Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-37806 | |
Entity Registrant Name | TWILIO INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2574840 | |
Entity Address, Address Line One | 101 Spear Street | |
Entity Address, Address Line Two | Fifth Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 390-2337 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | TWLO | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding (in shares) | 171,171,739 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001447669 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 672,595 | $ 655,931 |
Short-term marketable securities | 3,154,005 | 3,356,064 |
Accounts receivable, net | 540,932 | 562,773 |
Prepaid expenses and other current assets | 310,063 | 329,204 |
Total current assets | 4,677,595 | 4,903,972 |
Property and equipment, net | 201,273 | 209,639 |
Operating right-of-use assets | 68,887 | 73,959 |
Equity method investment | 568,145 | 593,582 |
Intangible assets, net | 321,501 | 350,490 |
Goodwill | 5,243,266 | 5,243,266 |
Other long-term assets | 208,622 | 234,799 |
Total assets | 11,289,289 | 11,609,707 |
Current liabilities: | ||
Accounts payable | 82,194 | 119,615 |
Accrued expenses and other current liabilities | 442,133 | 424,311 |
Deferred revenue and customer deposits | 142,372 | 144,499 |
Operating lease liability, current | 47,904 | 49,872 |
Total current liabilities | 714,603 | 738,297 |
Operating lease liability, noncurrent | 110,267 | 120,770 |
Finance lease liability, noncurrent | 6,960 | 9,191 |
Long-term debt, net | 989,356 | 988,953 |
Other long-term liabilities | 20,373 | 19,944 |
Total liabilities | 1,841,559 | 1,877,155 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Class A common stock | 177 | 182 |
Additional paid-in capital | 14,960,837 | 14,797,723 |
Accumulated other comprehensive (loss) income | (4,941) | 619 |
Accumulated deficit | (5,508,343) | (5,065,972) |
Total stockholders’ equity | 9,447,730 | 9,732,552 |
Total liabilities and stockholders’ equity | $ 11,289,289 | $ 11,609,707 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 1,047,050,000 | $ 1,006,564,000 |
Cost of revenue | 503,009,000 | 515,874,000 |
Gross profit | 544,041,000 | 490,690,000 |
Operating expenses: | ||
Research and development | 251,615,000 | 238,595,000 |
Sales and marketing | 214,018,000 | 259,885,000 |
General and administrative | 111,966,000 | 112,568,000 |
Restructuring costs | 9,946,000 | 121,942,000 |
Impairment of long-lived assets | 0 | 21,784,000 |
Total operating expenses | 587,545,000 | 754,774,000 |
Loss from operations | (43,504,000) | (264,084,000) |
Other expenses, net: | ||
Share of losses from equity method investment | (29,575,000) | (30,419,000) |
Impairment of strategic investments | 0 | (46,154,000) |
Other income, net | 27,918,000 | 8,985,000 |
Total other expenses, net | (1,657,000) | (67,588,000) |
Loss before provision for income taxes | (45,161,000) | (331,672,000) |
Provision for income taxes | (10,188,000) | (10,467,000) |
Net loss attributable to common stockholders | $ (55,349,000) | $ (342,139,000) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.31) | $ (1.84) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.31) | $ (1.84) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 181,017,726 | 186,403,349 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 181,017,726 | 186,403,349 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (55,349) | $ (342,139) |
Other comprehensive (loss) income: | ||
Unrealized (loss) gain on marketable securities | (5,193) | 30,750 |
Foreign currency translation | 0 | 483 |
Net change in market value of effective foreign currency forward exchange contracts | (4,505) | 3,335 |
Share of other comprehensive income from equity method investment | 4,138 | 14,648 |
Total other comprehensive (loss) income | (5,560) | 49,216 |
Comprehensive loss attributable to common stockholders | $ (60,909) | $ (292,923) |
Condensed Consolidated Statem_3
Condensed 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, 2022 | 176,358,104 | 9,617,605 | ||||||
Beginning balance at Dec. 31, 2022 | $ 10,559,042 | $ 174 | $ 12 | $ 14,055,853 | $ (121,161) | $ (3,375,836) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (342,139) | (342,139) | ||||||
Exercises of vested stock options (in shares) | 66,968 | 97,199 | ||||||
Exercises of vested stock options | 3,264 | 3,264 | ||||||
Vesting of restricted stock units (in shares) | 1,516,634 | |||||||
Vesting of restricted stock units | 0 | $ 2 | (2) | |||||
