Twilio (TWLO) 10-Q 8 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 01, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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	Q2
Common Stock Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		181,116,511

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 675,081	$ 651,752
Short-term marketable securities	3,008,887	3,503,317
Accounts receivable, net	599,806	547,507
Prepaid expenses and other current assets	315,059	281,510
Assets held for sale	65,667	0
Total current assets	4,664,500	4,984,086
Property and equipment, net	235,392	263,979
Operating right-of-use assets	86,193	121,341
Equity method investment	656,940	699,911
Intangible assets, net	727,644	849,935
Goodwill	5,243,266	5,284,153
Other long-term assets	290,551	360,899
Total assets	11,904,486	12,564,304
Current liabilities:
Accounts payable	93,500	124,605
Accrued expenses and other current liabilities	448,705	490,221
Deferred revenue and customer deposits	139,434	139,110
Operating lease liability, current	53,089	54,222
Liabilities held for sale	25,075	0
Total current liabilities	759,803	808,158
Operating lease liability, noncurrent	146,301	164,551
Finance lease liability, noncurrent	14,469	21,290
Long-term debt, net	988,160	987,382
Other long-term liabilities	19,194	23,881
Total liabilities	1,927,927	2,005,262
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock	0	0
Class A and Class B common stock	181	186
Additional paid-in capital	14,418,946	14,055,853
Accumulated other comprehensive loss	(60,275)	(121,161)
Accumulated deficit	(4,382,293)	(3,375,836)
Total stockholders’ equity	9,976,559	10,559,042
Total liabilities and stockholders’ equity	$ 11,904,486	$ 12,564,304

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue	$ 1,037,761,000	$ 943,354,000	$ 2,044,325,000	$ 1,818,717,000
Cost of revenue	532,006,000	498,065,000	1,047,880,000	948,357,000
Gross profit	505,755,000	445,289,000	996,445,000	870,360,000
Operating expenses:
Research and development	226,896,000	279,641,000	465,491,000	520,252,000
Sales and marketing	261,600,000	334,958,000	521,485,000	622,864,000
General and administrative	134,852,000	142,626,000	247,420,000	256,988,000
Restructuring costs	14,902,000	0	136,844,000	0
Impairment of long-lived assets	9,332,000	0	31,116,000	0
Operating expenses	647,582,000	757,225,000	1,402,356,000	1,400,104,000
Loss from operations	(141,827,000)	(311,936,000)	(405,911,000)	(529,744,000)
Other expenses, net:
Share of losses from equity method investment	(32,361,000)	0	(62,780,000)	0
Impairment of strategic investments	0	0	(46,154,000)	0
Other income (expenses), net	8,745,000	(8,239,000)	17,730,000	(14,916,000)
Total other expenses, net	(23,616,000)	(8,239,000)	(91,204,000)	(14,916,000)
Loss before (provision for) benefit from income taxes	(165,443,000)	(320,175,000)	(497,115,000)	(544,660,000)
(Provision for) benefit from income taxes	(744,000)	(2,594,000)	(11,211,000)	264,000
Net loss attributable to common stockholders	$ (166,187,000)	$ (322,769,000)	$ (508,326,000)	$ (544,396,000)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.91)	$ (1.77)	$ (2.75)	$ (3)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.91)	$ (1.77)	$ (2.75)	$ (3)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	183,490,982	182,347,864	184,926,875	181,624,316
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	183,490,982	182,347,864	184,926,875	181,624,316

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (166,187)	$ (322,769)	$ (508,326)	$ (544,396)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	8,605	(19,022)	39,355	(81,848)
Foreign currency translation	86	(2,289)	569	(2,454)
Net change in market value of effective foreign currency forward exchange contracts	(2,167)	(11,106)	1,168	(14,958)
Share of other comprehensive income from equity method investment	5,146	0	19,794	0
Total other comprehensive income (loss)	11,670	(32,417)	60,886	(99,260)
Comprehensive loss attributable to common stockholders	$ (154,517)	$ (355,186)	$ (447,440)	$ (643,656)

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 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	(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)
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, 2021				170,625,994	9,842,105
Balance at Dec. 31, 2021	11,031,466			$ 168	$ 12	13,169,118	(18,141)	(2,119,691)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(544,396)
Unrealized gain (loss) on marketable securities	(81,848)
Foreign currency translation	(2,454)
Net change in market value of effective foreign currency forward exchange contracts	(14,958)
Share of other comprehensive income from equity method investment	0
Ending balance (in shares) at Jun. 30, 2022				173,271,942	9,817,605
Balance at Jun. 30, 2022	10,841,995			$ 171	$ 12	13,623,300	(117,401)	(2,664,087)
Beginning balance (in shares) at Mar. 31, 2022				171,763,174	9,820,605
Balance at Mar. 31, 2022	10,917,433			$ 169	$ 12	13,343,554	(84,984)	(2,341,318)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(322,769)							(322,769)
Exercises of vested stock options (in shares)				98,111	77,732
Exercises of vested stock options	5,649					5,649
Vesting of restricted stock units (in shares)				1,049,640
Vesting of restricted stock units	0			$ 1		(1)
Value of equity awards withheld for tax liability (in shares)				(38)
Value of equity awards withheld for tax liability	(4)					(4)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)				80,732	(80,732)
Shares issued under ESPP (in shares)				258,221
Shares issued under ESPP	24,318			$ 1		24,317
Shares of Class A common stock issued and donated to charity (in shares)				22,102
Shares of Class A common stock issued and donated to charity	2,373					2,373
Unrealized gain (loss) on marketable securities	(19,022)						(19,022)
Foreign currency translation	(2,289)						(2,289)
Net change in market value of effective foreign currency forward exchange contracts	(11,106)						(11,106)
Share of other comprehensive income from equity method investment	0
Stock-based compensation	247,412					247,412
Ending balance (in shares) at Jun. 30, 2022				173,271,942	9,817,605
Balance at Jun. 30, 2022	10,841,995			$ 171	$ 12	13,623,300	(117,401)	(2,664,087)
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	(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)				(1,902,124)
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
Balance at Mar. 31, 2023	10,318,866			$ 174	$ 12	14,233,590	(71,945)	(3,842,965)
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	(508,326)
Unrealized gain (loss) on marketable securities	$ 39,355
Repurchases of shares of Class A common stock including related costs (in shares)	(8,300,000)
Foreign currency translation	$ 569
Net change in market value of effective foreign currency forward exchange contracts	1,168
Share of other comprehensive income from equity method investment	19,794
Stock-based compensation - restructuring	10,600
Ending balance (in shares) at Jun. 30, 2023		181,174,616	0	181,174,616	0
Balance at Jun. 30, 2023	9,976,559			$ 181	$ 0	14,418,946	(60,275)	(4,382,293)
Beginning balance (in shares) at Mar. 31, 2023				176,121,918	9,617,605
Balance at Mar. 31, 2023	10,318,866			$ 174	$ 12	14,233,590	(71,945)	(3,842,965)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(166,187)							(166,187)
Exercises of vested stock options (in shares)				33,438	30,783
Exercises of vested stock options	1,477					1,477
Vesting of restricted stock units (in shares)				1,144,112
Vesting of restricted stock units	0			$ 1		(1)
Value of equity awards withheld for tax liability (in shares)				(872)
Value of equity awards withheld for tax liability	(53)					(53)
Conversion of shares of Class B common stock into shares of Class A common stock (in shares)				9,648,388	(9,648,388)
Conversion of shares of Class B common stock into shares of Class A common stock	0			$ 12	$ (12)
Shares issued under ESPP (in shares)				579,857
Shares issued under ESPP	23,337					23,337
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	1,047					1,047
Unrealized gain (loss) on marketable securities	$ 8,605						8,605
Repurchases of shares of Class A common stock including related costs (in shares)	(6,400,000)			(6,374,327)
Repurchases of shares of Class A common stock including related costs	$ (373,147)			$ (6)				(373,141)
Foreign currency translation	86						86
Net change in market value of effective foreign currency forward exchange contracts	(2,167)						(2,167)
Share of other comprehensive income from equity method investment	5,146						5,146
Stock-based compensation	159,253					159,253
Stock-based compensation - restructuring	296					296
Ending balance (in shares) at Jun. 30, 2023		181,174,616	0	181,174,616	0
Balance at Jun. 30, 2023	$ 9,976,559			$ 181	$ 0	$ 14,418,946	$ (60,275)	$ (4,382,293)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (508,326,000)	$ (544,396,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	146,388,000	137,744,000
Non-cash reduction to the right-of-use asset	16,074,000	25,539,000
Net amortization of investment premium and discount	5,392,000	20,274,000
Impairment of long-lived assets due to office closures	31,116,000	0
Stock-based compensation including restructuring	323,893,000	397,366,000
Amortization of deferred commissions	36,067,000	26,076,000
Allowance for doubtful accounts	21,864,000	8,742,000
Share of losses from equity method investment	62,780,000	0
Loss on net assets divested and held for sale	32,277,000	0
Impairment of strategic investments	46,154,000	0
Other adjustments	13,275,000	8,503,000
Changes in operating assets and liabilities:
Accounts receivable	(92,130,000)	(91,782,000)
Prepaid expenses and other current assets	(45,116,000)	(57,997,000)
Other long-term assets	(19,180,000)	(52,521,000)
Accounts payable	(13,582,000)	6,654,000
Accrued expenses and other current liabilities	(44,365,000)	78,430,000
Deferred revenue and customer deposits	306,000	(3,984,000)
Operating lease liabilities	(27,864,000)	(31,127,000)
Other long-term liabilities	757,000	(7,662,000)
Net cash used in operating activities	(14,220,000)	(80,141,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions, net of cash acquired and other related payments	(170,000)	(31,697,000)
Purchases of marketable securities and other investments	(511,734,000)	(1,325,366,000)
Proceeds from sales and maturities of marketable securities	1,050,010,000	754,574,000
Capitalized software development costs	(20,075,000)	(22,361,000)
Purchases of long-lived and intangible assets	(8,254,000)	(10,779,000)
Net cash (used in) provided by investing activities	509,777,000	(635,629,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of costs related to public offerings	0	(35,000)
Principal payments on debt and finance leases	(9,804,000)	(6,188,000)
Value of equity awards withheld for tax liabilities	(2,509,000)	(1,069,000)
Repurchases of shares of Class A common stock and related costs	(485,121,000)	0
Proceeds from exercises of stock options and shares of Class A common stock issued under ESPP	28,078,000	41,694,000
Net cash (used in) provided by financing activities	(469,356,000)	34,402,000
Effect of exchange rate changes on cash, cash equivalents and restricted cash	108,000	313,000
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH, including cash classified as held for sale	26,309,000	(681,055,000)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH CLASSIFIED AS HELD FOR SALE	(7,306,000)	0
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	19,003,000	(681,055,000)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period	656,078,000	1,481,831,000
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	675,081,000	800,776,000
Cash paid for income taxes, net	17,578,000	4,147,000
Cash paid for interest	19,261,000	18,750,000
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents	675,081,000	798,625,000
Restricted cash in other current assets	0	2,151,000
Total cash, cash equivalents and restricted cash	$ 675,081,000	$ 800,776,000

