Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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 $0.001 per share | |
Trading Symbol | TWLO | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 181,042,862 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001447669 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 677,917 | $ 651,752 |
Short-term marketable securities | 3,179,492 | 3,503,317 |
Accounts receivable, net | 557,201 | 547,507 |
Prepaid expenses and other current assets | 326,968 | 281,510 |
Total current assets | 4,741,578 | 4,984,086 |
Property and equipment, net | 222,257 | 263,979 |
Operating right-of-use assets | 79,126 | 121,341 |
Equity method investment | 623,118 | 699,911 |
Intangible assets, net | 678,721 | 849,935 |
Goodwill | 5,243,266 | 5,284,153 |
Other long-term assets | 269,672 | 360,899 |
Total assets | 11,857,738 | 12,564,304 |
Current liabilities: | ||
Accounts payable | 104,424 | 124,605 |
Accrued expenses and other current liabilities | 423,812 | 490,221 |
Deferred revenue and customer deposits | 145,955 | 139,110 |
Operating lease liability, current | 51,926 | 54,222 |
Total current liabilities | 726,117 | 808,158 |
Operating lease liability, noncurrent | 133,881 | 164,551 |
Finance lease liability, noncurrent | 11,506 | 21,290 |
Long-term debt, net | 988,555 | 987,382 |
Other long-term liabilities | 18,298 | 23,881 |
Total liabilities | 1,878,357 | 2,005,262 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Class A and Class B common stock | 182 | 186 |
Additional paid-in capital | 14,610,887 | 14,055,853 |
Accumulated other comprehensive loss | (52,726) | (121,161) |
Accumulated deficit | (4,578,962) | (3,375,836) |
Total stockholders’ equity | 9,979,381 | 10,559,042 |
Total liabilities and stockholders’ equity | $ 11,857,738 | $ 12,564,304 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,033,670,000 | $ 983,030,000 | $ 3,077,995,000 | $ 2,801,747,000 |
Cost of revenue | 517,351,000 | 520,955,000 | 1,565,231,000 | 1,469,312,000 |
Gross profit | 516,319,000 | 462,075,000 | 1,512,764,000 | 1,332,435,000 |
Operating expenses: | ||||
Research and development | 241,654,000 | 284,735,000 | 707,145,000 | 804,987,000 |
Sales and marketing | 262,898,000 | 328,833,000 | 784,383,000 | 951,697,000 |
General and administrative | 114,071,000 | 135,331,000 | 361,491,000 | 392,319,000 |
Restructuring costs | 3,437,000 | 72,451,000 | 140,281,000 | 72,451,000 |
Impairment of long-lived assets | 3,162,000 | 97,722,000 | 34,278,000 | 97,722,000 |
Total operating expenses | 625,222,000 | 919,072,000 | 2,027,578,000 | 2,319,176,000 |
Loss from operations | (108,903,000) | (456,997,000) | (514,814,000) | (986,741,000) |
Other expenses, net: | ||||
Share of losses from equity method investment | (31,058,000) | (13,376,000) | (93,838,000) | (13,376,000) |
Impairment of strategic investments | 0 | 0 | (46,154,000) | 0 |
Other income (expenses), net | 1,000 | (8,374,000) | 17,731,000 | (23,290,000) |
Total other expenses, net | (31,057,000) | (21,750,000) | (122,261,000) | (36,666,000) |
Loss before provision for income taxes | (139,960,000) | (478,747,000) | (637,075,000) | (1,023,407,000) |
Provision for income taxes | (1,747,000) | (3,580,000) | (12,958,000) | (3,316,000) |
Net loss attributable to common stockholders | $ (141,707,000) | $ (482,327,000) | $ (650,033,000) | $ (1,026,723,000) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.78) | $ (2.63) | $ (3.54) | $ (5.63) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.78) | $ (2.63) | $ (3.54) | $ (5.63) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 181,749,309 | 183,692,564 | 183,854,526 | 182,319,735 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 181,749,309 | 183,692,564 | 183,854,526 | 182,319,735 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (141,707) | $ (482,327) | $ (650,033) | $ (1,026,723) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on marketable securities | 13,921 | (22,151) | 53,276 | (103,999) |
Foreign currency translation | 5,018 | (2,192) | 5,587 | (4,646) |
Net change in market value of effective foreign currency forward exchange contracts | (8,626) | (19,196) | (7,458) | (34,154) |
Share of other comprehensive (loss) income from equity method investment | (2,764) | (4,243) | 17,030 | (4,243) |
Total other comprehensive income (loss) | 7,549 | (47,782) | 68,435 | (147,042) |
Comprehensive loss attributable to common stockholders | $ (134,158) | $ (530,109) | $ (581,598) | $ (1,173,765) |
Condensed Consolidated Statem_3
Condensed 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) Income | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 170,625,994 | 9,842,105 | ||||||
Beginning 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 | ||||||
Ending 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 | ||||||
Beginning 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 | (1,026,723) | |||||||
Unrealized gain (loss) on marketable securities | (103,999) | |||||||
Foreign currency translation | (4,646) | |||||||
Net change in market value of effective foreign currency forward exchange contracts | (34,154) | |||||||
Share of other comprehensive income (loss) from equity method investment | (4,243) | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 174,482,722 | 9,817,605 | ||||||
Ending balance at Sep. 30, 2022 | 10,530,888 | $ 172 | $ 12 | 13,842,301 | (165,183) | (3,146,414) | ||
Beginning balance (in shares) at Mar. 31, 2022 | 171,763,174 | 9,820,605 | ||||||
Beginning 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) | ||||||
Stock-based compensation | 247,412 | 247,412 | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 173,271,942 | 9,817,605 | ||||||
Ending balance at Jun. 30, 2022 | 10,841,995 | $ 171 | $ 12 | 13,623,300 | (117,401) | (2,664,087) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (482,327) | (482,327) | ||||||
Exercises of vested stock options (in shares) | 38,368 | 35,187 | ||||||
Exercises of vested stock options | 2,056 | 2,056 | ||||||
Vesting of restricted stock units (in shares) | 1,115,248 | |||||||
Vesting of restricted stock units | 0 | $ 1 | (1) | |||||
Value of equity awards withheld for tax liability (in shares) | (125) | |||||||
Value of equity awards withheld for tax liability | (11) | (11) | ||||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 35,187 | (35,187) | ||||||
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 | 1,911 | 1,911 | ||||||
Unrealized gain (loss) on marketable securities | (22,151) | (22,151) | ||||||
Foreign currency translation | (2,192) | (2,192) | ||||||
Net change in market value of effective foreign currency forward exchange contracts | (19,196) | (19,196) | ||||||
Share of other comprehensive income (loss) from equity method investment | (4,243) | (4,243) | ||||||
Stock-based compensation | 199,772 | 199,772 | ||||||
Stock-based compensation - restructuring | 15,274 | 15,274 | ||||||
Ending balance (in shares) at Sep. 30, 2022 | 174,482,722 | 9,817,605 | ||||||
Ending balance at Sep. 30, 2022 | 10,530,888 | $ 172 | $ 12 | 13,842,301 | (165,183) | (3,146,414) | ||
Beginning balance (in shares) at Dec. 31, 2022 | 176,358,104 | 9,617,605 | 176,358,104 | 9,617,605 | ||||
Beginning 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 (loss) 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 | ||||||
Ending 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 | ||||
Beginning 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 | (650,033) | |||||||
Unrealized gain (loss) on marketable securities | $ 53,276 | |||||||
Repurchases of shares of Class A common stock including related costs (in shares) | (9,200,000) | |||||||
Foreign currency translation | $ 5,587 | |||||||
Net change in market value of effective foreign currency forward exchange contracts | (7,458) | |||||||
Share of other comprehensive income (loss) from equity method investment | 17,030 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 182,066,098 | 0 | 182,066,098 | 0 | ||||
Ending balance at Sep. 30, 2023 | 9,979,381 | $ 182 | $ 0 | 14,610,887 | (52,726) | (4,578,962) | ||