Value of equity awards withheld for tax liability (in shares) | (36,965) | |||||||
Value of equity awards withheld for tax liability | (2,456) | (2,456) | ||||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 97,199 | (97,199) | ||||||
Shares of Class A common stock issued and donated to charity (in shares) | 22,102 | |||||||
Shares of Class A common stock issued and donated to charity | 1,599 | 1,599 | ||||||
Unrealized (loss) gain on marketable securities | $ 30,750 | 30,750 | ||||||
Repurchases of shares of Class A common stock including related costs (in shares) | (1,900,000) | (1,902,124) | ||||||
Repurchases of shares of Class A common stock including related costs | $ (124,992) | $ (2) | (124,990) | |||||
Foreign currency translation | 483 | 483 | ||||||
Net change in market value of effective foreign currency forward exchange contracts | 3,335 | 3,335 | ||||||
Share of other comprehensive income from equity method investment | 14,648 | 14,648 | ||||||
Stock-based compensation | 164,999 | 164,999 | ||||||
Stock-based compensation - restructuring | 10,333 | 10,333 | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 176,121,918 | 9,617,605 | ||||||
Ending balance at Mar. 31, 2023 | 10,318,866 | $ 174 | $ 12 | 14,233,590 | (71,945) | (3,842,965) | ||
Beginning balance (in shares) at Dec. 31, 2023 | 181,945,771 | 0 | 181,945,771 | |||||
Beginning balance at Dec. 31, 2023 | 9,732,552 | $ 182 | 14,797,723 | 619 | (5,065,972) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (55,349) | (55,349) | ||||||
Exercises of vested stock options (in shares) | 43,835 | |||||||
Exercises of vested stock options | 421 | 421 | ||||||
Vesting of restricted stock units (in shares) | 1,615,930 | |||||||
Vesting of restricted stock units | 0 | $ 1 | (1) | |||||
Value of equity awards withheld for tax liability (in shares) | (26,757) | |||||||
Value of equity awards withheld for tax liability | (1,918) | (1,918) | ||||||
Shares of Class A common stock issued and donated to charity (in shares) | 22,102 | |||||||
Shares of Class A common stock issued and donated to charity | 1,295 | 1,295 | ||||||
Shares returned from escrow (in shares) | (696) | |||||||
Shares returned from escrow | (192) | (192) | ||||||
Unrealized (loss) gain on marketable securities | $ (5,193) | (5,193) | ||||||
Repurchases of shares of Class A common stock including related costs (in shares) | (6,100,000) | (6,128,298) | ||||||
Repurchases of shares of Class A common stock including related costs | $ (387,028) | $ (6) | (387,022) | |||||
Foreign currency translation | 0 | |||||||
Net change in market value of effective foreign currency forward exchange contracts | (4,505) | (4,505) | ||||||
Share of other comprehensive income from equity method investment | 4,138 | 4,138 | ||||||
Stock-based compensation | 161,061 | 161,061 | ||||||
Stock-based compensation - restructuring | 2,448 | 2,448 | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 177,471,887 | 0 | 177,471,887 | |||||
Ending balance at Mar. 31, 2024 | $ 9,447,730 | $ 177 | $ 14,960,837 | $ (4,941) | $ (5,508,343) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (55,349,000) | $ (342,139,000) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 53,318,000 | 71,393,000 |
Non-cash reduction to the right-of-use asset | 5,076,000 | 8,574,000 |
Net amortization of investment premium and discount | (6,029,000) | 3,515,000 |
Impairment of long-lived assets | 0 | 21,784,000 |
Stock-based compensation including restructuring | 158,606,000 | 170,799,000 |
Amortization of deferred commissions | 18,829,000 | 17,865,000 |
Provision for doubtful accounts | 6,204,000 | 7,220,000 |
Share of losses from equity method investment | 29,575,000 | 30,419,000 |
Impairment of strategic investments | 0 | 46,154,000 |
Other adjustments | 4,996,000 | 9,746,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 15,637,000 | (35,215,000) |
Prepaid expenses and other current assets | 16,901,000 | (51,438,000) |
Other long-term assets | 6,859,000 | (21,481,000) |
Accounts payable | (37,762,000) | 66,000 |
Accrued expenses and other current liabilities | (12,447,000) | (19,130,000) |
Deferred revenue and customer deposits | (2,127,000) | (2,611,000) |
Operating lease liabilities | (12,470,000) | (13,651,000) |
Other long-term liabilities | 306,000 | 264,000 |
Net cash provided by (used in) operating activities | 190,123,000 | (97,866,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities and other investments | (435,590,000) | (136,119,000) |