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 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; allocation of goodwill to reporting units; 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 $123.4 million as of June 30, 2023, of which 68% is expected to be recognized over the next 12 months and 95% is expected to be recognized over the next 24 months. (e) Deferred Revenue and Customer Deposits As of June 30, 2023, and December 31, 2022, the Company recorded $139.4 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 June 30, 2023 and 2022, the Company recognized $27.2 million and $29.9 million of revenue, respectively, that was included in the deferred revenue and customer deposits balances as of the end of the previous year. During the six months ended June 30, 2023 and 2022, the Company recognized $98.6 million and $94.7 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 June 30, 2023, and December 31, 2022, were $219.5 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 and six months ended June 30, 2023 and 2022, no customer organization accounted for more than 10% of the Company’s total revenue. As of June 30, 2023, and December 31, 2022, no customer organization represented more than 10% of the Company’s gross accounts receivable. (h) Significant Accounting Policies Segment Information The Company determines its operating and reportable segments in accordance with ASC 280 Segment Reporting (“ASC 280”), which requires financial information to be reported based on how the chief operating decision maker (“CODM”), who is the Company's Chief Executive Officer, reviews and manages the business, and establishes criteria for aggregating operating segments into reportable segments. Historically, the Company concluded that it had a single operating and reportable segment. As described in detail in Note 8, as of June 30, 2023, the Company concluded that it operated in and will report its results in two reportable segments. Goodwill In connection with changes in the segment reporting structure described in Note 8, in the second quarter of 2023, the Company concluded that it had multiple reporting units. Accordingly, the Company reassigned assets and liabilities to the reporting units based on which reporting units’ operations the assets and liabilities were employed in or were related to. The Company reassigned goodwill to each reporting unit using a relative fair value allocation approach. 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 consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 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 $ 254,065 $ — $ — $ — $ 254,065 $ — $ — $ 254,065 Total included in cash 254,065 — — — 254,065 — — 254,065 Marketable securities: Debt securities: U.S. Treasury securities 356,379 1 (536) (5,875) 349,969 — — 349,969 Non-U.S. government securities 166,324 — (96) (4,376) 161,852 — — 161,852 Corporate debt securities and commercial paper 2,536,521 56 (10,949) (40,762) — 2,484,866 — 2,484,866 Total debt securities 3,059,224 57 (11,581) (51,013) 511,821 2,484,866 — 2,996,687 Equity securities 12,200 — — — 12,200 — — 12,200 Total marketable securities 3,071,424 57 (11,581) (51,013) 524,021 2,484,866 — 3,008,887 Total financial assets $ 3,325,489 $ 57 $ (11,581) $ (51,013) $ 778,086 $ 2,484,866 $ — $ 3,262,952 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 Debt Securities The aggregate fair value of the corporate debt securities with unrealized losses was $2.3 billion as of June 30, 2023, of which $1.6 billion were in an unrealized loss position for more than 12 months and $777.5 million were in an unrealized loss position for less than 12 months. The aggregate 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 June 30, 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 debt 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 debt securities as available to support current operations, it has classified all available for sale securities as short-term. As of June 30, 2023, and December 31, 2022, for all debt securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of June 30, 2023 and December 31, 2022, the Company anticipates that it will recover the entire amortized cost basis of such debt securities before maturity. Interest earned on debt securities was $16.7 million and $33.9 million in the three and six months ended June 30, 2023, respectively, and $15.6 million and $31.2 million in the three and six months ended June 30, 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 debt securities: As of June 30, 2023 As of December 31, 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 2,061,380 $ 2,021,972 $ 1,943,836 $ 1,909,218 One to three years 997,844 974,715 1,661,372 1,594,099 Total $ 3,059,224 $ 2,996,687 $ 3,605,208 $ 3,503,317 Equity Securities The equity securities consist of shares of a publicly traded company that were received as consideration in a divestiture transaction described further in Note 5. Strategic Investments As of June 30, 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 six months ended June 30, 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 classified as 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 expenses, net, in the accompanying condensed consolidated statement of operations for the six months ended June 30, 2023. There were no other impairments or adjustments recorded in the three and six months ended June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: As of June 30, 2023 As of December 31, 2022 (In thousands) Capitalized internal-use software developments costs $ 274,994 $ 257,983 Data center equipment (1) 104,956 100,207 Leasehold improvements 92,610 91,660 Office equipment 60,771 70,815 Furniture and fixtures 14,696 14,935 Software 14,639 14,675 Total property and equipment 562,666 550,275 Less: accumulated depreciation and amortization (1) (327,274) (286,296) Total property and equipment, net $ 235,392 $ 263,979 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of June 30, 2023 and December 31, 2022. Accumulated depreciation and amortization includes $48.7 million and $41.2 million of accumulated depreciation for assets held under finance leases as of June 30, 2023 and December 31, 2022, respectively. Depreciation and amortization expense was $24.3 million and $17.4 million in the three months ended June 30, 2023 and 2022, respectively, and $44.3 million and $34.0 million in the six months ended June 30, 2023 and 2022, respectively. The Company capitalized $14.8 million and $17.2 million in internal‑use software development costs in the three months ended June 30, 2023 and 2022, respectively, and $29.0 million and $31.9 million in the six months ended June 30, 2023 and 2022, respectively.