Beginning balance (in shares) at Mar. 31, 2023 | 176,121,918 | 9,617,605 | ||||||
Beginning 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) | (6,374,327) | |||||||
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 (loss) 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 | ||||||
Ending balance at Jun. 30, 2023 | 9,976,559 | $ 181 | $ 0 | 14,418,946 | (60,275) | (4,382,293) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (141,707) | (141,707) | ||||||
Exercises of vested stock options (in shares) | 100,000 | |||||||
Exercises of vested stock options | 871 | 871 | ||||||
Vesting of restricted stock units (in shares) | 1,669,596 | |||||||
Vesting of restricted stock units | 0 | $ 2 | (2) | |||||
Value of equity awards withheld for tax liability (in shares) | (417) | |||||||
Value of equity awards withheld for tax liability | (27) | (27) | ||||||
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 | 1,339 | 1,339 | ||||||
Unrealized gain (loss) on marketable securities | $ 13,921 | 13,921 | ||||||
Repurchases of shares of Class A common stock including related costs (in shares) | (900,000) | (899,799) | ||||||
Repurchases of shares of Class A common stock including related costs | $ (54,963) | $ (1) | (54,962) | |||||
Foreign currency translation | 5,018 | 5,018 | ||||||
Net change in market value of effective foreign currency forward exchange contracts | (8,626) | (8,626) | ||||||
Share of other comprehensive income (loss) from equity method investment | (2,764) | (2,764) | ||||||
Stock-based compensation | 189,293 | 189,293 | ||||||
Stock-based compensation - restructuring | 467 | 467 | ||||||
Ending balance (in shares) at Sep. 30, 2023 | 182,066,098 | 0 | 182,066,098 | 0 | ||||
Ending balance at Sep. 30, 2023 | $ 9,979,381 | $ 182 | $ 0 | $ 14,610,887 | $ (52,726) | $ (4,578,962) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (650,033,000) | $ (1,026,723,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 218,968,000 | 207,880,000 |
Non-cash reduction to the right-of-use asset | 21,815,000 | 38,669,000 |
Net amortization of investment premium and discount | 4,403,000 | 27,900,000 |
Impairment of long-lived assets due to office closures | 34,278,000 | 97,722,000 |
Stock-based compensation including restructuring | 509,367,000 | 606,260,000 |
Amortization of deferred commissions | 54,428,000 | 41,322,000 |
Unrealized loss on equity securities | 9,750,000 | 0 |
Allowance for doubtful accounts | 41,454,000 | 21,786,000 |
Value of shares of Class A common stock issued and donated to charity | 3,985,000 | 8,516,000 |
Share of losses from equity method investment | 93,838,000 | 13,376,000 |
Loss on net assets divested | 32,277,000 | 0 |
Impairment of strategic investments | 46,154,000 | 0 |
Other adjustments | 11,822,000 | 3,166,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (69,116,000) | (121,353,000) |
Prepaid expenses and other current assets | (56,506,000) | (81,071,000) |
Other long-term assets | (15,367,000) | (111,662,000) |
Accounts payable | (2,578,000) | 11,585,000 |
Accrued expenses and other current liabilities | (59,677,000) | 122,408,000 |
Deferred revenue and customer deposits | 6,827,000 | (6,206,000) |
Operating lease liabilities | (41,446,000) | (42,158,000) |
Other long-term liabilities | (2,436,000) | (7,330,000) |
Net cash provided by (used in) operating activities | 192,207,000 | (195,913,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions, net of cash acquired and payments related to prior period acquisitions | (5,770,000) | (32,853,000) |
Divestitures, net of cash divested | 38,194,000 | 0 |
Purchases of marketable securities and other investments | (1,391,975,000) | (1,650,759,000) |
Proceeds from sales and maturities of marketable securities | 1,764,841,000 | 1,065,998,000 |
Capitalized software development costs | (30,526,000) | (35,905,000) |
Purchases of long-lived and intangible assets | (9,019,000) | (28,634,000) |
Net cash provided by (used in) investing activities | 365,745,000 | (682,153,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of costs related to public offerings | 0 | (35,000) |
Principal payments on debt and finance leases | (13,763,000) | (9,383,000) |
Value of equity awards withheld for tax liabilities | (2,536,000) | (1,080,000) |
Repurchases of shares of Class A common stock and related costs | (548,871,000) | 0 |
Proceeds from exercises of stock options and shares of Class A common stock issued under ESPP | 28,949,000 | 43,750,000 |
Net cash (used in) provided by financing activities | (536,221,000) | 33,252,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 108,000 | 146,000 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 21,839,000 | (844,668,000) |
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 | 677,917,000 | 637,163,000 |
Cash paid for income taxes, net | 22,916,000 | 5,481,000 |
Cash paid for interest | 38,216,000 | 37,500,000 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Cash and cash equivalents | 677,917,000 | 632,794,000 |
Restricted cash in other current assets | 0 | 4,357,000 |
Restricted cash in other long-term assets | 0 | 12,000 |
Total cash, cash equivalents and restricted cash | $ 677,917,000 | $ 637,163,000 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 $128.8 million as of September 30, 2023, of which 68% is expected to be recognized over the next 12 months and 96% is expected to be recognized over the next 24 months. (e) Deferred Revenue and Customer Deposits As of September 30, 2023, and December 31, 2022, the Company recorded $146.0 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 September 30, 2023 and 2022, the Company recognized $16.7 million and $17.5 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 nine months ended September 30, 2023 and 2022, the Company recognized $115.3 million and $112.2 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 September 30, 2023, and December 31, 2022, were $210.1 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. As of September 30, 2023, and December 31, 2022, the allowance for doubtful accounts was $40.3 million and $27.0 million, respectively, and is recorded in accounts receivable, net, in the accompanying condensed consolidated balance sheets. In the three and nine months ended September 30, 2023 and 2022, no customer organization accounted for more than 10% of the Company’s total revenue. As of September 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 Accounting Standards Codification 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 had one operating and reportable segment. As described in Note 8, in the second quarter of 2023, the Company determined that it operated in and, as such, started reporting 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 | 9 Months Ended |
Sep. 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 $ 418,098 $ — $ — $ — $ 418,098 $ — $ — $ 418,098 Commercial paper 23,311 — — — — 23,311 — 23,311 Total included in cash 441,409 — — — 418,098 23,311 — 441,409 Marketable securities: Debt securities: U.S. Treasury securities 528,950 20 (1,060) (3,999) 523,911 — — 523,911 Non-U.S. government securities 115,923 — — (2,897) 113,026 — — 113,026 Corporate debt securities and commercial paper 2,577,183 134 (9,810) (31,002) 16,690 2,519,815 — 2,536,505 Total debt securities 3,222,056 154 (10,870) (37,898) 653,627 2,519,815 — 3,173,442 Equity securities 6,050 — — — 6,050 — — 6,050 Total marketable 3,228,106 154 (10,870) (37,898) 659,677 2,519,815 — 3,179,492 Total financial assets $ 3,669,515 $ 154 $ (10,870) $ (37,898) $ 1,077,775 $ 2,543,126 $ — $ 3,620,901 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 September 30, 2023, of which $1.2 billion were in an unrealized loss position for more than 12 months and $1.1 billion 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 September 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 September 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 September 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 $19.3 million and $53.2 million in the three and nine months ended September 30, 2023, respectively, and $16.3 million and $47.5 million in the three and nine months ended September 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 September 30, As of December 31, 2023 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,740,368 $ 1,710,876 $ 1,943,836 $ 1,909,218 One to three years 1,481,688 1,462,566 1,661,372 1,594,099 Total $ 3,222,056 $ 3,173,442 $ 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 September 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 nine months ended September 30, 2023, the Company remeasured to fair value one of its strategic investments acquired in 2021 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 nine months ended September 30, 2023. There were no other impairments or adjustments recorded in the three and nine months ended September 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 September 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 | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of September 30, As of December 31, 2023 2022 (In thousands) Capitalized internal-use software developments costs $ 285,905 $ 257,983 Data center equipment (1) 105,027 100,207 Leasehold improvements 92,491 91,660 Office equipment 61,578 70,815 Furniture and fixtures 14,570 14,935 Software 14,639 14,675 Total property and equipment 574,210 550,275 Less: accumulated depreciation and amortization (1) (351,953) (286,296) Total property and equipment, net $ 222,257 $ 263,979 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of September 30, 2023 and December 31, 2022. Accumulated depreciation and amortization includes $52.4 million and $41.2 million of accumulated depreciation for assets held under finance leases as of September 30, 2023 and December 31, 2022, respectively. Depreciation and amortization expense was $23.2 million and $18.4 million in the three months ended September 30, 2023 and 2022, respectively, and $67.5 million and $52.5 million in the nine months ended September 30, 2023 and 2022, respectively. The Company capitalized $14.7 million and $19.3 million in internal‑use software development costs in the three months ended September 30, 2023 and 2022, respectively, and $43.7 million and $51.2 million in the nine months ended September 30, 2023 and 2022, respectively. |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures In July 2023, the Company completed the sale of its ValueFirst business, which operated an enterprise communications platform in India, for a total cash sales price of $45.5 million, or $38.2 million in proceeds, net of cash divested. As part of the transaction, the Company divested $17.4 million of tangible net assets, $17.3 million of intangible assets and $34.6 million of goodwill. The sale resulted in a loss of $28.8 million, which was recorded in the second quarter of 2023 when the assets and the liabilities were classified as held for sale. The loss was recorded within general and administrative expenses in the accompanying condensed consolidated statement of operations for the nine months ended September 30, 2023. The Company also recorded an additional $3.3 million of divestiture-related 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 were not significant. |
Impairment
Impairment | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment | Impairment In February 2023, the Company announced plans to close additional offices during 2023 as part of its previously announced 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 nine months ended September 30, 2023, the Company recorded a $3.2 million and $34.3 million impairment, respectively, related to its permanently closed offices. In the three and nine months ended September 30, 2022, the Company recorded a $97.7 million impairment in each period related to its permanently closed offices. No other significant impairments were recorded in the three and nine months ended September 30, 2023 or 2022. |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities In 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. The restructuring charges recorded in the three months ended September 30, 2023 were not significant. The cumulated restructuring charges recorded in the nine months ended September 30, 2023, were $140.3 million, which consisted of $129.2 million related to employee severance, benefits and facilitation costs, and $11.1 million related to vesting of employee stock-based compensation awards. 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 sheets: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2022 $ — $ — $ — Restructuring charges 119,562 9,623 129,185 Cash payments (107,997) (9,529) (117,526) Balance as of September 30, 2023 $ 11,565 $ 94 $ 11,659 The remaining restructuring charges related to the restructuring plan effected in September 2022 (the “September 2022 Plan”) that were incurred in 2023, and the remaining liabilities related to the September 2022 Plan as of September 30, 2023 and December 31, 2022, were not significant. In the three and nine months ended September 30, 2022, the Company recorded $72.5 million of restructuring charges in its accompanying condensed consolidated statements of operations related to the September 2022 Plan. |
Reorganization and Segment Repo
Reorganization and Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Segment Reporting | Reorganization and Segment ReportingIn 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 nine months ended September 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Revenue: Communications $ 906,714 $ 866,193 $ 2,703,079 $ 2,470,350 Data & Applications 126,956 116,837 374,916 331,397 Total $ 1,033,670 $ 983,030 $ 3,077,995 $ 2,801,747 Non-GAAP gross profit: Communications 451,330 401,236 1,316,541 1,160,683 Data & Applications 101,268 97,897 304,074 279,441 Total $ 552,598 $ 499,133 $ 1,620,615 $ 1,440,124 Reconciliation of non-GAAP gross profit to gross profit: Total non-GAAP gross profit $ 552,598 $ 499,133 $ 1,620,615 $ 1,440,124 Stock-based compensation (7,053) (6,114) (18,677) (14,631) Amortization of acquired intangibles (29,045) (30,729) (88,675) (92,601) Payroll taxes related to stock-based compensation (181) (215) (499) (457) Gross profit 516,319 462,075 1,512,764 1,332,435 Operating expenses (625,222) (919,072) (2,027,578) (2,319,176) Other expenses, net (31,057) (21,750) (122,261) (36,666) Loss before provision for income taxes $ (139,960) $ (478,747) $ (637,075) $ (1,023,407) Depreciation and amortization expenses included in non-GAAP gross profit for the Communications reportable segment was $13.0 million and $7.7 million in the three months ended September 30, 2023 and 2022, respectively, and $36.1 million and $21.4 million in the nine months ended September 30, 2023 and 2022, respectively. Depreciation and amortization expenses included in non-GAAP gross profit for the Data & Applications reportable segment was $3.2 million and $1.9 million in the three months ended September 30, 2023 and 2022, respectively, and $9.8 million and $4.7 million in the nine months ended September 30, 2023 and 2022, respectively. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and HedgingAs of September 30, 2023, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $237.7 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of September 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Losses recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ (8,626) $ (19,196) $ (7,458) $ (34,154) (Losses) gains recognized in income due to instruments maturing Cost of revenue $ (325) $ (16,357) $ 2,571 $ (25,520) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As described in Note 8, 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 September 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 (2) (41,164) — (41,164) Balance as of September 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 divestitures of IoT and ValueFirst. See Note 5 for further details. Intangible assets Intangible assets consisted of the following: As of September 30, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 778,609 $ (408,446) $ 370,163 Customer relationships 523,074 (252,195) 270,879 Supplier relationships 49,756 (24,046) 25,710 Trade names 25,968 (22,330) 3,638 Order backlog 10,000 (10,000) — Patent 3,968 (852) 3,116 Total amortizable intangible assets 1,391,375 (717,869) 673,506 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,396,590 $ (717,869) $ 678,721 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 $48.9 million and $51.7 million for the three months ended September 30, 2023 and 2022, respectively, and $150.0 million and $155.4 million for the nine months ended September 30, 2023 and 2022, respectively. Total estimated future amortization expense is as follows: As of September 30, 2023 Year Ended December 31, (In thousands) 2023 (remaining three months) $ 48,922 2024 191,486 2025 187,912 2026 117,416 2027 69,871 Thereafter 57,899 Total $ 673,506 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 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 September 30, As of December 31, 2023 2022 (In thousands) Accrued payroll and related $ 67,660 $ 79,703 Accrued bonus and commission 15,877 35,449 Accrued cost of revenue 158,234 161,455 Sales and other taxes payable 76,975 92,319 ESPP contributions 11,400 8,499 Finance lease liability 8,546 11,871 Restructuring liability 11,659 1,066 Employee sabbatical benefit accrual (1) 8,343 30,683 Accrued other expense 65,118 69,176 Total accrued expenses and other current liabilities $ 423,812 $ 490,221 ____________________________________ ( 1 ) |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt, net, consisted of the following: As of September 30, As of December 31, 2023 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,458) (5,001) Unamortized issuance costs (1,003) (1,126) Net carrying amount 494,539 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (4,885) (5,299) Unamortized issuance costs (1,099) (1,192) Net carrying amount 494,016 493,509 Total long-term debt, net $ 988,555 $ 987,382 |
Revenue by Geographic Area
Revenue by Geographic Area | 9 Months Ended |
Sep. 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 Nine Months Ended 2023 2022 2023 2022 Revenue by geographic area: (In thousands) United States $ 688,121 $ 650,531 $ 2,042,857 $ 1,837,325 International 345,549 332,499 1,035,138 964,422 Total $ 1,033,670 $ 983,030 $ 3,077,995 $ 2,801,747 Percentage of revenue by geographic area: United States 67 % 66 % 66 % 66 % International 33 % 34 % 34 % 34 % Long-lived assets outside of the United States were $43.3 million and $54.5 million as of September 30, 2023, and December 31, 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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 nine months ended September 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 nine months ended September 30, 2023, the Company entered into several such agreements with terms up to four years for a total purchase commitment of $24.3 million and $91.2 million, respectively. In 2020, the City and County of San Francisco (“San Francisco”) 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 have finalized a settlement agreement that was approved by San Francisco’s Board of Supervisors on November 7, 2023 and is currently before the Mayor for approval. In the event the settlement is not formally approved and further litigation is necessary, the Company believes it has strong arguments against the assessments; however, litigation is uncertain and there is no assurance that the Company 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 September 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 September 30, 2023, the liabilities recorded for the non-income-based taxes were $32.2 million for domestic jurisdictions and $19.2 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 | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock As of September 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 September 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 September 30, 2023, 182,066,098 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 September 30, As of December 31, 2023 2022 Stock options issued and outstanding 1,778,852 2,277,379 Unvested restricted stock units issued and outstanding 20,263,588 15,414,997 Shares of Class A common stock reserved for Twilio.org 464,143 530,449 Stock-based awards available for grant under 2016 Plan 20,480,221 19,851,399 Shares of Class A common stock reserved for issuance pursuant to ESPP 8,868,572 7,648,429 Total 51,855,376 45,722,653 Share Repurchase Program In February 2023, the Board of Directors of the Company authorized the repurchase of up to $1.0 billion in aggregate value of its outstanding Class A common stock through a share repurchase program. 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. In the three and nine months ended September 30, 2023, the Company repurchased 0.9 million and 9.2 million shares of its Class A common stock, respectively, for an aggregate purchase price of $56.0 million and $551.0 million, respectively. As of September 30, 2023, approximately $449.0 million of the originally authorized amount remained available for future repurchases. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 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 September 30, 2023, total unrecognized compensation cost related to all outstanding equity awards was as follows: As of September 30, 2023 Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 18,058 1.6 Unvested restricted stock units and awards 1,678,691 2.9 ESPP 1,296 0.1 Shares of Class A common stock in escrow subject to future vesting 1,114 0.8 Total $ 1,699,159 Stock-Based Compensation Expense The Company recorded total stock-based compensation expense as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (In thousands) Cost of revenue $ 7,053 $ 6,114 $ 18,677 $ 14,631 Research and development 94,085 90,787 246,754 279,680 Sales and marketing 51,345 58,747 142,343 184,825 General and administrative 32,524 37,973 90,497 111,850 Restructuring costs 467 15,274 11,096 15,274 Total $ 185,474 $ 208,895 $ 509,367 $ 606,260 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 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 Nine Months Ended 2023 2022 2023 2022 Net loss attributable to common stockholders (in thousands) $ (141,707) $ (482,327) $ (650,033) $ (1,026,723) Weighted-average shares used to compute net loss per share attributable to 181,749,309 183,692,564 183,854,526 182,319,735 Net loss per share attributable to common stockholders, basic and diluted $ (0.78) $ (2.63) $ (3.54) $ (5.63) 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 September 30, 2023 2022 Stock options issued and outstanding 1,778,852 2,488,072 Unvested restricted stock units issued and outstanding 20,263,588 14,970,869 Shares of Class A common stock reserved for Twilio.org 464,143 552,551 Shares of Class A common stock committed under ESPP 350,270 191,558 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 3,771 56,237 Total 22,892,127 18,290,790 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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 $1.7 million and $13.0 million for the three and nine months ended September 30, 2023, respectively, and an income tax provision of $3.6 million and $3.3 million for the three and nine months ended September 30, 2022, respectively. The provision for income taxes recorded in the three and nine months ended September 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 and nine months ended September 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 | 9 Months Ended |
