Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 20, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11.1 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 202 | ||
Entity Central Index Key | 0001447669 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Common Stock Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 182,060,920 | ||
Common Stock Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 185 |
Auditor Name | KPMG LLP |
Auditor Location | San Francisco, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 655,931 | $ 651,752 |
Short-term marketable securities | 3,356,064 | 3,503,317 |
Accounts receivable, net | 562,773 | 547,507 |
Prepaid expenses and other current assets | 329,204 | 281,510 |
Total current assets | 4,903,972 | 4,984,086 |
Property and equipment, net | 209,639 | 263,979 |
Operating right-of-use assets | 73,959 | 121,341 |
Equity method investment | 593,582 | 699,911 |
Intangible assets, net | 350,490 | 849,935 |
Goodwill | 5,243,266 | 5,284,153 |
Other long-term assets | 234,799 | 360,899 |
Total assets | 11,609,707 | 12,564,304 |
Current liabilities: | ||
Accounts payable | 119,615 | 124,605 |
Accrued expenses and other current liabilities | 424,311 | 490,221 |
Deferred revenue and customer deposits | 144,499 | 139,110 |
Operating lease liability, current | 49,872 | 54,222 |
Total current liabilities | 738,297 | 808,158 |
Operating lease liability, noncurrent | 120,770 | 164,551 |
Finance lease liability, noncurrent | 9,191 | 21,290 |
Long-term debt, net | 988,953 | 987,382 |
Other long-term liabilities | 19,944 | 23,881 |
Total liabilities | 1,877,155 | 2,005,262 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 100,000,000 shares authorized, none issued | 0 | 0 |
Class A and Class B common stock | 182 | 186 |
Additional paid-in capital | 14,797,723 | 14,055,853 |
Accumulated other comprehensive income (loss) | 619 | (121,161) |
Accumulated deficit | (5,065,972) | (3,375,836) |
Total stockholders’ equity | 9,732,552 | 10,559,042 |
Total liabilities and stockholders’ equity | $ 11,609,707 | $ 12,564,304 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 1,003,170,181 | 1,100,000,000 |
Common stock, issued (in shares) | 181,945,771 | 185,975,709 |
Common stock, outstanding (in shares) | 181,945,771 | 185,975,709 |
Common Stock Class A | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 181,945,771 | 176,358,104 |
Common stock, outstanding (in shares) | 181,945,771 | 176,358,104 |
Common Stock Class B | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 3,170,181 | 100,000,000 |
Common stock, issued (in shares) | 0 | 9,617,605 |
Common stock, outstanding (in shares) | 0 | 9,617,605 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 4,153,945,000 | $ 3,826,321,000 | $ 2,841,839,000 |
Cost of revenue | 2,110,015,000 | 2,012,744,000 | 1,451,126,000 |
Gross profit | 2,043,930,000 | 1,813,577,000 | 1,390,713,000 |
Operating expenses: | |||
Research and development | 942,790,000 | 1,079,081,000 | 789,219,000 |
Sales and marketing | 1,022,985,000 | 1,248,032,000 | 1,044,618,000 |
General and administrative | 468,459,000 | 517,414,000 | 472,460,000 |
Restructuring costs | 165,733,000 | 76,636,000 | 0 |
Impairment of long-lived assets | 320,504,000 | 97,722,000 | 0 |
Total operating expenses | 2,920,471,000 | 3,018,885,000 | 2,306,297,000 |
Loss from operations | (876,541,000) | (1,205,308,000) | (915,584,000) |
Other expenses, net: | |||
Share of losses from equity method investment | (121,897,000) | (35,315,000) | 0 |
Impairment of strategic investments | (46,154,000) | 0 | 0 |
Other income (expenses), net | 47,863,000 | (3,009,000) | (45,345,000) |
Total other expenses, net | (120,188,000) | (38,324,000) | (45,345,000) |
Loss before provision for income taxes | (996,729,000) | (1,243,632,000) | (960,929,000) |
Provision for income taxes | (18,712,000) | (12,513,000) | 11,029,000 |
Net loss attributable to common stockholders | $ (1,015,441,000) | $ (1,256,145,000) | $ (949,900,000) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (5.54) | $ (6.86) | $ (5.45) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (5.54) | $ (6.86) | $ (5.45) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 183,327,844 | 182,994,038 | 174,180,465 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 183,327,844 | 182,994,038 | 174,180,465 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (1,015,441) | $ (1,256,145) | $ (949,900) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on marketable securities | 99,742 | (83,049) | (27,215) |
Foreign currency translation | 5,587 | (5,587) | (266) |
Net change in market value of effective foreign currency forward exchange contracts | 898 | 556 | 294 |
Share of other comprehensive income (loss) from equity method investment | 15,553 | (14,940) | 0 |
Total other comprehensive income (loss) | 121,780 | (103,020) | (27,187) |
Comprehensive loss attributable to common stockholders | $ (893,661) | $ (1,359,165) | $ (977,087) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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 Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 153,496,222 | 10,551,302 | ||||||
Beginning balance at Dec. 31, 2020 | $ 8,452,665 | $ 151 | $ 13 | $ 9,613,246 | $ 9,046 | $ (1,169,791) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (949,900) | (949,900) | ||||||
Exercises of vested stock options (in shares) | 1,779,320 | 509,499 | ||||||
Exercises of vested stock options | 87,695 | $ 2 | 87,693 | |||||
Vesting of restricted stock units (in shares) | 3,515,913 | |||||||
Vesting of restricted stock units | 0 | $ 4 | (4) | |||||
Value of equity awards withheld for tax liability (in shares) | (32,002) | |||||||
Value of equity awards withheld for tax liability | (10,388) | (10,388) | ||||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 1,218,696 | (1,218,696) | ||||||
Conversion of shares of Class B common stock into shares of Class A common stock | 0 | $ 1 | $ (1) | |||||
Equity component from partial settlement and redemption of convertible senior notes due 2023 (in shares) | 4,846,965 | |||||||
Equity component from partial settlement and redemption of convertible senior notes due 2023 | 335,642 | $ 5 | 335,637 | |||||
Settlement of capped call, net of related costs | 225,233 | 225,233 | ||||||
Shares issued under ESPP (in shares) | 198,926 | |||||||
Shares issued under ESPP | 48,465 | 48,465 | ||||||
Shares of Class A common stock issued and donated to charity (in shares) | 88,408 | |||||||
Shares of Class A common stock issued and donated to charity | 31,169 | 31,169 | ||||||
Issuance of shares of Class A common stock in connection with a follow-on public offering, net of underwriters' discounts and issuance costs (in shares) | 4,312,500 | |||||||
Issuance of shares of Class A common stock in connection with a follow-on public offering, net of underwriters' discounts and issuance costs | 1,765,713 | $ 4 | 1,765,709 | |||||
Shares of Class A common stock issued in acquisition (in shares) | 1,116,816 | |||||||
Shares of Class A common stock issued in acquisition | 419,170 | $ 1 | 419,169 | |||||
Value of equity awards assumed in acquisition | 1,511 | 1,511 | ||||||
Shares of Class A common stock subject to future vesting (in shares) | 84,230 | |||||||
Unrealized gain (loss) on marketable securities | (27,215) | (27,215) | ||||||
Foreign currency translation | (266) | (266) | ||||||
Net change in market value of effective foreign currency forward exchange contracts | 294 | 294 | ||||||
Share of other comprehensive loss from equity method investment | 0 | |||||||
Stock-based compensation | 651,678 | 651,678 | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 170,625,994 | 9,842,105 | ||||||
Ending 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 | (1,256,145) | (1,256,145) | ||||||
Exercises of vested stock options (in shares) | 373,793 | 392,231 | ||||||
Exercises of vested stock options | 22,500 | 22,500 | ||||||
Vesting of restricted stock units (in shares) | 4,277,266 | |||||||
Vesting of restricted stock units | 0 | $ 4 | (4) | |||||
Value of equity awards withheld for tax liability (in shares) | (6,250) | |||||||
Value of equity awards withheld for tax liability | (1,098) | (1,098) | ||||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 616,731 | (616,731) | ||||||
Shares issued under ESPP (in shares) | 534,401 | |||||||
Shares issued under ESPP | 37,065 | $ 2 | 37,063 | |||||
Shares of Class A common stock issued and donated to charity (in shares) | 88,408 | |||||||
Shares of Class A common stock issued and donated to charity | 9,541 | 9,541 | ||||||
Unrealized gain (loss) on marketable securities | (83,049) | (83,049) | ||||||
Foreign currency translation | (5,587) | (5,587) | ||||||
Shares returned from escrow (in shares) | (152,239) | |||||||
Shares returned from escrow | (387) | (387) | ||||||
Net change in market value of effective foreign currency forward exchange contracts | 556 | 556 | ||||||
Share of other comprehensive loss from equity method investment | (14,940) | (14,940) | ||||||
Stock-based compensation | 804,845 | 804,845 | ||||||
Stock-based compensation - restructuring | $ 14,275 | 14,275 | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 185,975,709 | 176,358,104 | 9,617,605 | 176,358,104 | 9,617,605 | |||
Ending 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 | (1,015,441) | (1,015,441) | ||||||
Exercises of vested stock options (in shares) | 238,474 | 127,982 | ||||||
Exercises of vested stock options | 7,344 | 7,344 | ||||||
Vesting of restricted stock units (in shares) | 5,939,641 | |||||||
Vesting of restricted stock units | 0 | $ 7 | (7) | |||||
Value of equity awards withheld for tax liability (in shares) | (38,655) | |||||||
Value of equity awards withheld for tax liability | (2,565) | (2,565) | ||||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 9,745,587 | (9,745,587) | ||||||
Conversion of shares of Class B common stock into shares of Class A common stock | 0 | $ 12 | $ (12) | |||||
Shares issued under ESPP (in shares) | 906,728 | |||||||
Shares issued under ESPP | 36,496 | 36,496 | ||||||
Shares of Class A common stock issued and donated to charity (in shares) | 88,408 | |||||||
Shares of Class A common stock issued and donated to charity | 5,346 | 5,346 | ||||||
Unrealized gain (loss) on marketable securities | $ 99,742 | 99,742 | ||||||
Repurchases of shares of Class A common stock including related costs (in shares) | (11,300,000) | (11,292,516) | ||||||
Repurchases of shares of Class A common stock including related costs | $ (674,706) | $ (11) | (674,695) | |||||
Foreign currency translation | 5,587 | 5,587 | ||||||
Net change in market value of effective foreign currency forward exchange contracts | 898 | 898 | ||||||
Share of other comprehensive loss from equity method investment | 15,553 | 15,553 | ||||||
Stock-based compensation | 682,241 | 682,241 | ||||||
Stock-based compensation - restructuring | $ 13,015 | 13,015 | ||||||
Ending balance (in shares) at Dec. 31, 2023 | 181,945,771 | 181,945,771 | 0 | 181,945,771 | 0 | |||
Ending balance at Dec. 31, 2023 | $ 9,732,552 | $ 182 | $ 0 | $ 14,797,723 | $ 619 | $ (5,065,972) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (1,015,441,000) | $ (1,256,145,000) | $ (949,900,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 284,413,000 | 279,127,000 | 258,378,000 |
Non-cash reduction to the right-of-use asset | 26,971,000 | 47,160,000 | 48,786,000 |
Net amortization of investment premium and discount | (44,000) | 33,165,000 | 36,158,000 |
Impairment of long-lived assets | 320,504,000 | 97,722,000 | 0 |
Stock-based compensation including restructuring | 675,857,000 | 798,560,000 | 632,285,000 |
Amortization of deferred commissions | 72,892,000 | 57,913,000 | 31,541,000 |
Realized and unrealized losses on equity securities | 8,043,000 | 0 | 0 |
Provision for doubtful accounts | 51,859,000 | 35,012,000 | 7,210,000 |
Value of shares of Class A common stock issued and donated to charity | 5,346,000 | 9,541,000 | 31,169,000 |
Share of losses from equity method investment | 121,897,000 | 35,315,000 | 0 |
Impairment of strategic investments | 46,154,000 | 0 | 0 |
Loss on net assets divested | 32,277,000 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | 28,965,000 |
Other adjustments | 14,669,000 | 4,905,000 | 2,329,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (85,093,000) | (194,655,000) | (117,943,000) |
Prepaid expenses and other current assets | (56,283,000) | (94,326,000) | (78,012,000) |
Other long-term assets | (2,328,000) | (146,458,000) | (121,225,000) |
Accounts payable | 12,370,000 | 30,336,000 | 10,191,000 |
Accrued expenses and other current liabilities | (51,816,000) | 75,430,000 | 127,554,000 |
Deferred revenue and customer deposits | 5,371,000 | (2,688,000) | 45,634,000 |
Operating lease liabilities | (56,340,000) | (54,450,000) | (49,046,000) |
Other long-term liabilities | 3,474,000 | (9,832,000) | (2,266,000) |
Net cash provided by (used in) operating activities | 414,752,000 | (254,368,000) | (58,192,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisitions, net of cash acquired and payments related to prior period acquisitions | (5,770,000) | (37,410,000) | (491,522,000) |
Divestitures, net of cash divested | 38,194,000 | 0 | 0 |
Purchases of marketable securities and other investments | (1,953,003,000) | (1,938,337,000) | (3,523,232,000) |
Proceeds from sales and maturities of marketable securities | 2,200,417,000 | 1,439,477,000 | 1,614,779,000 |
Capitalized software development costs | (39,925,000) | (45,761,000) | (43,973,000) |
Purchases of long-lived and intangible assets | (11,310,000) | (34,421,000) | (46,048,000) |
Net cash provided by (used in) investing activities | 228,603,000 | (616,452,000) | (2,489,996,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from public offerings, net of underwriters' discounts | 0 | 0 | 1,766,400,000 |
Payments of costs related to public offerings | 0 | (35,000) | (687,000) |
Proceeds from issuance of senior notes due 2029 and 2031, net of issuance costs | 0 | 0 | 984,723,000 |
Proceeds from settlements of capped call, net of settlement costs | 0 | 0 | 228,412,000 |
Principal payments on debt and finance leases | (16,134,000) | (13,423,000) | (8,295,000) |
Value of equity awards withheld for tax liabilities | (2,565,000) | (1,098,000) | (10,388,000) |
Repurchases of shares of Class A common stock and related costs | (668,751,000) | 0 | 0 |
Proceeds from exercises of stock options and shares of Class A common stock issued under ESPP | 43,840,000 | 59,563,000 | 136,160,000 |
Net cash (used in) provided by financing activities | (643,610,000) | 45,007,000 | 3,096,325,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 108,000 | 60,000 | (191,000) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (147,000) | (825,753,000) | 547,946,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 656,078,000 | 1,481,831,000 | 933,885,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | 655,931,000 | 656,078,000 | 1,481,831,000 |
Cash paid for income taxes, net | 37,818,000 | 7,413,000 | 6,147,000 |
Cash paid for interest | 38,389,000 | 37,500,000 | 20,637,000 |
NON-CASH FINANCING ACTIVITIES: | |||
Value of common stock issued and equity awards assumed in acquisition | 0 | 0 | 420,681,000 |
Value of common stock issued to settle convertible senior notes due 2023 | 0 | 0 | 1,704,969,000 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS | |||
Cash and cash equivalents | 655,931,000 | 651,752,000 | 1,479,452,000 |
Restricted cash in other current assets | 0 | 4,314,000 | 1,536,000 |
Restricted cash in other long-term assets | 0 | 12,000 | 843,000 |
Total cash, cash equivalents and restricted cash | $ 655,931,000 | $ 656,078,000 | $ 1,481,831,000 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Twilio Inc. (the “Company”) was incorporated in the state of Delaware on March 13, 2008. Today's leading companies trust Twilio's Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of 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 | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). (b) Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair values 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) 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 deteriorate substantially, the Company’s operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of new customers and periodic re-evaluations, as needed, of existing customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. During the years ended December 31, 2023, 2022 and 2021, no customer organization accounted for more than 10% of the Company’s total revenue. As of December 31, 2023 and 2022, no customer organization represented more than 10% of the Company’s gross accounts receivable. (e) Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for credits and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and, • Recognition of revenue when, or as, the Company satisfies a performance obligation. Nature of Products and Services The Company recognizes revenue from its products on either a usage basis or a subscription basis, depending on the nature of the product and the type of customer contract. The Company’s reportable segments may contain products that follow either revenue recognition model. The majority of the revenue in the Communications segment is derived from usage‑based fees. These fees are earned when customers access the Company’s cloud-based platform and start using the Company’s products. Platform access is considered a monthly series comprised of one performance obligation and usage-based fees are recognized as revenue in the period in which the usage occurs. Some examples of the usage-based products are Messaging and Voice. For the Messaging products, the fees relate to the number of text messages sent or received. For the Voice products, the fees primarily relate to minutes of call duration. In the years ended December 31, 2023, 2022 and 2021, the revenue from usage-based fees represented 71%, 73% and 72% of total revenue, respectively. Subscription-based fees are derived from various products in both the Communications and Segment segments. Subscription-based products include products such as Segment, Engage, Flex, Email and others. Subscription-based contracts revenue is recognized on a ratable basis over the contractual term which is generally between one No significant judgments are required in determining whether products and services are considered distinct performance obligations and should be accounted for separately versus together, or to determine the stand-alone selling price. The Company's arrangements do not contain general rights of return. However, credits may be issued on a case-by-case basis. The contracts do not provide customers with the right to take possession of the software supporting the applications. Amounts that have been invoiced are recorded in accounts receivable and in revenue or deferred revenue depending on whether the revenue recognition criteria have been met. The Company defines U.S. revenue as revenue from customers with IP addresses or mailing addresses at the time of registration in the United States. The Company defines international revenue as revenue from customers with IP addresses or mailing addresses at the time of registration outside of the United States. Remaining Performance Obligations Revenue allocated to remaining performance obligations represents unearned revenue and amounts that were and will be invoiced and recognized as revenue in future periods for non-cancelable subscription arrangements with terms greater than one year. The Company applies the optional exemption of not disclosing the transaction price allocated to the remaining performance obligations for its usage-based contracts and contracts with original duration of less than one year. Revenue allocated to remaining performance obligations for contracts with durations of greater than one year was $144.0 million as of December 31, 2023, of which 67% is expected to be recognized over the next 12 months and 93% is expected to be recognized over the next 24 months. (f) Deferred Revenue and Customer Deposits Deferred revenue is recorded when a non-cancellable contractual right to bill exists or when cash payments are received in advance of future usage on non-cancelable contracts. Customer refundable prepayments are recorded as customer deposits. As of December 31, 2023 and 2022, the Company recorded $144.5 million and $139.1 million as its deferred revenue and customer deposits, respectively, that are included in deferred revenue and customer deposits in the accompanying consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $120.5 million, $124.9 million and $70.1 million of revenue, respectively, that was included in the deferred revenue and customer deposits balance as of the end of the previous year. (g) Deferred Sales Commissions The Company records an asset for the incremental costs of obtaining a contract with a customer, for example, sales commissions that are earned upon execution of contracts. The Company uses the portfolio of data method to determine the estimated period of benefit of capitalized commissions which is generally determined to be up to five years. Amortization expense related to these capitalized costs related to initial contracts, upsells and renewals, is recognized on a straight line basis over the estimated period of benefit of the capitalized commissions. The Company applies the optional exemption of expensing these costs as incurred with amortization periods of one year or less. Total net capitalized commission costs as of December 31, 2023 and 2022, were $200.1 million and $239.1 million, respectively, and are included in prepaid expenses and other current assets and other long‑term assets in the accompanying consolidated balance sheets. Amortization of these assets was $72.9 million, $57.9 million and $31.5 million in the years ended December 31, 2023, 2022 and 2021, respectively, and is included in sales and marketing expense in the accompanying consolidated statements of operations. (h) Cost of Revenue Cost of revenue consists primarily of fees paid to network service providers. Cost of revenue also includes cloud infrastructure fees, direct costs of personnel, such as salaries and stock‑based compensation for our customer support employees, and other non‑personnel costs, such as depreciation and amortization expense related to data centers and hosting equipment, amortization of capitalized internal-use software development costs and acquired intangible assets. Costs of revenue are generally directly attributable to each segment. Certain costs of revenue are allocated to segments based on methodologies that best reflect the patterns of consumptions of these costs. (i) Research and Development Expense Research and development expenses consist primarily of personnel costs, outsourced engineering services, cloud infrastructure fees for staging and development of the Company’s products, depreciation, amortization of capitalized internal-use software development costs and an allocation of general overhead expenses. The Company capitalizes the portion of its software development costs that meets the criteria for capitalization. Research and development expenses are generally directly attributable to each segment. Certain research and development expenses are allocated to segments based on methodologies that best reflect the patterns of consumptions of these costs. Certain research and development costs are not allocated to segments because they support company-wide processes and are managed on a company-wide level. (j) Internal-Use Software Development Costs Certain costs of platform and other software applications developed for internal use are capitalized. The Company capitalizes qualifying internal-use software development costs that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred for maintenance, minor upgrades and enhancements are expensed. Costs related to preliminary project activities and post-implementation operating activities are also expensed as incurred. Capitalized costs of platform and other software applications are included in property and equipment. These costs are amortized over the estimated useful life of the software on a straight-line basis over three years. Management evaluates the useful life of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The amortization of costs related to the platform applications is included in cost of revenue, while the amortization of costs related to software applications developed for internal use is included in operating expenses. (k) Advertising Costs Advertising costs are expensed as incurred and were $71.1 million, $92.6 million and $78.8 million in the years ended December 31, 2023, 2022 and 2021, respectively. Advertising costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. (l) Restructuring Costs The Company records restructuring expenses when management commits to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the plan are not likely and employees who are impacted have been notified of the pending involuntary termination. (m) Stock-Based Compensation All stock-based compensation to employees is measured on the grant date based on the fair value of the awards on the date of grant. These costs are recognized as an expense following straight-line attribution method over the requisite service period. The Company uses the Black-Scholes option pricing model to measure the fair value of its stock options and the purchase rights issued under the Company's 2016 Employee Stock Purchase Plan, as amended (the “ESPP”). The fair value of the restricted stock units is determined using the closing fair value of the Company's Class A common stock on the date of grant and recognized as an expense following straight-line attribution method over the requisite service period. Forfeitures are recorded in the period in which they occur. The Black-Scholes option pricing model requires the use of complex assumptions, which determine the fair value of stock options and the purchase rights issued under the ESPP. If any of the assumptions used in the Black-Scholes model change, stock-based compensation for future options may differ materially compared to that associated with previous grants. These assumptions include: • Fair value of the common stock. The Company uses the market closing price of its Class A common stock, as reported on the New York Stock Exchange, for the fair value. • Expected term. The expected term represents the period that the stock option or the purchase right is expected to be outstanding. The Company uses the simplified calculation of expected term, which reflects the weighted-average time-to-vest and the contractual life of the stock option or the purchase right; • Expected volatility. Prior to July 2021, the expected volatility was derived from an average of the historical volatilities of the Class A common stock of the Company and several other entities with characteristics similar to those of the Company, such as the size and operational and economic similarities to the Company's principal business operations. Beginning in July 2021, the expected volatility was derived from the average of the historical volatilities of the Class A common stock of the Company. • Risk -free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock-based awards; and • Expected dividend. