Twilio (TWLO) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 02, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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	2023
Document Fiscal Period Focus	Q1
Common Stock Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		174,313,953
Common Stock Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		9,617,605

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 634,824	$ 651,752
Short-term marketable securities	3,310,483	3,503,317
Accounts receivable, net	575,664	547,507
Prepaid expenses and other current assets	335,565	281,510
Total current assets	4,856,536	4,984,086
Property and equipment, net	254,062	263,979
Operating right-of-use assets	103,532	121,341
Equity method investment	684,144	699,911
Intangible assets, net	797,699	849,935
Goodwill	5,284,388	5,284,153
Other long-term assets	318,547	360,899
Total assets	12,298,908	12,564,304
Current liabilities:
Accounts payable	121,157	124,605
Accrued expenses and other current liabilities	475,871	490,221
Deferred revenue and customer deposits	136,517	139,110
Operating lease liability, current	54,904	54,222
Total current liabilities	788,449	808,158
Operating lease liability, noncurrent	162,114	164,551
Finance lease liability, noncurrent	17,832	21,290
Long-term debt, net	987,769	987,382
Other long-term liabilities	23,878	23,881
Total liabilities	1,980,042	2,005,262
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock	0	0
Class A and Class B common stock	186	186
Additional paid-in capital	14,233,590	14,055,853
Accumulated other comprehensive loss	(71,945)	(121,161)
Accumulated deficit	(3,842,965)	(3,375,836)
Total stockholders’ equity	10,318,866	10,559,042
Total liabilities and stockholders’ equity	$ 12,298,908	$ 12,564,304

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 1,006,564	$ 875,363
Cost of revenue	515,874	450,292
Gross profit	490,690	425,071
Operating expenses:
Research and development	238,595	240,611
Sales and marketing	259,885	287,906
General and administrative	112,568	114,362
Restructuring costs	121,942	0
Impairment of long-lived assets	21,784	0
Total operating expenses	754,774	642,879
Loss from operations	(264,084)	(217,808)
Other expenses, net:
Share of losses from equity method investment	(30,419)	0
Impairment of strategic investments	(46,154)	0
Other income (expenses), net	8,985	(6,677)
Total other expenses, net	(67,588)	(6,677)
Loss before (provision for) benefit from income taxes	(331,672)	(224,485)
(Provision for) benefit from income taxes	(10,467)	2,858
Net loss attributable to common stockholders	$ (342,139)	$ (221,627)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.84)	$ (1.23)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.84)	$ (1.23)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	186,403,349	180,898,713
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	186,403,349	180,898,713

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss attributable to common stockholders	$ (342,139)	$ (221,627)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	30,750	(62,826)
Foreign currency translation	483	(165)
Net change in market value of effective foreign currency forward exchange contracts	3,335	(3,852)
Share of other comprehensive income from equity method investment	14,648	0
Total other comprehensive income (loss)	49,216	(66,843)
Comprehensive loss attributable to common stockholders	$ (292,923)	$ (288,470)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock Class A	Common Stock Class B	Common Stock	Common Stock Common Stock Class A	Common Stock Common Stock Class B	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning 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 attributable to common stockholders	(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 issued and donated to charity (in shares)					22,102
Shares of Class A common stock issued and donated to charity	4,232						4,232
Shares returned from escrow (in shares)					(152,239)
Shares returned from escrow	(387)						(387)
Unrealized gain (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)
Share of other comprehensive income from equity method investment	0
Stock-based compensation	159,930						159,930
Ending 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)
Beginning balance (in shares) at Dec. 31, 2022		176,358,104	9,617,605		176,358,104	9,617,605
Balance at Dec. 31, 2022	10,559,042				$ 174	$ 12	14,055,853	(121,161)	(3,375,836)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss attributable to common stockholders	(342,139)								(342,139)
Exercises of vested stock options (in shares)					66,968	97,199
Exercises of vested stock options	3,264						3,264
Vesting of restricted stock units (in shares)					1,516,634
Vesting of restricted stock units	0				$ 2		(2)
Value of equity awards withheld for tax liability (in shares)					(36,965)
Value of equity awards withheld for tax liability	(2,456)						(2,456)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)					97,199	(97,199)
Shares of Class A common stock issued and donated to charity (in shares)					22,102
Shares of Class A common stock issued and donated to charity	1,599						1,599
Unrealized gain (loss) on marketable securities	$ 30,750							30,750
Repurchases of shares of Class A common stock including related costs (in shares)	(1,900,000)			(1,902,124)
Repurchases of shares of Class A common stock including related costs	$ (124,992)			$ (2)					(124,990)
Foreign currency translation	483							483
Net change in market value of effective foreign currency forward exchange contracts	3,335							3,335
Share of other comprehensive income from equity method investment	14,648							14,648
Stock-based compensation	164,999						164,999
Stock-based compensation - restructuring	10,333						10,333
Ending balance (in shares) at Mar. 31, 2023		176,121,918	9,617,605		176,121,918	9,617,605
Balance at Mar. 31, 2023	$ 10,318,866				$ 174	$ 12	$ 14,233,590	$ (71,945)	$ (3,842,965)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (342,139)	$ (221,627)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	71,393	68,103
Non-cash reduction to the right-of-use asset	8,574	12,415
Net amortization of investment premium and discount	3,515	10,712
Impairment of long-lived assets due to office closures	21,784	0
Stock-based compensation including restructuring	170,799	155,275
Amortization of deferred commissions	17,865	12,626
Value of shares of Class A common stock issued and donated to charity	1,599	4,232
Share of losses from equity method investment	30,419	0
Impairment of strategic investments	46,154	0
Other adjustments	15,367	1,418
Changes in operating assets and liabilities:
Accounts receivable	(35,215)	(19,623)
Prepaid expenses and other current assets	(51,438)	(14,176)
Other long-term assets	(21,481)	(27,399)
Accounts payable	66	1,247
Accrued expenses and other current liabilities	(19,130)	18,148
Deferred revenue and customer deposits	(2,611)	(1,453)
Operating lease liabilities	(13,651)	(13,058)
Other long-term liabilities	264	(4,415)
Net cash used in operating activities	(97,866)	(17,575)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired and other related payments	0	(27,682)
Purchases of marketable securities and other investments	(136,119)	(246,874)
Proceeds from sales and maturities of marketable securities	355,195	442,753
Capitalized software development costs	(9,860)	(10,250)
Purchases of long-lived and intangible assets	(6,751)	(6,980)
Net cash provided by investing activities	202,465	150,967
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of costs related to public offerings	0	(35)
Principal payments on debt and finance leases	(7,353)	(6,520)
Value of equity awards withheld for tax liabilities	(2,456)	(1,065)
Repurchases of shares of Class A common stock and related costs	(114,993)	0
Proceeds from exercises of stock options	3,264	11,727
Net cash (used in) provided by financing activities	(121,538)	4,107
Effect of exchange rate changes on cash, cash equivalents and restricted cash	39	27
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(16,900)	137,526
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period	656,078	1,481,831
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	639,178	1,619,357
Cash paid for income taxes, net	3,479	1,443
Cash paid for interest	18,750	19,011
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents	634,824	1,617,022
Restricted cash in other current assets	3,916	1,970
Restricted cash in other long-term assets	438	365
Total cash, cash equivalents and restricted cash	$ 639,178	$ 1,619,357