Sep. 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 nine months ended September 30, 2023, the value of the transactions that occurred between the Company and Syniverse were $40.1 million and $110.2 million, respectively. The value of the transactions that occurred between the Company and Syniverse were $32.1 million for the three months ended September 30, 2022, and $54.1 million for the period from the investment closing date in May 2022 through September 30, 2022. These transactions were recorded as cost of revenue in the accompanying condensed consolidated statements of operations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net loss | $ (141,707) | $ (166,187) | $ (342,139) | $ (482,327) | $ (322,769) | $ (221,627) | $ (650,033) | $ (1,026,723) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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 September 30, 2023, and December 31, 2022, the Company recorded $146.0 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 September 30, 2023 and 2022, the Company recognized $16.7 million and $17.5 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 nine months ended September 30, 2023 and 2022, the Company recognized $115.3 million and $112.2 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 Accounting Standards Codification 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) | 9 Months Ended |
Sep. 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 $ 418,098 $ — $ — $ — $ 418,098 $ — $ — $ 418,098 Commercial paper 23,311 — — — — 23,311 — 23,311 Total included in cash 441,409 — — — 418,098 23,311 — 441,409 Marketable securities: Debt securities: U.S. Treasury securities 528,950 20 (1,060) (3,999) 523,911 — — 523,911 Non-U.S. government securities 115,923 — — (2,897) 113,026 — — 113,026 Corporate debt securities and commercial paper 2,577,183 134 (9,810) (31,002) 16,690 2,519,815 — 2,536,505 Total debt securities 3,222,056 154 (10,870) (37,898) 653,627 2,519,815 — 3,173,442 Equity securities 6,050 — — — 6,050 — — 6,050 Total marketable 3,228,106 154 (10,870) (37,898) 659,677 2,519,815 — 3,179,492 Total financial assets $ 3,669,515 $ 154 $ (10,870) $ (37,898) $ 1,077,775 $ 2,543,126 $ — $ 3,620,901 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 September 30, As of December 31, 2023 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,740,368 $ 1,710,876 $ 1,943,836 $ 1,909,218 One to three years 1,481,688 1,462,566 1,661,372 1,594,099 Total $ 3,222,056 $ 3,173,442 $ 3,605,208 $ 3,503,317 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of September 30, As of December 31, 2023 2022 (In thousands) Capitalized internal-use software developments costs $ 285,905 $ 257,983 Data center equipment (1) 105,027 100,207 Leasehold improvements 92,491 91,660 Office equipment 61,578 70,815 Furniture and fixtures 14,570 14,935 Software 14,639 14,675 Total property and equipment 574,210 550,275 Less: accumulated depreciation and amortization (1) (351,953) (286,296) Total property and equipment, net $ 222,257 $ 263,979 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of September 30, 2023 and December 31, 2022. Accumulated depreciation and amortization includes $52.4 million and $41.2 million of accumulated depreciation for assets held under finance leases as of September 30, 2023 and December 31, 2022, respectively. |
Restructuring Activities (Table
Restructuring Activities (Tables) | 9 Months Ended |
Sep. 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 sheets: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2022 $ — $ — $ — Restructuring charges 119,562 9,623 129,185 Cash payments (107,997) (9,529) (117,526) Balance as of September 30, 2023 $ 11,565 $ 94 $ 11,659 |
Reorganization and Segment Re_2
Reorganization and Segment Reporting (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Revenue: Communications $ 906,714 $ 866,193 $ 2,703,079 $ 2,470,350 Data & Applications 126,956 116,837 374,916 331,397 Total $ 1,033,670 $ 983,030 $ 3,077,995 $ 2,801,747 Non-GAAP gross profit: Communications 451,330 401,236 1,316,541 1,160,683 Data & Applications 101,268 97,897 304,074 279,441 Total $ 552,598 $ 499,133 $ 1,620,615 $ 1,440,124 Reconciliation of non-GAAP gross profit to gross profit: Total non-GAAP gross profit $ 552,598 $ 499,133 $ 1,620,615 $ 1,440,124 Stock-based compensation (7,053) (6,114) (18,677) (14,631) Amortization of acquired intangibles (29,045) (30,729) (88,675) (92,601) Payroll taxes related to stock-based compensation (181) (215) (499) (457) Gross profit 516,319 462,075 1,512,764 1,332,435 Operating expenses (625,222) (919,072) (2,027,578) (2,319,176) Other expenses, net (31,057) (21,750) (122,261) (36,666) Loss before provision for income taxes $ (139,960) $ (478,747) $ (637,075) $ (1,023,407) |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Losses recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ (8,626) $ (19,196) $ (7,458) $ (34,154) (Losses) gains recognized in income due to instruments maturing Cost of revenue $ (325) $ (16,357) $ 2,571 $ (25,520) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 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 September 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 (2) (41,164) — (41,164) Balance as of September 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 divestitures of IoT and ValueFirst. See Note 5 for further details. |
Schedule of intangible assets | Intangible assets consisted of the following: As of September 30, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 778,609 $ (408,446) $ 370,163 Customer relationships 523,074 (252,195) 270,879 Supplier relationships 49,756 (24,046) 25,710 Trade names 25,968 (22,330) 3,638 Order backlog 10,000 (10,000) — Patent 3,968 (852) 3,116 Total amortizable intangible assets 1,391,375 (717,869) 673,506 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,396,590 $ (717,869) $ 678,721 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 September 30, 2023 Year Ended December 31, (In thousands) 2023 (remaining three months) $ 48,922 2024 191,486 2025 187,912 2026 117,416 2027 69,871 Thereafter 57,899 Total $ 673,506 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 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 September 30, As of December 31, 2023 2022 (In thousands) Accrued payroll and related $ 67,660 $ 79,703 Accrued bonus and commission 15,877 35,449 Accrued cost of revenue 158,234 161,455 Sales and other taxes payable 76,975 92,319 ESPP contributions 11,400 8,499 Finance lease liability 8,546 11,871 Restructuring liability 11,659 1,066 Employee sabbatical benefit accrual (1) 8,343 30,683 Accrued other expense 65,118 69,176 Total accrued expenses and other current liabilities $ 423,812 $ 490,221 ____________________________________ ( 1 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt, net, consisted of the following: As of September 30, As of December 31, 2023 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,458) (5,001) Unamortized issuance costs (1,003) (1,126) Net carrying amount 494,539 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (4,885) (5,299) Unamortized issuance costs (1,099) (1,192) Net carrying amount 494,016 493,509 Total long-term debt, net $ 988,555 $ 987,382 |
Revenue by Geographic Area (Tab
Revenue by Geographic Area (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended 2023 2022 2023 2022 Revenue by geographic area: (In thousands) United States $ 688,121 $ 650,531 $ 2,042,857 $ 1,837,325 International 345,549 332,499 1,035,138 964,422 Total $ 1,033,670 $ 983,030 $ 3,077,995 $ 2,801,747 Percentage of revenue by geographic area: United States 67 % 66 % 66 % 66 % International 33 % 34 % 34 % 34 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 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 September 30, As of December 31, 2023 2022 Stock options issued and outstanding 1,778,852 2,277,379 Unvested restricted stock units issued and outstanding 20,263,588 15,414,997 Shares of Class A common stock reserved for Twilio.org 464,143 530,449 Stock-based awards available for grant under 2016 Plan 20,480,221 19,851,399 Shares of Class A common stock reserved for issuance pursuant to ESPP 8,868,572 7,648,429 Total 51,855,376 45,722,653 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of unrecognized compensation cost of outstanding equity awards | As of September 30, 2023, total unrecognized compensation cost related to all outstanding equity awards was as follows: As of September 30, 2023 Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 18,058 1.6 Unvested restricted stock units and awards 1,678,691 2.9 ESPP 1,296 0.1 Shares of Class A common stock in escrow subject to future vesting 1,114 0.8 Total $ 1,699,159 |