Net Assets Held for Sale and Di

Net Assets Held for Sale and Divested	6 Months Ended
	Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Net Assets Held for Sale and Divested	Net Assets Held for Sale and Divested The Company classifies assets and liabilities as held for sale (the “disposal group”) when management commits to a plan to sell the disposal group and meets all required criteria in ASC 360 Property, Plant, and Equipment . Assets held for sale are measured at the lower of their carrying amount or fair value less costs to sell. Any loss resulting from this measurement is recognized in the period the held for sale criteria are met. Gains are not recognized until realized on the date of sale. Long-lived assets classified as held for sale are not depreciated or amortized. In June 2023, the Company entered into an agreement to sell its ValueFirst business, which operates an enterprise communications platform in India. The sale was subsequently completed in July 2023, and the Company received $45.5 million in cash. This divestiture allowed allocation of Company resources to other strategic priorities with a greater impact on the Company’s business. The divestiture did not represent a strategic shift in operations that would have a major effect on the Company's business and financial results, and therefore, is not presented as a discontinued operation. The following table presents the major classes of assets and liabilities of the disposal group classified as held for sale as of June 30, 2023, in the accompanying condensed consolidated balance sheet: As of June 30, Assets held for sale: (In thousands) Total tangible assets $ 42,546 Intangible assets, net 17,294 Goodwill 34,604 Valuation allowance (28,777) Total assets held for sale $ 65,667 Total liabilities held for sale $ 25,075 The measurement of assets held for sale to fair value less costs to sell resulted in a loss of $28.8 million, which is recorded within general and administrative expenses in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2023. The Company recorded a valuation allowance to reduce the carrying amount of the disposal group to its fair value less costs to sell in the accompanying condensed consolidated balance sheet. The Company also recorded an additional $3.1 million of divestiture expenses in the same period. Separately, in the second quarter of 2023, the Company sold its Internet of Things (“IoT”) disposal group for stock consideration of $15.8 million. The loss on divestiture and related expenses recorded in the three and six months ended June 30, 2023 were not significant.

Impairment

Impairment	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2023, the Company recorded a $9.3 million and $31.1 million impairment, respectively, related to its permanently closed offices. No other significant impairments were recorded in the three or six months ended June 30, 2023 or 2022.

Restructuring Activities

Restructuring Activities	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring Activities	Restructuring ActivitiesIn February 2023, the Company announced a workforce reduction plan (the “February 2023 Plan”) that eliminated approximately 17% of the Company’s workforce. The execution of the February 2023 Plan was substantially complete in the first quarter of 2023. In the three months ended June 30, 2023, the Company recorded additional restructuring charges of $14.9 million, which consisted of $14.6 million related to employee severance, benefits and facilitation costs and $0.3 million relating to vesting of stock-based awards of the impacted employees. In the six months ended June 30, 2023, the cumulative restructuring charges of $136.8 million consisted of $126.2 million related to employee severance, benefits and facilitation costs, and $10.6 million related to vesting of employee stock based compensation awards. The $10.6 million expense related to vesting of the employee stock-based compensation awards is recorded in additional-paid-in-capital in the accompanying condensed consolidated statement of stockholders’ equity. The estimated remaining expenses related to the February 2023 Plan are not expected to be significant. 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 117,368 8,847 126,215 Cash payments (99,888) (8,613) (108,501) Balance as of June 30, 2023 $ 17,480 $ 234 $ 17,714 The activity and the remaining amounts related to the restructuring plan effected in September 2022 (the “September 2022 Plan”) were not significant.

Reorganization and Segment Repo

Reorganization and Segment Reporting	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Reorganization and Segment Reporting	Reorganization and Segment Reporting In February 2023, the Company announced a reorganization of its business into two business units, Twilio Communications and Twilio Data & Applications (the “Reorganization”). With the Reorganization, the Company changed the organizational structure of its business, including the way management operates the business. The Company’s Chief Executive Officer is its CODM. In the second quarter of 2023, the Company began regularly providing the CODM with discrete financial information for each business unit, as presented below, which required a reevaluation of the Company’s operating and reportable segments in accordance with ASC 280. The Company concluded that as of June 30, 2023, it had two operating and reportable segments: Twilio Communications and Twilio Data & Applications. Twilio Communications : The Communications segment consists of a variety of application programming interfaces (“APIs”) and software solutions to optimize communications between Twilio customers and their end users. The key products from which the segment derives its revenue are Messaging, Voice and Email. Twilio Data & Applications : The Data & Applications segment consists of software products that enable businesses to achieve more effective customer engagement by providing the tools necessary for customers to build direct, personalized relationships with their end users. The key products from which the segment derives its revenue are Segment, Engage, Flex and Marketing Campaigns. Presented below is the discrete financial information by reportable segment for the three and six months ended June 30, 2023 and 2022, that is regularly reviewed by the CODM for performance assessment and resource allocation decisions. Asset information is not presented below since it is not reviewed by the CODM on a segment by segment basis. Revenue and costs of revenue are generally directly attributable to each segment. Certain costs of revenue are allocated based on methodologies that best reflect the patterns of consumption of these costs. Prior period comparative financial information presented below was restated to conform to the current period presentation. Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Revenue: Communications $ 913,135 $ 832,305 $ 1,796,365 $ 1,604,158 Data & Applications 124,626 111,049 247,960 214,559 Total 1,037,761 943,354 2,044,325 1,818,717 Non-GAAP gross profit: Communications 440,071 387,294 865,211 759,448 Data & Applications 101,810 93,469 202,806 181,543 Total $ 541,881 $ 480,763 $ 1,068,017 $ 940,991 Reconciliation of non-GAAP gross profit to gross profit: Total non-GAAP gross profit $ 541,881 $ 480,763 $ 1,068,017 $ 940,991 Stock-based compensation (6,334) (3,996) (11,624) (8,517) Amortization of acquired intangibles (29,669) (31,236) (59,630) (61,872) Payroll taxes related to stock-based compensation (123) (242) (318) (242) Gross profit 505,755 445,289 996,445 870,360 Operating expenses (647,582) (757,225) (1,402,356) (1,400,104) Other expenses, net (23,616) (8,239) (91,204) (14,916) Loss before provision for income taxes $ (165,443) $ (320,175) $ (497,115) $ (544,660) Depreciation and amortization expenses included in non-GAAP gross profit for the Communications reportable segment was $13.9 million and $7.0 million in the three months ended June 30, 2023 and 2022, respectively, and $23.1 million and $13.8 million in the six months ended June 30, 2023 and 2022, respectively. Depreciation and amortization expenses included in non-GAAP gross profit for the Data & Applications reportable segment was $3.5 million and $1.5 million in the three months ended June 30, 2023 and 2022, respectively, and $6.6 million and $2.8 million in the six months ended June 30, 2023 and 2022, respectively.

Derivatives and Hedging

Derivatives and Hedging	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging	Derivatives and Hedging As of June 30, 2023, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $261.0 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of June 30, 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) (Losses) gains recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ (2,167) $ (11,106) $ 1,168 $ (14,958) Gains (losses) recognized in income due to instruments maturing Cost of revenue $ 2,161 $ (7,566) $ 2,895 $ (9,163)

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill As described in Note 8, beginning in the second quarter of 2023, the Company concluded it had two operating and reportable segments. In connection with the shift from one operating and reportable segment to two operating and reportable segments, the Company reevaluated its reporting unit structure and determined that it had multiple reporting units. As such, during the second quarter of 2023, the Company reallocated goodwill to its newly formed reporting units. The Company estimates the fair value of its reporting units using a weighting of fair values derived from an income and a market approach. Estimating the fair value by these methods involves the use of a number of key assumptions including forecasted revenues and related growth rates, forecasted operating cash flows, the discount rate, and the selection of relevant market multiples of comparable publicly-traded companies with similar characteristics to the reporting unit. Under the income approach, the Company determined the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on the Company’s best estimates of forecasted economic and market conditions over the period including growth rates and expected changes in operating cash flows. The discount rate used is based on a weighted average cost of capital adjusted for the relevant risk associated with the characteristics of the business and the projected cash flows. The market approach estimates fair value based on market multiples of current and forward 12-month revenue or adjusted EBITDA, as applicable, derived from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit. While these assumptions reflect management’s best estimates of future performance at the time, these estimates are inherently complex and uncertain and the Company’s actual results could differ materially from these estimates. In connection with the goodwill reallocation, the Company assessed goodwill for impairment immediately before and immediately after the change in the reporting unit structure and related goodwill reallocation. Both assessments concluded that the fair value of the reporting units were above their respective carrying amounts. The following table presents the goodwill allocated to the Company’s reportable segments as of June 30, 2023, and December 31, 2022, and the changes during the period: Twilio Twilio Total (In thousands) Balance as of December 31, 2022 $ — $ — $ 5,284,153 Foreign currency adjustments 26 Reallocation to segments in the second quarter of 2023 (1) 4,321,130 963,049 — Foreign currency adjustments 251 — 251 Goodwill divested or included in disposal group (2) (41,164) — (41,164) Balance as of June 30, 2023 $ 4,280,217 $ 963,049 $ 5,243,266 ____________________________________ ( 1 ) Represents reallocation of goodwill as a result of changes in segment structure in the second quarter of 2023. (2) Represents goodwill related to the assets held for sale of the ValueFirst business and the divestiture of IoT. See Note 5 for further details. Intangible assets Intangible assets consisted of the following: As of June 30, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 782,519 $ (385,161) $ 397,358 Customer relationships 523,664 (234,647) 289,017 Supplier relationships 49,756 (21,776) 27,980 Trade names 25,968 (21,060) 4,908 Order backlog 10,000 (10,000) — Patent 3,969 (803) 3,166 Total amortizable intangible assets 1,395,876 (673,447) 722,429 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,401,091 $ (673,447) $ 727,644 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 $50.2 million and $52.2 million for the three months ended June 30, 2023 and 2022, respectively, and $101.1 million and $103.7 million for the six months ended June 30, 2023 and 2022, respectively. Total estimated future amortization expense is as follows: As of June 30, 2023 Year Ended December 31, (In thousands) 2023 $ 97,845 2024 191,486 2025 187,912 2026 117,416 2027 69,871 Thereafter 57,899 Total $ 722,429