Proceeds from sales and maturities of marketable securities | 638,185,000 | 355,195,000 |
Capitalized software development costs | (11,154,000) | (9,860,000) |
Purchases of long-lived and intangible assets | (1,671,000) | (6,751,000) |
Net cash provided by investing activities | 189,770,000 | 202,465,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on debt and finance leases | (4,832,000) | (7,353,000) |
Value of equity awards withheld for tax liabilities | (1,918,000) | (2,456,000) |
Repurchases of shares of Class A common stock and related costs | (356,900,000) | (114,993,000) |
Proceeds from exercises of stock options | 421,000 | 3,264,000 |
Net cash used in financing activities | (363,229,000) | (121,538,000) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 39,000 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 16,664,000 | (16,900,000) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 655,931,000 | 656,078,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | 672,595,000 | 639,178,000 |
Cash paid for income taxes, net | 10,761,000 | 3,479,000 |
Cash paid for interest | 18,893,000 | 18,750,000 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Cash and cash equivalents | 672,595,000 | 634,824,000 |
Restricted cash in other current assets | 0 | 3,916,000 |
Restricted cash in other long-term assets | 0 | 438,000 |
Total cash, cash equivalents and restricted cash | $ 672,595,000 | $ 639,178,000 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Twilio Inc. (the “Company”) was incorporated in the state of Delaware on March 13, 2008. Today's leading companies trust Twilio's Customer Engagement Platform to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of their customers’ journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. The Company’s headquarters are located in San Francisco, California, and the Company has subsidiaries across North America, South America, Europe, Asia and Australia. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2024 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date, but may not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2024 or any future period. (b) Principles of Consolidation The condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; allocation of goodwill to reporting units; impairment assessments of goodwill and indefinite-lived intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair value of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under then current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. (d) Remaining Performance Obligations Revenue allocated to remaining performance obligations for contracts with durations of more than one year was $150.6 million as of March 31, 2024, of which 63% is expected to be recognized over the next 12 months and 91% is expected to be recognized over the next 24 months. (e) Deferred Revenue and Customer Deposits As of March 31, 2024, and December 31, 2023, the Company recorded $142.4 million and $144.5 million as its deferred revenue and customer deposits, respectively. During the three months ended March 31, 2024 and 2023, the Company recognized $65.4 million and $71.3 million of revenue, respectively, that was included in the deferred revenue and customer deposits balances as of the end of the previous year. (f) Concentration of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company maintains cash, cash equivalents and marketable securities with financial institutions. Certain balances held by such financial institutions exceed insured limits. The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customer deteriorates substantially, operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of significant customers 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. As of March 31, 2024, and December 31, 2023, the allowance for doubtful accounts was $37.7 million and $42.0 million, respectively, and is recorded in accounts receivable, net, in the accompanying condensed consolidated balance sheets. In the three months ended March 31, 2024 and 2023, no customer organization accounted for more than 10% of the Company’s total revenue. As of March 31, 2024 and December 31, 2023, no customer organization represented more than 10% of the Company’s gross accounts receivable. (g) Restructuring Costs The Company records restructuring expenses when (i) management commits to a restructuring plan, (ii) the restructuring plan identifies all significant actions, (iii) the period of time to complete the restructuring plan indicates that significant changes to the plan are not