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. (n) Income Taxes The Company accounts for income taxes in accordance with authoritative guidance which requires the use of the asset and liability approach. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carry-forwards. Deferred tax amounts are determined by using the enacted tax rates expected to be in effect when the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to uncertain tax positions in the provision for income taxes in the consolidated statements of operations. (o) Foreign Currency The functional currency of the Company's foreign subsidiaries is primarily the U.S. dollar. Accordingly, the subsidiaries remeasure monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenue and expense accounts are remeasured at the average exchange rate in effect during the month in which the transactions occur. Remeasurement adjustments are recognized in the consolidated statements of operations as other income (expense), net, in the year of occurrence. Foreign currency transaction gains and losses are included in other income (expenses), net, in the accompanying consolidated statements of operations. For those entities where the functional currency is a foreign currency, adjustments resulting from translating the financial statements into U.S. dollars are recorded as a component of accumulated other comprehensive income (loss) as part of the total stockholders' equity. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the weighted average exchange rates in effect during the month in which the transactions occur. Equity transactions are translated using historical exchange rates. (p) Comprehensive Income (Loss) Comprehensive income (loss) refers to net loss and other revenue, expenses, gains and losses that, under U.S. GAAP, are recorded as an element of stockholders' equity but are excluded from the calculation of net loss. (q) Net Loss Per Share Attributable to Common Stockholders The Company calculates its basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company has 100,000,000 shares of preferred stock that was authorized but never issued or outstanding. Class A common stock was the only outstanding class of equity securities of the Company as of December 31, 2023. Each share of Class A common stock is entitled to one vote per share. Prior to June 28, 2023, the Company also had outstanding equity securities of Class B common stock. 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 certificate of incorporation. In addition, upon the Conversion, all 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 also has dilutive securities, such as potential or restricted common shares or common stock equivalents, that were excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect was antidilutive in all periods presented. These securities are presented in Note 20 to these consolidated financial statements. (r) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents may consist of cash deposited into money market funds, reverse repurchase agreements and commercial paper. All credit and debit card transactions that process as of the last day of each month and settle within the first few days of the subsequent month are also classified as cash and cash equivalents as of the end of the month in which they were processed. (s) Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded net of the allowance for doubtful accounts. The allowance for doubtful accounts is estimated based on the Company's assessment of its ability to collect on customer accounts receivable. The Company regularly reviews the allowance by considering certain factors such as historical experience, credit quality, age of accounts receivable balances and other known conditions that may affect a customer's ability to pay. In cases where the Company is aware of circumstances that may impair a specific customer's ability to meet their financial obligations, a specific allowance is recorded against amounts due from the customer which reduces the net recognized receivable to the amount the Company reasonably believes will be collected. The Company writes-off accounts receivable against the allowance when a determination is made that the balance is uncollectible and collection of the receivable is no longer being actively pursued. As of December 31, 2023 and 2022, the allowance for doubtful accounts was $42.0 million and $27.0 million, respectively, and is recorded in accounts receivable, net, in the accompanying consolidated balance sheets. (t) Costs Related to Public Offerings Costs related to public offerings, which consist of direct incremental legal, printing and accounting fees are deferred until the offering is completed. Upon completion of the offering, these costs are offset against the offering proceeds within the consolidated statements of stockholders' equity. (u) Property and Equipment Property and equipment, both owned and under finance leases, is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset. Maintenance and repairs are expensed as incurred. The useful lives of property and equipment are as follows: Capitalized internal-use software development costs 3 years Data center equipment 2 - 4 years Leasehold improvements Shorter of 5 years or the remaining lease term Office equipment 3 years Furniture and fixtures 5 years Software 3 years Assets under financing lease Shorter of 5 years or the remaining lease term (v) Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company presents the operating leases in long-term assets and current and long-term liabilities. Finance lease assets are included in property and equipment, net, and finance lease liabilities are presented in current and long-term liabilities in the accompanying consolidated balance sheets. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are measured and recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. As the Company’s leases do not generally provide an implicit rate, the Company uses its incremental borrowing rate based on the information available on the commencement date to determine the present value of lease payments. The Company’s lease agreements may have lease and non-lease components, which the Company accounts for as a single lease component. When estimating the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain such options will be exercised. Operating lease costs are recognized in operating expenses in the accompanying consolidated statements of operations on a straight-line basis over the lease term and variable payments are recognized in the period they are incurred. The Company’s lease agreements do not contain any residual value guarantees. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Within the consolidated statements of cash flows, the Company presents the lease payments made on the operating leases as cash flows from operations and principal payments made on the finance leases as part of financing activities. (w) Equity Method Investments Equity investment holdings in which the Company does not have a controlling financial interest but can exercise significant influence over the investee are accounted for under the equity method. Equity method investments are originally recorded at cost and are increased or reduced in subsequent periods to reflect the Company’s proportionate share of the investee’s net earnings or losses and other comprehensive income or losses, as those occur. The Company records the investee losses on a three-month lag and up to the carrying amount of the investment. The Company determines the difference between its purchase price and its proportionate share of the net assets of the investee, which results in an excess basis in the investment. This excess basis is allocated to the identifiable assets and liabilities of the investee utilizing purchase accounting principles and is used to calculate the amortization of basis differences every reporting period. Basis differences related to intangible assets with determinable economic lives and liabilities are generally amortized on a straight-line basis over the useful lives of the associated assets and the expected term for the liabilities. Basis differences related to intangible assets without determinable economic lives are not amortized. Equity method goodwill is not amortized or tested for impairment. Instead, the Company evaluates its equity method investments for impairment whenever events or changes in circumstance indicate that the carrying amounts of such investments may be in excess of their fair value. When such indicators exist, the other-than-temporary impairment model is utilized, which considers the severity and duration of a decline in fair value below book value and the Company’s ability and intent to hold the investment for a sufficient period of time to allow for recovery. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in the period of such determination. (x) 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 (“CEO”), reviews and manages the business, and establishes criteria for aggregating operating segments into reportable segments. Prior to 2023, the Company had one operating and reportable segment. As a result of the restructuring activities in 2023, as described in Note 8, the Company operated in and reported its results in two reportable segments. (y) Business Combinations The Company records identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the consideration transferred over the fair value of the net assets acquired on the acquisition date. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed, these estimates are inherently uncertain and subject to refinement. The authoritative guidance allows a measurement period of up to one year from the date of acquisition to make adjustments to the preliminary allocation of the purchase price. As a result, during the measurement period the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations. (z) Goodwill Goodwill represents the excess of the aggregate purchase price over the fair value of net identifiable assets acquired in a business combination. Goodwill is not amortized and is tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is allocated within the operating segments of the Company to the reporting units. Prior to 2023, the Company had one reporting unit. During 2023, as a result of restructuring activities described in Note 8, the Company then had multiple reporting units. The Company reassigns its assets and liabilities to the reporting units based on which reporting units’ operations the assets and liabilities were employed in or were related to. Goodwill is reassigned using a relative fair value allocation approach. The Company has selected November 30 as the date to perform its annual goodwill impairment test. The goodwill impairment test is performed on a reporting unit level. In the valuation of goodwill, management must make assumptions regarding estimated future cash flows to be derived from the respective reporting unit. If these estimates or their related assumptions change in the future, the Company may be required to record an impairment of goodwill. The Company has the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. However, the Company may elect to bypass the qualitative assessment and proceed directly to the quantitative impairment tests. The impairment test involves comparing the fair value of the reporting unit to its carrying value, including goodwill. A goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value. The impairment is limited to the carrying amount of goodwill. (aa) Intangible Assets Intangible assets recorded by the Company include the fair values of identifiable intangible assets acquired in business combinations and costs directly associated with securing legal registration of patents and trademarks and acquiring domain names. Intangible assets with determinable economic lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful life of each asset on a straight-line basis. The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors the Company considers when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset and other economic factors, including competition and specific market conditions. Intangible assets without determinable economic lives are carried at cost, not amortized and reviewed for impairment at least annually. The useful lives of the intangible assets are as follows: Developed technology 3 - 7 years Customer relationships 4 - 10 years Supplier relationships 5 years Trade names 5 years Patents 20 years Telecommunication licenses Indefinite Trademarks Indefinite Domain names Indefinite (ab) Impairment of Long-Lived Assets The Company evaluates its long-lived assets, including property, equipment and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset gr |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets The following tables provide the financial assets measured at fair value on a recurring basis: Amortized Gross Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 408,696 $ — $ — $ — $ 408,696 $ — $ — $ 408,696 Total included in cash 408,696 — — — 408,696 — — 408,696 Marketable securities: Debt securities: U.S. Treasury securities 410,665 2,162 (7) (1,665) 411,155 — — 411,155 Non-U.S. government securities 83,576 55 (111) (1,209) 82,311 — — 82,311 Corporate debt securities and commercial paper 2,859,071 15,366 (10,818) (5,922) 16,690 2,841,007 — 2,857,697 Total debt securities 3,353,312 17,583 (10,936) (8,796) 510,156 2,841,007 — 3,351,163 Equity securities 4,901 — — — 4,901 — — 4,901 Total marketable 3,358,213 17,583 (10,936) (8,796) 515,057 2,841,007 — 3,356,064 Total financial assets $ 3,766,909 $ 17,583 $ (10,936) $ (8,796) $ 923,753 $ 2,841,007 $ — $ 3,764,760 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 agreements 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 corporate debt securities with unrealized losses is $1.5 billion as of December 31, 2023, of which $415.2 million have been in an unrealized loss position for more than 12 months and $1.1 billion have been 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 December 31, 2023 and 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 December 31, 2023 and 2022, for all 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 December 31, 2023 and 2022, the Company anticipates that it will recover the entire amortized cost basis of such debt securities before maturity. Interest earned on marketable securities was $77.7 million, $64.6 million and $55.7 million in the years ended December 31, 2023, 2022 and 2021, respectively. The interest is recorded as other income (expenses), net, in the accompanying consolidated statements of operations. The following table summarizes the contractual maturities of marketable securities: As of December 31, 2023 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,448,256 $ 1,434,149 $ 1,943,836 $ 1,909,218 One to three years 1,905,056 1,917,014 1,661,372 1,594,099 Total $ 3,353,312 $ 3,351,163 $ 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 December 31, 2023 and 2022, the Company held strategic investments with an aggregate carrying value of $30.7 million and $76.9 million, respectively, recorded as other long-term assets in the accompanying 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 year ended December 31, 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 consolidated statement of operations for the year ended December 31, 2023. There were no other impairments or adjustments recorded in the three years ended December 31, 2023, 2022 and 2021, related to these securities. Financial Liabilities The Company’s financial liabilities that are measured at fair value on a recurring basis consist of foreign currency derivative liabilities and are classified as Level 2 financial instruments in the fair value hierarchy. As of December 31, 2023 and 2022, the aggregate fair value of these liabilities and the associated unrealized losses were not significant. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: As of December 31, 2023 2022 (In thousands) Capitalized internal-use software developments costs $ 297,655 $ 257,983 Data center equipment (1) 104,543 100,207 Leasehold improvements 92,315 91,660 Office equipment 60,905 70,815 Furniture and fixtures 14,558 14,935 Software 14,639 14,675 Total property and equipment 584,615 550,275 Less: accumulated depreciation and amortization (1) (374,976) (286,296) Total property and equipment, net $ 209,639 $ 263,979 ____________________________________ ( 1 ) Data center equipment includes $72.4 million in assets held under finance leases as of December 31, 2023 and 2022. Accumulated depreciation and amortization includes $55.9 million and $41.2 million of accumulated depreciation for assets held under finance leases as of December 31, 2023 and 2022, respectively. Depreciation and amortization expense was $89.9 million, $71.7 million and $59.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company capitalized $57.2 million, $65.4 million and $63.1 million in internal‑use software development costs in the years ended December 31, 2023, 2022 and 2021, respectively. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures In July 2023, the Company sold 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 is recorded within general and administrative expenses in the accompanying consolidated statement of operations for the year ended December 31, 2023. The Company also recorded an additional $3.3 million of divestiture-related expenses in the same period. Separately, in June 2023, the Company sold its Internet of Things (“IoT”) asset group for stock consideration of $15.8 million. The loss on divestiture and related expenses were not significant. |
Impairment
Impairment | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment | Impairment Operating right-of-use assets In 2022, the Company announced its decision to become a remote-first company whereby employees would have the flexibility to work remotely on a permanent basis. As part of the new operating strategy, the Company permanently closed several of its offices in 2023 and 2022, which required the Company to reassess its operating right-of-use (“ROU”) assets and the associated leasehold improvements and property and equipment for impairment. The Company determined that the carrying amounts of these assets exceeded their respective fair values. The Company engaged a third‑party expert to assist with the valuation analysis. The Company regularly assesses recoverability of all impacted ROU assets and the related long-lived asset categories for indicators of impairment. In the years ended December 31, 2023 and 2022, the Company recorded $34.8 million and $97.7 million of impairment, respectively, related to its permanently closed offices. The impairment is recorded in the impairment of long-lived assets Intangible assets In the fourth quarter of 2023, the Company identified a change in its Segment reportable segment’s performance which it deemed to be an indicator that the carrying amounts of certain long-lived assets within the segment may not be recoverable. The Company performed a recoverability assessment and a fair value measurement of the impacted asset group and concluded that the asset group was impaired. The Company engaged a third-party expert to assist with the valuation analysis. The impairment was allocated to the assets within the impacted asset group reducing the respective carrying amounts of the assets as of the December 1, 2023, measurement date, as follows: Total Impairment Allocation (In thousands) Developed technology $ 209,350 Customer relationships 76,361 Total impairment $ 285,711 The impairment is recorded within the impairment of long-lived assets line item in the accompanying consolidated statement of operations for the year ended December 31, 2023. The Company used a relief-from-royalty method to estimate the fair values of the developed technology and the trade name and a distributor method to estimate the fair value of customer relationships. The trade name intangible asset was not impaired. No other significant impairments were recorded during the years ended 2023, 2022 or 2021. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 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 was designed to reduce operating costs, improve operating margins and accelerate profitability. The February 2023 Plan eliminated approximately 17% of the Company’s workforce. The execution of the February 2023 Plan was substantially completed in the first quarter of 2023. For the year ended December 31, 2023, restructuring charges related to the February 2023 Plan were $141.1 million, which consisted of $130.0 million related to employee severance, benefits and facilitation costs, and $11.1 million related to vesting of employee stock based compensation awards. Furthermore, the restructuring charges consisted of $108.9 million related to the Communications reportable segment, $9.4 million related to the Segment reportable segment and $22.8 million included in corporate costs. 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 consolidated balance sheets: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2022 $ — $ — $ — Restructuring charges 120,711 9,289 130,000 Cash payments (111,852) (8,895) (120,747) Balance as of December 31, 2023 $ 8,859 $ 394 $ 9,253 The $11.1 million expenses related to vesting of the employee stock-based compensation awards is recorded in the additional-paid-in capital in the accompanying consolidated statement of stockholders’ equity. In December 2023, the Company announced a workforce restructuring plan that was designed to streamline operations and accelerate the Company’s path to profitable growth (the “December 2023 Plan”). The December 2023 Plan eliminated approximately 5% of the Company’s workforce. Restructuring charges related to the December 2023 Plan were not significant. In September 2022, the Company announced a workforce restructuring plan that was designed to reduce operating costs and improve operating margins (the “September 2022 Plan”). The September 2022 Plan eliminated approximately 11% of the Company’s workforce. In the year ended December 31, 2022, related to the September 2022 Plan, the Company recorded $76.6 million of restructuring charges, including a $14.3 million expense related to vesting of the employee stock-based compensation awards, in its accompanying consolidated statement of operations. The restructuring charges consisted of $67.4 million related to the Communications reportable segment, $1.6 million related to the Segment reportable segment and $7.6 million included in corporate costs. The following table summarizes the Company’s restructuring liability related to the September 2022 Plan that is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet as of December 31, 2022: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2021 $ — $ — $ — Restructuring charges 60,553 1,808 62,361 Cash payments (60,053) (1,242) (61,295) Balance as of December 31, 2022 $ 500 $ 566 $ 1,066 |