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2023
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 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 their customers’ 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	3 Months Ended
	Mar. 31, 2023
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 27, 2023 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2022, 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 2023 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; impairment assessments of goodwill and indefinite-lived 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 $165.9 million as of March 31, 2023, of which 72% 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 March 31, 2023, and December 31, 2022, the Company recorded $136.5 million and $139.1 million as its deferred revenue and customer deposits, respectively, that are included in deferred revenue and customer deposits and other long-term liabilities in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2023 and 2022, the Company recognized $71.3 million and $64.9 million of revenue, respectively, that was included in the deferred revenue and customer deposits balances as of the end of the previous year. (f) Deferred Sales Commissions Total net capitalized commission costs as of March 31, 2023, and December 31, 2022, were $237.0 million and $239.1 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. Certain balances held by such financial institutions 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. In the three months ended March 31, 2023 and 2022, no customer organization accounted for more than 10% of the Company’s total revenue. As of March 31, 2023, and December 31, 2022, no customer organization represented more than 10% of the Company’s gross accounts receivable. (h) Changes to Significant Accounting Policies Share Repurchases The Company elected to record the excess of the repurchase price over the par value of the repurchased shares of its Class A common stock in accumulated deficit, along with the associated transaction costs and excise taxes. Immediately upon repurchase, the shares are retired and returned to the status of unauthorized and unissued. On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. There have been no other changes to the Company’s significant accounting policies as described in its Annual Report. (i) Recently Issued Accounting Guidance, Not yet Adopted In June 2022, the Financial Accounting Standards Board issued Accounting Standards Update No. 2022-03, " Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, " which clarifies and amends the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. The guidance will be effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
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 Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 289,997 $ — $ — $ — $ 289,997 $ — $ — $ 289,997 Total included in cash 289,997 — — — 289,997 — — 289,997 Marketable securities: U.S. Treasury securities 416,493 — (650) (7,747) 408,096 — — 408,096 Non-U.S. government 149,510 — (22) (4,543) 144,945 — — 144,945 Corporate debt securities and 2,815,621 1,372 (6,169) (53,382) 5,000 2,752,442 — 2,757,442 Total marketable 3,381,624 1,372 (6,841) (65,672) 558,041 2,752,442 — 3,310,483 Total financial assets $ 3,671,621 $ 1,372 $ (6,841) $ (65,672) $ 848,038 $ 2,752,442 $ — $ 3,600,480 Amortized Gross 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 $ 46,610 $ — $ — $ — $ 46,610 $ — $ — $ 46,610 Reverse repurchase 200,000 — — — — 200,000 — 200,000 Commercial paper 2,249 — — — 2,249 2,249 Total included in cash 248,859 — — — 46,610 202,249 — 248,859 Marketable securities: U.S. Treasury securities 481,463 — (1,269) (11,347) 468,847 — — 468,847 Non-U.S. government 149,901 — (33) (6,304) 143,564 — — 143,564 Corporate debt securities and 2,973,844 307 (12,202) (71,043) 5,000 2,885,906 — 2,890,906 Total marketable 3,605,208 307 (13,504) (88,694) 617,411 2,885,906 — 3,503,317 Total financial assets $ 3,854,067 $ 307 $ (13,504) $ (88,694) $ 664,021 $ 3,088,155 $ — $ 3,752,176 The aggregate related fair value of the corporate debt securities with unrealized losses was $2.4 billion as of March 31, 2023, of which $1.9 billion were in an unrealized loss position for more than 12 months and $420.2 million were in an unrealized loss position for less than 12 months. The aggregate related fair value of corporate debt securities with unrealized losses was $2.7 billion as of December 31, 2022, of which $2.0 billion were in an unrealized loss position for more than 12 months and $620.5 million were in an unrealized loss position for less than 12 months. Unrealized losses related to other investments as of March 31, 2023, and December 31, 2022, were not significant. 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. Because the Company views its marketable securities as available to support current operations, it has classified all available for sale securities as short-term. As of March 31, 2023, and December 31, 2022, for all fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of March 31, 2023, and December 31, 2022, 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 $17.2 million and $15.6 million in the three months ended March 31, 2023 and 2022, respectively. The interest is recorded as other income (expenses), net, in the accompanying condensed consolidated statements of operations. The following table summarizes the contractual maturities of marketable securities: As of March 31, 2023 As of December 31, 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 2,155,152 $ 2,116,532 $ 1,943,836 $ 1,909,218 One to three years 1,226,472 1,193,951 1,661,372 1,594,099 Total $ 3,381,624 $ 3,310,483 $ 3,605,208 $ 3,503,317 Strategic Investments As of March 31, 2023, and December 31, 2022, the Company held strategic investments with a carrying value of $30.7 million and $76.9 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 or impairment. In the three months ended March 31, 2023, the Company remeasured one of its strategic investments that it acquired in 2021 to fair value due to an assessed impairment. The fair value measurement of the strategic investment is categorized under Level 2 in the fair value hierarchy and the primary input used in the fair value measurement was the publicly available stock price of the issuer’s unrestricted security of the same class. The impairment loss of $46.2 million is recorded in other income (expenses), net, in the accompanying condensed consolidated statement of operations for the three months ended March 31, 2023. There were no other impairments or adjustments recorded in the three months ended March 31, 2023 and 2022, related to these securities. Financial Liabilities The Company’s financial liabilities that are measured at fair value on a recurring basis consist of foreign currency derivative liabilities and are classified as Level 2 financial instruments in the fair value hierarchy. As of March 31, 2023, and December 31, 2022, the aggregate fair value of these liabilities and the associated unrealized losses were not significant.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: As of March 31, 2023 As of December 31, 2022 (In thousands) Capitalized internal-use software developments costs $ 269,463 $ 257,983 Data center equipment (1) 101,178 100,207 Leasehold improvements 92,475 91,660 Office equipment 71,344 70,815 Furniture and fixtures 14,913 14,935 Software 14,832 14,675 Total property and equipment 564,205 550,275 Less: accumulated depreciation and amortization (1) (310,143) (286,296) Total property and equipment, net $ 254,062 $ 263,979 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of March 31, 2023, and December 31, 2022. Accumulated depreciation and amortization includes $45.0 million and $41.2 million of accumulated depreciation for assets held under finance leases as of March 31, 2023, and December 31, 2022, respectively. Depreciation and amortization expense was $20.1 million and $16.6 million in the three months ended March 31, 2023 and 2022, respectively. The Company capitalized $14.2 million and $14.7 million in internal‑use software development costs in the three months ended March 31, 2023 and 2022, respectively. In the three months ended March 31, 2023, the Company signed an agreement to divest its Internet of Things (“IoT”) assets and liabilities to a third party. The Company recorded a $3.8 million loss on net assets held for sale related to this transaction and an additional $2.2 million of related costs. The assets and liabilities held for sale are not significant.