likely, and (iv) employees who are impacted have been notified of the pending involuntary termination. The Company enacted workforce reduction plans in February 2023, December 2023 and March 2024. In the three months ended March 31, 2024, restructuring charges incurred and cash paid related to these plans were not significant. The estimated remaining expenses related to these plans are not expected to be significant. (h) Recently Adopted Accounting Guidance 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. The guidance will be effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company adopted ASU 2022-03 in the first quarter of 2024 with no material impact to the Company’s condensed consolidated financial statements. (i) Recently Issued Accounting Guidance, Not yet Adopted 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 expects to adopt ASU 2023-07 upon its effective date. The adoption will require certain additional disclosure in the notes to the Company’s 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 expects to adopt ASU 2023-09 upon its effective date. The adoption will require certain additional disclosure in the notes to the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 447,629 $ — $ — $ — $ 447,629 $ — $ — $ 447,629 Commercial paper 13,036 — — — — 13,036 — 13,036 Total included in cash 460,665 — — — 447,629 13,036 — 460,665 Marketable securities: Debt securities: U.S. Treasury securities 437,581 331 (665) (549) 436,698 — — 436,698 Non-U.S. government securities 68,549 23 (20) (463) 68,089 — — 68,089 Corporate debt securities and commercial paper 2,651,283 6,442 (9,711) (2,731) 14,690 2,630,593 — 2,645,283 Total debt securities 3,157,413 6,796 (10,396) (3,743) 519,477 2,630,593 — 3,150,070 Equity securities 3,935 — — — 3,935 — — 3,935 Total marketable 3,161,348 6,796 (10,396) (3,743) 523,412 2,630,593 — 3,154,005 Total financial assets $ 3,622,013 $ 6,796 $ (10,396) $ (3,743) $ 971,041 $ 2,643,629 $ — $ 3,614,670 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 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. Interest earned on debt securities was $27.2 million and $17.2 million in the three months ended March 31, 2024 and 2023, respectively. The interest is recorded as other income, net, in the accompanying condensed consolidated statements of operations. The following table summarizes the contractual maturities of debt securities: As of March 31, As of December 31, 2024 2023 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,092,477 $ 1,085,126 $ 1,448,256 $ 1,434,149 One to three years 2,064,936 2,064,944 1,905,056 1,917,014 Total $ 3,157,413 $ 3,150,070 $ 3,353,312 $ 3,351,163 Strategic Investments As of March 31, 2024 and December 31, 2023, the Company held strategic investments with a carrying value of $31.1 million and $30.7 million, respectively, recorded as other long-term assets in the accompanying condensed consolidated balance sheets. The carrying value of these securities is determined under the measurement alternative on a non-recurring basis and adjusted for observable changes in fair value or impairment. There were no impairments or significant adjustments recorded in the three months ended March 31, 2024 related to these investments. During the three months ended March 31, 2023, the Company recorded an impairment loss of $46.2 million related to one of these investments in other expenses, net, in the accompanying condensed consolidated statement of operations. Financial Liabilities The Company’s financial liabilities that are measured at fair value on a recurring basis consist of foreign currency derivative liabilities and are classified as Level 2 financial instruments in the fair value hierarchy. As of March 31, 2024 and December 31, 2023, the aggregate fair value of these liabilities and the associated unrealized losses were not significant. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of March 31, As of December 31, 2024 2023 (In thousands) Capitalized internal-use software developments costs $ 310,947 $ 297,655 Data center equipment (1) 104,803 104,543 Leasehold improvements 92,427 92,315 Office equipment 56,833 60,905 Furniture and fixtures 14,558 14,558 Software 14,639 14,639 Total property and equipment 594,207 584,615 Less: accumulated depreciation and amortization (1) (392,934) (374,976) Total property and equipment, net $ 201,273 $ 209,639 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of March 31, 2024 and December 31, 2023. Accumulated depreciation and amortization includes $59.3 million and $55.9 million of accumulated depreciation for assets held under finance leases as of March 31, 2024, and December 31, 2023, respectively. Depreciation and amortization expense was $23.8 million and $20.1 million in the three months ended March 31, 2024 and 2023, respectively. The Company capitalized $16.1 million and $14.2 million in internal‑use software development costs in the three months ended March 31, 2024 and 2023, respectively. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As of March 31, 2024, the Company had two operating and reportable segments: Twilio Communications (“Communications”) and Twilio Segment (“Segment”). Twilio Communications : The Communications reportable 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 and Marketing Campaigns. Twilio Segment : The Segment reportable 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. Presented below is the discrete financial information by reportable segment for the three months ended March 31, 2024 and 2023, that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) 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, human resources, finance and accounting expenses. Three Months Ended 2024 2023 (In thousands) Revenue: Communications $ 972,005 $ 932,948 Segment 75,045 73,616 Total $ 1,047,050 $ 1,006,564 Non-GAAP income (loss) from operations: Communications $ 249,010 $ 180,464 Segment (20,994) (17,217) Corporate costs (68,406) (59,460) Total $ 159,610 $ 103,787 Reconciliation of non-GAAP income (loss) from operations to loss from operations: Total non-GAAP income (loss) from operations $ 159,610 $ 103,787 Stock-based compensation (156,158) (160,466) Amortization of acquired intangibles (28,939) (50,774) Acquisition and divestiture related expenses — (2,235) Loss on net assets held for sale — (3,824) Payroll taxes related to stock-based compensation (6,776) (5,247) Charitable contributions (1,295) (1,599) Restructuring costs (9,946) (121,942) Impairment of long-lived assets — (21,784) Loss from operations (43,504) (264,084) Other expenses, net (1,657) (67,588) Loss before provision for income taxes $ (45,161) $ (331,672) |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging As of March 31, 2024, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with a total sell notional value of $206.8 million. The notional value represents the amount that will be sold upon maturity of the forward contract. As of March 31, 2024, these contracts had maturities of up to 17 months. Gains and losses associated with these foreign currency forward contracts were not significant. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As of March 31, 2024 and December 31, 2023, the balance of the Company’s goodwill was $5.2 billion, of which $4.9 billion relates to the Communications reportable segment and $306.1 million relates to the Segment reportable segment. There was no goodwill activity during the three months ended March 31, 2024. Intangible assets Intangible assets consisted of the following: As of March 31, 2024 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 397,473 $ (274,167) $ 123,306 Customer relationships 349,074 (182,045) 167,029 Supplier relationships 49,756 (28,586) 21,170 Trade names 25,968 (24,204) 1,764 Order backlog 10,000 (10,000) — Patent 3,968 (951) 3,017 Total amortizable intangible assets 836,239 (519,953) 316,286 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 841,454 $ (519,953) $ 321,501 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 Amortization expense was $29.0 million and $50.8 million for the three months ended March 31, 2024 and 2023, respectively. Total estimated future amortization expense is as follows: As of March 31, 2024 Year Ended December 31, (In thousands) 2024 (remaining nine months) $ 83,053 2025 107,862 2026 42,149 2027 25,330 2028 19,055 Thereafter 38,837 Total $ 316,286 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of March 31, As of December 31, 2024 2023 (In thousands) Accrued payroll and related $ 51,671 $ 77,593 Accrued bonus and commission 37,587 17,345 Accrued cost of revenue 165,335 155,721 Sales and other taxes payable 66,295 70,913 ESPP contributions 16,880 6,130 Finance lease liability 6,169 8,489 Restructuring liability 12,841 29,086 Share repurchase costs payable 30,989 3,526 Accrued other expense 54,366 55,508 Total accrued expenses and other current liabilities $ 442,133 $ 424,311 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt, net, consisted of the following: As of March 31, As of December 31, 2024 2023 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,088) (4,274) Unamortized issuance costs (920) (962) Net carrying amount 494,992 494,764 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (4,601) (4,744) Unamortized issuance costs (1,035) (1,067) Net carrying amount 494,364 494,189 Total long-term debt, net $ 989,356 $ 988,953 As of March 31, 2024, the Company was in compliance with all of its covenants under the related indentures. |