Reorganization and Segment Repo
Reorganization and Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Segment Reporting | Reorganization and Segment Reporting In February 2023, the Company announced a reorganization of its business into two business units, Twilio Communications and Twilio Data & Applications (the “Reorganization”). With the Reorganization, the Company changed the organizational structure of its business, including the way management operated the business. In the second quarter of 2023, the Company concluded that it had two operating and reportable segments: Twilio Communications (“Communications”) and Twilio Data & Applications (“Data & Applications”). In the fourth quarter of 2023, the Company further reorganized its business by shifting certain components of the business between its operating segments. This reorganization did not impact the segment structure of the business. The impact on the reporting unit structure is described in Note 12. After the reorganization, the Company’s Data & Applications segment consisted of its Segment and Engage products and, therefore, the reportable segment was renamed from Data & Applications to Twilio Segment (“Segment”). 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 Segment : The Segment 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 and Engage. Discrete financial information reviewed by the CODM In January 2024, the Company’s newly appointed CEO, who is also the CODM, began reviewing segment operating results using non-GAAP income from operations as the measure of segment profitability. Presented below is the discrete financial information by reportable segment for the years ended December 31, 2023, 2022, and 2021, that reflects management’s current view of the business for performance assessment and resource allocation decisions. Prior period amounts were reclassified to conform to the current period’s presentation. Asset information is not presented below since it is not reviewed by the CODM on a segment by segment basis. Revenue, costs of revenue and operating expenses are generally directly attributable to each segment. Certain costs of revenue and operating expenses are allocated based on methodologies that best reflect the patterns of consumption of these costs. Corporate costs consist of costs that support company-wide processes and are managed on the company-wide level, and include costs related to corporate governance and communication, global brand awareness, information security, and certain legal, finance and accounting expenses. Year Ended December 31, 2023 2022 2021 (In thousands) Revenue: Communications $ 3,858,693 $ 3,550,087 $ 2,640,874 Segment 295,252 276,234 200,965 Total $ 4,153,945 $ 3,826,321 $ 2,841,839 Non-GAAP income (loss) from operations: Communications $ 841,990 $ 318,680 $ 276,496 Segment (72,430) (29,695) (13,006) Corporate costs (236,552) (293,475) (260,970) Total $ 533,008 $ (4,490) $ 2,520 Reconciliation of non-GAAP income (loss) from operations to loss from operations: Total non-GAAP income (loss) from operations $ 533,008 $ (4,490) $ 2,520 Stock-based compensation (662,842) (784,285) (632,285) Amortization of acquired intangibles (192,307) (206,181) (198,784) Acquisition and divestiture related expenses (5,555) (2,621) (7,449) Loss on net assets divested (32,277) — — Payroll taxes related to stock-based compensation (12,985) (23,832) (48,417) Charitable contributions (17,346) (9,541) (31,169) Restructuring costs (165,733) (76,636) — Impairment of long-lived assets (320,504) (97,722) — Loss from operations (876,541) (1,205,308) (915,584) Other expenses (income), net (120,188) (38,324) (45,345) Loss before (provision for) benefit from income taxes $ (996,729) $ (1,243,632) $ (960,929) Depreciation and amortization expenses included in non-GAAP income from operations for the Communications reportable segment was $74.1 million, $61.9 million and $53.5 million in the years ended December 31, 2023, 2022 and 2021, respectively. Amortization of deferred commissions included in non-GAAP income from operations for the Communications reportable segment was $60.0 million, $47.7 million and $27.8 million in the years ended December 31, 2023, 2022 and 2021, respectively. Depreciation and amortization expenses included in non-GAAP loss from operations for the Segment reportable segment was $13.7 million, $6.1 million and $2.6 million in the years ended December 31, 2023, 2022 and 2021, respectively. Amortization of deferred commissions included in non-GAAP loss from operations for the Segment reportable segment was $12.9 million, $10.3 million and $3.7 million in the years ended December 31, 2023, 2022 and 2021, respectively. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging As of December 31, 2023, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $228.1 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of December 31, 2023, these contracts had maturities of up to 1.4 years. Gains and losses associated with these foreign currency forward contracts are as follows: Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss Year Ended 2023 2022 2021 (In thousands) Gains recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 898 $ 556 $ 294 Gains (losses) recognized in income due to instruments maturing Cost of revenue $ 2,099 $ (34,862) $ (7,545) |
Right-of-Use Assets and Lease L
Right-of-Use Assets and Lease Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Right-of-Use Assets and Lease Liabilities | Right-of-Use Assets and Lease Liabilities The Company has entered into various operating lease agreements for office space and data centers and finance lease agreements for data centers, office equipment and furniture. As of December 31, 2023, the Company had various leased properties with remaining lease terms from 0.3 years to 5.8 years, some of which include options to extend the leases for up to 4.0 years. As a result of the office closures described in Note 6, the Company impaired several of its ROU assets related to office leases that will no longer be used to support its ongoing operations. In the years ended December 31, 2023 and 2022, the Company recorded $34.8 million and $97.7 million impairment expense, respectively, related to these office closures, of which $24.8 million and $72.8 million, respectively, related to the affected ROU assets. The remaining impairment expense related to the associated assets in the property, plant and equipment categories. For the years ended December 31, 2023, 2022 and 2021, the Company did not have significant sublease income related to any of its subleased office leases. Operating lease costs recorded in the accompanying consolidated statements of operations were $35.7 million, $57.8 million and $61.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Lease costs associated with short-term leases, variable leases and finance leases were not significant. Supplemental cash flow and other information related to operating leases are as follows: Year Ended December 31, 2023 2022 Operating cash flows paid for amounts included in operating lease liabilities (in thousands) $ 65,494 $ 64,473 Weighted average remaining lease term (in years) 4.1 4.8 Weighted average discount rate 4.5 % 4.5 % Maturities of operating lease liabilities are as follows: As of December 31, 2023 Year Ended December 31, (In thousands) 2024 $ 56,181 2025 39,120 2026 35,307 2027 27,779 2028 22,732 Thereafter 5,934 Total lease payments 187,053 Less: imputed interest (16,411) Total operating lease obligations 170,642 Less: current obligations (49,872) Long-term operating lease obligations $ 120,770 |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Method Investment | Equity Method Investment In May 2022, the Company acquired 44.6% equity interests in Syniverse Corporation (“Syniverse”) for $750.0 million in cash. The Company determined that it does not have a controlling financial interest in Syniverse but does exercise significant influence and therefore, the investment was accounted for under the equity method. The Company estimated that on the investment closing date there was an excess investment basis of $530.7 million related to its proportionate share of the identifiable intangible assets and $41.3 million related to the associated deferred tax liability. The equity method goodwill was estimated at $623.8 million. The Company engaged a third‑party expert to assist with the valuation analysis. The following table presents the estimated basis differences attributable to the identifiable intangible assets as of the date of investment and their respective useful lives: Total Estimated (In thousands) (In years) Developed technology $ 62,767 6 Customer relationships 439,152 9 Trademarks 28,822 Indefinite Total basis difference attributable to the identifiable intangible assets $ 530,741 As of December 31, 2023, the Company held 44.0% equity interests in Syniverse and the carrying amount of its equity method investment recorded in the accompanying consolidated balance sheet was $593.6 million. As of December 31, 2023, the Company’s net excess investment basis was $451.6 million related to its proportionate share of the identifiable intangible assets of the investee, $41.2 million related to the associated deferred tax liability and $623.8 million related to the equity method goodwill. As of December 31, 2022, the Company held 44.5% equity interests in Syniverse and the carrying amount of its equity method investment recorded in the accompanying consolidated balance sheet was $699.9 million. As of December 31, 2022, the Company’s net excess investment basis was $508.9 million related to its proportionate share of the identifiable intangible assets of the investee, $41.3 million related to the associated deferred tax liability and $623.8 million related to the equity method goodwill. In the years ended December 31, 2023 and 2022, the Company recorded its proportionate share of the investee's net operating results and the amortization of the basis difference of $121.9 million and $35.3 million, respectively, as part of other expenses, net in the accompanying consolidated statements of operations. The Company also recorded $15.6 million of its proportionate share of the investee’s other comprehensive income for the year ended December 31, 2023 and $14.9 million of its proportionate share of the investee’s other comprehensive loss for the year ended December 31, 2022 in the accompanying consolidated statements of other comprehensive income (loss). Results of operations and other comprehensive income (loss) were recorded on a 90-day lag. In conjunction with this investment, the Company and Syniverse entered into a wholesale agreement, pursuant to which Syniverse will process, route and deliver application-to-person messages originating and/or terminating between the Company’s customers and mobile network operators. The values of the transactions that occurred between the Company and Syniverse were $143.7 million for the year ended December 31, 2023 and $89.6 million for the period from the investment closing date on May 13, 2022 through December 31, 2022. These transactions were recorded as cost of revenue in the accompanying consolidated statements of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The business reorganization activities described in Note 8 impacted the Company’s reporting unit structure and, as a result, in 2023 the Company had multiple reporting units. These changes required the Company to reallocate goodwill to its newly formed reporting units and test the goodwill for impairment on the reporting unit level immediately before and immediately after each reorganization. The Company engaged a third-party expert to assist in the valuation analysis. The Company concluded that its goodwill was not impaired immediately before and immediately after the reorganizations. 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 various assumptions that the Company believes are reasonable under then current circumstances. Under the income approach, the Company determines the fair value of a reporting unit based on the present value of estimated future cash flows using the cash flow projections prepared by management. The market approach estimates the fair value based on market multiples of 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. The following table presents the goodwill allocated to the Company’s reportable segments as of December 31, 2023 and 2022, and the changes during the period: Twilio Twilio Total (In thousands) Balance as of December 31, 2021 $ — $ — $ 5,263,166 Goodwill additions related to 2021 acquisitions — — 25,748 Measurement period and other adjustments — — (4,761) 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) Reallocation to segments in the fourth quarter of 2023 (1) 656,964 (656,964) — Balance as of December 31, 2023 $ 4,937,181 $ 306,085 $ 5,243,266 ____________________________________ ( 1 ) Represents reallocation of goodwill as a result of the reorganization activities, as described in Note 8. (2) Represents goodwill related to the divestitures of the ValueFirst business and IoT asset group, as described in Note 5. Intangible assets Intangible assets consist of the following: As of December 31, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology * $ 397,473 $ (259,635) $ 137,838 Customer relationships ** 349,074 (170,511) 178,563 Supplier relationships 49,756 (26,316) 23,440 Trade names 25,968 (23,600) 2,368 Order backlog 10,000 (10,000) — Patent 3,968 (902) 3,066 Total amortizable intangible assets 836,239 (490,964) 345,275 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 841,454 $ (490,964) $ 350,490 ____________________________________ * As a result of the impairment described in Note 6, the developed technology cost basis and the related accumulated amortization decreased by $381.1 million and $171.8 million, respectively. ** As a result of the impairment described in Note 6, the customer relationship cost basis and the related accumulated amortization decreased by $174.0 million and $97.6 million, respectively. 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 $192.5 million, $206.4 million and $198.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. In the year ended December 31, 2023, the Company recorded an impairment charge related to certain of its intangible assets, as described in Note 6. Total estimated future amortization expense is as follows: As of December 31, 2023 Year Ended December 31, (In thousands) 2024 $ 112,042 2025 107,862 2026 42,149 2027 25,330 2028 19,055 Thereafter 38,837 Total $ 345,275 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, 2023 2022 (In thousands) Accrued payroll and related $ 77,593 $ 79,703 Accrued bonus and commission 17,345 35,449 Accrued cost of revenue 155,721 161,455 Sales and other taxes payable 70,913 92,319 ESPP contributions 6,130 8,499 Finance lease liability 8,489 11,871 Restructuring liability 29,086 1,066 Employee sabbatical benefit accrual (1) 5,515 30,683 Accrued other expense 53,519 69,176 Total accrued expenses and other current liabilities $ 424,311 $ 490,221 ____________________________________ ( 1 ) In February 2023, the Company announced that it will sunset its employee sabbatical program. The accrued liability as of December 31, 2023 represents the accumulated benefit balance for the employees who remain eligible under this program through its termination date. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt, net, consists of the following: As of December 31, 2023 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,274) (5,001) Unamortized issuance costs (962) (1,126) Net carrying amount 494,764 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (4,744) (5,299) Unamortized issuance costs (1,067) (1,192) Net carrying amount 494,189 493,509 Total long-term debt, net $ 988,953 $ 987,382 2029 and 2031 Senior Notes In March 2021, the Company issued $1.0 billion aggregate principal amount of senior notes, consisting of $500.0 million principal amount of 3.625% notes due 2029 (the “2029 Notes”) and $500.0 million principal amount of 3.875% notes due 2031 (the “2031 Notes” and together with the 2029 Notes, the “Notes”). Initially, none of the Company’s subsidiaries guaranteed the Notes. However, under certain circumstances in the future the Notes can be guaranteed by each of the Company’s material domestic subsidiaries. The 2029 Notes and 2031 Notes will mature on March 15, 2029 and March 15, 2031, respectively. Interest payments are payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2021. The aggregate net proceeds from offering of the Notes were approximately $984.7 million after deducting underwriting discounts and issuance costs paid by the Company. The Company may voluntarily redeem the 2029 Notes, in whole or in part, under the following circumstances: (1) at any time prior to March 15, 2024 with the net cash proceeds received by the Company from an equity offering at a redemption price equal to 103.625% of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40% of the original aggregate principal amount of the 2029 Notes. Such redemption shall occur within 180 days after the closing of an equity offering and at least 50% of the then-outstanding aggregate principal amount of the 2029 Notes shall remain outstanding, unless all 2029 Notes are redeemed concurrently; (2) at any time prior to March 15, 2024 at 100% of the principal amount, plus a “make-whole” premium; (3) at any time on or after March 15, 2024 at a prepayment price equal to 101.813% of the principal amount; (4) at any time on or after March 15, 2025 at a prepayment price equal to 100.906% of the principal amount; and (5) at any time on or after March 15, 2026 at a prepayment price equal to 100.000% of the principal amount; in each case, the redemption will include the accrued and unpaid interest, as applicable. The Company may voluntarily redeem the 2031 Notes, in whole or in part, under the following circumstances: (1) at any time prior to March 15, 2024 with the net cash proceeds received by the Company from an equity offering at a redemption price equal to 103.875% of the principal amount, provided the aggregate principal amount of all such redemptions does not to exceed 40% of the original aggregate principal amount of the 2031 Notes. Such redemption shall occur within 180 days after the closing of an equity offering and at least 50% of the then-outstanding aggregate principal amount of the 2031 Notes shall remain outstanding, unless all 2031 Notes are redeemed concurrently; (2) at any time prior to March 15, 2026 at 100% of the principal amount, plus a “make-whole” premium; (3) at any time on or after March 15, 2026 at a prepayment price equal to 101.938% of the principal amount; (4) at any time on or after March 15, 2027 at a prepayment price equal to 101.292% of the principal amount; (5) at any time on or after March 15, 2028 at a prepayment price equal to 100.646% of the principal amount; and (6) at any time on or after March 15, 2029 at a prepayment price equal to 100.000% of the principal amount; in each case, the redemption will include accrued and unpaid interest, as applicable. The Notes are general unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes that the Company may incur in the future and equal in right of payment with the Company’s existing and future unsecured and unsubordinated liabilities. In certain circumstances involving a change of control event, the Company will be required to make an offer to repurchase the Notes of the applicable series at a repurchase price equal to 101% of the principal amount of the Notes of such series to be repurchased, plus accrued and unpaid interest, if any, to the applicable repurchase date. The indenture governing the Notes (the “Indenture”) contains restrictive covenants limiting the Company’s ability and the ability of its subsidiaries to: (i) create liens on certain assets to secure debt; (ii) grant a subsidiary guarantee of certain debt without also providing a guarantee of the Notes; and (iii) consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the Notes are rated investment grade by either Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services. As of December 31, 2023, the Company was in compliance with all of its covenants under the Indenture. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information A roll‑forward of the Company’s customer credit reserve is as follows: As of December 31, 2023 2022 2021 (In thousands) Balance, beginning of period $ 33,124 $ 18,577 $ 16,783 Additions 167,044 86,303 55,937 Deductions against reserve (166,574) (71,756) (54,143) Balance, end of period $ 33,594 $ 33,124 $ 18,577 |
Revenue by Geographic Area and