Schedule of stock based compensation expense | The Company recorded total stock-based compensation expense as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (In thousands) Cost of revenue $ 7,053 $ 6,114 $ 18,677 $ 14,631 Research and development 94,085 90,787 246,754 279,680 Sales and marketing 51,345 58,747 142,343 184,825 General and administrative 32,524 37,973 90,497 111,850 Restructuring costs 467 15,274 11,096 15,274 Total $ 185,474 $ 208,895 $ 509,367 $ 606,260 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended 2023 2022 2023 2022 Net loss attributable to common stockholders (in thousands) $ (141,707) $ (482,327) $ (650,033) $ (1,026,723) Weighted-average shares used to compute net loss per share attributable to 181,749,309 183,692,564 183,854,526 182,319,735 Net loss per share attributable to common stockholders, basic and diluted $ (0.78) $ (2.63) $ (3.54) $ (5.63) |
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 September 30, 2023 2022 Stock options issued and outstanding 1,778,852 2,488,072 Unvested restricted stock units issued and outstanding 20,263,588 14,970,869 Shares of Class A common stock reserved for Twilio.org 464,143 552,551 Shares of Class A common stock committed under ESPP 350,270 191,558 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 3,771 56,237 Total 22,892,127 18,290,790 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2023 segment | Sep. 30, 2023 USD ($) | Jun. 30, 2023 segment | Mar. 31, 2023 segment | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||||||||
Revenue, remaining performance obligation, amount | $ 128.8 | $ 128.8 | ||||||
Deferred revenue | 146 | 146 | $ 139.1 | |||||
Revenue recognized out of adjusted deferred revenue balance | 16.7 | $ 17.5 | 115.3 | $ 112.2 | ||||
Total net capitalized costs | 210.1 | 210.1 | 239.1 | |||||
Allowance for doubtful accounts | $ 40.3 | $ 40.3 | $ 27 | |||||
Number of reportable segments | segment | 2 | 2 | 1 | 2 | ||||
Revenue Recognition Period One | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||||||||
Disaggregation of Revenue [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]: 2023-10-01 | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue, remaining performance obligation, percentage | 96% | 96% | ||||||
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Cash and cash equivalents: | $ 441,409 | $ 248,859 |
Amortized Cost or Carrying Value | 3,222,056 | 3,605,208 |
Amortized Cost or Carrying Value | 6,050 | |
Amortized Cost or Carrying Value | 3,228,106 | |
Gross Unrealized Gains | 154 | 307 |
Gross Unrealized Losses Less Than 12 Months | (10,870) | (13,504) |
Gross Unrealized Losses More Than 12 Months | (37,898) | (88,694) |
Marketable securities, aggregate fair value | 3,173,442 | 3,503,317 |
Equity securities, aggregate fair value | 6,050 | |
Investments, aggregate fair value | 3,179,492 | |
Total financial assets | 3,669,515 | 3,854,067 |
Total financial assets | 3,620,901 | 3,752,176 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 418,098 | 46,610 |
Marketable securities, aggregate fair value | 653,627 | 617,411 |
Equity securities, aggregate fair value | 6,050 | |
Investments, aggregate fair value | 659,677 | |
Total financial assets | 1,077,775 | 664,021 |
Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 23,311 | 202,249 |
Marketable securities, aggregate fair value | 2,519,815 | 2,885,906 |
Equity securities, aggregate fair value | 0 | |
Investments, aggregate fair value | 2,519,815 | |
Total financial assets | 2,543,126 | 3,088,155 |
Level 3 | ||
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 | ||
Financial Assets: | ||
Amortized Cost or Carrying Value | 528,950 | 481,463 |
Gross Unrealized Gains | 20 | 0 |
Gross Unrealized Losses Less Than 12 Months | (1,060) | (1,269) |
Gross Unrealized Losses More Than 12 Months | (3,999) | (11,347) |
Marketable securities, aggregate fair value | 523,911 | 468,847 |
U.S. Treasury securities | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 523,911 | 468,847 |
U.S. Treasury securities | Level 2 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 0 | 0 |
U.S. Treasury securities | Level 3 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 0 | 0 |
Non-U.S. government securities | ||
Financial Assets: | ||
Amortized Cost or Carrying Value | 115,923 | 149,901 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses Less Than 12 Months | 0 | (33) |
Gross Unrealized Losses More Than 12 Months | (2,897) | (6,304) |
Marketable securities, aggregate fair value | 113,026 | 143,564 |
Non-U.S. government securities | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 113,026 | 143,564 |
Non-U.S. government securities | Level 2 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 0 | 0 |
Non-U.S. government securities | Level 3 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 0 | 0 |
Corporate debt securities and commercial paper | ||
Financial Assets: | ||
Amortized Cost or Carrying Value | 2,577,183 | 2,973,844 |
Gross Unrealized Gains | 134 | 307 |
Gross Unrealized Losses Less Than 12 Months | (9,810) | (12,202) |
Gross Unrealized Losses More Than 12 Months | (31,002) | (71,043) |
Marketable securities, aggregate fair value | 2,536,505 | 2,890,906 |
Corporate debt securities and commercial paper | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 16,690 | 5,000 |
Corporate debt securities and commercial paper | Level 2 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 2,519,815 | 2,885,906 |
Corporate debt securities and commercial paper | Level 3 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 0 | 0 |
Money market funds | ||
Financial Assets: | ||
Cash and cash equivalents: | 418,098 | 46,610 |
Money market funds | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 418,098 | 46,610 |
Money market funds | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | 0 |
Money market funds | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | 0 |
Reverse repurchase agreements | ||
Financial Assets: | ||
Cash and cash equivalents: | 200,000 | |
Reverse repurchase agreements | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | |
Reverse repurchase agreements | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 200,000 | |
Reverse repurchase agreements | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | |
Commercial paper | ||
Financial Assets: | ||
Cash and cash equivalents: | 23,311 | 2,249 |
Commercial paper | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | |
Commercial paper | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 23,311 | 2,249 |
Commercial paper | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents: | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 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 | $ 37,898,000 | $ 37,898,000 | $ 88,694,000 | ||
Gross Unrealized Losses Less Than 12 Months | 10,870,000 | 10,870,000 | 13,504,000 | ||
Interest earned on marketable securities | 19,300,000 | $ 16,300,000 | 53,200,000 | $ 47,500,000 | |
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 | 419,000,000 | 419,000,000 | 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 | 407,500,000 | 407,500,000 | 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 | 1,200,000,000 | 1,200,000,000 | 2,000,000,000 | ||
Gross Unrealized Losses Less Than 12 Months | $ 1,100,000,000 | $ 1,100,000,000 | $ 620,500,000 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Less than one year, amortized cost | $ 1,740,368 | $ 1,943,836 |
One to three years, amortized cost | 1,481,688 | 1,661,372 |
Amortized Cost or Carrying Value | 3,222,056 | 3,605,208 |
Less than one year, aggregate fair value | 1,710,876 | 1,909,218 |
One to three years, aggregate fair value | 1,462,566 | 1,594,099 |