Impairment

Impairment	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment	Impairment In February 2023, the Company announced plans to close additional offices as part of its 2022 strategy to become a remote-first company. The Company regularly assesses recoverability of all impacted right-of-use (“ROU”) assets and the related leasehold improvements and property and equipment for indicators of impairment. In the three months ended March 31, 2023, the Company recorded a $21.8 million impairment expense related to its permanent office closures. No other significant impairments were recorded in the three months ended March 31, 2023 and 2022.

Restructuring Activities

Restructuring Activities	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring Activities	Restructuring ActivitiesOn February 13, 2023, the Company committed to a workforce reduction plan (the “February 2023 Plan”) that eliminated approximately 17% of the Company’s workforce. In the three months ended March 31, 2023, the Company recorded restructuring charges of $121.9 million, which consisted of $111.6 million related to employee severances, benefits and facilitation costs and $10.3 million related to vesting of stock-based awards of the impacted employees. The execution of the February 2023 Plan was substantially completed as of March 31, 2023. The estimated remaining expenses related to the February 2023 Plan are approximately $20.0 million and are expected to be incurred in 2023. The actual expenses may differ materially from the original estimates. The following table summarizes the Company’s restructuring liability related to the February 2023 Plan that is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2022 $ — $ — $ — Restructuring charges 105,113 6,455 111,568 Cash payments (77,873) (539) (78,412) Balance as of March 31, 2023 $ 27,240 $ 5,916 $ 33,156 The $10.3 million vesting of the stock-based awards is recorded in the additional-paid-in capital in the accompanying condensed consolidated statement of stockholders’ equity. The activity and the remaining amounts related to the restructuring plan effected in September 2022 (the “September 2022 Plan”) were insignificant. In February 2023, concurrent with the announcement of the February 2023 Plan, the Company announced a reorganization of its business into two business units, Twilio Data & Applications and Twilio Communications, to enable the Company to better execute on the key priorities for each side of its business—accelerating growth for Twilio Data & Applications and driving efficiencies for Twilio Communications—while accounting for each business unit’s unique economic, customer and product needs (the “Reorganization”). Effective March 1, 2023, the Company’s Board of Directors appointed a president for each newly created business unit. Both presidents report directly to the Chief Operating Decision Maker (“CODM”), maintain regular contact with the CODM and are directly accountable for specific activities and financial results of their respective business units. The Company’s Chief Executive Officer is its CODM. An operating segment is a component of a public entity that has all of the following characteristics: – it engages in business activities from which it may recognize revenues and incur expenses, – its operating results are regularly reviewed by the public entity’s CODM to make decisions about resources to be allocated to the segment and assess its performance, and – its discrete financial information is available. With the Reorganization, the Company significantly changed the organizational structure of its business, including the way management will operate the business in the future. As such, in February 2023, the Company began making significant realignments to its internal processes and controls to build a financial reporting process within its enterprise reporting system that would enable consistent, comparable and reliable internal reporting of discrete financial information on a newly formed business unit level (the “Realignment”). The Realignment includes efforts, such as remapping of the Company’s functional cost centers to the newly formed business units, developing new allocation methodologies for various costs and reserves, redesigning employee compensation structure, including commissions plans, and other changes - most of which involve judgment and assumptions. Additionally, as of March 31, 2023, the Company was still in process of determining the optimal measure of profitability to be used by the CODM to assess performance of the newly formed business units. The Company expects to complete these efforts during 2023 in order to regularly provide the CODM with discrete financial information on the business unit level, which will also enable the Company to provide segment level disclosures. As this information was not yet available as of March 31, 2023, the Company concluded that it continued to have one operating and reportable segment in the first quarter of 2023. In connection with the expected shift from one operating segment to two operating segments in 2023, the Company will also shift into a multiple reporting unit structure. Once this occurs and the Company is able to allocate goodwill to each reporting unit, the Company will perform an impairment assessment for each newly formed reporting unit, which may result in goodwill and other asset impairments that could be material.

Reorganization and Segment Repo

Reorganization and Segment Reporting	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Reorganization and Segment Reporting	Restructuring ActivitiesOn February 13, 2023, the Company committed to a workforce reduction plan (the “February 2023 Plan”) that eliminated approximately 17% of the Company’s workforce. In the three months ended March 31, 2023, the Company recorded restructuring charges of $121.9 million, which consisted of $111.6 million related to employee severances, benefits and facilitation costs and $10.3 million related to vesting of stock-based awards of the impacted employees. The execution of the February 2023 Plan was substantially completed as of March 31, 2023. The estimated remaining expenses related to the February 2023 Plan are approximately $20.0 million and are expected to be incurred in 2023. The actual expenses may differ materially from the original estimates. The following table summarizes the Company’s restructuring liability related to the February 2023 Plan that is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2022 $ — $ — $ — Restructuring charges 105,113 6,455 111,568 Cash payments (77,873) (539) (78,412) Balance as of March 31, 2023 $ 27,240 $ 5,916 $ 33,156 The $10.3 million vesting of the stock-based awards is recorded in the additional-paid-in capital in the accompanying condensed consolidated statement of stockholders’ equity. The activity and the remaining amounts related to the restructuring plan effected in September 2022 (the “September 2022 Plan”) were insignificant. In February 2023, concurrent with the announcement of the February 2023 Plan, the Company announced a reorganization of its business into two business units, Twilio Data & Applications and Twilio Communications, to enable the Company to better execute on the key priorities for each side of its business—accelerating growth for Twilio Data & Applications and driving efficiencies for Twilio Communications—while accounting for each business unit’s unique economic, customer and product needs (the “Reorganization”). Effective March 1, 2023, the Company’s Board of Directors appointed a president for each newly created business unit. Both presidents report directly to the Chief Operating Decision Maker (“CODM”), maintain regular contact with the CODM and are directly accountable for specific activities and financial results of their respective business units. The Company’s Chief Executive Officer is its CODM. An operating segment is a component of a public entity that has all of the following characteristics: – it engages in business activities from which it may recognize revenues and incur expenses, – its operating results are regularly reviewed by the public entity’s CODM to make decisions about resources to be allocated to the segment and assess its performance, and – its discrete financial information is available. With the Reorganization, the Company significantly changed the organizational structure of its business, including the way management will operate the business in the future. As such, in February 2023, the Company began making significant realignments to its internal processes and controls to build a financial reporting process within its enterprise reporting system that would enable consistent, comparable and reliable internal reporting of discrete financial information on a newly formed business unit level (the “Realignment”). The Realignment includes efforts, such as remapping of the Company’s functional cost centers to the newly formed business units, developing new allocation methodologies for various costs and reserves, redesigning employee compensation structure, including commissions plans, and other changes - most of which involve judgment and assumptions. Additionally, as of March 31, 2023, the Company was still in process of determining the optimal measure of profitability to be used by the CODM to assess performance of the newly formed business units. The Company expects to complete these efforts during 2023 in order to regularly provide the CODM with discrete financial information on the business unit level, which will also enable the Company to provide segment level disclosures. As this information was not yet available as of March 31, 2023, the Company concluded that it continued to have one operating and reportable segment in the first quarter of 2023. In connection with the expected shift from one operating segment to two operating segments in 2023, the Company will also shift into a multiple reporting unit structure. Once this occurs and the Company is able to allocate goodwill to each reporting unit, the Company will perform an impairment assessment for each newly formed reporting unit, which may result in goodwill and other asset impairments that could be material.