Revenue by Geographic Area and Groups of Similar Products | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Geographic Area and Groups of Similar Products | Revenue by Geographic Area and Groups of 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: Year Ended December 31, 2023 2022 2021 (1) Revenue by geographic area: (In thousands) United States $ 2,757,470 $ 2,510,525 $ 1,927,302 International 1,396,475 1,315,796 914,537 Total $ 4,153,945 $ 3,826,321 $ 2,841,839 Percentage of revenue by geographic area: United States 66 % 66 % 68 % International 34 % 34 % 32 % The following table sets forth long-lived assets by geographic area: As of December 31, 2023 2022 Long-lived assets by geographic area: (In thousands) United States $ 99,368 $ 178,624 International 39,644 54,473 Total $ 139,012 $ 233,097 Percentage of long-lived assets by geographic area: United States 71 % 77 % International 29 % 23 % The following table sets forth revenue by groups of similar products: Year Ended December 31, 2023 2022 (1) 2021 (1) Revenue by groups of similar products: (In thousands) Twilio Communications: Messaging $ 2,184,752 $ 2,066,300 $ 1,416,265 Voice 511,728 474,790 428,484 Email and Marketing Campaigns 440,185 399,314 330,627 Other 722,028 609,683 465,498 Total Twilio Communications 3,858,693 3,550,087 2,640,874 Twilio Segment 295,252 276,234 200,965 Total $ 4,153,945 $ 3,826,321 $ 2,841,839 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Lease and Other Commitments The Company entered into various non-cancelable operating lease agreements for its facilities. Refer to Note 10 for additional detail on the Company's operating lease commitments. Additionally, the Company has contractual commitments with its cloud infrastructure providers, network service providers and other vendors that are noncancellable and expire within one As of Year Ending December 31, (In thousands) 2024 $ 254,547 2025 241,056 2026 231,803 Total payments $ 727,406 Legal Matters From time to time, the Company may be subject to legal actions, claims, and government investigations or inquiries arising in the ordinary course of business. These matters may include, but are not limited to, matters involving privacy, data protection, data security, intellectual property, competition, telecommunications, consumer protection, taxation, securities, employment, and contractual rights. While the Company currently believes that the final outcomes of these matters will not have a material adverse effect on its business, 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. The Company accrues for contingencies when the Company believes that a loss is probable and that it can reasonably estimate the amount of any such loss. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred and the amount of such additional loss would be material, the Company will either disclose the estimated additional loss or state that such an estimate cannot be made. Significant judgment is required to determine the probability of a loss and to estimate the amount of any probable loss. 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 consolidated statements of operations. 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 parties agreed to a settlement agreement that was approved by San Francisco’s Board of Supervisors and Mayor on November 7, 2023 and November 9, 2023, respectively, pursuant to which San Francisco paid the Company $18.0 million in November 2023 in settlement of the Company’s claims. The related impacts to the consolidated balance sheet as of December 31, 2023 and statement of operations for the year ended December 31, 2023 were not significant. Indemnification Agreements In the ordinary course of business and in connection with its financing and business combination 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 products or its acts or omissions. The Company has also signed indemnification agreements with all of its board members and executive officers and certain employees that may require the Company to indemnify them for certain events in connection with their services to the Company or its direct or indirect subsidiaries. As of December 31, 2023 and 2022, no amounts were accrued related to any outstanding indemnification agreements. Other Taxes The Company conducts operations in many tax jurisdictions within and outside the United States. In many of these jurisdictions, non-income-based taxes, such as sales, use, telecommunications and other local taxes are assessed on the Company’s operations. 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 can 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. As of December 31, 2023, the liabilities recorded for the non-income-based taxes were $18.0 million for domestic jurisdictions and $22.2 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 | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock As of December 31, 2023 and 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 December 31, 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 par value of $0.001 per share. As of December 31, 2023, 181,945,771 shares of Class A common stock and no shares of Class B common stock were issued and outstanding. 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 par value of $0.001 per share. As of December 31, 2022, 176,358,104 shares of Class A common stock and 9,617,605 shares of Class B common stock were issued and outstanding. The Company had reserved shares of common stock for issuance as follows: As of December 31, 2023 2022 Stock options issued and outstanding 1,722,861 2,277,379 Unvested restricted stock units issued and outstanding 18,755,538 15,414,997 Shares of Class A common stock reserved for Twilio.org 442,041 530,449 Stock-based awards available for grant under 2016 Plan 19,869,260 19,851,399 Shares of Class A common stock reserved for issuance pursuant to ESPP 8,541,701 7,648,429 Total 49,331,401 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 the 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. During the year ended December 31, 2023, the Company repurchased 11.3 million shares of its Class A common stock for an aggregate purchase price of $672.1 million. As of December 31, 2023, approximately $327.9 million of the originally authorized amount remained available for future repurchases. Public Equity Offerings In February 2021, the Company completed a public equity offering in which it sold 4,312,500 shares of its Class A common stock at a public offering price of $409.60 per share. The Company received total proceeds of $1.8 billion, net of underwriting discounts and offering expenses paid by the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2008 Stock Option Plan In connection with the Company’s initial public offering on June 22, 2016, the 2008 Stock Option Plan, as amended and restated (the “2008 Plan”), was terminated and, accordingly, no shares were available for issuance after the termination. As of December 31, 2023 and 2022, all remaining outstanding stock options granted under the 2008 Plan were vested and exercisable and continue to be governed by the provisions of this plan. 2016 Stock Option Plan The Company’s 2016 Stock Option and Incentive Plan (the “2016 Plan”) became effective on June 21, 2016. The 2016 Plan provides for the grant of ISOs, NSOs, restricted stock, RSUs, stock appreciation rights, unrestricted stock awards, performance share awards, dividend equivalent rights and cash-based awards to employees, directors and consultants of the Company. A total of 11,500,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 Plan. These available shares automatically increase each January 1, beginning on January 1, 2017, by 5% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. On January 1, 2023 and 2022, the shares available for grant under the 2016 Plan were automatically increased by 9,298,785 shares and 9,023,405 shares, respectively. Under the 2016 Plan, the stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying common stock on the date of grant. SendGrid 2009, 2012 and 2017 Stock Incentive Plans In connection with its acquisition of SendGrid, the Company assumed and replaced all stock options and restricted stock units of the continuing employees issued under SendGrid’s 2009, 2012 and 2017 Stock Incentive Plans that were unvested and outstanding on the date of acquisition. The assumed equity awards continue to vest and are governed by the provisions of their respective plans. Additionally, the Company assumed shares of SendGrid common stock that were reserved and available for issuance under SendGrid's 2017 Equity Incentive Plan, on an as converted basis. These shares were utilized for equity grants under the Company’s 2016 Plan in the post-acquisition period, to the extent permitted by New York Stock Exchange rules. Segment 2013 Stock Incentive Plan In connection with its acquisition of Segment, the Company assumed and replaced all stock options and restricted stock units of the continuing employees issued under Segment’s 2013 Stock Incentive Plan (“Segment Plan”) that were unvested and outstanding on the acquisition date. The assumed equity awards continue to vest and are governed by the provisions of the Segment Plan. Zipwhip 2008 Stock Plan and 2018 Equity Incentive Plan In connection with its acquisition of Zipwhip, the Company assumed and replaced all stock options and restricted stock units of the continuing employees issued under Zipwhip’s Amended and Restated 2008 Stock Plan and 2018 Equity Incentive Plan (“Zipwhip Plans”) that were unvested and outstanding on the acquisition date. The assumed equity awards continue to vest and are governed by the provisions of the Zipwhip Plans. Under all plans, stock options generally expire 10 years from the date of grant and vest over periods determined by the board of directors. The vesting period for stock options and restricted stock units is generally four years from the date of grant. For existing employees and, effective in 2022, for new-hires the stock options and restricted stock units vest in equal monthly and quarterly installments, respectively, over the service period. 2016 Employee Stock Purchase Plan The Company’s 2016 ESPP was effective on June 21, 2016. A total of 2,400,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 ESPP. These available shares automatically increase each January 1, beginning on January 1, 2017, by the lesser of 1,800,000 shares of the Company's Class A common stock, 1% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee. On each of January 1, 2023 and 2022, the shares available for grant under the 2016 ESPP were automatically increased by 1,800,000 shares. The 2016 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discount of 15% through payroll deductions of their eligible compensation, subject to any plan limitations. The 2016 ESPP provides for separate six-month offering periods beginning in May and November of each year. On each purchase date, eligible employees purchase the Company’s stock at a price per share equal to 85% of the lesser of (i) the fair market value of the Company’s Class A common stock on the offering date or (ii) the fair market value of the Company’s Class A common stock on the purchase date. As of December 31, 2023, total unrecognized compensation cost related to the 2016 ESPP was not significant. Stock-options and restricted stock units and awards activity under the Company’s equity incentive plans is as follows: Stock Options Number of Weighted- Weighted- Aggregate Outstanding options as of December 31, 2022 2,277,379 $ 75.54 5.32 $ 39,167 Exercised (366,456) $ 20.18 Forfeited and canceled (188,062) $ 223.76 Outstanding options as of December 31, 2023 1,722,861 $ 71.13 4.45 $ 56,007 Options vested and exercisable as of December 31, 2023 1,567,840 $ 63.06 4.10 $ 55,831 Year Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Aggregate intrinsic value of stock options exercised (1) $ 15,242 $ 80,839 $ 508,539 Total estimated grant date fair value of options vested $ 28,619 $ 77,403 $ 138,851 Weighted-average grant date fair value per share of options granted $ — $ 50.66 $ 216.29 ____________________________________ ( 1 ) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options. As of December 31, 2023, total unrecognized compensation cost related to all unvested stock options was not significant. Restricted Stock Units Number of Weighted- Aggregate Unvested RSUs as of December 31, 2022 15,414,997 $ 130.97 $ 754,718 Granted 14,716,790 $ 65.73 Vested (5,939,641) $ 116.30 Forfeited and canceled (5,436,608) $ 120.16 Unvested RSUs as of December 31, 2023 18,755,538 $ 87.56 $ 1,422,983 In March 2022, the Company granted 919,289 shares of performance-based restricted stock units (“PSU”) to certain of its executive employees. These awards activity is included in the table above. The PSUs were granted with a grant date fair value per share of $157.44 and an aggregate grant date fair value of $144.7 million. The Company estimated the fair value of these awards based on the closing price of its Class A common stock on the date of grant. Each PSU award consisted of three tranches that vest separately over distinct service periods if its respective performance targets, as defined in the grant agreements, are achieved in the respective periods. The final vesting is determined by the Company’s Compensation Committee subsequent to the completion of the vesting period. The vesting of the first tranche was based on achievement of revenue growth targets with respect to the year ended December 31, 2022. The vesting of the second and third tranches was based on both (a) revenue growth targets and (b) profitability targets achievement with respect to each of the years ended December 31, 2023 and 2024. If performance targets are not achieved, the related tranches are forfeited. Vesting of these performance-based restricted stock unit awards can range up to 100% above the target based on levels of performance and is recorded in stock-based compensation expense in the year during which each tranche vests. As of December 31, 2023, total unrecognized compensation cost related to unvested RSUs was $1.5 billion, which will be amortized over a weighted-average period of 2.7 years. Valuation Assumptions The Company did not grant stock options in the year ended December 31, 2023. The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the employee stock options: Year Ended December 31, Employee Stock Options: 2022 2021 Fair value of common stock $85.17 $268.55 - $409.21 Expected term (in years) 6.02 0.30 - 6.39 Expected volatility 61.6% 42.9% - 61.5% Risk-free interest rate 3.3% 0.1% - 1.4% Dividend rate —% —% The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the purchase rights issued under the 2016 ESPP: Year Ended December 31, Employee Stock Purchase Plan: 2023 2022 2021 Fair value of common stock $47.36 - $61.55 $50.81 - $99.68 $297.20 - $310.80 Expected term (in years) 0.50 0.50 0.50 Expected volatility 45.8% - 57.1% 73.2% - 97.3% 46.4% - 58.7% Risk-free interest rate 5.3% - 5.4% 1.5% - 4.5% —% - 0.1% Dividend rate —% —% —% Stock-Based Compensation Expense The Company recorded stock-based compensation expense as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Cost of revenue $ 26,343 $ 21,136 $ 14,074 Research and development 331,526 374,846 258,672 Sales and marketing 183,389 240,109 213,351 General and administrative 121,584 148,194 146,188 Restructuring costs 13,015 14,275 — Total $ 675,857 $ 798,560 $ 632,285 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Year Ended December 31, 2023 2022 2021 Net loss attributable to common stockholders (in thousands) $ (1,015,441) $ (1,256,145) $ (949,900) Weighted-average shares used to compute net loss per share attributable to 183,327,844 182,994,038 174,180,465 Net loss per share attributable to common stockholders, basic and diluted $ (5.54) $ (6.86) $ (5.45) 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 December 31, 2023 2022 2021 Stock options issued and outstanding 1,722,861 2,277,379 3,351,313 Unvested restricted stock units issued and outstanding 18,755,538 15,414,997 6,475,700 Shares of Class A common stock reserved for Twilio.org 442,041 530,449 618,857 Shares of Class A common stock committed under ESPP 426,199 766,334 147,947 Shares of Class A common stock in escrow 31,503 31,503 75,506 Shares of Class A common stock in escrow and restricted stock awards subject to future vesting 3,771 56,237 235,054 Total 21,381,913 19,076,899 10,904,377 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents domestic and foreign components of loss before income taxes for the periods presented: Year Ended December 31, 2023 2022 2021 (In thousands) United States $ (816,089) $ (1,021,208) $ (737,360) International (180,640) (222,424) (223,569) Loss before (provision for) benefit from income taxes $ (996,729) $ (1,243,632) $ (960,929) Provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2023 2022 2021 Current: (In thousands) Federal $ 2,567 $ 3,928 $ 122 State 1,533 4,100 420 Foreign 31,354 17,450 8,274 Total 35,454 25,478 8,816 Deferred: Federal (1,337) (5,155) (13,772) State (208) (818) (4,083) Foreign (15,197) (6,992) (1,990) Total (16,742) (12,965) (19,845) Provision for (benefit from) income taxes $ 18,712 $ 12,513 $ (11,029) The following table presents a reconciliation of the statutory federal tax rate and the Company's effective tax rate: Year Ended December 31, 2023 2022 2021 Tax at federal statutory rate 21 % 21 % 21 % State tax, net of federal benefit 3 3 8 Stock-based compensation (7) (7) 16 Credits 2 1 4 Foreign rate differential 1 (2) (1) Change in valuation allowance (23) (17) (46) Other 1 (1) — Effective tax rate (2) % (2) % 2 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company's deferred tax assets and liabilities: As of December 31, 2023 2022 Deferred tax assets: (In thousands) Net operating loss carryforwards $ 983,652 $ 959,864 Accruals and reserves 52,750 47,986 Stock-based compensation 29,572 37,981 Research and development credits 177,109 159,604 Intangibles 135,564 135,500 Capitalized research and development expenses 231,819 219,176 Lease liability 44,682 60,795 Unrealized losses on marketable securities — 32,108 Investments and other basis differences 51,368 11,952 Other 31,852 24,878 Gross deferred tax assets 1,738,368 1,689,844 Valuation allowance (1,533,933) (1,357,300) Net deferred tax assets 204,435 332,544 Deferred tax liabilities: Capitalized software (36,109) (36,552) Prepaid expenses (1,073) (1,587) Acquired intangibles (81,415) (202,778) Right-of-use asset (19,964) (35,734) Deferred commissions (50,703) (59,675) Net deferred tax asset (liability) $ 15,171 $ (3,782) The following table summarizes the Company’s tax carryforwards, carryovers and credits: As of Expiration Date (In thousands) Federal tax credits $ 147,500 Various dates beginning in 2037 Federal net operating loss carryforwards $ 3,444,800 Indefinite State net operating loss carryforwards $ 2,640,300 Various dates beginning in 2026 State tax credits $ 120,300 Indefinite Foreign net operating loss carryforwards $ 1,011,800 Indefinite A limitation may apply to the use of the net operating loss and credit carryforwards, under provisions of the Internal Revenue Code of 1986, as amended, and similar state tax provisions that are applicable if the Company experiences an “ownership change.” An ownership change may occur, for example, as a result of issuance of new equity. Should these limitations apply, the carryforwards would be subject to an annual limitation, resulting in a potential reduction in the gross deferred tax assets before considering the valuation allowance. The Company's accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of its net deferred tax assets. The Company primarily considered such factors as its history of operating losses, the nature of the Company's deferred tax assets, and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. At present, the Company does not believe that it is more likely than not that the federal, state and foreign net deferred tax assets will be realized, and accordingly, a valuation allowance has been established. The valuation allowance increased by approximately $176.6 million and $220.5 million during the years ended December 31, 2023 and 2022, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Unrecognized tax benefit, beginning of year $ 228,966 $ 223,380 $ 191,183 Gross increases for tax positions of prior years 3,427 3,250 3,496 Gross decreases for tax positions of prior years (5,130) (705) (10,693) Gross increases for tax positions of current year 7,754 4,081 39,394 Lapse of statute of limitations (1,239) (1,040) — Unrecognized tax benefit, end of year $ 233,778 $ 228,966 $ 223,380 As of December 31, 2023, the Company had approximately $233.8 million of unrecognized tax benefits. If the $233.8 million is recognized, $5.1 million would affect the effective tax rate. The remaining amount would be offset by the reversal of related deferred tax assets which are subject to a full valuation allowance. The Company recognizes interest and penalties, if any, related to uncertain tax positions in its income tax provision. As of December 31, 2023, 2022 and 2021, such amounts are not significant. The Company does not anticipate any significant changes within 12 months of December 31, 2023, in its uncertain tax positions that would be material to its consolidated financial statements taken as a whole because nearly all of the unrecognized tax benefit has been offset by a deferred tax asset, which has been reduced by a valuation allowance. The Company files U.S. federal income tax returns as well as income tax returns in many U.S. states and foreign jurisdictions. As of December 31, 2023, the tax years 2008 through the current period remain open to examination by the major jurisdictions in which the Company is subject to tax. Years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years, which have been carried forward and may be audited in subsequent years when utilized. The Company is fully reserved for all open U.S. federal, state and local, or non-U.S. income tax examinations by any tax authorities. On June 7, 2019, a three-judge panel from the U.S. Court of Appeals for the Ninth Circuit overturned the U.S. Tax Court's decision in Altera Corp. v. Commissioner and upheld the portion of the Treasury regulations under Section 482 of the Internal Revenue Code that requires related parties in a cost-sharing arrangement to share expenses related to share-based compensation. As a result of this decision, the Company's gross unrecognized tax benefits increased to reflect the impact of including share-based compensation in cost-sharing arrangements. On July 22, 2019, Altera filed a petition for a rehearing before the full Ninth Circuit and the request was denied on November 12, 2019. On February 10, 2020, Altera filed a petition to appeal the decision to the Supreme Court and on June 22, 2020 the Supreme Court denied the petition. There is no impact on the Company’s effective tax rate for years ended December 31, 2023 and 2022 due to a full valuation allowance against its deferred tax assets. We will continue to monitor future developments and their potential effects on our consolidated financial statements. The provision for and benefit from income taxes recorded in the years ended December 31, 2023 and 2022, respectively, consist primarily of income taxes, withholding taxes in foreign jurisdictions in which the Company conducts business and the tax benefit related to the release of valuation allowance from acquisitions. The Company’s U.S. operations have been in a loss position and the Company maintains a full valuation allowance against its U.S. deferred tax assets. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (1,015,441) | $ (1,256,145) | $ (949,900) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair values of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. |
