(1,253)	(1,274)
Net carrying amount	$ 493,179	$ 492,894

Revenue by Geographic Area - Pe

Revenue by Geographic Area - Percentage of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue by geographic area:
Revenue	$ 943,354	$ 668,931	$ 1,818,717	$ 1,258,919
United States
Revenue by geographic area:
Revenue	$ 616,306	$ 452,912	$ 1,186,687	$ 874,443
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	65%	68%	65%	69%
International
Revenue by geographic area:
Revenue	$ 327,048	$ 216,019	$ 632,030	$ 384,476
International | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	35%	32%	35%	31%

Commitments and Contingencies -

Commitments and Contingencies - Lease and Other Commitments (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Term of non-cancellable agreement	4 years	4 years
Purchase commitment	$ 24.3	$ 54.5

Commitments and Contingencies_2

Commitments and Contingencies - Legal Matters (Details) - USD ($) $ in Millions	Dec. 31, 2020	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 ($)	Jun. 30, 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	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020	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	$ 27.8	$ 25.4
Foreign Tax Authority
Loss Contingencies [Line Items]
Taxes payable	$ 19.7	$ 17.7

Stockholders' Equity - Preferre

Stockholders' Equity - Preferred Stock (Details) - $ / shares	Jun. 30, 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	Jun. 30, 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)	173,271,942	170,625,994
Common stock, outstanding (in shares)	173,271,942	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)	9,817,605	9,842,105
Common stock, outstanding (in shares)	9,817,605	9,842,105

Stockholders' Equity - Common_2

Stockholders' Equity - Common Stock Shares Reserved (Details) - shares	Jun. 30, 2022	Dec. 31, 2021
Stockholders' Equity
Total (in shares)	48,541,344	41,478,804
2016 Stock Option and Incentive Plan
Stockholders' Equity
Stock-based awards available for grant under 2016 Plan and ESPP (in shares)	22,891,134	24,650,104
Common Stock Class A
Stockholders' Equity
Class A common stock reserved for Twilio.org (in shares)	574,653	618,857
Stock options issued and outstanding
Stockholders' Equity
Stock options issued and outstanding (in shares)	2,654,461	3,351,313
Unvested restricted stock units issued and outstanding
Stockholders' Equity
Unvested restricted stock units issued and outstanding (in shares)	14,496,487	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)	7,924,609	6,382,830

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	1 Months Ended	6 Months Ended
	Mar. 31, 2022 USD ($) tranche $ / shares shares	Jun. 30, 2022
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock plan offering period		6 months
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
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%

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 2,355,427
Unvested stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested stock options	$ 87,478
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	$ 2,247,100
Weighted-average remaining period	3 years 2 months 12 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, other than options	$ 5,676
Weighted-average remaining period	4 months 24 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	$ 15,173
Weighted-average remaining period	2 years

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 242,090	$ 144,168	$ 397,365	$ 281,323
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,996	3,024	8,517	5,741
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	109,524	58,871	188,893	115,830
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	78,492	47,940	126,078	89,576
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 50,078	$ 34,333	$ 73,877	$ 70,176

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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net Loss Per Share Attributable to Common Stockholders
Net loss attributable to common stockholders, basic	$ (322,769)	$ (227,853)	$ (544,396)	$ (434,395)
Net loss attributable to common stockholders, diluted	$ (322,769)	$ (227,853)	$ (544,396)	$ (434,395)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares)	182,347,864	173,407,187	181,624,316	170,275,609
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares)	182,347,864	173,407,187	181,624,316	170,275,609
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.77)	$ (1.31)	$ (3)	$ (2.55)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.77)	$ (1.31)	$ (3)	$ (2.55)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Anti-Dilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	18,059,266	12,928,329
Stock options issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,654,461	4,786,740
Unvested restricted stock units issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	14,496,487	7,008,107
Class A common stock reserved for Twilio.org
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	574,653	663,061
Class A common stock committed under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	226,082	106,054
Class A common stock in escrow
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	31,503	75,612
Class A common stock in escrow and restricted stock awards subject to future vesting
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	76,080	288,755

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 2,594	$ 1,286	$ (264)	$ 2,176