Derivatives and Hedging

Derivatives and Hedging	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging	Derivatives and Hedging As of March 31, 2023, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $286.8 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of March 31, 2023, these contracts had maturities of up to seventeen 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 March 31, 2023 2022 (In thousands) Gains (Losses) recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 3,335 $ (3,852) Gains (Losses) recognized in income due to instruments maturing Cost of revenue $ 735 $ (1,597)

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill The goodwill balance as of March 31, 2023, and December 31, 2022, was as follows: Total (In thousands) Balance as of December 31, 2022 $ 5,284,153 Foreign currency adjustments 235 Balance as of March 31, 2023 $ 5,284,388 Intangible assets Intangible assets consisted of the following: As of March 31, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 794,567 $ (363,631) $ 430,936 Customer relationships 538,223 (223,148) 315,075 Supplier relationships 56,971 (22,520) 34,451 Trade names 30,372 (21,622) 8,750 Order backlog 10,000 (10,000) — Patent 4,028 (756) 3,272 Total amortizable intangible assets 1,434,161 (641,677) 792,484 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,439,376 $ (641,677) $ 797,699 As of December 31, 2022 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 795,753 $ (335,893) $ 459,860 Customer relationships 538,466 (204,241) 334,225 Supplier relationships 56,922 (19,846) 37,076 Trade names 30,342 (20,106) 10,236 Order backlog 10,000 (10,000) — Patent 4,028 (705) 3,323 Total amortizable intangible assets 1,435,511 (590,791) 844,720 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,440,726 $ (590,791) $ 849,935 Amortization expense was $50.8 million and $51.5 million for the three months ended March 31, 2023 and 2022, respectively. Total estimated future amortization expense is as follows: As of March 31, 2023 Year Ended December 31, (In thousands) 2023 $ 152,782 2024 196,111 2025 192,538 2026 120,240 2027 72,221 Thereafter 58,592 Total $ 792,484

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2023
Accrued Liabilities and Other Liabilities [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of March 31, 2023 As of December 31, 2022 (In thousands) Accrued payroll and related $ 60,215 $ 79,703 Accrued bonus and commission 20,764 35,449 Accrued cost of revenue 153,469 161,455 Sales and other taxes payable 90,901 92,319 ESPP contributions 19,981 8,499 Finance lease liability 10,108 11,871 Restructuring liability 33,469 1,066 Employee sabbatical benefit accrual (1) 15,714 30,683 Accrued other expense 71,250 69,176 Total accrued expenses and other current liabilities $ 475,871 $ 490,221 ____________________________________ ( 1 )

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2023
Long-Term Debt, Unclassified [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt, net, consisted of the following: As of March 31, 2023 As of December 31, 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,822) (5,001) Unamortized issuance costs (1,085) (1,126) Net carrying amount 494,093 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,162) (5,299) Unamortized issuance costs (1,162) (1,192) Net carrying amount 493,676 493,509 Total long-term debt, net $ 987,769 $ 987,382

Revenue by Geographic Area and

Revenue by Geographic Area and Business Units	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue by Geographic Area and Business Units	Revenue by Geographic Area and Business Units 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 2023 2022 Revenue by geographic area: (In thousands) United States $ 662,092 $ 570,380 International 344,472 304,983 Total $ 1,006,564 $ 875,363 Percentage of revenue by geographic area: United States 66 % 65 % International 34 % 35 % Long-lived assets outside of the United States were $52.5 million and $54.5 million as of March 31, 2023, and December 31, 2022, respectively. The following table sets forth revenue by business unit: Three Months Ended 2023 2022 Revenue by business unit: (In thousands) Twilio Communications $ 846,658 $ 742,745 Twilio Data & Applications 120,142 101,086 Other 39,764 31,532 Total $ 1,006,564 $ 875,363 Twilio Communications includes a variety of application programming interfaces (“APIs”) and software solutions to optimize communications between Twilio customers and their end users. This is primarily concentrated within the Messaging,

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesLease and Other Commitments The Company has entered into various non-cancelable operating lease agreements for its facilities. In the three months ended March 31, 2023, 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 months ended March 31, 2023, the Company entered into several such agreements with terms up to two years for a total purchase commitment of $47.6 million. The City and County of San Francisco (“San Francisco”) has assessed the Company for additional Telephone Users Tax (“TUT”) and Access Line Tax 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. The previously set trial date was vacated, and a case management conference is scheduled for June 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 13(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. In the ordinary course of business and in connection with its financing and business combinations transactions, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to business partners, customers and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties and other liabilities relating to or arising from the Company’s various products, or its acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments. The terms of such obligations may vary. As of March 31, 2023 and December 31, 2022, no amounts were accrued related to any outstanding indemnification agreements. The Company conducts operations in many tax jurisdictions within and outside of 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. The Company carries reserves for certain of its 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 13(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 March 31, 2023, the liabilities recorded for the non-income-based taxes were $30.3 million for domestic jurisdictions and $21.8 million for jurisdictions outside of the United States. As of December 31, 2022, these liabilities were $29.1 million and $20.6 million, respectively.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders' Equity Preferred Stock As of March 31, 2023, and December 31, 2022, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001, of which no shares were issued and outstanding. Common Stock As of March 31, 2023, and December 31, 2022, 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 with a par value of $0.001 per share. As of March 31, 2023, 176,121,918 shares of Class A common stock and 9,617,605 shares of Class B common stock were issued and outstanding. As of December 31, 2022, 176,358,104 shares of Class A common stock and 9,617,605 shares of Class B common stock were issued and outstanding. The Company had reserved shares of common stock for issuance as follows: As of March 31, 2023 As of December 31, 2022 Stock options issued and outstanding 2,007,636 2,277,379 Unvested restricted stock units issued and outstanding 13,487,645 15,414,997 Class A common stock reserved for Twilio.org 508,347 530,449 Stock-based awards available for grant under 2016 Plan 29,755,557 19,851,399 Stock-based awards available for grant under ESPP 9,448,429 7,648,429 Total 55,207,614 45,722,653 Share Repurchase Program In February 2023, the Board of Directors of the Company authorized a share repurchase program pursuant to which the Company may repurchase up to $1.0 billion in aggregate value of its outstanding Class A common stock. Repurchases under this program will be made through open market, private transactions or other means, in compliance with applicable federal securities laws, and could include repurchases pursuant to Rule 10b5-1 trading plans. The Company has discretion in determining the conditions under which shares may be repurchased from time to time. The program is set to expire on December 31, 2024. In the three months ended March 31, 2023, the Company repurchased 1.9 million shares of its Class A common stock for an aggregate purchase price of $125.0 million, including related costs. As of March 31, 2023, approximately $875.0 million of the originally authorized amount remained available for future repurchases. Subsequent to March 31, 2023, the Company has repurchased additional shares of its Class A common stock for an aggregate purchase price of $125.0 million.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
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, restricted stock awards, 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. As of March 31, 2023, total unrecognized compensation cost related to all outstanding equity awards was as follows: As of March 31, 2023 Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 31,238 1.7 Unvested restricted stock units and awards 1,427,132 2.8 ESPP 3,019 0.1 Class A shares in escrow subject to future vesting 1,822 1.3 Total $ 1,463,211 Stock-Based Compensation Expense The Company recorded total stock-based compensation expense as follows: Three Months Ended 2023 2022 (In thousands) Cost of revenue $ 5,290 $ 4,521 Research and development 78,093 79,369 Sales and marketing 48,129 47,586 General and administrative 28,954 23,799 Restructuring costs 10,333 — Total $ 170,799 $ 155,275