Concentration of Credit Risk | Concentration of Credit 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. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for credits and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and, • Recognition of revenue when, or as, the Company satisfies a performance obligation. Nature of Products and Services The Company recognizes revenue from its products on either a usage basis or a subscription basis, depending on the nature of the product and the type of customer contract. The Company’s reportable segments may contain products that follow either revenue recognition model. The majority of the revenue in the Communications segment is derived from usage‑based fees. These fees are earned when customers access the Company’s cloud-based platform and start using the Company’s products. Platform access is considered a monthly series comprised of one performance obligation and usage-based fees are recognized as revenue in the period in which the usage occurs. Some examples of the usage-based products are Messaging and Voice. For the Messaging products, the fees relate to the number of text messages sent or received. For the Voice products, the fees primarily relate to minutes of call duration. In the years ended December 31, 2023, 2022 and 2021, the revenue from usage-based fees represented 71%, 73% and 72% of total revenue, respectively. Subscription-based fees are derived from various products in both the Communications and Segment segments. Subscription-based products include products such as Segment, Engage, Flex, Email and others. Subscription-based contracts revenue is recognized on a ratable basis over the contractual term which is generally between one No significant judgments are required in determining whether products and services are considered distinct performance obligations and should be accounted for separately versus together, or to determine the stand-alone selling price. The Company's arrangements do not contain general rights of return. However, credits may be issued on a case-by-case basis. The contracts do not provide customers with the right to take possession of the software supporting the applications. Amounts that have been invoiced are recorded in accounts receivable and in revenue or deferred revenue depending on whether the revenue recognition criteria have been met. The Company defines U.S. revenue as revenue from customers with IP addresses or mailing addresses at the time of registration in the United States. The Company defines international revenue as revenue from customers with IP addresses or mailing addresses at the time of registration outside of the United States. Remaining Performance Obligations |
Deferred Revenue and Customer Deposits and Deferred Sales Commissions | Deferred Revenue and Customer Deposits Deferred revenue is recorded when a non-cancellable contractual right to bill exists or when cash payments are received in advance of future usage on non-cancelable contracts. Customer refundable prepayments are recorded as customer deposits. As of December 31, 2023 and 2022, the Company recorded $144.5 million and $139.1 million as its deferred revenue and customer deposits, respectively, that are included in deferred revenue and customer deposits in the accompanying consolidated balance sheets. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $120.5 million, $124.9 million and $70.1 million of revenue, respectively, that was included in the deferred revenue and customer deposits balance as of the end of the previous year. (g) Deferred Sales Commissions The Company records an asset for the incremental costs of obtaining a contract with a customer, for example, sales commissions that are earned upon execution of contracts. The Company uses the portfolio of data method to determine the estimated period of benefit of capitalized commissions which is generally determined to be up to five years. Amortization expense related to these capitalized costs related to initial contracts, upsells and renewals, is recognized on a straight line basis over the estimated period of benefit of the capitalized commissions. The Company applies the optional exemption of expensing these costs as incurred with amortization periods of one year or less. Total net capitalized commission costs as of December 31, 2023 and 2022, were $200.1 million and $239.1 million, respectively, and are included in prepaid expenses and other current assets and other long‑term assets in the accompanying consolidated balance sheets. Amortization of these assets was $72.9 million, $57.9 million and $31.5 million in the years ended December 31, 2023, 2022 and 2021, respectively, and is included in sales and marketing expense in the accompanying consolidated statements of operations. |
Cost of Revenue | Cost of Revenue Cost of revenue consists primarily of fees paid to network service providers. Cost of revenue also includes cloud infrastructure fees, direct costs of personnel, such as salaries and stock‑based compensation for our customer support employees, and other non‑personnel costs, such as depreciation and amortization expense related to data centers and hosting equipment, amortization of capitalized internal-use software development costs and acquired intangible assets. Costs of revenue are generally directly attributable to each segment. Certain costs of revenue are allocated to segments based on methodologies that best reflect the patterns of consumptions of these costs. |
Research and Development Expense | Research and Development Expense Research and development expenses consist primarily of personnel costs, outsourced engineering services, cloud infrastructure fees for staging and development of the Company’s products, depreciation, amortization of capitalized internal-use software development costs and an allocation of general overhead expenses. The Company capitalizes the portion of its software development costs that meets the criteria for capitalization. Research and development expenses are generally directly attributable to each segment. Certain research and development expenses are allocated to segments based on methodologies that best reflect the patterns of consumptions of these costs. Certain research and development costs are not allocated to segments because they support company-wide processes and are managed on a company-wide level. |
Internal-Use Software Development Costs | Internal-Use Software Development Costs Certain costs of platform and other software applications developed for internal use are capitalized. The Company capitalizes qualifying internal-use software development costs that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (i) the preliminary project stage is completed and (ii) it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred for maintenance, minor upgrades and enhancements are expensed. Costs related to preliminary project activities and post-implementation operating activities are also expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and were $71.1 million, $92.6 million and $78.8 million in the years ended December 31, 2023, 2022 and 2021, respectively. Advertising costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. |
Restructuring Costs | Restructuring Costs The Company records restructuring expenses when management commits to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the plan are not likely and employees who are impacted have been notified of the pending involuntary termination. |
Stock-Based Compensation | Stock-Based Compensation All stock-based compensation to employees is measured on the grant date based on the fair value of the awards on the date of grant. These costs are recognized as an expense following straight-line attribution method over the requisite service period. The Company uses the Black-Scholes option pricing model to measure the fair value of its stock options and the purchase rights issued under the Company's 2016 Employee Stock Purchase Plan, as amended (the “ESPP”). The fair value of the restricted stock units is determined using the closing fair value of the Company's Class A common stock on the date of grant and recognized as an expense following straight-line attribution method over the requisite service period. Forfeitures are recorded in the period in which they occur. The Black-Scholes option pricing model requires the use of complex assumptions, which determine the fair value of stock options and the purchase rights issued under the ESPP. If any of the assumptions used in the Black-Scholes model change, stock-based compensation for future options may differ materially compared to that associated with previous grants. These assumptions include: • Fair value of the common stock. The Company uses the market closing price of its Class A common stock, as reported on the New York Stock Exchange, for the fair value. • Expected term. The expected term represents the period that the stock option or the purchase right is expected to be outstanding. The Company uses the simplified calculation of expected term, which reflects the weighted-average time-to-vest and the contractual life of the stock option or the purchase right; • Expected volatility. Prior to July 2021, the expected volatility was derived from an average of the historical volatilities of the Class A common stock of the Company and several other entities with characteristics similar to those of the Company, such as the size and operational and economic similarities to the Company's principal business operations. Beginning in July 2021, the expected volatility was derived from the average of the historical volatilities of the Class A common stock of the Company. • Risk -free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock-based awards; and • Expected dividend. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with authoritative guidance which requires the use of the asset and liability approach. Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carry-forwards. Deferred tax amounts are determined by using the enacted tax rates expected to be in effect when the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to uncertain tax positions in the provision for income taxes in the consolidated statements of operations. |
Foreign Currency | Foreign Currency The functional currency of the Company's foreign subsidiaries is primarily the U.S. dollar. Accordingly, the subsidiaries remeasure monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenue and expense accounts are remeasured at the average exchange rate in effect during the month in which the transactions occur. Remeasurement adjustments are recognized in the consolidated statements of operations as other income (expense), net, in the year of occurrence. Foreign currency transaction gains and losses are included in other income (expenses), net, in the accompanying consolidated statements of operations. For those entities where the functional currency is a foreign currency, adjustments resulting from translating the financial statements into U.S. dollars are recorded as a component of accumulated other comprehensive income (loss) as part of the total stockholders' equity. Monetary assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the weighted average exchange rates in effect during the month in which the transactions occur. Equity transactions are translated using historical exchange rates. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) refers to net loss and other revenue, expenses, gains and losses that, under U.S. GAAP, are recorded as an element of stockholders' equity but are excluded from the calculation of net loss. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The Company calculates its basic and diluted net loss per share attributable to common stockholders in conformity with the two-class method required for companies with participating securities. The Company has 100,000,000 shares of preferred stock that was authorized but never issued or outstanding. Class A common stock was the only outstanding class of equity securities of the Company as of December 31, 2023. Each share of Class A common stock is entitled to one vote per share. Prior to June 28, 2023, the Company also had outstanding equity securities of Class B common stock. 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 certificate of incorporation. In addition, upon the Conversion, all 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents may consist of cash deposited into money market funds, reverse repurchase agreements and commercial paper. All credit and debit card transactions that process as of the last day of each month and settle within the first few days of the subsequent month are also classified as cash and cash equivalents as of the end of the month in which they were processed. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts |
Costs Related to Public Offerings | Costs Related to Public Offerings |
Property and Equipment | Property and Equipment Property and equipment, both owned and under finance leases, is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the related asset. Maintenance and repairs are expensed as incurred. The useful lives of property and equipment are as follows: Capitalized internal-use software development costs 3 years Data center equipment 2 - 4 years Leasehold improvements Shorter of 5 years or the remaining lease term Office equipment 3 years Furniture and fixtures 5 years Software 3 years Assets under financing lease Shorter of 5 years or the remaining lease term |
Leases | Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company presents the operating leases in long-term assets and current and long-term liabilities. Finance lease assets are included in property and equipment, net, and finance lease liabilities are presented in current and long-term liabilities in the accompanying consolidated balance sheets. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are measured and recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. As the Company’s leases do not generally provide an implicit rate, the Company uses its incremental borrowing rate based on the information available on the commencement date to determine the present value of lease payments. The Company’s lease agreements may have lease and non-lease components, which the Company accounts for as a single lease component. When estimating the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain such options will be exercised. Operating lease costs are recognized in operating expenses in the accompanying consolidated statements of operations on a straight-line basis over the lease term and variable payments are recognized in the period they are incurred. The Company’s lease agreements do not contain any residual value guarantees. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Within the consolidated statements of cash flows, the Company presents the lease payments made on the operating leases as cash flows from operations and principal payments made on the finance leases as part of financing activities. |
Equity Method Investments | Equity Method Investments Equity investment holdings in which the Company does not have a controlling financial interest but can exercise significant influence over the investee are accounted for under the equity method. Equity method investments are originally recorded at cost and are increased or reduced in subsequent periods to reflect the Company’s proportionate share of the investee’s net earnings or losses and other comprehensive income or losses, as those occur. The Company records the investee losses on a three-month lag and up to the carrying amount of the investment. The Company determines the difference between its purchase price and its proportionate share of the net assets of the investee, which results in an excess basis in the investment. This excess basis is allocated to the identifiable assets and liabilities of the investee utilizing purchase accounting principles and is used to calculate the amortization of basis differences every reporting period. Basis differences related to intangible assets with determinable economic lives and liabilities are generally amortized on a straight-line basis over the useful lives of the associated assets and the expected term for the liabilities. Basis differences related to intangible assets without determinable economic lives are not amortized. Equity method goodwill is not amortized or tested for impairment. Instead, the Company evaluates its equity method investments for impairment whenever events or changes in circumstance indicate that the carrying amounts of such investments may be in excess of their fair value. When such indicators exist, the other-than-temporary impairment model is utilized, which considers the severity and duration of a decline in fair value below book value and the Company’s ability and intent to hold the investment for a sufficient period of time to allow for recovery. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in the period of such determination. |
Segment Information | 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 (“CEO”), reviews and manages the business, and establishes criteria for aggregating operating segments into reportable segments. Prior to 2023, the Company had one operating and reportable segment. As a result of the restructuring activities in 2023, as described in Note 8, the Company operated in and reported its results in two reportable segments. |
Business Combinations | Business Combinations The Company records identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the consideration transferred over the fair value of the net assets acquired on the acquisition date. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed, these estimates are inherently uncertain and subject to refinement. The authoritative guidance allows a measurement period of up to one year from the date of acquisition to make adjustments to the preliminary allocation of the purchase price. As a result, during the measurement period the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations. |
Goodwill | Goodwill Goodwill represents the excess of the aggregate purchase price over the fair value of net identifiable assets acquired in a business combination. Goodwill is not amortized and is tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is allocated within the operating segments of the Company to the reporting units. Prior to 2023, the Company had one reporting unit. During 2023, as a result of restructuring activities described in Note 8, the Company then had multiple reporting units. The Company reassigns its assets and liabilities to the reporting units based on which reporting units’ operations the assets and liabilities were employed in or were related to. Goodwill is reassigned using a relative fair value allocation approach. The Company has selected November 30 as the date to perform its annual goodwill impairment test. The goodwill impairment test is performed on a reporting unit level. In the valuation of goodwill, management must make assumptions regarding estimated future cash flows to be derived from the respective reporting unit. If these estimates or their related assumptions change in the future, the Company may be required to record an impairment of goodwill. The Company has the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. However, the Company may elect to bypass the qualitative assessment and proceed directly to the quantitative impairment tests. The impairment test involves comparing the fair value of the reporting unit to its carrying value, including goodwill. A goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value. The impairment is limited to the carrying amount of goodwill. |
Intangible Assets | Intangible Assets Intangible assets recorded by the Company include the fair values of identifiable intangible assets acquired in business combinations and costs directly associated with securing legal registration of patents and trademarks and acquiring domain names. Intangible assets with determinable economic lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful life of each asset on a straight-line basis. The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors the Company considers when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset and other economic factors, including competition and specific market conditions. Intangible assets without determinable economic lives are carried at cost, not amortized and reviewed for impairment at least annually. The useful lives of the intangible assets are as follows: Developed technology 3 - 7 years Customer relationships 4 - 10 years Supplier relationships 5 years Trade names 5 years Patents 20 years Telecommunication licenses Indefinite Trademarks Indefinite Domain names Indefinite |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets, including property, equipment and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If such evaluation indicates that the carrying amount of the asset or the asset group is not recoverable, any impairment loss would be equal to the amount the carrying value exceeds the fair value. The impairment is allocated to the long-lived assets within the asset group on a pro-rata basis using the relative carrying amounts of the assets. Values of individual long-lived assets are not reduced in excess of their respective fair values. In the valuation of an asset or an asset group, management must make assumptions regarding estimated future revenue and cash flows to be derived from the respective asset or asset group, discount rates used and other assumptions. If these estimates or their related assumptions change in the future, the Company may be required to record impairment of these assets. |
Derivatives and Hedging | Derivatives and Hedging The Company is exposed to a wide variety of risks arising from its business operations and overall economic conditions. These risks include exposure to fluctuations in various foreign currencies against its functional currency and can impact the value of cash receipts and payments. The Company minimizes its exposure to these risks through management of its core business activities, specifically, the amounts, sources and duration of its assets and liabilities, and the use of derivative financial instruments. The Company uses foreign currency derivative forward contracts, and in the future may also use foreign currency option contacts. Foreign currency derivative forward contracts involve fixing the exchange rate for delivery of a specified amount of foreign currency on a specified date. These agreements are typically cash settled in U.S. dollars for their fair value at or close to their settlement date. Foreign currency option contracts will require the Company to pay a premium for the right to sell a specified amount of foreign currency prior to the maturity date of the option. The Company does not enter into derivative financial instruments trading for speculative purposes. Derivative instruments are carried at fair value and recorded as either an asset or a liability until they mature. Gains and losses resulting from changes in fair value of these instruments are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. For derivative instruments designated as cash flow hedges, gains or losses are initially recorded in accumulated other comprehensive income (loss) on the balance sheet, then reclassified into the statement of operations in the period in which the derivative instruments mature. These realized gains and losses are recorded within the same financial statement line item as the hedged transaction. The Company’s foreign currency derivative contracts are classified within Level 2 of the fair value hierarchy because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. |