Revenue by Geographic Area
Revenue by Geographic Area | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Geographic Area | Revenue by Geographic Area Revenue by geographic area is based on the IP address or the mailing address of the customer at the time of registration. The following table sets forth revenue by geographic area: Three Months Ended 2024 2023 Revenue by geographic area: (In thousands) United States $ 686,527 $ 662,092 International 360,523 344,472 Total $ 1,047,050 $ 1,006,564 Percentage of revenue by geographic area: United States 66 % 66 % International 34 % 34 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease and Other Commitments The Company has entered into various non-cancelable operating lease agreements for its facilities. In the three months ended March 31, 2024, the Company did not enter into any significant new lease agreements. The Company has non-cancelable contractual commitments with its cloud infrastructure provider, network service providers and other vendors. In the three months ended March 31, 2024, the Company did not enter into any significant non-cancelable contractual commitments. 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 condensed consolidated statements of operations. 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 March 31, 2024, and December 31, 2023, no amounts were accrued related to any outstanding indemnification agreements. Other Taxes The Company conducts operations in multiple tax jurisdictions within and outside of the United States. In many of these jurisdictions, non-income-based taxes, such as sales, use, telecommunications and other local taxes are assessed on the Company’s operations. The Company carries reserves for certain of its non-income-based tax exposures in certain jurisdictions when it is both probable that a liability was incurred and the amount of the exposure could be reasonably estimated. These reserves are based on estimates which include several key assumptions including, but not limited to, the taxability of the Company’s services, the jurisdictions in which its management believes it had nexus and the sourcing of revenues to those jurisdictions. The Company continues to remain in discussions with certain jurisdictions regarding its prior sales and other taxes that it may owe. In the event any of these jurisdictions disagree with management’s assumptions and analysis, the assessment of the Company’s tax exposure could differ materially from management’s current estimates. As of March 31, 2024, the liabilities recorded for the non-income-based taxes were $18.2 million for domestic jurisdictions and $20.0 million for jurisdictions outside of the United States. As of December 31, 2023, these liabilities were $18.0 million and $22.2 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock As of March 31, 2024, and December 31, 2023, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001, of which no shares were issued and outstanding. Common Stock As of March 31, 2024, the Company had authorized 1,000,000,000 shares of Class A common stock and 3,170,181 shares of Class B common stock, each with a par value of $0.001 per share. As of March 31, 2024, 177,471,887 shares of Class A common stock and no shares of Class B common stock were issued and outstanding. 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 with a 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. The Company had reserved shares of common stock for issuance as follows: As of March 31, As of December 31, 2024 2023 Stock options issued and outstanding 1,584,426 1,722,861 Unvested restricted stock units issued and outstanding 16,173,773 18,755,538 Shares of Class A common stock reserved for Twilio.org 419,939 442,041 Stock-based awards available for grant under 2016 Plan 30,471,471 19,869,260 Shares of Class A common stock reserved for issuance pursuant to ESPP 10,341,701 8,541,701 Total 58,991,310 49,331,401 Share Repurchase Programs In February 2023, the board of directors of the Company authorized a repurchase of up to $1.0 billion in aggregate value of its outstanding Class