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss Per Share Attributable to Common Stockholders	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 2023 2022 Net loss attributable to common stockholders (in thousands) $ (342,139) $ (221,627) Weighted-average shares used to compute net loss per share attributable to 186,403,349 180,898,713 Net loss per share attributable to common stockholders, basic and diluted $ (1.84) $ (1.23) The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of March 31, 2023 2022 Stock options issued and outstanding 2,007,636 2,709,573 Unvested restricted stock units issued and outstanding 13,487,645 7,745,115 Class A common stock reserved for Twilio.org 508,347 596,755 Class A common stock committed under ESPP 742,303 147,947 Class A common stock in escrow 31,503 31,503 Class A common stock in escrow and restricted stock awards subject to future vesting 15,936 76,080 Total 16,793,370 11,306,973

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
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 certain foreign net operating losses and credits. The Company recorded an income tax provision of $10.5 million for the three months ended March 31, 2023, and an income tax benefit of $2.9 million for the three months ended March 31, 2022. The provision for income taxes recorded in the three months ended March 31, 2023, consists primarily of income taxes and withholding taxes, partially offset by an income tax benefit from the release of tax liabilities related to uncertain tax positions for which the statute of limitation had lapsed. The benefit for income taxes recorded in the three months ended March 31, 2022, consists primarily of an income tax benefit from the reversal of U.S. valuation allowance related to acquired intangible assets from business combinations, partially offset by income taxes and withholding taxes in foreign jurisdictions in which the Company conducts business. The Company is subject to taxation in the U.S. and various other state and foreign jurisdictions. Because the Company has net operating loss carryforwards for U.S. federal and state jurisdictions, the statute of limitations is open for all tax years.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsIn May 2022, the Company and Syniverse Corporation (“Syniverse”), an equity method investee, 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. For the three months ended March 31, 2023, the value of the transactions that occurred between the Company and Syniverse were $33.5 million. These transactions were recorded as cost of revenue in the accompanying condensed consolidated statement of operations.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
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 27, 2023 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2022, 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 2023 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; impairment assessments of goodwill and indefinite-lived 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.
Deferred Revenue and Customer Deposits and Deferred Sales Commissions	Deferred Revenue and Customer Deposits As of March 31, 2023, and December 31, 2022, the Company recorded $136.5 million and $139.1 million as its deferred revenue and customer deposits, respectively, that are included in deferred revenue and customer deposits and other long-term liabilities in the accompanying condensed consolidated balance sheets. During the three months ended March 31, 2023 and 2022, the Company recognized $71.3 million and $64.9 million of revenue, respectively, that was included in the deferred revenue and customer deposits balances as of the end of the previous year. (f) Deferred Sales Commissions
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. Certain balances held by such financial institutions 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.
Changes to Significant Accounting Policies / Recently Issued Accounting Guidance, Not yet Adopted	Changes to Significant Accounting Policies Share Repurchases The Company elected to record the excess of the repurchase price over the par value of the repurchased shares of its Class A common stock in accumulated deficit, along with the associated transaction costs and excise taxes. Immediately upon repurchase, the shares are retired and returned to the status of unauthorized and unissued. On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. There have been no other changes to the Company’s significant accounting policies as described in its Annual Report. (i) Recently Issued Accounting Guidance, Not yet Adopted In June 2022, the Financial Accounting Standards Board issued Accounting Standards Update No. 2022-03, " Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, " which clarifies and amends the guidance of measuring the fair value of equity securities subject to contractual restrictions that prohibit the sale of the equity securities. The guidance will be effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
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 Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 289,997 $ — $ — $ — $ 289,997 $ — $ — $ 289,997 Total included in cash 289,997 — — — 289,997 — — 289,997 Marketable securities: U.S. Treasury securities 416,493 — (650) (7,747) 408,096 — — 408,096 Non-U.S. government 149,510 — (22) (4,543) 144,945 — — 144,945 Corporate debt securities and 2,815,621 1,372 (6,169) (53,382) 5,000 2,752,442 — 2,757,442 Total marketable 3,381,624 1,372 (6,841) (65,672) 558,041 2,752,442 — 3,310,483 Total financial assets $ 3,671,621 $ 1,372 $ (6,841) $ (65,672) $ 848,038 $ 2,752,442 $ — $ 3,600,480 Amortized Gross 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 $ 46,610 $ — $ — $ — $ 46,610 $ — $ — $ 46,610 Reverse repurchase 200,000 — — — — 200,000 — 200,000 Commercial paper 2,249 — — — 2,249 2,249 Total included in cash 248,859 — — — 46,610 202,249 — 248,859 Marketable securities: U.S. Treasury securities 481,463 — (1,269) (11,347) 468,847 — — 468,847 Non-U.S. government 149,901 — (33) (6,304) 143,564 — — 143,564 Corporate debt securities and 2,973,844 307 (12,202) (71,043) 5,000 2,885,906 — 2,890,906 Total marketable 3,605,208 307 (13,504) (88,694) 617,411 2,885,906 — 3,503,317 Total financial assets $ 3,854,067 $ 307 $ (13,504) $ (88,694) $ 664,021 $ 3,088,155 $ — $ 3,752,176
Schedule of contractual maturities of marketable securities	The following table summarizes the contractual maturities of marketable securities: As of March 31, 2023 As of December 31, 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 2,155,152 $ 2,116,532 $ 1,943,836 $ 1,909,218 One to three years 1,226,472 1,193,951 1,661,372 1,594,099 Total $ 3,381,624 $ 3,310,483 $ 3,605,208 $ 3,503,317

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consisted of the following: As of March 31, 2023 As of December 31, 2022 (In thousands) Capitalized internal-use software developments costs $ 269,463 $ 257,983 Data center equipment (1) 101,178 100,207 Leasehold improvements 92,475 91,660 Office equipment 71,344 70,815 Furniture and fixtures 14,913 14,935 Software 14,832 14,675 Total property and equipment 564,205 550,275 Less: accumulated depreciation and amortization (1) (310,143) (286,296) Total property and equipment, net $ 254,062 $ 263,979 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of March 31, 2023, and December 31, 2022. Accumulated depreciation and amortization includes $45.0 million and $41.2 million of accumulated depreciation for assets held under finance leases as of March 31, 2023, and December 31, 2022, respectively.