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 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 June 30, 2023 As of December 31, 2022 (In thousands) Accrued payroll and related $ 83,028 $ 79,703 Accrued bonus and commission 15,476 35,449 Accrued cost of revenue 155,744 161,455 Sales and other taxes payable 78,533 92,319 Finance lease liability 9,541 11,871 Restructuring liability 17,714 1,066 Employee sabbatical benefit accrual (1) 12,558 30,683 Accrued other expense 76,111 77,675 Total accrued expenses and other current liabilities $ 448,705 $ 490,221 ____________________________________ ( 1 )

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2023
Long-Term Debt, Unclassified [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt, net, consisted of the following: As of June 30, 2023 As of December 31, 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,641) (5,001) Unamortized issuance costs (1,044) (1,126) Net carrying amount 494,315 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,024) (5,299) Unamortized issuance costs (1,131) (1,192) Net carrying amount 493,845 493,509 Total long-term debt, net $ 988,160 $ 987,382

Revenue by Geographic Area

Revenue by Geographic Area	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue by Geographic Area	Revenue by Geographic Area Revenue by geographic area is based on the IP address or the mailing address at the time of registration. The following table sets forth revenue by geographic area: Three Months Ended Six Months Ended 2023 2022 2023 2022 Revenue by geographic area: (In thousands) United States $ 692,646 $ 616,306 $ 1,354,736 $ 1,186,687 International 345,115 327,048 689,589 632,030 Total $ 1,037,761 $ 943,354 $ 2,044,325 $ 1,818,717 Percentage of revenue by geographic area: United States 67 % 65 % 66 % 65 % International 33 % 35 % 34 % 35 % Long-lived assets outside of the United States were $45.0 million and $54.5 million as of June 30, 2023, and December 31, 2022, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 and six months ended June 30, 2023, the Company entered into several such agreements with terms up to four years for a total purchase commitment of $19.3 million and $66.9 million, respectively. The City and County of San Francisco (“San Francisco”) has assessed the Company for additional Telephone Users Tax (“TUT”) and Access Line Tax 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 remains vacated, and the parties expect to file an update with the Court on the status of the case in October 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 14(d) of these condensed consolidated financial statements. In addition to the litigation discussed above, from time to time, the Company may be subject to legal actions and claims in the ordinary course of business. The Company has received, and may in the future continue to receive, claims from third parties asserting, among other things, infringement of their intellectual property rights. Future litigation may be necessary to defend the Company, its partners and its customers by determining the scope, enforceability and validity of third‑party proprietary rights, or to establish our proprietary rights. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Legal fees and other costs related to litigation and other legal proceedings are expensed as incurred and are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The Company has signed indemnification agreements with all of its board members and executive officers. The agreements indemnify the board members and executive officers from claims and expenses on actions brought against the individuals separately or jointly with the Company for certain indemnifiable events. Indemnifiable events generally mean any event or occurrence related to the fact that the board member or the executive officer was or is acting in his or her capacity as a board member or an executive officer for the Company or was or is acting or representing the interests of the Company. In the ordinary course of business and in connection with 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 June 30, 2023, and December 31, 2022, no amounts were accrued related to any outstanding indemnification agreements. The Company conducts operations in multiple 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 14(b), the Company is currently involved in legal proceedings with the City and County of San Francisco challenging their assessment of the Company’s estimated tax liability for a specific period. The $38.8 million assessment of taxes, including interest and penalties, that the Company paid as required in 2020, net of the $11.5 million reserve the Company had accrued for the same period, was recorded as a deposit in other assets in the accompanying condensed consolidated balance sheets. As of June 30, 2023, the liabilities recorded for the non-income-based taxes were $31.8 million for domestic jurisdictions and $20.5 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	6 Months Ended
	Jun. 30, 2023
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders' Equity Preferred Stock As of June 30, 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 June 30, 2023, the Company had authorized 1,000,000,000 shares of Class A common stock and 3,170,181 shares of Class B common stock, each with a par value of $0.001 per share. As of 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 June 30, 2023, 181,174,616 shares of Class A common stock and no 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. On June 28, 2023, each outstanding share of the Company’s Class B common stock automatically converted (the “Conversion”) into one share of the Company’s Class A common stock pursuant to the terms of the Company’s amended and restated certificate of incorporation. In addition, upon the Conversion, outstanding stock options that were exercisable for shares of Class B common stock prior to the Conversion became exercisable for shares of Class A common stock. The Company filed a Certificate of Retirement with the Secretary of State of the State of Delaware effecting the retirement of all of the shares of its Class B common stock that were issued but not outstanding following the Conversion. The Company had reserved shares of common stock for issuance as follows: As of June 30, 2023 As of December 31, 2022 Stock options issued and outstanding 1,907,102 2,277,379 Unvested restricted stock units issued and outstanding 22,092,462 15,414,997 Shares of Class A common stock reserved for Twilio.org 486,245 530,449 Stock-based awards available for grant under 2016 Plan 20,268,133 19,851,399 Shares of Class A common stock reserved for issuance pursuant to ESPP 8,868,572 7,648,429 Total 53,622,514 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 can 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 expires on December 31, 2024.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 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. In addition, pursuant to the Company’s 2016 Employee Stock Purchase Plan (“ESPP”), eligible employees may purchase shares of the Company’s Class A common stock at a discount of 15% through payroll deductions of their eligible compensation. The ESPP provides for separate six-month offering periods beginning in May and November of each year. As of June 30, 2023, total unrecognized compensation cost related to all outstanding equity awards was as follows: As of June 30, 2023 Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 24,471 1.7 Unvested restricted stock units and awards 1,901,440 3.1 ESPP 4,181 0.4 Shares of Class A common stock in escrow subject to future vesting 1,469 1 Total $ 1,931,561 Stock-Based Compensation Expense The Company recorded total stock-based compensation expense as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In thousands) Cost of revenue $ 6,334 $ 3,996 $ 11,624 $ 8,517 Research and development 74,576 109,524 152,669 188,893 Sales and marketing 42,869 78,492 90,998 126,078 General and administrative 29,019 50,078 57,973 73,877 Restructuring costs 296 — 10,629 — Total $ 153,094 $ 242,090 $ 323,893 $ 397,365

Net Loss Per Share Attributable

Net Loss Per Share Attributable to Common Stockholders	6 Months Ended
	Jun. 30, 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 Six Months Ended 2023 2022 2023 2022 Net loss attributable to common stockholders (in thousands) $ (166,187) $ (322,769) $ (508,326) $ (544,396) Weighted-average shares used to compute net loss per share attributable to 183,490,982 182,347,864 184,926,875 181,624,316 Net loss per share attributable to common stockholders, basic and diluted $ (0.91) $ (1.77) $ (2.75) $ (3.00) The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of June 30, 2023 2022 Stock options issued and outstanding 1,907,102 2,654,461 Unvested restricted stock units issued and outstanding 22,092,462 14,496,487 Shares of Class A common stock reserved for Twilio.org 486,245 574,653 Shares of Class A common stock committed under ESPP 396,717 226,082 Shares of Class A common stock in escrow 31,503 31,503 Shares of Class A common stock in escrow and restricted stock awards subject to future vesting 15,936 76,080 Total 24,929,965 18,059,266