Total aggregate fair value | $ 3,173,442 | $ 3,503,317 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property and Equipment | ||
Total property and equipment | $ 574,210 | $ 550,275 |
Less: accumulated depreciation and amortization | (351,953) | (286,296) |
Total property and equipment, net | 222,257 | 263,979 |
Capitalized internal-use software developments costs | ||
Property and Equipment | ||
Total property and equipment | 285,905 | 257,983 |
Data center equipment | ||
Property and Equipment | ||
Total property and equipment | 105,027 | 100,207 |
Finance lease asset | 72,400 | 72,400 |
Finance lease asset, accumulated amortization | 52,400 | 41,200 |
Leasehold improvements | ||
Property and Equipment | ||
Total property and equipment | 92,491 | 91,660 |
Office equipment | ||
Property and Equipment | ||
Total property and equipment | 61,578 | 70,815 |
Furniture and fixtures | ||
Property and Equipment | ||
Total property and equipment | 14,570 | 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 23.2 | $ 18.4 | $ 67.5 | $ 52.5 |
Capitalized internal use software development costs | $ 14.7 | $ 19.3 | $ 43.7 | $ 51.2 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Divestitures, net of cash divested | $ 38,194 | $ 0 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ValueFirst Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration | $ 45,500 | |||
Divestitures, net of cash divested | 38,200 | |||
Divesture of tangible assets | 17,400 | |||
Divesture of intangible assets | 17,300 | |||
Divesture of goodwill | $ 34,600 | |||
Loss on divestiture | $ 28,800 | |||
Divestiture transaction costs | $ 3,300 | |||
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 |
Impairment (Details)
Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment of long-lived assets | $ 3,162 | $ 97,722 | $ 34,278 | $ 97,722 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Feb. 28, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Workforce elimination percentage | 17% | ||||
Restructuring charges | $ 3,437 | $ 72,451 | $ 140,281 | $ 72,451 | |
September 2022 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 72,500 | $ 72,500 | |||
Employee Severance and Facilitation Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 129,185 | ||||
Stock-Based Awards | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 11,100 |
Restructuring Activities - Sche
Restructuring Activities - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 3,437 | $ 72,451 | $ 140,281 | $ 72,451 |
Employee Severance and Facilitation Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance of period | 0 | |||
Restructuring charges | 129,185 | |||
Cash payments | (117,526) | |||
Ending balance of period | 11,659 | 11,659 | ||
Workforce Reduction Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance of period | 0 | |||
Restructuring charges | 119,562 | |||
Cash payments | (107,997) | |||
Ending balance of period | 11,565 | 11,565 | ||
Facilitation Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance of period | 0 | |||
Restructuring charges | 9,623 | |||
Cash payments | (9,529) | |||
Ending balance of period | $ 94 | $ 94 |
Reorganization and Segment Re_3
Reorganization and Segment Reporting - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2023 segment | Feb. 28, 2023 business_unit | Sep. 30, 2023 USD ($) | Jun. 30, 2023 segment | Mar. 31, 2023 segment | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||||||
Number of reporting units | business_unit | 2 | |||||||
Number of operating segments | segment | 2 | 2 | 1 | |||||
Number of reportable segments | segment | 2 | 2 | 1 | 2 | ||||
Depreciation and amortization | $ 218,968 | $ 207,880 | ||||||
Twilio Communications | Segment Reconciling Items | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Depreciation and amortization | $ 13,000 | $ 7,700 | 36,100 | 21,400 | ||||
Twilio Data & Applications | Segment Reconciling Items | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Depreciation and amortization | $ 3,200 | $ 1,900 | $ 9,800 | $ 4,700 |
Reorganization and Segment Re_4
Reorganization and Segment Reporting - Schedule of Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,033,670 | $ 983,030 | $ 3,077,995 | $ 2,801,747 |
Gross profit | 516,319 | 462,075 | 1,512,764 | 1,332,435 |
Amortization of acquired intangibles | (48,900) | (51,700) | (150,000) | (155,400) |
Operating expenses | (625,222) | (919,072) | (2,027,578) | (2,319,176) |
Other expenses, net | (31,057) | (21,750) | (122,261) | (36,666) |
Loss before provision for income taxes | (139,960) | (478,747) | (637,075) | (1,023,407) |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | 552,598 | 499,133 | 1,620,615 | 1,440,124 |
Stock-based compensation | (7,053) | (6,114) | (18,677) | (14,631) |
Amortization of acquired intangibles | (29,045) | (30,729) | (88,675) | (92,601) |
Payroll taxes related to stock-based compensation | (181) | (215) | (499) | (457) |
Communications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 906,714 | 866,193 | 2,703,079 | 2,470,350 |
Communications | Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | 451,330 | 401,236 | 1,316,541 | 1,160,683 |
Data & Applications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 126,956 | 116,837 | 374,916 | 331,397 |
Data & Applications | Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ 101,268 | $ 97,897 | $ 304,074 | $ 279,441 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - Foreign Currency Forward - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions | 9 Months Ended |
Sep. 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 | $ 237.7 |
Derivatives and Hedging - Gains
Derivatives and Hedging - Gains (Losses) Associated With Foreign Currency Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cost of revenue | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
(Losses) gains recognized in income due to instruments maturing | $ (325) | $ (16,357) | $ 2,571 | $ (25,520) |
Foreign Currency Forward | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Losses recognized in OCI | $ (8,626) | $ (19,196) | $ (7,458) | $ (34,154) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2023 segment | Sep. 30, 2023 USD ($) | Jun. 30, 2023 segment | Mar. 31, 2023 segment | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||
Number of operating segments | 2 | 2 | 1 | ||||
Number of reportable segments | 2 | 2 | 1 | 2 | |||
Amortization expense | $ | $ 48.9 | $ 51.7 | $ 150 | $ 155.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended |
Sep. 30, 2023 | May 31, 2023 | |
Goodwill | ||
Beginning balance of period | $ 0 | $ 5,284,153 |
Foreign currency adjustments | 251 | 26 |
Goodwill divested | (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 | (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 | 0 | |
Ending balance of period | $ 963,049 | $ 963,049 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 1,391,375 | $ 1,435,511 |
Accumulated Amortization | (717,869) | (590,791) |
Total | 673,506 | 844,720 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Cost | 1,396,590 | 1,440,726 |
Accumulated Amortization | (717,869) | (590,791) |
Total | 678,721 | 849,935 |
Telecommunication licenses | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Non-amortizable intangible assets: | 4,920 | 4,920 |
Trademarks and other | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Non-amortizable intangible assets: | 295 | 295 |
Developed technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 778,609 | 795,753 |
Accumulated Amortization | (408,446) | (335,893) |
Total | 370,163 | 459,860 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (408,446) | (335,893) |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 523,074 | 538,466 |
Accumulated Amortization | (252,195) | (204,241) |
Total | 270,879 | 334,225 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (252,195) | (204,241) |
Supplier relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 49,756 | 56,922 |
Accumulated Amortization | (24,046) | (19,846) |