Restructuring Activities (Table

Restructuring Activities (Tables)	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Schedule of restructuring activities	The following table summarizes the Company’s restructuring liability related to the February 2023 Plan that is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2022 $ — $ — $ — Restructuring charges 105,113 6,455 111,568 Cash payments (77,873) (539) (78,412) Balance as of March 31, 2023 $ 27,240 $ 5,916 $ 33,156

Derivatives and Hedging (Tables

Derivatives and Hedging (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gains and losses associated with foreign currency forward contracts	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 March 31, 2023 2022 (In thousands) Gains (Losses) recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 3,335 $ (3,852) Gains (Losses) recognized in income due to instruments maturing Cost of revenue $ 735 $ (1,597)

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill balance	The goodwill balance as of March 31, 2023, and December 31, 2022, was as follows: Total (In thousands) Balance as of December 31, 2022 $ 5,284,153 Foreign currency adjustments 235 Balance as of March 31, 2023 $ 5,284,388
Schedule of intangible assets	Intangible assets consisted of the following: As of March 31, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 794,567 $ (363,631) $ 430,936 Customer relationships 538,223 (223,148) 315,075 Supplier relationships 56,971 (22,520) 34,451 Trade names 30,372 (21,622) 8,750 Order backlog 10,000 (10,000) — Patent 4,028 (756) 3,272 Total amortizable intangible assets 1,434,161 (641,677) 792,484 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,439,376 $ (641,677) $ 797,699 As of December 31, 2022 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 795,753 $ (335,893) $ 459,860 Customer relationships 538,466 (204,241) 334,225 Supplier relationships 56,922 (19,846) 37,076 Trade names 30,342 (20,106) 10,236 Order backlog 10,000 (10,000) — Patent 4,028 (705) 3,323 Total amortizable intangible assets 1,435,511 (590,791) 844,720 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,440,726 $ (590,791) $ 849,935
Schedule of total estimated future amortization expense		Total estimated future amortization expense is as follows: As of March 31, 2023 Year Ended December 31, (In thousands) 2023 $ 152,782 2024 196,111 2025 192,538 2026 120,240 2027 72,221 Thereafter 58,592 Total $ 792,484

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
Accrued Liabilities and Other Liabilities [Abstract]
Schedule of accrued expenses and other current liabilities	Accrued expenses and other current liabilities consisted of the following: As of March 31, 2023 As of December 31, 2022 (In thousands) Accrued payroll and related $ 60,215 $ 79,703 Accrued bonus and commission 20,764 35,449 Accrued cost of revenue 153,469 161,455 Sales and other taxes payable 90,901 92,319 ESPP contributions 19,981 8,499 Finance lease liability 10,108 11,871 Restructuring liability 33,469 1,066 Employee sabbatical benefit accrual (1) 15,714 30,683 Accrued other expense 71,250 69,176 Total accrued expenses and other current liabilities $ 475,871 $ 490,221 ____________________________________ ( 1 )

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Long-Term Debt, Unclassified [Abstract]
Schedule of Long-term debt	Long-term debt, net, consisted of the following: As of March 31, 2023 As of December 31, 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,822) (5,001) Unamortized issuance costs (1,085) (1,126) Net carrying amount 494,093 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,162) (5,299) Unamortized issuance costs (1,162) (1,192) Net carrying amount 493,676 493,509 Total long-term debt, net $ 987,769 $ 987,382

Revenue by Geographic Area an_2

Revenue by Geographic Area and Business Units (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of revenue by geographic area and similar products	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 2023 2022 Revenue by geographic area: (In thousands) United States $ 662,092 $ 570,380 International 344,472 304,983 Total $ 1,006,564 $ 875,363 Percentage of revenue by geographic area: United States 66 % 65 % International 34 % 35 % The following table sets forth revenue by business unit: Three Months Ended 2023 2022 Revenue by business unit: (In thousands) Twilio Communications $ 846,658 $ 742,745 Twilio Data & Applications 120,142 101,086 Other 39,764 31,532 Total $ 1,006,564 $ 875,363

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Schedule of reserved shares of common stock for issuance	The Company had reserved shares of common stock for issuance as follows: As of March 31, 2023 As of December 31, 2022 Stock options issued and outstanding 2,007,636 2,277,379 Unvested restricted stock units issued and outstanding 13,487,645 15,414,997 Class A common stock reserved for Twilio.org 508,347 530,449 Stock-based awards available for grant under 2016 Plan 29,755,557 19,851,399 Stock-based awards available for grant under ESPP 9,448,429 7,648,429 Total 55,207,614 45,722,653

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of unrecognized compensation cost of outstanding equity awards	As of March 31, 2023, total unrecognized compensation cost related to all outstanding equity awards was as follows: As of March 31, 2023 Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 31,238 1.7 Unvested restricted stock units and awards 1,427,132 2.8 ESPP 3,019 0.1 Class A shares in escrow subject to future vesting 1,822 1.3 Total $ 1,463,211
Schedule of stock based compensation expense	The Company recorded total stock-based compensation expense as follows: Three Months Ended 2023 2022 (In thousands) Cost of revenue $ 5,290 $ 4,521 Research and development 78,093 79,369 Sales and marketing 48,129 47,586 General and administrative 28,954 23,799 Restructuring costs 10,333 — Total $ 170,799 $ 155,275

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2023
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 2023 2022 Net loss attributable to common stockholders (in thousands) $ (342,139) $ (221,627) Weighted-average shares used to compute net loss per share attributable to 186,403,349 180,898,713 Net loss per share attributable to common stockholders, basic and diluted $ (1.84) $ (1.23)
Schedule of common stock equivalents excluded from the computation of the diluted net loss per share attributable to common stockholders	The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of March 31, 2023 2022 Stock options issued and outstanding 2,007,636 2,709,573 Unvested restricted stock units issued and outstanding 13,487,645 7,745,115 Class A common stock reserved for Twilio.org 508,347 596,755 Class A common stock committed under ESPP 742,303 147,947 Class A common stock in escrow 31,503 31,503 Class A common stock in escrow and restricted stock awards subject to future vesting 15,936 76,080 Total 16,793,370 11,306,973

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, amount	$ 165.9
Deferred revenue	136.5		$ 139.1
Revenue recognized out of adjusted deferred revenue balance	71.3	$ 64.9
Total net capitalized costs	$ 237		$ 239.1
Revenue Recognition Period One | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, percentage	72%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue Recognition Period Two | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, percentage	95%
Revenue, remaining performance obligation, expected timing of satisfaction, period	24 months