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes its provision for income taxes for interim periods using an estimated annual effective tax rate based on 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 $0.7 million and $11.2 million for the three and six months ended June 30, 2023, respectively, and an income tax provision of $2.6 million and an income tax benefit of $0.3 million for the three and six months ended June 30, 2022, respectively. The provision for income taxes recorded in the three and six months ended June 30, 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 provision for income taxes recorded in the three months ended June 30, 2022 and the benefit for income taxes recorded in the six months ended June 30, 2022, consists primarily of income taxes and withholding taxes in foreign jurisdictions in which the Company conducts business, partially offset by an income tax benefit from the reversal of U.S. deferred tax liabilities related to the acquired intangibles from business combinations. 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	6 Months Ended
	Jun. 30, 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 would process, route and deliver application-to-person messages originating and/or terminating between the Company’s customers and mobile network operators. For the three and six months ended June 30, 2023, the value of the transactions that occurred between the Company and Syniverse were $37.3 million and $70.3 million, respectively. The value of the transactions that occurred between the Company and Syniverse were $22.0 million for the period from the investment closing date in May 2022 through June 30, 2022. These transactions were recorded as cost of revenue in the accompanying condensed consolidated statement of operations.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (166,187)	$ (342,139)	$ (322,769)	$ (221,627)	$ (508,326)	$ (544,396)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2023 shares	Jun. 30, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Richard Dalzell [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 11, 2023, Richard Dalzell, a former member of our Board of Directors who did not stand for re-election at our annual meeting of stockholders on June 13, 2023, terminated a Rule 10b5-1 trading plan in connection with the termination of his service as a director. The terminated trading plan was effective until May 15, 2024 and provided for the sale of up to 18,000 shares of our Class A common stock.
Name	Richard Dalzell
Title	member of our Board of Directors
Adoption Date	May 11, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	June 13, 2023
Arrangement Duration	370 days
Aggregate Available	18,000	18,000
Dana Wagner [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 23, 2023, Dana Wagner, our Chief Legal Officer, adopted a Rule 10b5-1 trading plan (the “prior plan”) providing for the sale of shares of our Class A common stock. Due to clerical errors, prior to any sale being made pursuant to the prior plan, the prior plan was terminated on June 1, 2023. Mr. Wagner adopted a new Rule 10b5-1 trading plan (the “updated plan”) on June 5, 2023, to be effective until August 13, 2024, which provides for the sale of up to 94,379 shares of our Class A common stock, plus any shares acquired pursuant to equity awards granted after the adoption of the updated plan or purchased under our employee stock purchase plan prior to the termination of the updated plan. The number of shares listed above for Mr. Wagner includes performance-based awards presented at their target amounts and shares subject to limit orders that may or may not execute. The number of shares eligible for sale will also be reduced by shares sold in mandatory transactions to cover withholding taxes.
Dana Wagner, Prior Arrangement [Member] | Dana Wagner [Member]
Trading Arrangements, by Individual
Name	Dana Wagner
Title	Chief Legal Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 23, 2023
Rule 10b5-1 Arrangement Terminated	true
Termination Date	June 1, 2023
Dana Wagner, Updated Arrangement [Member] | Dana Wagner [Member]
Trading Arrangements, by Individual
Name	Mr. Wagner
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 5, 2023
Arrangement Duration	435 days
Aggregate Available	94,379	94,379

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 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; allocation of goodwill to reporting units; 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 June 30, 2023, and December 31, 2022, the Company recorded $139.4 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 June 30, 2023 and 2022, the Company recognized $27.2 million and $29.9 million of revenue, respectively, that was included in the deferred revenue and customer deposits balances as of the end of the previous year. During the six months ended June 30, 2023 and 2022, the Company recognized $98.6 million and $94.7 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.
Segment Information	Segment Information The Company determines its operating and reportable segments in accordance with ASC 280 Segment Reporting
Goodwill	Goodwill In connection with changes in the segment reporting structure described in Note 8, in the second quarter of 2023, the Company concluded that it had multiple reporting units. Accordingly, the Company reassigned assets and liabilities to the reporting units based on which reporting units’ operations the assets and liabilities were employed in or were related to. The Company reassigned goodwill to each reporting unit using a relative fair value allocation approach. There have been no other changes to the Company’s significant accounting policies as described in its Annual Report.
Recently Issued Accounting Guidance, Not yet Adopted	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 consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 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 $ 254,065 $ — $ — $ — $ 254,065 $ — $ — $ 254,065 Total included in cash 254,065 — — — 254,065 — — 254,065 Marketable securities: Debt securities: U.S. Treasury securities 356,379 1 (536) (5,875) 349,969 — — 349,969 Non-U.S. government securities 166,324 — (96) (4,376) 161,852 — — 161,852 Corporate debt securities and commercial paper 2,536,521 56 (10,949) (40,762) — 2,484,866 — 2,484,866 Total debt securities 3,059,224 57 (11,581) (51,013) 511,821 2,484,866 — 2,996,687 Equity securities 12,200 — — — 12,200 — — 12,200 Total marketable securities 3,071,424 57 (11,581) (51,013) 524,021 2,484,866 — 3,008,887 Total financial assets $ 3,325,489 $ 57 $ (11,581) $ (51,013) $ 778,086 $ 2,484,866 $ — $ 3,262,952 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 debt securities: As of June 30, 2023 As of December 31, 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 2,061,380 $ 2,021,972 $ 1,943,836 $ 1,909,218 One to three years 997,844 974,715 1,661,372 1,594,099 Total $ 3,059,224 $ 2,996,687 $ 3,605,208 $ 3,503,317

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consisted of the following: As of June 30, 2023 As of December 31, 2022 (In thousands) Capitalized internal-use software developments costs $ 274,994 $ 257,983 Data center equipment (1) 104,956 100,207 Leasehold improvements 92,610 91,660 Office equipment 60,771 70,815 Furniture and fixtures 14,696 14,935 Software 14,639 14,675 Total property and equipment 562,666 550,275 Less: accumulated depreciation and amortization (1) (327,274) (286,296) Total property and equipment, net $ 235,392 $ 263,979 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of June 30, 2023 and December 31, 2022. Accumulated depreciation and amortization includes $48.7 million and $41.2 million of accumulated depreciation for assets held under finance leases as of June 30, 2023 and December 31, 2022, respectively.

Net Assets Held for Sale and _2

Net Assets Held for Sale and Divested (Tables)	6 Months Ended
	Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Schedule of assets and liabilities held for sale	The following table presents the major classes of assets and liabilities of the disposal group classified as held for sale as of June 30, 2023, in the accompanying condensed consolidated balance sheet: As of June 30, Assets held for sale: (In thousands) Total tangible assets $ 42,546 Intangible assets, net 17,294 Goodwill 34,604 Valuation allowance (28,777) Total assets held for sale $ 65,667 Total liabilities held for sale $ 25,075

Restructuring Activities (Table

Restructuring Activities (Tables)	6 Months Ended
	Jun. 30, 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 117,368 8,847 126,215 Cash payments (99,888) (8,613) (108,501) Balance as of June 30, 2023 $ 17,480 $ 234 $ 17,714

Reorganization and Segment Re_2

Reorganization and Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Schedule of financial information	Presented below is the discrete financial information by reportable segment for the three and six months ended June 30, 2023 and 2022, that is regularly reviewed by the CODM for performance assessment and resource allocation decisions. Asset information is not presented below since it is not reviewed by the CODM on a segment by segment basis. Revenue and costs of revenue are generally directly attributable to each segment. Certain costs of revenue are allocated based on methodologies that best reflect the patterns of consumption of these costs. Prior period comparative financial information presented below was restated to conform to the current period presentation. Three Months Ended Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) Revenue: Communications $ 913,135 $ 832,305 $ 1,796,365 $ 1,604,158 Data & Applications 124,626 111,049 247,960 214,559 Total 1,037,761 943,354 2,044,325 1,818,717 Non-GAAP gross profit: Communications 440,071 387,294 865,211 759,448 Data & Applications 101,810 93,469 202,806 181,543 Total $ 541,881 $ 480,763 $ 1,068,017 $ 940,991 Reconciliation of non-GAAP gross profit to gross profit: Total non-GAAP gross profit $ 541,881 $ 480,763 $ 1,068,017 $ 940,991 Stock-based compensation (6,334) (3,996) (11,624) (8,517) Amortization of acquired intangibles (29,669) (31,236) (59,630) (61,872) Payroll taxes related to stock-based compensation (123) (242) (318) (242) Gross profit 505,755 445,289 996,445 870,360 Operating expenses (647,582) (757,225) (1,402,356) (1,400,104) Other expenses, net (23,616) (8,239) (91,204) (14,916) Loss before provision for income taxes $ (165,443) $ (320,175) $ (497,115) $ (544,660)