Share Repurchases | Share Repurchases The Company elected to record the excess of the repurchase price over the par value of the repurchased shares of its Class A common stock in accumulated deficit, along with the associated transaction costs and excise taxes. Immediately upon repurchase, the shares are retired and returned to the status of unauthorized and unissued. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company applies fair value accounting for all financial instruments on a recurring basis. The Company's financial instruments, which include cash, restricted cash, cash equivalents, accounts receivable and accounts payable are recorded at their carrying amounts, which approximate their fair values due to their short-term nature. Marketable securities consist of U.S. treasury securities, non-U.S government securities, high credit quality corporate debt securities and commercial paper. All marketable securities are considered to be available-for-sale and recorded at their estimated fair values. Unrealized gains and losses for available-for-sale securities are recorded in other comprehensive loss. In valuing these items, the Company uses inputs and assumptions that market participants would use to determine their fair value, utilizing valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The fair values of the senior notes due 2029 and 2031 (“2029 Notes” and “2031 Notes,” respectively) are determined based on their respective closing prices on the last trading day of the reporting period and are classified as Level 2 in the fair value hierarchy. The carrying value of the strategic investments, which consist of restricted equity securities of a publicly held company and equity securities of privately held companies, is determined under the measurement alternative on a non-recurring basis adjusting for observable changes in fair value. The Company does not have a controlling interest nor it can exercise significant influence over any of these entities. The Company regularly reviews changes to the rating of its debt securities by rating agencies and monitors the surrounding economic conditions to assess the risk of expected credit losses. As of December 31, 2023, the risk of expected credit losses was not significant. Impairments are considered to be other than temporary if they are related to deterioration in credit risk or if it is likely that the security will be sold before the recovery of its cost basis. Realized gains and losses and declines in value deemed to be other than temporary are determined based on the specific identification method and are reported in other expenses, net. |
Recently Issued Accounting Guidance, Not yet Adopted | Recently Issued Accounting Guidance, Not yet Adopted In June 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 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. ASU 2022-03 is effective for interim and annual periods beginning after December 15, 2023, with early adoption permitted. The Company will adopt ASU 2022-03 in the first quarter of 2024 with no material impact to the Company’s consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ,” which is intended to improve reportable segment disclosures. The ASU expands segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss. It also requires disclosure of the amount and description of the composition of other segment items and interim disclosures of a reportable segment's profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 with retrospective application required. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures, ” which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation and modifies other income tax related disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 and may be applied on a prospective basis. Early adoption is permitted. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment | The useful lives of property and equipment are as follows: Capitalized internal-use software development costs 3 years Data center equipment 2 - 4 years Leasehold improvements Shorter of 5 years or the remaining lease term Office equipment 3 years Furniture and fixtures 5 years Software 3 years Assets under financing lease Shorter of 5 years or the remaining lease term Property and equipment consist of the following: As of December 31, 2023 2022 (In thousands) Capitalized internal-use software developments costs $ 297,655 $ 257,983 Data center equipment (1) 104,543 100,207 Leasehold improvements 92,315 91,660 Office equipment 60,905 70,815 Furniture and fixtures 14,558 14,935 Software 14,639 14,675 Total property and equipment 584,615 550,275 Less: accumulated depreciation and amortization (1) (374,976) (286,296) Total property and equipment, net $ 209,639 $ 263,979 ____________________________________ ( 1 ) Data center equipment includes $72.4 million in assets held under finance leases as of December 31, 2023 and 2022. Accumulated depreciation and amortization includes $55.9 million and $41.2 million of accumulated depreciation for assets held under finance leases as of December 31, 2023 and 2022, respectively. |
Schedule of useful lives of intangible assets | The useful lives of the intangible assets are as follows: Developed technology 3 - 7 years Customer relationships 4 - 10 years Supplier relationships 5 years Trade names 5 years Patents 20 years Telecommunication licenses Indefinite Trademarks Indefinite Domain names Indefinite |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following tables provide the financial assets measured at fair value on a recurring basis: Amortized Gross Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 408,696 $ — $ — $ — $ 408,696 $ — $ — $ 408,696 Total included in cash 408,696 — — — 408,696 — — 408,696 Marketable securities: Debt securities: U.S. Treasury securities 410,665 2,162 (7) (1,665) 411,155 — — 411,155 Non-U.S. government securities 83,576 55 (111) (1,209) 82,311 — — 82,311 Corporate debt securities and commercial paper 2,859,071 15,366 (10,818) (5,922) 16,690 2,841,007 — 2,857,697 Total debt securities 3,353,312 17,583 (10,936) (8,796) 510,156 2,841,007 — 3,351,163 Equity securities 4,901 — — — 4,901 — — 4,901 Total marketable 3,358,213 17,583 (10,936) (8,796) 515,057 2,841,007 — 3,356,064 Total financial assets $ 3,766,909 $ 17,583 $ (10,936) $ (8,796) $ 923,753 $ 2,841,007 $ — $ 3,764,760 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 agreements 200,000 — — — — 200,000 — 200,000 Commercial paper 2,249 — — — — 2,249 — 2,249 Total included in cash 248,859 — — — 46,610 202,249 — 248,859 Marketable securities: U.S. Treasury securities 481,463 — (1,269) (11,347) 468,847 — — 468,847 Non-U.S. government 149,901 — (33) (6,304) 143,564 — — 143,564 Corporate debt securities and 2,973,844 307 (12,202) (71,043) 5,000 2,885,906 — 2,890,906 Total marketable 3,605,208 307 (13,504) (88,694) 617,411 2,885,906 — 3,503,317 Total financial assets $ 3,854,067 $ 307 $ (13,504) $ (88,694) $ 664,021 $ 3,088,155 $ — $ 3,752,176 |
Schedule of contractual maturities of marketable securities | The following table summarizes the contractual maturities of marketable securities: As of December 31, 2023 2022 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,448,256 $ 1,434,149 $ 1,943,836 $ 1,909,218 One to three years 1,905,056 1,917,014 1,661,372 1,594,099 Total $ 3,353,312 $ 3,351,163 $ 3,605,208 $ 3,503,317 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The useful lives of property and equipment are as follows: Capitalized internal-use software development costs 3 years Data center equipment 2 - 4 years Leasehold improvements Shorter of 5 years or the remaining lease term Office equipment 3 years Furniture and fixtures 5 years Software 3 years Assets under financing lease Shorter of 5 years or the remaining lease term Property and equipment consist of the following: As of December 31, 2023 2022 (In thousands) Capitalized internal-use software developments costs $ 297,655 $ 257,983 Data center equipment (1) 104,543 100,207 Leasehold improvements 92,315 91,660 Office equipment 60,905 70,815 Furniture and fixtures 14,558 14,935 Software 14,639 14,675 Total property and equipment 584,615 550,275 Less: accumulated depreciation and amortization (1) (374,976) (286,296) Total property and equipment, net $ 209,639 $ 263,979 ____________________________________ ( 1 ) Data center equipment includes $72.4 million in assets held under finance leases as of December 31, 2023 and 2022. Accumulated depreciation and amortization includes $55.9 million and $41.2 million of accumulated depreciation for assets held under finance leases as of December 31, 2023 and 2022, respectively. |
Impairment (Tables)
Impairment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of impairment of intangible assets | The impairment was allocated to the assets within the impacted asset group reducing the respective carrying amounts of the assets as of the December 1, 2023, measurement date, as follows: Total Impairment Allocation (In thousands) Developed technology $ 209,350 Customer relationships 76,361 Total impairment $ 285,711 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring activities | The following table summarizes the Company’s restructuring liability related to the February 2023 Plan that is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheets: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2022 $ — $ — $ — Restructuring charges 120,711 9,289 130,000 Cash payments (111,852) (8,895) (120,747) Balance as of December 31, 2023 $ 8,859 $ 394 $ 9,253 The following table summarizes the Company’s restructuring liability related to the September 2022 Plan that is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet as of December 31, 2022: Workforce Reduction Costs Facilitation Costs Total (In thousands) Balance as of December 31, 2021 $ — $ — $ — Restructuring charges 60,553 1,808 62,361 Cash payments (60,053) (1,242) (61,295) Balance as of December 31, 2022 $ 500 $ 566 $ 1,066 |
Reorganization and Segment Re_2
Reorganization and Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of financial information | Presented below is the discrete financial information by reportable segment for the years ended December 31, 2023, 2022, and 2021, that reflects management’s current view of the business for performance assessment and resource allocation decisions. Prior period amounts were reclassified to conform to the current period’s presentation. Asset information is not presented below since it is not reviewed by the CODM on a segment by segment basis. Revenue, costs of revenue and operating expenses are generally directly attributable to each segment. Certain costs of revenue and operating expenses are allocated based on methodologies that best reflect the patterns of consumption of these costs. Corporate costs consist of costs that support company-wide processes and are managed on the company-wide level, and include costs related to corporate governance and communication, global brand awareness, information security, and certain legal, finance and accounting expenses. Year Ended December 31, 2023 2022 2021 (In thousands) Revenue: Communications $ 3,858,693 $ 3,550,087 $ 2,640,874 Segment 295,252 276,234 200,965 Total $ 4,153,945 $ 3,826,321 $ 2,841,839 Non-GAAP income (loss) from operations: Communications $ 841,990 $ 318,680 $ 276,496 Segment (72,430) (29,695) (13,006) Corporate costs (236,552) (293,475) (260,970) Total $ 533,008 $ (4,490) $ 2,520 Reconciliation of non-GAAP income (loss) from operations to loss from operations: Total non-GAAP income (loss) from operations $ 533,008 $ (4,490) $ 2,520 Stock-based compensation (662,842) (784,285) (632,285) Amortization of acquired intangibles (192,307) (206,181) (198,784) Acquisition and divestiture related expenses (5,555) (2,621) (7,449) Loss on net assets divested (32,277) — — Payroll taxes related to stock-based compensation (12,985) (23,832) (48,417) Charitable contributions (17,346) (9,541) (31,169) Restructuring costs (165,733) (76,636) — Impairment of long-lived assets (320,504) (97,722) — Loss from operations (876,541) (1,205,308) (915,584) Other expenses (income), net (120,188) (38,324) (45,345) Loss before (provision for) benefit from income taxes $ (996,729) $ (1,243,632) $ (960,929) |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 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 are as follows: Condensed Consolidated Statement of Operations and Statement of Comprehensive Loss Year Ended 2023 2022 2021 (In thousands) Gains recognized in OCI Net change in market value of effective foreign currency forward exchange contracts $ 898 $ 556 $ 294 Gains (losses) recognized in income due to instruments maturing Cost of revenue $ 2,099 $ (34,862) $ (7,545) |
Right-of-Use Assets and Lease_2
Right-of-Use Assets and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of supplemental cash flows and other information related to operating leases | Supplemental cash flow and other information related to operating leases are as follows: Year Ended December 31, 2023 2022 Operating cash flows paid for amounts included in operating lease liabilities (in thousands) $ 65,494 $ 64,473 Weighted average remaining lease term (in years) 4.1 4.8 Weighted average discount rate 4.5 % 4.5 % |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities are as follows: As of December 31, 2023 Year Ended December 31, (In thousands) 2024 $ 56,181 2025 39,120 2026 35,307 2027 27,779 2028 22,732 Thereafter 5,934 Total lease payments 187,053 Less: imputed interest (16,411) Total operating lease obligations 170,642 Less: current obligations (49,872) Long-term operating lease obligations $ 120,770 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of estimated basis difference attributable to identifiable assets and useful lives | The following table presents the estimated basis differences attributable to the identifiable intangible assets as of the date of investment and their respective useful lives: Total Estimated (In thousands) (In years) Developed technology $ 62,767 6 Customer relationships 439,152 9 Trademarks 28,822 Indefinite Total basis difference attributable to the identifiable intangible assets $ 530,741 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023 and 2022, and the changes during the period: Twilio Twilio Total (In thousands) Balance as of December 31, 2021 $ — $ — $ 5,263,166 Goodwill additions related to 2021 acquisitions — — 25,748 Measurement period and other adjustments — — (4,761) 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) Reallocation to segments in the fourth quarter of 2023 (1) 656,964 (656,964) — Balance as of December 31, 2023 $ 4,937,181 $ 306,085 $ 5,243,266 ____________________________________ ( 1 ) Represents reallocation of goodwill as a result of the reorganization activities, as described in Note 8. (2) Represents goodwill related to the divestitures of the ValueFirst business and IoT asset group, as described in Note 5. |
Schedule of intangible assets | Intangible assets consist of the following: As of December 31, 2023 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology * $ 397,473 $ (259,635) $ 137,838 Customer relationships ** 349,074 (170,511) 178,563 Supplier relationships 49,756 (26,316) 23,440 Trade names 25,968 (23,600) 2,368 Order backlog 10,000 (10,000) — Patent 3,968 (902) 3,066 Total amortizable intangible assets 836,239 (490,964) 345,275 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 841,454 $ (490,964) $ 350,490 ____________________________________ * As a result of the impairment described in Note 6, the developed technology cost basis and the related accumulated amortization decreased by $381.1 million and $171.8 million, respectively. ** As a result of the impairment described in Note 6, the customer relationship cost basis and the related accumulated amortization decreased by $174.0 million and $97.6 million, respectively. 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 December 31, 2023 Year Ended December 31, (In thousands) 2024 $ 112,042 2025 107,862 2026 42,149 2027 25,330 2028 19,055 Thereafter 38,837 Total $ 345,275 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, 2023 2022 (In thousands) Accrued payroll and related $ 77,593 $ 79,703 Accrued bonus and commission 17,345 35,449 Accrued cost of revenue 155,721 161,455 Sales and other taxes payable 70,913 92,319 ESPP contributions 6,130 8,499 Finance lease liability 8,489 11,871 Restructuring liability 29,086 1,066 Employee sabbatical benefit accrual (1) 5,515 30,683 Accrued other expense 53,519 69,176 Total accrued expenses and other current liabilities $ 424,311 $ 490,221 ____________________________________ ( 1 ) In February 2023, the Company announced that it will sunset its employee sabbatical program. The accrued liability as of December 31, 2023 represents the accumulated benefit balance for the employees who remain eligible under this program through its termination date. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt, net, consists of the following: As of December 31, 2023 2022 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,274) (5,001) Unamortized issuance costs (962) (1,126) Net carrying amount 494,764 493,873 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (4,744) (5,299) Unamortized issuance costs (1,067) (1,192) Net carrying amount 494,189 493,509 Total long-term debt, net $ 988,953 $ 987,382 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of customer credit reserve | A roll‑forward of the Company’s customer credit reserve is as follows: As of December 31, 2023 2022 2021 (In thousands) Balance, beginning of period $ 33,124 $ 18,577 $ 16,783 Additions 167,044 86,303 55,937 Deductions against reserve (166,574) (71,756) (54,143) Balance, end of period $ 33,594 $ 33,124 $ 18,577 |
Revenue by Geographic Area an_2
Revenue by Geographic Area and Groups of Similar Products (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by geographic area | The following table sets forth revenue by geographic area: Year Ended December 31, 2023 2022 2021 (1) Revenue by geographic area: (In thousands) United States $ 2,757,470 $ 2,510,525 $ 1,927,302 International 1,396,475 1,315,796 914,537 Total $ 4,153,945 $ 3,826,321 $ 2,841,839 Percentage of revenue by geographic area: United States 66 % 66 % 68 % International 34 % 34 % 32 % The following table sets forth revenue by groups of similar products: Year Ended December 31, 2023 2022 (1) 2021 (1) Revenue by groups of similar products: (In thousands) Twilio Communications: Messaging $ 2,184,752 $ 2,066,300 $ 1,416,265 Voice 511,728 474,790 428,484 Email and Marketing Campaigns 440,185 399,314 330,627 Other 722,028 609,683 465,498 Total Twilio Communications 3,858,693 3,550,087 2,640,874 Twilio Segment 295,252 276,234 200,965 Total $ 4,153,945 $ 3,826,321 $ 2,841,839 |
Schedule of long-lived assets by geographic area | The following table sets forth long-lived assets by geographic area: As of December 31, 2023 2022 Long-lived assets by geographic area: (In thousands) United States $ 99,368 $ 178,624 International 39,644 54,473 Total $ 139,012 $ 233,097 Percentage of long-lived assets by geographic area: United States 71 % 77 % International 29 % 23 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum payments | Future minimum payments under these noncancellable purchase commitments are summarized in the table below. Unrecognized tax benefits are not included in these amounts because any amounts expected to be settled in cash are not significant: As of Year Ending December 31, (In thousands) 2024 $ 254,547 2025 241,056 2026 231,803 Total payments $ 727,406 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of reserved shares of common stock for issuance | The Company had reserved shares of common stock for issuance as follows: As of December 31, 2023 2022 Stock options issued and outstanding 1,722,861 2,277,379 Unvested restricted stock units issued and outstanding 18,755,538 15,414,997 Shares of Class A common stock reserved for Twilio.org 442,041 530,449 Stock-based awards available for grant under 2016 Plan 19,869,260 19,851,399 Shares of Class A common stock reserved for issuance pursuant to ESPP 8,541,701 7,648,429 Total 49,331,401 45,722,653 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock options activity | Number of Weighted- Weighted- Aggregate Outstanding options as of December 31, 2022 2,277,379 $ 75.54 5.32 $ 39,167 Exercised (366,456) $ 20.18 Forfeited and canceled (188,062) $ 223.76 Outstanding options as of December 31, 2023 1,722,861 $ 71.13 4.45 $ 56,007 Options vested and exercisable as of December 31, 2023 1,567,840 $ 63.06 4.10 $ 55,831 |
Schedule of weighted average grant date fair value | Year Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Aggregate intrinsic value of stock options exercised (1) $ 15,242 $ 80,839 $ 508,539 Total estimated grant date fair value of options vested $ 28,619 $ 77,403 $ 138,851 Weighted-average grant date fair value per share of options granted $ — $ 50.66 $ 216.29 ____________________________________ ( 1 ) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options. |
Schedule of restricted stock unit | Number of Weighted- Aggregate Unvested RSUs as of December 31, 2022 15,414,997 $ 130.97 $ 754,718 Granted 14,716,790 $ 65.73 Vested (5,939,641) $ 116.30 Forfeited and canceled (5,436,608) $ 120.16 Unvested RSUs as of December 31, 2023 18,755,538 $ 87.56 $ 1,422,983 |
Schedule of valuation assumptions, options | The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the employee stock options: Year Ended December 31, Employee Stock Options: 2022 2021 Fair value of common stock $85.17 $268.55 - $409.21 Expected term (in years) 6.02 0.30 - 6.39 Expected volatility 61.6% 42.9% - 61.5% Risk-free interest rate 3.3% 0.1% - 1.4% Dividend rate —% —% |
Schedule of employee stock purchase plan | The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the purchase rights issued under the 2016 ESPP: Year Ended December 31, Employee Stock Purchase Plan: 2023 2022 2021 Fair value of common stock $47.36 - $61.55 $50.81 - $99.68 $297.20 - $310.80 Expected term (in years) 0.50 0.50 0.50 Expected volatility 45.8% - 57.1% 73.2% - 97.3% 46.4% - 58.7% Risk-free interest rate 5.3% - 5.4% 1.5% - 4.5% —% - 0.1% Dividend rate —% —% —% |
Schedule of stock based compensation expense | The Company recorded stock-based compensation expense as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Cost of revenue $ 26,343 $ 21,136 $ 14,074 Research and development 331,526 374,846 258,672 Sales and marketing 183,389 240,109 213,351 General and administrative 121,584 148,194 146,188 Restructuring costs 13,015 14,275 — Total $ 675,857 $ 798,560 $ 632,285 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of the calculation of basic and diluted net loss per share attributable to common stockholders | The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Year Ended December 31, 2023 2022 2021 Net loss attributable to common stockholders (in thousands) $ (1,015,441) $ (1,256,145) $ (949,900) Weighted-average shares used to compute net loss per share attributable to 183,327,844 182,994,038 174,180,465 Net loss per share attributable to common stockholders, basic and diluted $ (5.54) $ (6.86) $ (5.45) |
Schedule of common stock equivalents excluded from the calculation 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 December 31, 2023 2022 2021 Stock options issued and outstanding 1,722,861 2,277,379 3,351,313 Unvested restricted stock units issued and outstanding 18,755,538 15,414,997 6,475,700 Shares of Class A common stock reserved for Twilio.org 442,041 530,449 618,857 Shares of Class A common stock committed under ESPP 426,199 766,334 147,947 Shares of Class A common stock in escrow 31,503 31,503 75,506 Shares of Class A common stock in escrow and restricted stock awards subject to future vesting 3,771 56,237 235,054 Total 21,381,913 19,076,899 10,904,377 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of domestic and foreign components of loss before income taxes | The following table presents domestic and foreign components of loss before income taxes for the periods presented: Year Ended December 31, 2023 2022 2021 (In thousands) United States $ (816,089) $ (1,021,208) $ (737,360) International (180,640) (222,424) (223,569) Loss before (provision for) benefit from income taxes $ (996,729) $ (1,243,632) $ (960,929) |
Schedule of provision for (benefit from) income taxes | Provision for (benefit from) income taxes consists of the following: Year Ended December 31, 2023 2022 2021 Current: (In thousands) Federal $ 2,567 $ 3,928 $ 122 State 1,533 4,100 420 Foreign 31,354 17,450 8,274 Total 35,454 25,478 8,816 Deferred: Federal (1,337) (5,155) (13,772) State (208) (818) (4,083) Foreign (15,197) (6,992) (1,990) Total (16,742) (12,965) (19,845) Provision for (benefit from) income taxes $ 18,712 $ 12,513 $ (11,029) |