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	$ 289,997	$ 248,859
Amortized Cost or Carrying Value	3,381,624	3,605,208
Gross Unrealized Gains	1,372	307
Gross Unrealized Losses Less Than 12 Months	(6,841)	(13,504)
Gross Unrealized Losses More Than 12 Months	(65,672)	(88,694)
Marketable securities, aggregate fair value	3,310,483	3,503,317
Total financial assets	3,671,621	3,854,067
Total financial assets	3,600,480	3,752,176
Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	289,997	46,610
Marketable securities, aggregate fair value	558,041	617,411
Total financial assets	848,038	664,021
Level 2
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	0	202,249
Marketable securities, aggregate fair value	2,752,442	2,885,906
Total financial assets	2,752,442	3,088,155
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	416,493	481,463
Gross Unrealized Gains	0	0
Gross Unrealized Losses Less Than 12 Months	(650)	(1,269)
Gross Unrealized Losses More Than 12 Months	(7,747)	(11,347)
Marketable securities, aggregate fair value	408,096	468,847
U.S. Treasury securities | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	408,096	468,847
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	149,510	149,901
Gross Unrealized Gains	0	0
Gross Unrealized Losses Less Than 12 Months	(22)	(33)
Gross Unrealized Losses More Than 12 Months	(4,543)	(6,304)
Marketable securities, aggregate fair value	144,945	143,564
Non-U.S. government securities | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	144,945	143,564
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	2,815,621	2,973,844
Gross Unrealized Gains	1,372	307
Gross Unrealized Losses Less Than 12 Months	(6,169)	(12,202)
Gross Unrealized Losses More Than 12 Months	(53,382)	(71,043)
Marketable securities, aggregate fair value	2,757,442	2,890,906
Corporate debt securities and commercial paper | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	5,000	5,000
Corporate debt securities and commercial paper | Level 2
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	2,752,442	2,885,906
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:	289,997	46,610
Money market funds | Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	289,997	46,610
Money market funds | Level 2
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	0	0
Money market funds | Level 3
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	$ 0	0
Reverse repurchase agreements
Fair Value Measurements, Financial Assets
Cash and cash equivalents:		200,000
Reverse repurchase agreements | Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:		0
Reverse repurchase agreements | Level 2
Fair Value Measurements, Financial Assets
Cash and cash equivalents:		200,000
Reverse repurchase agreements | Level 3
Fair Value Measurements, Financial Assets
Cash and cash equivalents:		0
Commercial paper
Fair Value Measurements, Financial Assets
Cash and cash equivalents:		2,249
Commercial paper | Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:
Commercial paper | Level 2
Fair Value Measurements, Financial Assets
Cash and cash equivalents:		2,249
Commercial paper | Level 3
Fair Value Measurements, Financial Assets
Cash and cash equivalents:

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Unrealized Losses More Than 12 Months	$ 65,672		$ 88,694
Gross Unrealized Losses Less Than 12 Months	6,841		13,504
Interest earned on marketable securities	17,200	$ 15,600
Investment in equity securities, carrying value	30,700		76,900
Impairment of strategic investments	46,154	$ 0
2029 Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of the notes	437,400		410,900
2031 Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of the notes	427,500		399,400
Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized losses	2,400,000		2,700,000
Gross Unrealized Losses More Than 12 Months	1,900,000		2,000,000
Gross Unrealized Losses Less Than 12 Months	$ 420,200		$ 620,500

Fair Value Measurements - Contr

Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Less than one year, amortized cost	$ 2,155,152	$ 1,943,836
One to three years, amortized cost	1,226,472	1,661,372
Amortized Cost or Carrying Value	3,381,624	3,605,208
Less than one year, aggregate fair value	2,116,532	1,909,218
One to three years, aggregate fair value	1,193,951	1,594,099
Total aggregate fair value	$ 3,310,483	$ 3,503,317

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property and Equipment
Total property and equipment	$ 564,205	$ 550,275
Less: accumulated depreciation and amortization	(310,143)	(286,296)
Total property and equipment, net	254,062	263,979
Capitalized internal-use software developments costs
Property and Equipment
Total property and equipment	269,463	257,983
Data center equipment
Property and Equipment
Total property and equipment	101,178	100,207
Finance lease asset	72,400	72,400
Finance lease asset, accumulated amortization	45,000	41,200
Leasehold improvements
Property and Equipment
Total property and equipment	92,475	91,660
Office equipment
Property and Equipment
Total property and equipment	71,344	70,815
Furniture and fixtures
Property and Equipment
Total property and equipment	14,913	14,935
Software
Property and Equipment
Total property and equipment	$ 14,832	$ 14,675

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 20.1	$ 16.6
Capitalized internal use software development costs	14.2	$ 14.7
Internet Of Things | Disposal Group, Held-for-sale, Not Discontinued Operations
Property, Plant and Equipment [Line Items]
Loss on divestiture	3.8
Divestiture transaction costs	$ 2.2

Impairment (Details)

Impairment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of long-lived assets	$ 21,784	$ 0

Restructuring Activities - Narr

Restructuring Activities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Feb. 13, 2023
Restructuring Cost and Reserve [Line Items]
Employees elimination percentage			17%
Restructuring charges	$ 121,942	$ 0
Estimated remaining expenses related to restructuring	20,000
Stock-based compensation - restructuring	10,333
Employee Severance and Facilitation Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	111,568
Stock-Based Awards
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 10,300

Restructuring Activities - Sche

Restructuring Activities - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Restructuring Reserve [Roll Forward]
Restructuring charges	$ 121,942	$ 0
Employee Severance and Facilitation Costs
Restructuring Reserve [Roll Forward]
Beginning balance of period	0
Restructuring charges	111,568
Cash payments	(78,412)
Ending balance of period	33,156
Workforce Reduction Costs
Restructuring Reserve [Roll Forward]
Beginning balance of period	0
Restructuring charges	105,113
Cash payments	(77,873)
Ending balance of period	27,240
Facilitation Costs
Restructuring Reserve [Roll Forward]
Beginning balance of period	0
Restructuring charges	6,455
Cash payments	(539)
Ending balance of period	$ 5,916

Reorganization and Segment Re_2

Reorganization and Segment Reporting (Details)	1 Months Ended		2 Months Ended	3 Months Ended
	Mar. 31, 2023 business_unit	Mar. 31, 2023 segment	Feb. 28, 2023 segment	Mar. 31, 2023 segment
Restructuring and Related Activities [Abstract]
Number of operating segments	2	2	1
Number of reportable segments				1

Derivatives and Hedging - Narra

Derivatives and Hedging - Narrative (Details) - Foreign Currency Forward - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Maximum
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative, term of contract	17 months
Buy
Foreign Currency Fair Value Hedge Derivative [Line Items]
Derivative, notional amount	$ 286.8

Derivatives and Hedging - Gains

Derivatives and Hedging - Gains (Losses) Associated With Foreign Currency Forward Contracts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cost of revenue
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gains (Losses) recognized in income due to instruments maturing	$ 735	$ (1,597)
Foreign Currency Forward
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gains (Losses) recognized in OCI	$ 3,335	$ (3,852)

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill Rollforward (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill
Beginning balance of period	$ 5,284,153
Foreign currency adjustments	235
Ending balance of period	$ 5,284,388