Derivatives and Hedging (Tables

Derivatives and Hedging (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In thousands) (Losses) gains recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ (2,167) $ (11,106) $ 1,168 $ (14,958) Gains (losses) recognized in income due to instruments maturing Cost of revenue $ 2,161 $ (7,566) $ 2,895 $ (9,163)

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill balance	The following table presents the goodwill allocated to the Company’s reportable segments as of June 30, 2023, and December 31, 2022, and the changes during the period: Twilio Twilio Total (In thousands) Balance as of December 31, 2022 $ — $ — $ 5,284,153 Foreign currency adjustments 26 Reallocation to segments in the second quarter of 2023 (1) 4,321,130 963,049 — Foreign currency adjustments 251 — 251 Goodwill divested or included in disposal group (2) (41,164) — (41,164) Balance as of June 30, 2023 $ 4,280,217 $ 963,049 $ 5,243,266 ____________________________________ ( 1 ) Represents reallocation of goodwill as a result of changes in segment structure in the second quarter of 2023. (2) Represents goodwill related to the assets held for sale of the ValueFirst business and the divestiture of IoT. See Note 5 for further details.
Schedule of intangible assets	Intangible assets consisted of the following: As of June 30, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 782,519 $ (385,161) $ 397,358 Customer relationships 523,664 (234,647) 289,017 Supplier relationships 49,756 (21,776) 27,980 Trade names 25,968 (21,060) 4,908 Order backlog 10,000 (10,000) — Patent 3,969 (803) 3,166 Total amortizable intangible assets 1,395,876 (673,447) 722,429 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,401,091 $ (673,447) $ 727,644 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 June 30, 2023 Year Ended December 31, (In thousands) 2023 $ 97,845 2024 191,486 2025 187,912 2026 117,416 2027 69,871 Thereafter 57,899 Total $ 722,429

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2023 As of December 31, 2022 (In thousands) Accrued payroll and related $ 83,028 $ 79,703 Accrued bonus and commission 15,476 35,449 Accrued cost of revenue 155,744 161,455 Sales and other taxes payable 78,533 92,319 Finance lease liability 9,541 11,871 Restructuring liability 17,714 1,066 Employee sabbatical benefit accrual (1) 12,558 30,683 Accrued other expense 76,111 77,675 Total accrued expenses and other current liabilities $ 448,705 $ 490,221 ____________________________________ ( 1 )

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2023
Long-Term Debt, Unclassified [Abstract]
Schedule of Long-term debt	Long-term debt, net, consisted of the following: As of June 30, 2023 As of December 31, 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,641) (5,001) Unamortized issuance costs (1,044) (1,126) Net carrying amount 494,315 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (5,024) (5,299) Unamortized issuance costs (1,131) (1,192) Net carrying amount 493,845 493,509 Total long-term debt, net $ 988,160 $ 987,382

Revenue by Geographic Area (Tab

Revenue by Geographic Area (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2023 2022 2023 2022 Revenue by geographic area: (In thousands) United States $ 692,646 $ 616,306 $ 1,354,736 $ 1,186,687 International 345,115 327,048 689,589 632,030 Total $ 1,037,761 $ 943,354 $ 2,044,325 $ 1,818,717 Percentage of revenue by geographic area: United States 67 % 65 % 66 % 65 % International 33 % 35 % 34 % 35 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2023 As of December 31, 2022 Stock options issued and outstanding 1,907,102 2,277,379 Unvested restricted stock units issued and outstanding 22,092,462 15,414,997 Shares of Class A common stock reserved for Twilio.org 486,245 530,449 Stock-based awards available for grant under 2016 Plan 20,268,133 19,851,399 Shares of Class A common stock reserved for issuance pursuant to ESPP 8,868,572 7,648,429 Total 53,622,514 45,722,653 __

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of unrecognized compensation cost of outstanding equity awards	As of June 30, 2023, total unrecognized compensation cost related to all outstanding equity awards was as follows: As of June 30, 2023 Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 24,471 1.7 Unvested restricted stock units and awards 1,901,440 3.1 ESPP 4,181 0.4 Shares of Class A common stock in escrow subject to future vesting 1,469 1 Total $ 1,931,561
Schedule of stock based compensation expense	The Company recorded total stock-based compensation expense as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (In thousands) Cost of revenue $ 6,334 $ 3,996 $ 11,624 $ 8,517 Research and development 74,576 109,524 152,669 188,893 Sales and marketing 42,869 78,492 90,998 126,078 General and administrative 29,019 50,078 57,973 73,877 Restructuring costs 296 — 10,629 — Total $ 153,094 $ 242,090 $ 323,893 $ 397,365

Net Loss Per Share Attributab_2

Net Loss Per Share Attributable to Common Stockholders (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2023 2022 2023 2022 Net loss attributable to common stockholders (in thousands) $ (166,187) $ (322,769) $ (508,326) $ (544,396) Weighted-average shares used to compute net loss per share attributable to 183,490,982 182,347,864 184,926,875 181,624,316 Net loss per share attributable to common stockholders, basic and diluted $ (0.91) $ (1.77) $ (2.75) $ (3.00)
Schedule of common stock equivalents excluded from the computation of the diluted net loss per share attributable to common stockholders	The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of June 30, 2023 2022 Stock options issued and outstanding 1,907,102 2,654,461 Unvested restricted stock units issued and outstanding 22,092,462 14,496,487 Shares of Class A common stock reserved for Twilio.org 486,245 574,653 Shares of Class A common stock committed under ESPP 396,717 226,082 Shares of Class A common stock in escrow 31,503 31,503 Shares of Class A common stock in escrow and restricted stock awards subject to future vesting 15,936 76,080 Total 24,929,965 18,059,266

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023 USD ($) segment	Mar. 31, 2023 segment	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, amount	$ 123.4			$ 123.4
Deferred revenue	139.4			139.4		$ 139.1
Revenue recognized out of adjusted deferred revenue balance	27.2		$ 29.9	98.6	$ 94.7
Total net capitalized costs	$ 219.5			$ 219.5		$ 239.1
Number of reportable segments | segment	2	1		2
Revenue Recognition Period One | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, percentage	68%			68%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months			12 months
Revenue Recognition Period Two | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Acquired Indefinite-lived Intangible Assets [Line Items]
Revenue, remaining performance obligation, percentage	95%			95%
Revenue, remaining performance obligation, expected timing of satisfaction, period	24 months			24 months

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	$ 254,065	$ 248,859
Amortized Cost or Carrying Value	3,059,224	3,605,208
Amortized Cost or Carrying Value	3,071,424
Gross Unrealized Gains	57	307
Gross Unrealized Losses Less Than 12 Months	(11,581)	(13,504)
Gross Unrealized Losses More Than 12 Months	(51,013)	(88,694)
Marketable securities, aggregate fair value	2,996,687	3,503,317
Equity securities, aggregate fair value	12,200
Investments, aggregate fair value	3,008,887
Total financial assets	3,325,489	3,854,067
Total financial assets	3,262,952	3,752,176
Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	254,065	46,610
Marketable securities, aggregate fair value	511,821	617,411
Equity securities, aggregate fair value	12,200
Investments, aggregate fair value	524,021
Total financial assets	778,086	664,021
Level 2
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	0	202,249
Marketable securities, aggregate fair value	2,484,866	2,885,906
Equity securities, aggregate fair value	0
Investments, aggregate fair value	2,484,866
Total financial assets	2,484,866	3,088,155
Level 3
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	0	0
Marketable securities, aggregate fair value	0	0
Equity securities, aggregate fair value	0
Investments, aggregate fair value	0
Total financial assets	0	0
U.S. Treasury securities
Fair Value Measurements, Financial Assets
Amortized Cost or Carrying Value	356,379	481,463
Gross Unrealized Gains	1	0
Gross Unrealized Losses Less Than 12 Months	(536)	(1,269)
Gross Unrealized Losses More Than 12 Months	(5,875)	(11,347)
Marketable securities, aggregate fair value	349,969	468,847
U.S. Treasury securities | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	349,969	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	166,324	149,901
Gross Unrealized Gains	0	0
Gross Unrealized Losses Less Than 12 Months	(96)	(33)
Gross Unrealized Losses More Than 12 Months	(4,376)	(6,304)
Marketable securities, aggregate fair value	161,852	143,564
Non-U.S. government securities | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	161,852	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	2,536,521	2,973,844
Gross Unrealized Gains	56	307
Gross Unrealized Losses Less Than 12 Months	(10,949)	(12,202)
Gross Unrealized Losses More Than 12 Months	(40,762)	(71,043)
Marketable securities, aggregate fair value	2,484,866	2,890,906
Corporate debt securities and commercial paper | Level 1
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	0	5,000
Corporate debt securities and commercial paper | Level 2
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	2,484,866	2,885,906
Corporate debt securities and commercial paper | Level 3
Fair Value Measurements, Financial Assets
Marketable securities, aggregate fair value	0	0
Equity securities
Fair Value Measurements, Financial Assets
Amortized Cost or Carrying Value	12,200
Money market funds
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	254,065	46,610
Money market funds | Level 1
Fair Value Measurements, Financial Assets
Cash and cash equivalents:	254,065	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 ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross Unrealized Losses More Than 12 Months	$ 51,013,000		$ 51,013,000		$ 88,694,000
Gross Unrealized Losses Less Than 12 Months	11,581,000		11,581,000		13,504,000
Interest earned on marketable securities	16,700,000	$ 15,600,000	33,900,000	$ 31,200,000
Investment in equity securities, carrying value	30,700,000		30,700,000		76,900,000
Impairment of strategic investments	0	$ 0	46,154,000	$ 0
2029 Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of the notes	433,300,000		433,300,000		410,900,000
2031 Senior Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of the notes	424,100,000		424,100,000		399,400,000
Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized losses	2,300,000,000		2,300,000,000		2,700,000,000
Gross Unrealized Losses More Than 12 Months	1,600,000,000		1,600,000,000		2,000,000,000
Gross Unrealized Losses Less Than 12 Months	$ 777,500,000		$ 777,500,000		$ 620,500,000