Schedule of reconciliation of statutory federal tax rate and effective tax rate | The following table presents a reconciliation of the statutory federal tax rate and the Company's effective tax rate: Year Ended December 31, 2023 2022 2021 Tax at federal statutory rate 21 % 21 % 21 % State tax, net of federal benefit 3 3 8 Stock-based compensation (7) (7) 16 Credits 2 1 4 Foreign rate differential 1 (2) (1) Change in valuation allowance (23) (17) (46) Other 1 (1) — Effective tax rate (2) % (2) % 2 % |
Schedule of deferred tax assets and liabilities | The following table presents the significant components of the Company's deferred tax assets and liabilities: As of December 31, 2023 2022 Deferred tax assets: (In thousands) Net operating loss carryforwards $ 983,652 $ 959,864 Accruals and reserves 52,750 47,986 Stock-based compensation 29,572 37,981 Research and development credits 177,109 159,604 Intangibles 135,564 135,500 Capitalized research and development expenses 231,819 219,176 Lease liability 44,682 60,795 Unrealized losses on marketable securities — 32,108 Investments and other basis differences 51,368 11,952 Other 31,852 24,878 Gross deferred tax assets 1,738,368 1,689,844 Valuation allowance (1,533,933) (1,357,300) Net deferred tax assets 204,435 332,544 Deferred tax liabilities: Capitalized software (36,109) (36,552) Prepaid expenses (1,073) (1,587) Acquired intangibles (81,415) (202,778) Right-of-use asset (19,964) (35,734) Deferred commissions (50,703) (59,675) Net deferred tax asset (liability) $ 15,171 $ (3,782) |
Schedule of operating loss carryforwards | The following table summarizes the Company’s tax carryforwards, carryovers and credits: As of Expiration Date (In thousands) Federal tax credits $ 147,500 Various dates beginning in 2037 Federal net operating loss carryforwards $ 3,444,800 Indefinite State net operating loss carryforwards $ 2,640,300 Various dates beginning in 2026 State tax credits $ 120,300 Indefinite Foreign net operating loss carryforwards $ 1,011,800 Indefinite |
Schedule of tax credit carryforwards | The following table summarizes the Company’s tax carryforwards, carryovers and credits: As of Expiration Date (In thousands) Federal tax credits $ 147,500 Various dates beginning in 2037 Federal net operating loss carryforwards $ 3,444,800 Indefinite State net operating loss carryforwards $ 2,640,300 Various dates beginning in 2026 State tax credits $ 120,300 Indefinite Foreign net operating loss carryforwards $ 1,011,800 Indefinite |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Unrecognized tax benefit, beginning of year $ 228,966 $ 223,380 $ 191,183 Gross increases for tax positions of prior years 3,427 3,250 3,496 Gross decreases for tax positions of prior years (5,130) (705) (10,693) Gross increases for tax positions of current year 7,754 4,081 39,394 Lapse of statute of limitations (1,239) (1,040) — Unrecognized tax benefit, end of year $ 233,778 $ 228,966 $ 223,380 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 28, 2023 | Jun. 30, 2023 segment | Dec. 31, 2023 USD ($) segment vote shares | Dec. 31, 2022 USD ($) segment shares | Dec. 31, 2021 USD ($) | |
Disaggregation of Revenue [Line Items] | |||||
Revenue, remaining performance obligation, amount | $ 144,000 | ||||
Deferred revenue | 144,500 | $ 139,100 | |||
Revenue recognized out of adjusted deferred revenue balance | $ 120,500 | 124,900 | $ 70,100 | ||
Amortization period for deferred incremental commission costs of obtaining new contracts | 3 years | ||||
Total net capitalized costs | $ 200,100 | 239,100 | |||
Amortization of deferred commissions | 72,892 | 57,913 | 31,541 | ||
Advertising expense | $ 71,100 | $ 92,600 | $ 78,800 | ||
Preferred stock, authorized (in shares) | shares | 100,000,000 | 100,000,000 | |||
Allowance for doubtful accounts | $ 42,000 | $ 27,000 | |||
Number of operating segments | segment | 2 | 1 | |||
Number of reportable segments | segment | 2 | 2 | 1 | ||
Common Stock Class A | |||||
Disaggregation of Revenue [Line Items] | |||||
Votes per share | vote | 1 | ||||
Conversion of shares of Class B common stock (in shares) | 1 | ||||
Incremental commission costs of obtaining new contracts | |||||
Disaggregation of Revenue [Line Items] | |||||
Amortization period for deferred incremental commission costs of obtaining new contracts | 5 years | ||||
Usage Based Contracts | Revenue Benchmark | Product Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 71% | 73% | 72% | ||
Non-Usage Based Contracts | Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue recognized, period for recognition | 1 year | ||||
Non-Usage Based Contracts | Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue recognized, period for recognition | 3 years | ||||
Non-Usage Based Contracts | Revenue Benchmark | Product Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Percentage of revenue | 29% | 27% | 28% | ||
Next 12 Months | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, remaining performance obligation, percentage | 67% | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | ||||
Next 24 Months | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, remaining performance obligation, percentage | 93% | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) | Dec. 31, 2023 |
Capitalized internal-use software developments costs | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 3 years |
Data center equipment | Minimum | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 2 years |
Data center equipment | Maximum | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 4 years |
Leasehold improvements | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 5 years |
Office equipment | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 3 years |
Furniture and fixtures | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 5 years |
Software | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 3 years |
Assets under financing lease | |
Disaggregation of Revenue [Line Items] | |
Property, plant and equipment, estimated life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Useful Lives of Intangible Assets (Details) | Dec. 31, 2023 |
Supplier relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 5 years |
Patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 20 years |
Minimum | Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 3 years |
Minimum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 4 years |
Minimum | Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 5 years |
Maximum | Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 7 years |
Maximum | Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life | 10 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Cash and cash equivalents: | $ 408,696 | $ 248,859 |
Amortized Cost or Carrying Value | 3,353,312 | 3,605,208 |
Amortized Cost or Carrying Value | 4,901 | |
Amortized Cost or Carrying Value | 3,358,213 | |
Gross Unrealized Gains | 17,583 | 307 |
Gross Unrealized Losses Less Than 12 Months | (10,936) | (13,504) |
Gross Unrealized Losses More Than 12 Months | (8,796) | (88,694) |
Marketable securities, aggregate fair value | 3,351,163 | 3,503,317 |
Equity securities, aggregate fair value | 4,901 | |
Investments, aggregate fair value | 3,356,064 | |
Total financial assets | 3,766,909 | 3,854,067 |
Total financial assets | 3,764,760 | 3,752,176 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 408,696 | 46,610 |
Marketable securities, aggregate fair value | 510,156 | 617,411 |
Equity securities, aggregate fair value | 4,901 | |
Investments, aggregate fair value | 515,057 | |
Total financial assets | 923,753 | 664,021 |
Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | 202,249 |
Marketable securities, aggregate fair value | 2,841,007 | 2,885,906 |
Equity securities, aggregate fair value | 0 | |
Investments, aggregate fair value | 2,841,007 | |
Total financial assets | 2,841,007 | 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 | 410,665 | 481,463 |
Gross Unrealized Gains | 2,162 | 0 |
Gross Unrealized Losses Less Than 12 Months | (7) | (1,269) |
Gross Unrealized Losses More Than 12 Months | (1,665) | (11,347) |
Marketable securities, aggregate fair value | 411,155 | 468,847 |
U.S. Treasury securities | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 411,155 | 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 | 83,576 | 149,901 |
Gross Unrealized Gains | 55 | 0 |
Gross Unrealized Losses Less Than 12 Months | (111) | (33) |
Gross Unrealized Losses More Than 12 Months | (1,209) | (6,304) |
Marketable securities, aggregate fair value | 82,311 | 143,564 |
Non-U.S. government securities | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 82,311 | 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 | 2,859,071 | 2,973,844 |
Gross Unrealized Gains | 15,366 | 307 |
Gross Unrealized Losses Less Than 12 Months | (10,818) | (12,202) |
Gross Unrealized Losses More Than 12 Months | (5,922) | (71,043) |
Marketable securities, aggregate fair value | 2,857,697 | 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 | 2,841,007 | 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: | 408,696 | 46,610 |
Money market funds | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 408,696 | 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: | 2,249 | |
Commercial paper | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | |
Commercial paper | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 2,249 | |
Commercial paper | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents: | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross Unrealized Losses More Than 12 Months | $ 8,796,000 | $ 88,694,000 | |
Gross Unrealized Losses Less Than 12 Months | 10,936,000 | 13,504,000 | |
Interest earned on marketable securities | 77,700,000 | 64,600,000 | $ 55,700,000 |
Investment in equity securities, carrying value | 30,700,000 | 76,900,000 | |
Impairment of strategic investments | 46,154,000 | 0 | $ 0 |
2029 Senior Notes | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of the notes | 462,400,000 | 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 | 452,300,000 | 399,400,000 | |
Corporate Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized losses | 1,500,000,000 | 2,700,000,000 | |
Gross Unrealized Losses More Than 12 Months | 415,200,000 | 2,000,000,000 | |
Gross Unrealized Losses Less Than 12 Months | $ 1,100,000,000 | $ 620,500,000 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Less than one year, amortized cost | $ 1,448,256 | $ 1,943,836 |
One to three years, amortized cost | 1,905,056 | 1,661,372 |
Amortized Cost or Carrying Value | 3,353,312 | 3,605,208 |
Less than one year, aggregate fair value | 1,434,149 | 1,909,218 |
One to three years, aggregate fair value | 1,917,014 | 1,594,099 |
Total aggregate fair value | $ 3,351,163 | $ 3,503,317 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property and Equipment | ||
Total property and equipment | $ 584,615 | $ 550,275 |
Less: accumulated depreciation and amortization | (374,976) | (286,296) |
Total property and equipment, net | 209,639 | 263,979 |
Capitalized internal-use software developments costs | ||
Property and Equipment | ||
Total property and equipment | 297,655 | 257,983 |
Data center equipment | ||
Property and Equipment | ||
Total property and equipment | 104,543 | 100,207 |
Finance lease asset | 72,400 | 72,400 |
Finance lease asset, accumulated amortization | 55,900 | 41,200 |
Leasehold improvements | ||
Property and Equipment | ||
Total property and equipment | 92,315 | 91,660 |
Office equipment | ||
Property and Equipment | ||
Total property and equipment | 60,905 | 70,815 |
Furniture and fixtures | ||
Property and Equipment | ||
Total property and equipment | 14,558 | 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 89.9 | $ 71.7 | $ 59.6 |
Capitalized internal use software development costs | $ 57.2 | $ 65.4 | $ 63.1 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Divestitures, net of cash divested | $ 38,194 | $ 0 | $ 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 - Narrative (Details
Impairment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of long-lived assets | $ 34.8 | $ 97.7 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of long-lived assets |
Impairment - Schedule of Impair
Impairment - Schedule of Impairment of Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total impairment | $ 285,711 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total impairment | 209,350 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total impairment | $ 76,361 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 165,733 | $ 76,636 | $ 0 | ||
Stock-based compensation award expense | 11,100 | ||||
February 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Workforce elimination percentage | 17% | ||||
Restructuring charges | $ 141,100 | ||||
February 2023 Plan | Corporate costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 22,800 | ||||
February 2023 Plan | Twilio Communications | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 108,900 | ||||
February 2023 Plan | Segment | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 9,400 | ||||
December 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Workforce elimination percentage | 5% | ||||
September 2022 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Workforce elimination percentage | 11% | ||||
Restructuring charges | 76,600 | ||||
September 2022 Plan | Corporate costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 7,600 | ||||
September 2022 Plan | Twilio Communications | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 67,400 | ||||
September 2022 Plan | Segment | Operating Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1,600 | ||||
Employee Severance and Facilitation Costs | February 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 130,000 | ||||
Employee Severance and Facilitation Costs | September 2022 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 62,361 | ||||
Stock-Based Awards | February 2023 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 11,100 | ||||
Stock-Based Awards | September 2022 Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 14,300 |
Restructuring Activities - Sche
Restructuring Activities - Schedule of Restructuring Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 165,733 | $ 76,636 | $ 0 |
February 2023 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 141,100 | ||
September 2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 76,600 | ||
Employee Severance and Facilitation Costs | February 2023 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance of period | 0 | ||
Restructuring charges | 130,000 | ||
Cash payments | (120,747) | ||
Ending balance of period | 9,253 | 0 | |
Employee Severance and Facilitation Costs | September 2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance of period | 1,066 | 0 | |
Restructuring charges | 62,361 | ||
Cash payments | (61,295) | ||
Ending balance of period | 1,066 | 0 | |
Workforce Reduction Costs | February 2023 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance of period | 0 | ||
Restructuring charges | 120,711 | ||
Cash payments | (111,852) | ||
Ending balance of period | 8,859 | 0 | |
Workforce Reduction Costs | September 2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance of period | 500 | 0 | |
Restructuring charges | 60,553 | ||
Cash payments | (60,053) | ||
Ending balance of period | 500 | 0 | |
Facilitation Costs | February 2023 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance of period | 0 | ||
Restructuring charges | 9,289 | ||
Cash payments | (8,895) | ||
Ending balance of period | 394 | 0 | |
Facilitation Costs | September 2022 Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance of period | $ 566 | 0 | |
Restructuring charges | 1,808 | ||
Cash payments | (1,242) | ||
Ending balance of period | $ 566 | $ 0 |
Reorganization and Segment Re_3
Reorganization and Segment Reporting - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 business_unit | Jun. 30, 2023 segment | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reporting units | business_unit | 2 | ||||
Number of operating segments | segment | 2 | 1 | |||
Number of reportable segments | segment | 2 | 2 | 1 | ||
Depreciation and amortization | $ 284,413 | $ 279,127 | $ 258,378 | ||
Twilio Communications | Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 74,100 | 61,900 | 53,500 | ||
Amortization of deferred commissions | 60,000 | 47,700 | 27,800 | ||
Segment | Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 13,700 | 6,100 | 2,600 | ||
Amortization of deferred commissions | $ 12,900 | $ 10,300 | $ 3,700 |
Reorganization and Segment Re_4
Reorganization and Segment Reporting - Schedule of Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 4,153,945 | $ 3,826,321 | $ 2,841,839 |
Loss from operations | (876,541) | (1,205,308) | (915,584) |
Amortization of acquired intangibles | (192,500) | (206,400) | (198,800) |
Loss on net assets divested | (32,277) | 0 | 0 |
Restructuring costs | (165,733) | (76,636) | 0 |
Impairment of long-lived assets | (34,800) | (97,700) | |
Other expenses (income), net | (120,188) | (38,324) | (45,345) |
Loss before provision for income taxes | (996,729) | (1,243,632) | (960,929) |
Corporate costs | |||
Segment Reporting Information [Line Items] | |||
Loss from operations | (236,552) | (293,475) | (260,970) |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Loss from operations | 533,008 | (4,490) | 2,520 |
Stock-based compensation | (662,842) | (784,285) | (632,285) |
Amortization of acquired intangibles | (192,307) | (206,181) | (198,784) |
Acquisition and divestiture related expenses | (5,555) | (2,621) | (7,449) |
Loss on net assets divested | (32,277) | 0 | 0 |
Payroll taxes related to stock-based compensation | (12,985) | (23,832) | (48,417) |
Charitable contributions | (17,346) | (9,541) | (31,169) |
Restructuring costs | (165,733) | (76,636) | 0 |
Impairment of long-lived assets | (320,504) | (97,722) | 0 |
Communications | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,858,693 | 3,550,087 | 2,640,874 |
Loss from operations | 841,990 | 318,680 | 276,496 |
Segment | |||
Segment Reporting Information [Line Items] | |||
Revenue | 295,252 | 276,234 | 200,965 |
Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 295,252 | 276,234 | 200,965 |
Loss from operations | $ (72,430) | $ (29,695) | $ (13,006) |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - Foreign Currency Forward - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Maximum | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Derivative, term of contract | 1 year 4 months 24 days |
Buy | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Derivative, notional amount | $ 228.1 |
Derivatives and Hedging - Gains
Derivatives and Hedging - Gains (Losses) Associated With Foreign Currency Forward Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cost of revenue | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Gains (losses) recognized in income due to instruments maturing | $ 2,099 | $ (34,862) | $ (7,545) |
Foreign Currency Forward | |||
Foreign Currency Fair Value Hedge Derivative [Line Items] | |||
Gains recognized in OCI | $ 898 | $ 556 | $ 294 |
Right-of-Use Assets and Lease_3
Right-of-Use Assets and Lease Liabilities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Renewal option | 4 years | ||
Impairment of long-lived assets | $ 34.8 | $ 97.7 | |
Operating lease, impairment loss | 24.8 | 72.8 | |
Operating lease, cost | $ 35.7 | $ 57.8 | $ 61 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease | 3 months 18 days | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of lease | 5 years 9 months 18 days |
Right-of-Use Assets and Lease_4
Right-of-Use Assets and Lease Liabilities - Supplemental Cash Flows and Other Information related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows paid for amounts included in operating lease liabilities (in thousands) | $ 65,494 | $ 64,473 |
Weighted average remaining lease term (in years) | 4 years 1 month 6 days | 4 years 9 months 18 days |
Weighted average discount rate | 4.50% | 4.50% |
Right-of-Use Assets and Lease_5
Right-of-Use Assets and Lease Liabilities - Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 56,181 | |
2025 | 39,120 | |
2026 | 35,307 | |
2027 | 27,779 | |
2028 | 22,732 | |
Thereafter | 5,934 | |
Total lease payments | 187,053 | |
Less: imputed interest | (16,411) | |
Total operating lease obligations | 170,642 | |
Less: current obligations | (49,872) | $ (54,222) |
Long-term operating lease obligations | $ 120,770 | $ 164,551 |
Equity Method Investment - Narr
Equity Method Investment - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||
May 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable Securities [Line Items] | |||||
Intangible assets | $ 849,935 | $ 350,490 | $ 849,935 | ||
Deferred tax liabilities | 3,782 | 3,782 | |||
Equity method investment | $ 699,911 | 593,582 | 699,911 | ||
Share of losses from equity method investment | 121,897 | 35,315 | $ 0 | ||
Share of other comprehensive (loss) income from equity method investment | $ 15,553 | $ (14,940) | $ 0 | ||
Syniverse | |||||
Marketable Securities [Line Items] | |||||
Acquisition of voting stock (in percent) | 44.60% | 44.50% | 44% | 44.50% | |
Payments to acquire equity method investments | $ 750,000 | ||||
Intangible assets | 530,741 | $ 508,900 | $ 451,600 | $ 508,900 | |
Deferred tax liabilities | 41,300 | 41,300 | 41,200 | 41,300 | |
Estimated goodwill | $ 623,800 | 623,800 | 623,800 | 623,800 | |
Equity method investment | 699,900 | 593,600 | 699,900 | ||
Share of other comprehensive (loss) income from equity method investment | 15,600 | $ (14,900) | |||
Impact of transaction | $ 89,600 | $ 143,700 |
Equity Method Investment - Esti
Equity Method Investment - Estimated Basis Difference attributable to Identifiable Assets and Useful Lives (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | May 31, 2022 |
Marketable Securities [Line Items] | |||
Intangible assets | $ 350,490 | $ 849,935 | |
Syniverse | |||
Marketable Securities [Line Items] | |||
Intangible assets | $ 451,600 | $ 508,900 | $ 530,741 |
Syniverse | Trademarks | |||
Marketable Securities [Line Items] | |||
Intangible assets | 28,822 | ||
Syniverse | Developed technology | |||
Marketable Securities [Line Items] | |||
Intangible assets | $ 62,767 | ||
Estimated life | 6 years | ||
Syniverse | Customer relationships | |||
Marketable Securities [Line Items] | |||
Intangible assets | $ 439,152 | ||
Estimated life | 9 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 192.5 | $ 206.4 | $ 198.8 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill | |||||
Beginning balance of period | $ 5,284,153 | $ 5,263,166 | |||
Goodwill additions related to 2021 acquisitions | 25,748 | ||||
Measurement period and other adjustments | (4,761) | ||||
Foreign currency adjustments | $ 251 | 26 | |||
Reallocation to segments | $ 0 | $ 0 | |||
Goodwill divested | (41,164) | ||||
Ending balance of period | 5,243,266 | 5,284,153 | |||
Twilio Communications | |||||
Goodwill | |||||
Beginning balance of period | 0 | 0 | |||
Goodwill additions related to 2021 acquisitions | 0 | ||||
Measurement period and other adjustments | 0 | ||||
Foreign currency adjustments | 251 | ||||
Reallocation to segments | 656,964 | 4,321,130 | |||
Goodwill divested | (41,164) | ||||
Ending balance of period | 4,937,181 | 0 | |||
Twilio Segment | |||||
Goodwill | |||||
Beginning balance of period | 0 | 0 | |||
Goodwill additions related to 2021 acquisitions | 0 | ||||
Measurement period and other adjustments | 0 | ||||
Foreign currency adjustments | 0 | ||||
Reallocation to segments | (656,964) | $ 963,049 | |||
Goodwill divested | $ 0 | ||||
Ending balance of period | $ 306,085 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 836,239 | $ 1,435,511 |