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortizable intangible assets:
Cost	$ 1,434,161	$ 1,435,511
Accumulated Amortization	(641,677)	(590,791)
Total	792,484	844,720
Intangible assets, gross	1,439,376	1,440,726
Total	797,699	849,935
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:
Cost	794,567	795,753
Accumulated Amortization	(363,631)	(335,893)
Total	430,936	459,860
Customer relationships
Amortizable intangible assets:
Cost	538,223	538,466
Accumulated Amortization	(223,148)	(204,241)
Total	315,075	334,225
Supplier relationships
Amortizable intangible assets:
Cost	56,971	56,922
Accumulated Amortization	(22,520)	(19,846)
Total	34,451	37,076
Trade names
Amortizable intangible assets:
Cost	30,372	30,342
Accumulated Amortization	(21,622)	(20,106)
Total	8,750	10,236
Order backlog
Amortizable intangible assets:
Cost	10,000	10,000
Accumulated Amortization	(10,000)	(10,000)
Total	0	0
Patent
Amortizable intangible assets:
Cost	4,028	4,028
Accumulated Amortization	(756)	(705)
Total	$ 3,272	$ 3,323

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 50.8	$ 51.5

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Intangible Assets
2023	$ 152,782
2024	196,111
2025	192,538
2026	120,240
2027	72,221
Thereafter	58,592
Total	$ 792,484	$ 844,720

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities and Other Liabilities [Abstract]
Accrued payroll and related	$ 60,215	$ 79,703
Accrued bonus and commission	20,764	35,449
Accrued cost of revenue	153,469	161,455
Sales and other taxes payable	90,901	92,319
ESPP contributions	19,981	8,499
Finance lease liability	10,108	11,871
Restructuring liability	33,469	1,066
Employee sabbatical benefit accrual1	15,714	30,683
Accrued other expense	71,250	69,176
Total accrued expenses and other current liabilities	$ 475,871	$ 490,221
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued expenses and other current liabilities	Total accrued expenses and other current liabilities

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total long-term debt, net	$ 987,769	$ 987,382
2029 Senior Notes
Debt Instrument [Line Items]
Principal	500,000	500,000
Unamortized discount	(4,822)	(5,001)
Unamortized issuance costs	(1,085)	(1,126)
Total long-term debt, net	494,093	493,873
2031 Senior Notes
Debt Instrument [Line Items]
Principal	500,000	500,000
Unamortized discount	(5,162)	(5,299)
Unamortized issuance costs	(1,162)	(1,192)
Total long-term debt, net	$ 493,676	$ 493,509

Revenue by Geographic Area an_3

Revenue by Geographic Area and Business Units - Revenue and Percentage of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue by geographic area:
Revenue	$ 1,006,564	$ 875,363
Twilio Communications
Revenue by geographic area:
Revenue	846,658	742,745
Twilio Data & Applications
Revenue by geographic area:
Revenue	120,142	101,086
Other
Revenue by geographic area:
Revenue	39,764	31,532
United States
Revenue by geographic area:
Revenue	$ 662,092	$ 570,380
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	66%	65%
International
Revenue by geographic area:
Revenue	$ 344,472	$ 304,983
International | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	34%	35%

Revenue by Geographic Area an_4

Revenue by Geographic Area and Business Units - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
International
Disaggregation of Revenue [Line Items]
Long-lived assets	$ 52.5	$ 54.5

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2020	Sep. 30, 2020
Loss Contingencies [Line Items]
Term of non-cancellable agreement	2 years
Purchase commitment	$ 47,600,000
Taxes payable, jurisdictional estimate			$ 38,800,000	$ 38,800,000
Accrued taxes			$ 11,500,000
Domestic Tax Authority
Loss Contingencies [Line Items]
Taxes payable	30,300,000	$ 29,100,000
Foreign Tax Authority
Loss Contingencies [Line Items]
Taxes payable	21,800,000	20,600,000
Indemnification Agreement
Loss Contingencies [Line Items]
Loss contingency accrual	$ 0	$ 0

Stockholders' Equity - Preferre

Stockholders' Equity - Preferred Stock (Details) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Preferred Stock
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock (Details) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
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)	176,121,918	176,358,104
Common stock, outstanding (in shares)	176,121,918	176,358,104
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)	9,617,605	9,617,605
Common stock, outstanding (in shares)	9,617,605	9,617,605

Stockholders' Equity - Common_2

Stockholders' Equity - Common Stock Shares Reserved (Details) - shares	Mar. 31, 2023	Dec. 31, 2022
Stockholders' Equity
Total (in shares)	55,207,614	45,722,653
2016 Stock Option and Incentive Plan
Stockholders' Equity
Stock-based awards available for grant under 2016 Plan and ESPP (in shares)	29,755,557	19,851,399
Common Stock Class A
Stockholders' Equity
Class A common stock reserved for Twilio.org (in shares)	508,347	530,449
Stock options issued and outstanding
Stockholders' Equity
Stock options issued and outstanding (in shares)	2,007,636	2,277,379
Unvested restricted stock units issued and outstanding
Stockholders' Equity
Unvested restricted stock units issued and outstanding (in shares)	13,487,645	15,414,997
Stock-based awards available for grant under ESPP
Stockholders' Equity
Stock-based awards available for grant under 2016 Plan and ESPP (in shares)	9,448,429	7,648,429

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions	1 Months Ended	3 Months Ended
	May 09, 2023	Mar. 31, 2023	Feb. 28, 2023
Class of Stock [Line Items]
Share repurchase program, authorized amount			$ 1,000,000,000
Stock repurchased (in shares)		1.9
Repurchases of shares of Class A common stock including related costs		$ 124,992,000
Stock repurchase remaining amount		$ 875,000,000
Subsequent Events
Class of Stock [Line Items]
Repurchases of shares of Class A common stock including related costs	$ 125,000,000

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details)	3 Months Ended
	Mar. 31, 2023
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock plan offering period	6 months

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 1,463,211
Unvested stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, options	$ 31,238
Weighted-average remaining period	1 year 8 months 12 days
Unvested restricted stock units and awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average remaining period	2 years 9 months 18 days
Unrecognized compensation cost, other than options	$ 1,427,132
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average remaining period	1 month 6 days
Unrecognized compensation cost, other than options	$ 3,019
Class A shares in escrow subject to future vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average remaining period	1 year 3 months 18 days
Unrecognized compensation cost, other than options	$ 1,822

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 170,799	$ 155,275
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	5,290	4,521
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	78,093	79,369
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	48,129	47,586
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	28,954	23,799
Restructuring costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 10,333	$ 0

Net Loss Per Share Attributab_3

Net Loss Per Share Attributable to Common Stockholders - Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net Loss Per Share Attributable to Common Stockholders
Net loss attributable to common stockholders	$ (342,139)	$ (221,627)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares)	186,403,349	180,898,713
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares)	186,403,349	180,898,713
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (1.84)	$ (1.23)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (1.84)	$ (1.23)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Anti-Dilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	16,793,370	11,306,973
Stock options issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,007,636	2,709,573
Unvested restricted stock units and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	13,487,645	7,745,115
Class A common stock reserved for Twilio.org
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	508,347	596,755
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	742,303	147,947
Class A common stock in escrow
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	31,503	31,503
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)	15,936	76,080

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 10,467	$ (2,858)

Related Party Transactions - (D

Related Party Transactions - (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Corporate Joint Venture | Wholesale Agreement
Related Party Transaction [Line Items]
Cost of revenue	$ 33.5