Fair Value Measurements - Contr

Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Less than one year, amortized cost	$ 2,061,380	$ 1,943,836
One to three years, amortized cost	997,844	1,661,372
Amortized Cost or Carrying Value	3,059,224	3,605,208
Less than one year, aggregate fair value	2,021,972	1,909,218
One to three years, aggregate fair value	974,715	1,594,099
Total aggregate fair value	$ 2,996,687	$ 3,503,317

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property and Equipment
Total property and equipment	$ 562,666	$ 550,275
Less: accumulated depreciation and amortization	(327,274)	(286,296)
Total property and equipment, net	235,392	263,979
Capitalized internal-use software developments costs
Property and Equipment
Total property and equipment	274,994	257,983
Data center equipment
Property and Equipment
Total property and equipment	104,956	100,207
Finance lease asset	72,400	72,400
Finance lease asset, accumulated amortization	48,700	41,200
Leasehold improvements
Property and Equipment
Total property and equipment	92,610	91,660
Office equipment
Property and Equipment
Total property and equipment	60,771	70,815
Furniture and fixtures
Property and Equipment
Total property and equipment	14,696	14,935
Software
Property and Equipment
Total property and equipment	$ 14,639	$ 14,675

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 24.3	$ 17.4	$ 44.3	$ 34
Capitalized internal use software development costs	$ 14.8	$ 17.2	$ 29	$ 31.9

Net Assets Held for Sale and _3

Net Assets Held for Sale and Divested - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended
	Jul. 31, 2023	Jun. 30, 2023	Jun. 30, 2023
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ValueFirst Business | Subsequent Events
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration	$ 45,500
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Internet Of Things
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration amount		$ 15,800	$ 15,800
Disposal Group, Held-for-sale, Not Discontinued Operations | ValueFirst Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Valuation allowance		28,777	28,777
Divestiture transaction costs		$ 3,100	$ 3,100

Net Assets Held for Sale and _4

Net Assets Held for Sale and Divested - Schedule of Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets held for sale:
Total assets held for sale	$ 65,667	$ 0
Liabilities held for sale	25,075	$ 0
ValueFirst Business | Disposal Group, Held-for-sale, Not Discontinued Operations
Assets held for sale:
Total tangible assets	42,546
Intangible assets, net	17,294
Goodwill	34,604
Valuation allowance	(28,777)
Total assets held for sale	65,667
Liabilities held for sale	$ 25,075

Impairment (Details)

Impairment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of long-lived assets	$ 9,332	$ 0	$ 31,116	$ 0

Restructuring Activities - Narr

Restructuring Activities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 28, 2023
Restructuring Cost and Reserve [Line Items]
Workforce elimination percentage						17%
Restructuring charges	$ 14,902		$ 0	$ 136,844	$ 0
Stock-based compensation - restructuring	296	$ 10,333		10,600
Employee Severance and Facilitation Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	14,600			$ 126,215
Stock-Based Awards
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 300

Restructuring Activities - Sche

Restructuring Activities - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Reserve [Roll Forward]
Restructuring charges	$ 14,902	$ 0	$ 136,844	$ 0
Employee Severance and Facilitation Costs
Restructuring Reserve [Roll Forward]
Beginning balance of period			0
Restructuring charges	14,600		126,215
Cash payments			(108,501)
Ending balance of period	17,714		17,714
Workforce Reduction Costs
Restructuring Reserve [Roll Forward]
Beginning balance of period			0
Restructuring charges			117,368
Cash payments			(99,888)
Ending balance of period	17,480		17,480
Facilitation Costs
Restructuring Reserve [Roll Forward]
Beginning balance of period			0
Restructuring charges			8,847
Cash payments			(8,613)
Ending balance of period	$ 234		$ 234

Reorganization and Segment Re_3

Reorganization and Segment Reporting - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Feb. 28, 2023 business_unit	Jun. 30, 2023 USD ($) segment	Mar. 31, 2023 segment	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reporting units | business_unit	2
Number of operating segments | segment		2	1		2
Number of reportable segments | segment		2	1		2
Depreciation and amortization					$ 146,388	$ 137,744
Twilio Communications | Segment Reconciling Items
Segment Reporting Information [Line Items]
Depreciation and amortization		$ 13,900		$ 7,000	23,100	13,800
Twilio Data & Applications | Segment Reconciling Items
Segment Reporting Information [Line Items]
Depreciation and amortization		$ 3,500		$ 1,500	$ 6,600	$ 2,800

Reorganization and Segment Re_4

Reorganization and Segment Reporting - Schedule of Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Revenue	$ 1,037,761	$ 943,354	$ 2,044,325	$ 1,818,717
Gross profit	505,755	445,289	996,445	870,360
Stock-based compensation				397,365
Amortization of acquired intangibles	50,200	52,200	101,100	103,700
Operating expenses	(647,582)	(757,225)	(1,402,356)	(1,400,104)
Other expenses, net	(23,616)	(8,239)	(91,204)	(14,916)
Loss before (provision for) benefit from income taxes	(165,443)	(320,175)	(497,115)	(544,660)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Gross profit	541,881	480,763	1,068,017	940,991
Stock-based compensation				(8,517)
Amortization of acquired intangibles				(61,872)
Payroll taxes related to stock-based compensation				(242)
Communications
Segment Reporting Information [Line Items]
Revenue	913,135	832,305	1,796,365	1,604,158
Communications | Segment Reconciling Items
Segment Reporting Information [Line Items]
Gross profit	440,071	387,294	865,211	759,448
Data & Applications
Segment Reporting Information [Line Items]
Revenue	124,626	111,049	247,960	214,559
Data & Applications | Segment Reconciling Items
Segment Reporting Information [Line Items]
Gross profit	$ 101,810	$ 93,469	$ 202,806	$ 181,543

Derivatives and Hedging - Narra

Derivatives and Hedging - Narrative (Details) - Foreign Currency Forward - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions	6 Months Ended
	Jun. 30, 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	$ 261

Derivatives and Hedging - Gains

Derivatives and Hedging - Gains (Losses) Associated With Foreign Currency Forward Contracts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Cost of revenue
Foreign Currency Fair Value Hedge Derivative [Line Items]
Gains (losses) recognized in income due to instruments maturing	$ 2,161	$ (7,566)	$ 2,895	$ (9,163)
Foreign Currency Forward
Foreign Currency Fair Value Hedge Derivative [Line Items]
(Losses) gains recognized in OCI	$ (2,167)	$ (11,106)	$ 1,168	$ (14,958)

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023 USD ($) segment	Mar. 31, 2023 segment	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Number of operating segments	2	1		2
Number of reportable segments	2	1		2
Amortization expense | $	$ 50.2		$ 52.2	$ 101.1	$ 103.7