Total | 25,710 | 37,076 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (24,046) | (19,846) |
Trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 25,968 | 30,342 |
Accumulated Amortization | (22,330) | (20,106) |
Total | 3,638 | 10,236 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (22,330) | (20,106) |
Order backlog | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 10,000 | 10,000 |
Accumulated Amortization | (10,000) | (10,000) |
Total | 0 | 0 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (10,000) | (10,000) |
Patent | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 3,968 | 4,028 |
Accumulated Amortization | (852) | (705) |
Total | 3,116 | 3,323 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (852) | $ (705) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Intangible Assets | ||
2023 | $ 48,922 | |
2024 | 191,486 | |
2025 | 187,912 | |
2026 | 117,416 | |
2027 | 69,871 | |
Thereafter | 57,899 | |
Total | $ 673,506 | $ 844,720 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued payroll and related | $ 67,660 | $ 79,703 |
Accrued bonus and commission | 15,877 | 35,449 |
Accrued cost of revenue | 158,234 | 161,455 |
Sales and other taxes payable | 76,975 | 92,319 |
ESPP contributions | 11,400 | 8,499 |
Finance lease liability | 8,546 | 11,871 |
Restructuring liability | 11,659 | 1,066 |
Employee sabbatical benefit accrual | 8,343 | 30,683 |
Accrued other expense | 65,118 | 69,176 |
Total accrued expenses and other current liabilities | $ 423,812 | $ 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 | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total long-term debt, net | $ 988,555 | $ 987,382 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized discount | (4,458) | (5,001) |
Unamortized issuance costs | (1,003) | (1,126) |
Total long-term debt, net | 494,539 | 493,873 |
2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized discount | (4,885) | (5,299) |
Unamortized issuance costs | (1,099) | (1,192) |
Total long-term debt, net | $ 494,016 | $ 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue by geographic area: | ||||
Revenue | $ 1,033,670 | $ 983,030 | $ 3,077,995 | $ 2,801,747 |
United States | ||||
Revenue by geographic area: | ||||
Revenue | $ 688,121 | $ 650,531 | $ 2,042,857 | $ 1,837,325 |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Percentage of revenue by geographic area: | ||||
Percentage of revenue | 67% | 66% | 66% | 66% |
International | ||||
Revenue by geographic area: | ||||
Revenue | $ 345,549 | $ 332,499 | $ 1,035,138 | $ 964,422 |
International | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Percentage of revenue by geographic area: | ||||
Percentage of revenue | 33% | 34% | 34% | 34% |
Revenue by Geographic Area - Na
Revenue by Geographic Area - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 43.3 | $ 54.5 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 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 | $ 24,300,000 | $ 91,200,000 | |||
Taxes payable, jurisdictional estimate | $ 38,800,000 | $ 38,800,000 | |||
Accrued taxes | $ 11,500,000 | ||||
Domestic Tax Authority | |||||
Loss Contingencies [Line Items] | |||||
Taxes payable | 32,200,000 | 32,200,000 | $ 29,100,000 | ||
Foreign Tax Authority | |||||
Loss Contingencies [Line Items] | |||||
Taxes payable | 19,200,000 | 19,200,000 | 20,600,000 | ||
Indemnification Agreement | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency accrual | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Sep. 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 | Sep. 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) | 182,066,098 | 176,358,104 | |
Common stock, outstanding (in shares) | 182,066,098 | 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 | Sep. 30, 2023 | Dec. 31, 2022 |
Stockholders' Equity | ||
Total (in shares) | 51,855,376 | 45,722,653 |
2016 Stock Option and Incentive Plan | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan and ESPP (in shares) | 20,480,221 | 19,851,399 |
Common Stock Class A | ||
Stockholders' Equity | ||
Class A common stock reserved (in shares) | 464,143 | 530,449 |
Stock options issued and outstanding | ||
Stockholders' Equity | ||
Stock options issued and outstanding (in shares) | 1,778,852 | 2,277,379 |
Unvested restricted stock units issued and outstanding | ||
Stockholders' Equity | ||
Unvested restricted stock units issued and outstanding (in shares) | 20,263,588 | 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 | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Feb. 28, 2023 | |
Stockholders' Equity Note [Abstract] | |||
Share repurchase program, authorized amount | $ 1,000,000,000 | ||
Stock repurchased (in shares) | 0.9 | 9.2 | |
Stock repurchased | $ 56,000,000 | $ 551,000,000 | |
Stock repurchase remaining amount | $ 449,000,000 | $ 449,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - ESPP | 9 Months Ended |
Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from market price, offering date (as a percent) | 15% |
Stock plan offering period | 6 months |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total | $ 1,699,159 |
Unvested stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost, options | $ 18,058 |
Weighted-average remaining period | 1 year 7 months 6 days |
Unvested restricted stock units and awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average remaining period | 2 years 10 months 24 days |
Unrecognized compensation cost, other than options | $ 1,678,691 |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average remaining period | 1 month 6 days |
Unrecognized compensation cost, other than options | $ 1,296 |
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 | 9 months 18 days |
Unrecognized compensation cost, other than options | $ 1,114 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 185,474 | $ 208,895 | $ 509,367 | $ 606,260 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 7,053 | 6,114 | 18,677 | 14,631 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 94,085 | 90,787 | 246,754 | 279,680 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 51,345 | 58,747 | 142,343 | 184,825 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 32,524 | 37,973 | 90,497 | 111,850 |
Restructuring costs | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 467 | $ 15,274 | $ 11,096 | $ 15,274 |
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 | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net Loss Per Share Attributable to Common Stockholders | ||||||||
Net loss attributable to common stockholders (in thousands) | $ (141,707) | $ (166,187) | $ (342,139) | $ (482,327) | $ (322,769) | $ (221,627) | $ (650,033) | $ (1,026,723) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares) | 181,749,309 | 183,692,564 | 183,854,526 | 182,319,735 | ||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares) | 181,749,309 | 183,692,564 | 183,854,526 | 182,319,735 | ||||
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.78) | $ (2.63) | $ (3.54) | $ (5.63) | ||||
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.78) | $ (2.63) | $ (3.54) | $ (5.63) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Anti-Dilutive Securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 22,892,127 | 18,290,790 |
Stock options issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,778,852 | 2,488,072 |
Unvested restricted stock units issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 20,263,588 | 14,970,869 |
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) | 464,143 | 552,551 |
Shares of Class A common stock committed under ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 350,270 | 191,558 |
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) | 3,771 | 56,237 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 1,747 | $ 3,580 | $ 12,958 | $ 3,316 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | |||||
Cost of revenue | $ 517,351 | $ 520,955 | $ 1,565,231 | $ 1,469,312 | |
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Cost of revenue | $ 40,100 | $ 32,100 | $ 54,100 | $ 110,200 |