Accumulated Amortization | (490,964) | (590,791) |
Total | 345,275 | 844,720 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Cost | 841,454 | 1,440,726 |
Accumulated Amortization | (490,964) | (590,791) |
Total | 350,490 | 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 | 397,473 | 795,753 |
Accumulated Amortization | (259,635) | (335,893) |
Decrease in accumulated amortization | (171,800) | |
Decrease in cost basis | (381,100) | |
Total | 137,838 | 459,860 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (259,635) | (335,893) |
Decrease in cost basis | 381,100 | |
Decrease in accumulated amortization | 171,800 | |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 349,074 | 538,466 |
Accumulated Amortization | (170,511) | (204,241) |
Decrease in accumulated amortization | (97,600) | |
Decrease in cost basis | (174,000) | |
Total | 178,563 | 334,225 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (170,511) | (204,241) |
Decrease in cost basis | 174,000 | |
Decrease in accumulated amortization | 97,600 | |
Supplier relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 49,756 | 56,922 |
Accumulated Amortization | (26,316) | (19,846) |
Total | 23,440 | 37,076 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (26,316) | (19,846) |
Trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 25,968 | 30,342 |
Accumulated Amortization | (23,600) | (20,106) |
Total | 2,368 | 10,236 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (23,600) | (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 | (902) | (705) |
Total | 3,066 | 3,323 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (902) | $ (705) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets | ||
2024 | $ 112,042 | |
2025 | 107,862 | |
2026 | 42,149 | |
2027 | 25,330 | |
2028 | 19,055 | |
Thereafter | 38,837 | |
Total | $ 345,275 | $ 844,720 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued payroll and related | $ 77,593 | $ 79,703 |
Accrued bonus and commission | 17,345 | 35,449 |
Accrued cost of revenue | 155,721 | 161,455 |
Sales and other taxes payable | 70,913 | 92,319 |
ESPP contributions | 6,130 | 8,499 |
Finance lease liability | 8,489 | 11,871 |
Restructuring liability | 29,086 | 1,066 |
Employee sabbatical benefit accrual | 5,515 | 30,683 |
Accrued other expense | 53,519 | 69,176 |
Total accrued expenses and other current liabilities | $ 424,311 | $ 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 ($) | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2021 |
Debt Instrument [Line Items] | |||
Total long-term debt, net | $ 988,953,000 | $ 987,382,000 | |
2029 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal | 500,000,000 | 500,000,000 | $ 500,000,000 |
Unamortized discount | (4,274,000) | (5,001,000) | |
Unamortized issuance costs | (962,000) | (1,126,000) | |
Total long-term debt, net | 494,764,000 | 493,873,000 | |
2031 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal | 500,000,000 | 500,000,000 | $ 500,000,000 |
Unamortized discount | (4,744,000) | (5,299,000) | |
Unamortized issuance costs | (1,067,000) | (1,192,000) | |
Total long-term debt, net | $ 494,189,000 | $ 493,509,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 1,000,000,000 | ||
Net proceeds from the debt offering | $ 984,700,000 | ||
Senior Notes | Change of control event | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 101% | ||
2029 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
Interest rate | 3.625% | ||
2029 Senior Notes | Redemption Period One | |||
Debt Instrument [Line Items] | |||
Debt instrument, maximum redemption price as a percentage of principal 180 days after equity offer | 40% | ||
Debt instrument, minimum redemption price as a percentage of principal outstanding | 50% | ||
2029 Senior Notes | Redemption Period Two | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 101.813% | ||
2029 Senior Notes | Redemption Period Three | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100.906% | ||
2029 Senior Notes | Redemption Period Four | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100% | ||
2029 Senior Notes | Maximum | Redemption Period One | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 103.625% | ||
2029 Senior Notes | Minimum | Redemption Period One | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100% | ||
2031 Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
Interest rate | 3.875% | ||
2031 Senior Notes | Redemption Period One | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 103.875% | ||
Debt instrument, maximum redemption price as a percentage of principal 180 days after equity offer | 40% | ||
Debt instrument, minimum redemption price as a percentage of principal outstanding | 50% | ||
2031 Senior Notes | Redemption Period Two | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100% | ||
2031 Senior Notes | Redemption Period Three | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 101.938% | ||
2031 Senior Notes | Redemption Period Four | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 101.292% | ||
2031 Senior Notes | Redemption Period Five | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100.646% | ||
2031 Senior Notes | Redemption Period Six | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100% |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Customer Credit Reserve (Details) - Sales credit reserve - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sales credit reserve | |||
Balance, beginning of period | $ 33,124 | $ 18,577 | $ 16,783 |
Additions | 167,044 | 86,303 | 55,937 |
Deductions against reserve | (166,574) | (71,756) | (54,143) |
Balance, end of period | $ 33,594 | $ 33,124 | $ 18,577 |
Revenue by Geographic Area an_3
Revenue by Geographic Area and Groups of Similar Products - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue by geographic area: | |||
Revenue | $ 4,153,945 | $ 3,826,321 | $ 2,841,839 |
Twilio Segment | |||
Revenue by geographic area: | |||
Revenue | 295,252 | 276,234 | 200,965 |
Twilio Communications | Twilio Communications | |||
Revenue by geographic area: | |||
Revenue | 3,858,693 | 3,550,087 | 2,640,874 |
Messaging | Twilio Communications | |||
Revenue by geographic area: | |||
Revenue | 2,184,752 | 2,066,300 | 1,416,265 |
Voice | Twilio Communications | |||
Revenue by geographic area: | |||
Revenue | 511,728 | 474,790 | 428,484 |
Email and Marketing Campaigns | Twilio Communications | |||
Revenue by geographic area: | |||
Revenue | 440,185 | 399,314 | 330,627 |
Other | Twilio Communications | |||
Revenue by geographic area: | |||
Revenue | 722,028 | 609,683 | 465,498 |
United States | |||
Revenue by geographic area: | |||
Revenue | $ 2,757,470 | $ 2,510,525 | $ 1,927,302 |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | |||
Percentage of revenue by geographic area: | |||
Percentage of revenue | 66% | 66% | 68% |
International | |||
Revenue by geographic area: | |||
Revenue | $ 1,396,475 | $ 1,315,796 | $ 914,537 |
International | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | |||
Percentage of revenue by geographic area: | |||
Percentage of revenue | 34% | 34% | 32% |
Revenue by Geographic Area an_4
Revenue by Geographic Area and Groups of Similar Products - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Long-lived assets by geographic area: | ||
Total | $ 139,012 | $ 233,097 |
United States | ||
Long-lived assets by geographic area: | ||
Total | $ 99,368 | $ 178,624 |
United States | Long Lived Asset by Geographic area | Geographic Concentration Risk | ||
Percentage of long-lived assets by geographic area: | ||
Percentage of revenue | 71% | 77% |
International | ||
Long-lived assets by geographic area: | ||
Total | $ 39,644 | $ 54,473 |
International | Long Lived Asset by Geographic area | Geographic Concentration Risk | ||
Percentage of long-lived assets by geographic area: | ||
Percentage of revenue | 29% | 23% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2020 | |
Loss Contingencies [Line Items] | ||||
Term of non-cancellable agreement | 3 years | |||
Purchase commitment | $ 103,800,000 | |||
Taxes payable, jurisdictional estimate | $ 38,800,000 | |||
Claim settlement amount awarded from other party | $ 18,000,000 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Term of non-cancellable agreement | 1 year | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Term of non-cancellable agreement | 3 years | |||
Domestic Tax Authority | ||||
Loss Contingencies [Line Items] | ||||
Taxes payable | $ 18,000,000 | $ 29,100,000 | ||
Foreign net operating loss carryforwards | ||||
Loss Contingencies [Line Items] | ||||
Taxes payable | 22,200,000 | 20,600,000 | ||
Indemnification Agreement | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 0 | $ 0 |
Commitment and Contingencies -
Commitment and Contingencies - Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 254,547 |
2025 | 241,056 |
2026 | 231,803 |
Total payments | $ 727,406 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred Stock | ||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common Stock | ||
Common stock, authorized (in shares) | 1,003,170,181 | 1,100,000,000 |
Common stock, issued (in shares) | 181,945,771 | 185,975,709 |
Common stock, outstanding (in shares) | 181,945,771 | 185,975,709 |
Common Stock Class A | ||
Common Stock | ||
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, issued (in shares) | 181,945,771 | 176,358,104 |
Common stock, outstanding (in shares) | 181,945,771 | 176,358,104 |
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) | $ 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 | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity | ||
Total (in shares) | 49,331,401 | 45,722,653 |
Stock-based awards available for grant under 2016 Plan | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan and shares of class A common stock reserved for issuance pursuant to ESPP (in shares) | 19,869,260 | 19,851,399 |
Common Stock Class A | ||
Stockholders' Equity | ||
Class A common stock reserved (in shares) | 442,041 | 530,449 |
Stock options issued and outstanding | ||
Stockholders' Equity | ||
Stock options issued and outstanding (in shares) | 1,722,861 | 2,277,379 |
Unvested restricted stock units issued and outstanding | ||
Stockholders' Equity | ||
Unvested restricted stock units issued and outstanding (in shares) | 18,755,538 | 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 shares of class A common stock reserved for issuance pursuant to ESPP (in shares) | 8,541,701 | 7,648,429 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Feb. 28, 2023 | |
Stockholders' Equity Note [Abstract] | ||
Share repurchase program, authorized amount | $ 1,000,000,000 | |
Stock repurchased (in shares) | 11.3 | |
Stock repurchased | $ 672,100,000 | |
Stock repurchase remaining amount | $ 327,900,000 |
Stockholders' Equity - Public E
Stockholders' Equity - Public Equity Offerings (Details) - Common Stock Class A $ / shares in Units, $ in Billions | 1 Months Ended |
Feb. 28, 2021 USD ($) $ / shares shares | |
Class of Stock [Line Items] | |
Shares sold in offering (in shares) | shares | 4,312,500 |
Offering price per share (in dollars per share) | $ / shares | $ 409.60 |
Aggregate proceeds from stock offering | $ | $ 1.8 |
Stock-Based Compensation - 2008
Stock-Based Compensation - 2008 Stock Option Plan (Details) | Dec. 31, 2023 shares |
2008 Stock Option Plan | |
Stock Based Compensation | |
Shares available for future issuance (in shares) | 0 |
Stock-Based Compensation - 2016
Stock-Based Compensation - 2016 Stock Option Plan (Details) - shares | 12 Months Ended | |||
Jan. 01, 2023 | Jan. 01, 2022 | Dec. 31, 2023 | Jun. 22, 2016 | |
Stock Based Compensation | ||||
Vesting period | 4 years | |||
Stock Options | ||||
Stock Based Compensation | ||||
Expiration term | 10 years | |||
Stock-based awards available for grant under 2016 Plan | ||||
Stock Based Compensation | ||||
Maximum automatic annual increase as a percentage of outstanding common shares | 5% | |||
Increase in shares available for grant (in shares) | 9,298,785 | 9,023,405 | ||
Stock-based awards available for grant under 2016 Plan | Stock Options | ||||
Stock Based Compensation | ||||
Minimum grant price as a percentage of fair market value per share of the underlying common stock on the date of grant (as a percent) | 100% | |||
Stock-based awards available for grant under 2016 Plan | Common Stock Class A | ||||
Stock Based Compensation | ||||
Shares reserved for issuance (in shares) | 11,500,000 |
Stock-Based Compensation - 20_2
Stock-Based Compensation - 2016 Employee Stock Purchase Plan (Details) - ESPP - shares | 12 Months Ended | |||
Jan. 01, 2023 | Jan. 01, 2022 | Dec. 31, 2023 | Jun. 22, 2016 | |
Stock Based Compensation | ||||
Maximum automatic annual increase (in shares) | 1,800,000 | |||
Maximum automatic annual increase as a percentage of outstanding common shares | 1% | |||
Increase in shares available for grant (in shares) | 1,800,000 | 1,800,000 | ||
Stock plan offering period | 6 months | |||
Common Stock Class A | ||||
Stock Based Compensation | ||||
Shares reserved for issuance (in shares) | 2,400,000 | |||
Discount from market price, offering date (as a percent) | 15% | |||
Purchase price, percentage of fair market value (as a percent) | 85% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of options outstanding | ||
Outstanding options as of the beginning of the period (in shares) | 2,277,379 | |
Exercised (in shares) | (366,456) | |
Forfeited and cancelled (in shares) | (188,062) | |
Outstanding options as of the end of the period (in shares) | 1,722,861 | 2,277,379 |
Weighted- average exercise price (Per share) | ||
Outstanding options as of the beginning of the period (in dollars per share) | $ 75.54 | |
Exercised (in dollars per share) | 20.18 | |
Forfeited and cancelled (in dollars per share) | 223.76 | |
Outstanding options as of the end of the period (in dollars per share) | $ 71.13 | $ 75.54 |
Weighted- average remaining contractual term (In years) | ||
Weighted-average remaining contractual term (in years) | 4 years 5 months 12 days | 5 years 3 months 25 days |
Aggregate intrinsic value | $ 56,007 | $ 39,167 |
Options vested and exercisable and options vested and expected to vest | ||
Options vested and exercisable - number of options outstanding (in shares) | 1,567,840 | |
Options vested and exercisable - weighted-average exercise price (in dollars per share) | $ 63.06 | |
Options vested and exercisable - weighted-average remaining contractual term | 4 years 1 month 6 days | |
Options vested and exercisable - aggregate intrinsic value | $ 55,831 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Fair Value (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Based Compensation | |||
Aggregate intrinsic value of stock options exercised | $ 15,242 | $ 80,839 | $ 508,539 |
Total estimated grant date fair value of options vested | $ 28,619 | $ 77,403 | $ 138,851 |
Weighted-average grant date fair value per share of options granted (in dollars per share) | $ 0 | $ 50.66 | $ 216.29 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Unvested restricted stock units and awards - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of awards outstanding | ||
Unvested RSUs at the beginning of the period (in shares) | 15,414,997 | |
Granted (in shares) | 14,716,790 | |
Vested (in shares) | (5,939,641) | |
Forfeited and canceled (in shares) | (5,436,608) | |
Unvested RSUs at the end of the period (in shares) | 18,755,538 | |
Weighted- average grant date fair value (Per share) | ||
Unvested RSUs at the beginning of the period (in dollars per share) | $ 130.97 | |
Granted (in dollars per share) | 65.73 | |
Vested (in dollars per share) | 116.30 | |
Forfeited and canceled (in dollars per share) | 120.16 | |
Unvested RSUs at the end of the period (in dollars per share) | $ 87.56 | |
Aggregate intrinsic value | ||
Aggregate intrinsic value | $ 1,422,983 | $ 754,718 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Units Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended |
Mar. 31, 2022 USD ($) tranche $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | |
Performance-Based Restricted Stock Units | ||
Stock Based Compensation | ||
Granted (in shares) | shares | 919,289 | |
Granted (in dollars per share) | $ / shares | $ 157.44 | |
Outstanding performance based options, aggregate intrinsic value | $ | $ 144.7 | |
Number of tranches | tranche | 3 | |
Performance-Based Restricted Stock Units | Maximum | ||
Stock Based Compensation | ||
Vesting percentage of target | 100% | |
Unvested restricted stock units and awards | ||
Stock Based Compensation | ||
Granted (in shares) | shares | 14,716,790 | |
Granted (in dollars per share) | $ / shares | $ 65.73 | |
Unrecognized compensation cost, other than options | $ | $ 1,500 | |
Weighted-average remaining period | 2 years 8 months 12 days |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Share-Based Payment Arrangement [Abstract] | |
Granted (in shares) | 0 |
Stock-Based Compensation - Va_2
Stock-Based Compensation - Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee stock options | |||
Valuation Assumptions | |||
Expected volatility, low end of range | 61.60% | 42.90% | |
Expected volatility, high end of range | 61.50% | ||
Risk-free interest rate, low end of range | 3.30% | 0.10% | |
Risk-free interest rate, high end of range | 1.40% | ||
Dividend rate | 0% | 0% | |
ESPP | |||
Valuation Assumptions | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Expected volatility, low end of range | 45.80% | 73.20% | 46.40% |
Expected volatility, high end of range | 57.10% | 97.30% | 58.70% |
Risk-free interest rate, low end of range | 5.30% | 1.50% | 0% |
Risk-free interest rate, high end of range | 5.40% | 4.50% | 0.10% |
Dividend rate | 0% | 0% | 0% |
Minimum | Employee stock options | |||
Valuation Assumptions | |||
Fair value of common stock (in dollars per share) | $ 85.17 | $ 268.55 | |
Expected term (in years) | 6 years 7 days | 3 months 18 days | |
Minimum | ESPP | |||
Valuation Assumptions | |||
Fair value of common stock (in dollars per share) | $ 47.36 | $ 50.81 | $ 297.20 |
Maximum | Employee stock options | |||
Valuation Assumptions | |||
Fair value of common stock (in dollars per share) | $ 409.21 | ||
Expected term (in years) | 6 years 4 months 20 days | ||
Maximum | ESPP | |||
Valuation Assumptions | |||
Fair value of common stock (in dollars per share) | $ 61.55 | $ 99.68 | $ 310.80 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | $ 675,857 | $ 798,560 | $ 632,285 |
Cost of revenue | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 26,343 | 21,136 | 14,074 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 331,526 | 374,846 | 258,672 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 183,389 | 240,109 | 213,351 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | 121,584 | 148,194 | 146,188 |
Restructuring costs | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation | $ 13,015 | $ 14,275 | $ 0 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net Loss Per Share Attributable to Common Stockholders | |||
Net loss attributable to common stockholders (in thousands) | $ (1,015,441) | $ (1,256,145) | $ (949,900) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares) | 183,327,844 | 182,994,038 | 174,180,465 |
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares) | 183,327,844 | 182,994,038 | 174,180,465 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (5.54) | $ (6.86) | $ (5.45) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (5.54) | $ (6.86) | $ (5.45) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Common Stock Equivalents excluded from Calculation of Diluted Net Loss Per Share attributable to Common Stockholders (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 21,381,913 | 19,076,899 | 10,904,377 |
Stock options issued and outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,722,861 | 2,277,379 | 3,351,313 |
Unvested restricted stock units issued and outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 18,755,538 | 15,414,997 | 6,475,700 |
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) | 442,041 | 530,449 | 618,857 |
Shares of Class A common stock committed under ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 426,199 | 766,334 | 147,947 |
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 | 75,506 |
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 | 235,054 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (816,089) | $ (1,021,208) | $ (737,360) |
International | (180,640) | (222,424) | (223,569) |
Loss before provision for income taxes | $ (996,729) | $ (1,243,632) | $ (960,929) |
Income Taxes - Provision for (B
Income Taxes - Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 2,567 | $ 3,928 | $ 122 |
State | 1,533 | 4,100 | 420 |
Foreign | 31,354 | 17,450 | 8,274 |
Total | 35,454 | 25,478 | 8,816 |
Deferred: | |||
Federal | (1,337) | (5,155) | (13,772) |
State | (208) | (818) | (4,083) |
Foreign | (15,197) | (6,992) | (1,990) |
Total | (16,742) | (12,965) | (19,845) |
Provision for (benefit from) income taxes | $ 18,712 | $ 12,513 | $ (11,029) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Tax Rate and the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 21% | 21% | 21% |
State tax, net of federal benefit | 3% | 3% | 8% |
Stock-based compensation | (7.00%) | (7.00%) | 16% |
Credits | 2% | 1% | 4% |
Foreign rate differential | 1% | (2.00%) | (1.00%) |
Change in valuation allowance | (23.00%) | (17.00%) | (46.00%) |
Other | 1% | (1.00%) | 0% |
Effective tax rate | (2.00%) | (2.00%) | 2% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 983,652 | $ 959,864 |
Accruals and reserves | 52,750 | 47,986 |
Stock-based compensation | 29,572 | 37,981 |
Research and development credits | 177,109 | 159,604 |
Intangibles | 135,564 | 135,500 |
Capitalized research and development expenses | 231,819 | 219,176 |
Lease liability | 44,682 | 60,795 |
Unrealized losses on marketable securities | 0 | 32,108 |
Investments and other basis differences | 51,368 | 11,952 |
Other | 31,852 | 24,878 |
Gross deferred tax assets | 1,738,368 | 1,689,844 |
Valuation allowance | (1,533,933) | (1,357,300) |
Net deferred tax assets | 204,435 | 332,544 |
Deferred tax liabilities: | ||
Capitalized software | (36,109) | (36,552) |
Prepaid expenses | (1,073) | (1,587) |
Acquired intangibles | (81,415) | (202,778) |
Right-of-use asset | (19,964) | (35,734) |
Deferred commissions | (50,703) | (59,675) |
Net deferred tax asset | $ 15,171 | |
Net deferred tax liability | $ (3,782) |
Income Taxes - Tax Carryforward
Income Taxes - Tax Carryforwards, Carryovers and Credits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Domestic Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Federal and state tax credits | $ 147,500 |
Federal net operating loss carryforwards | 3,444,800 |
State and Local Jurisdiction | |
Operating Loss Carryforwards [Line Items] | |
Federal and state tax credits | 120,300 |
State and foreign net operating loss carryforwards | 2,640,300 |
Foreign net operating loss carryforwards | |
Operating Loss Carryforwards [Line Items] | |
State and foreign net operating loss carryforwards | $ 1,011,800 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Valuation allowance increase (decrease) | $ 176,600 | $ 220,500 | ||
Unrecognized tax benefits | 233,778 | $ 228,966 | $ 223,380 | $ 191,183 |
Unrecognized tax benefits that would impact effective tax rate if recognized | $ 5,100 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit, beginning of year | $ 228,966 | $ 223,380 | $ 191,183 |
Gross increases for tax positions of prior years | 3,427 | 3,250 | 3,496 |
Gross decreases for tax positions of prior years | (5,130) | (705) | (10,693) |
Gross increases for tax positions of current year | 7,754 | 4,081 | 39,394 |
Lapse of statute of limitations | (1,239) | (1,040) | 0 |
Unrecognized tax benefit, end of year | $ 233,778 | $ 228,966 | $ 223,380 |