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Thousands	1 Months Ended	5 Months Ended
	Jun. 30, 2023	May 31, 2023
Goodwill
Beginning balance of period	$ 0	$ 5,284,153
Foreign currency adjustments	251	26
Goodwill divested or included in disposal group	(41,164)
Ending balance of period	5,243,266	0
Twilio Communications
Goodwill
Beginning balance of period	4,321,130	0
Foreign currency adjustments	251
Goodwill divested or included in disposal group	(41,164)
Ending balance of period	4,280,217	4,321,130
Twilio Data & Applications
Goodwill
Beginning balance of period	963,049	0
Foreign currency adjustments	0
Goodwill divested or included in disposal group	0
Ending balance of period	$ 963,049	$ 963,049

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortizable intangible assets:
Cost	$ 1,395,876	$ 1,435,511
Accumulated Amortization	(673,447)	(590,791)
Total	722,429	844,720
Intangible assets, gross	1,401,091	1,440,726
Total	727,644	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	782,519	795,753
Accumulated Amortization	(385,161)	(335,893)
Total	397,358	459,860
Customer relationships
Amortizable intangible assets:
Cost	523,664	538,466
Accumulated Amortization	(234,647)	(204,241)
Total	289,017	334,225
Supplier relationships
Amortizable intangible assets:
Cost	49,756	56,922
Accumulated Amortization	(21,776)	(19,846)
Total	27,980	37,076
Trade names
Amortizable intangible assets:
Cost	25,968	30,342
Accumulated Amortization	(21,060)	(20,106)
Total	4,908	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	3,969	4,028
Accumulated Amortization	(803)	(705)
Total	$ 3,166	$ 3,323

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Intangible Assets
2023	$ 97,845
2024	191,486
2025	187,912
2026	117,416
2027	69,871
Thereafter	57,899
Total	$ 722,429	$ 844,720

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued Liabilities and Other Liabilities [Abstract]
Accrued payroll and related	$ 83,028	$ 79,703
Accrued bonus and commission	15,476	35,449
Accrued cost of revenue	155,744	161,455
Sales and other taxes payable	78,533	92,319
Finance lease liability	9,541	11,871
Restructuring liability	17,714	1,066
Employee sabbatical benefit accrual	12,558	30,683
Accrued other expense	76,111	77,675
Total accrued expenses and other current liabilities	$ 448,705	$ 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	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total long-term debt, net	$ 988,160	$ 987,382
2029 Senior Notes
Debt Instrument [Line Items]
Principal	500,000	500,000
Unamortized discount	(4,641)	(5,001)
Unamortized issuance costs	(1,044)	(1,126)
Total long-term debt, net	494,315	493,873
2031 Senior Notes
Debt Instrument [Line Items]
Principal	500,000	500,000
Unamortized discount	(5,024)	(5,299)
Unamortized issuance costs	(1,131)	(1,192)
Total long-term debt, net	$ 493,845	$ 493,509

Revenue by Geographic Area - Re

Revenue by Geographic Area - Revenue and Percentage of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue by geographic area:
Revenue	$ 1,037,761	$ 943,354	$ 2,044,325	$ 1,818,717
United States
Revenue by geographic area:
Revenue	$ 692,646	$ 616,306	$ 1,354,736	$ 1,186,687
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	67%	65%	66%	65%
International
Revenue by geographic area:
Revenue	$ 345,115	$ 327,048	$ 689,589	$ 632,030
International | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk
Percentage of revenue by geographic area:
Percentage of revenue	33%	35%	34%	35%

Revenue by Geographic Area - Na

Revenue by Geographic Area - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 45	$ 54.5

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2020	Sep. 30, 2020
Loss Contingencies [Line Items]
Term of non-cancellable agreement	4 years	4 years
Purchase commitment	$ 19,300,000	$ 66,900,000
Taxes payable, jurisdictional estimate				$ 38,800,000	$ 38,800,000
Accrued taxes				$ 11,500,000
Domestic Tax Authority
Loss Contingencies [Line Items]
Taxes payable	31,800,000	31,800,000	$ 29,100,000
Foreign Tax Authority
Loss Contingencies [Line Items]
Taxes payable	20,500,000	20,500,000	20,600,000
Indemnification Agreement
Loss Contingencies [Line Items]
Loss contingency accrual	$ 0	$ 0	$ 0

Stockholders' Equity - Preferre

Stockholders' Equity - Preferred Stock (Details) - $ / shares	Jun. 30, 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)	Jun. 28, 2023	Jun. 30, 2023 $ / shares shares	Dec. 31, 2022 $ / shares shares
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) | $ / shares		$ 0.001	$ 0.001
Common stock, issued (in shares)		181,174,616	176,358,104
Common stock, outstanding (in shares)		181,174,616	176,358,104
Conversion of shares of Class B common stock (in shares)	1
Common Stock Class B
Common Stock
Common stock, authorized (in shares)		3,170,181	100,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.001	$ 0.001
Common stock, issued (in shares)		0	9,617,605
Common stock, outstanding (in shares)		0	9,617,605

Stockholders' Equity - Common_2

Stockholders' Equity - Common Stock Shares Reserved (Details) - shares	Jun. 30, 2023	Dec. 31, 2022
Stockholders' Equity
Total (in shares)	53,622,514	45,722,653
2016 Stock Option and Incentive Plan
Stockholders' Equity
Stock-based awards available for grant under 2016 Plan and ESPP (in shares)	20,268,133	19,851,399
Common Stock Class A
Stockholders' Equity
Class A common stock reserved (in shares)	486,245	530,449
Stock options issued and outstanding
Stockholders' Equity
Stock options issued and outstanding (in shares)	1,907,102	2,277,379
Unvested restricted stock units issued and outstanding
Stockholders' Equity
Unvested restricted stock units issued and outstanding (in shares)	22,092,462	15,414,997
Shares of Class A common stock reserved for issuance pursuant to ESPP
Stockholders' Equity
Stock-based awards available for grant under 2016 Plan and ESPP (in shares)	8,868,572	7,648,429

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Feb. 28, 2023
Equity [Abstract]
Share repurchase program, authorized amount			$ 1,000,000,000
Stock repurchased (in shares)	6.4	8.3
Stock repurchased	$ 370,000,000	$ 495,000,000
Stock repurchase remaining amount	$ 505,000,000	$ 505,000,000

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - ESPP	6 Months Ended
	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock plan offering period	6 months
Discount from market price, offering date (as a percent)	15%

Stock-Based Compensation - Unre

Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total	$ 1,931,561
Unvested stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, options	$ 24,471
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	3 years 1 month 6 days
Unrecognized compensation cost, other than options	$ 1,901,440
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average remaining period	4 months 24 days
Unrecognized compensation cost, other than options	$ 4,181
Shares of Class A common stock in escrow subject to future vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average remaining period	1 year
Unrecognized compensation cost, other than options	$ 1,469

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 153,094	$ 242,090	$ 323,893	$ 397,366
Stock-based compensation expense				397,365
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	6,334	3,996	11,624	8,517
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	74,576	109,524	152,669	188,893
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	42,869	78,492	90,998	126,078
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	29,019	50,078	57,973	73,877
Restructuring costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 296	$ 0	$ 10,629	$ 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				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Loss Per Share Attributable to Common Stockholders
Net loss	$ (166,187)	$ (342,139)	$ (322,769)	$ (221,627)	$ (508,326)	$ (544,396)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares)	183,490,982		182,347,864		184,926,875	181,624,316
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares)	183,490,982		182,347,864		184,926,875	181,624,316
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.91)		$ (1.77)		$ (2.75)	$ (3)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.91)		$ (1.77)		$ (2.75)	$ (3)

Net Loss Per Share Attributab_4

Net Loss Per Share Attributable to Common Stockholders - Anti-Dilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	24,929,965	18,059,266
Stock options issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,907,102	2,654,461
Unvested restricted stock units issued and outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	22,092,462	14,496,487
Shares of Class A common stock reserved for Twilio.org
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	486,245	574,653
Shares of Class A common stock committed under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	396,717	226,082
Shares of 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
Shares of 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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 744	$ 2,594	$ 11,211	$ (264)

Related Party Transactions - (D

Related Party Transactions - (Details) - USD ($) $ in Thousands	2 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Cost of revenue		$ 532,006	$ 498,065	$ 1,047,880	$ 948,357
Related Party
Related Party Transaction [Line Items]
Cost of revenue	$ 22,000	$ 37,300		$ 70,300