A common stock through a share repurchase program. In March 2024, the board of directors of the Company authorized a second share repurchase program for an additional $2.0 billion in aggregate value of its outstanding Class A common stock. Repurchases under these programs can be made through open market, private transactions or other means, in compliance with applicable federal securities laws, and could include repurchases pursuant to Rule 10b5-1 trading plans. The Company has discretion in determining the conditions under which shares may be repurchased from time to time. The programs each expire on December 31, 2024. In the three months ended March 31, 2024 and 2023, the Company repurchased 6.1 million and 1.9 million shares of its Class A common stock, respectively, for an aggregate purchase price of $384.3 million and $125.0 million, respectively. As of March 31, 2024, approximately $1.9 billion of the aggregate amount authorized under the stock repurchase programs remained available for future repurchases. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2016 Stock Option and Incentive Plan (the “2016 Plan”) provides for granting stock options, restricted stock units, restricted stock awards, stock appreciation rights, unrestricted stock awards, performance share awards, dividend equivalent rights and cash-based awards to its employees, directors and consultants. Certain of the Company’s outstanding equity awards were granted under equity incentive plans that are no longer active but continue to govern the outstanding equity awards granted thereunder. In addition, pursuant to the Company’s 2016 Employee Stock Purchase Plan (“ESPP”), eligible employees may purchase shares of the Company’s Class A common stock at a discount of 15% through payroll deductions of their eligible compensation. The ESPP provides for separate six-month offering periods beginning in May and November of each year. As of March 31, 2024, total unrecognized compensation cost related to unvested restricted stock units was $1.2 billion, which will be amortized over a weighted-average period of 2.6 years. As of March 31, 2024, total unrecognized compensation cost related to unvested stock options, the ESPP, and shares of Class A common stock in escrow subject to future vesting was not significant. Stock-Based Compensation Expense The Company recorded total stock-based compensation expense as follows: Three Months Ended 2024 2023 (In thousands) Cost of revenue $ 5,891 $ 5,290 Research and development 81,349 78,093 Sales and marketing 34,655 48,129 General and administrative 34,263 28,954 Restructuring costs 2,448 10,333 Total $ 158,606 $ 170,799 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Three Months Ended 2024 2023 Net loss attributable to common stockholders (in thousands) $ (55,349) $ (342,139) Weighted-average shares used to compute net loss per share attributable to 181,017,726 186,403,349 Net loss per share attributable to common stockholders, basic and diluted $ (0.31) $ (1.84) The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of March 31, 2024 2023 Stock options issued and outstanding 1,584,426 2,007,636 Unvested restricted stock units issued and outstanding 16,173,773 13,487,645 Shares of Class A common stock reserved for Twilio.org 419,939 508,347 Shares of Class A common stock committed under ESPP 396,611 742,303 Shares of Class A common stock in escrow — 31,503 Shares of Class A common stock in escrow and restricted stock awards subject to future vesting 3,771 15,936 Total 18,578,520 16,793,370 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its provision for income taxes for interim periods using an estimated annual effective tax rate based on anticipated annual pretax income or loss. The estimated annual effective tax rate is applied to the Company’s year-to- date income or loss, and is adjusted for discrete items recorded in the period. The primary difference between the Company’s effective tax rate and the federal statutory rate is the full valuation allowance the Company has established on its federal, state and certain foreign net operating losses and credits. The Company recorded an income tax provision of $10.2 million and $10.5 million for the three months ended March 31, 2024 and 2023, respectively. The provision for income taxes recorded in the three months ended March 31, 2024 consists primarily of federal, state and foreign income taxes, withholding taxes in foreign jurisdictions in which the Company conducts business, and income tax expense from a foreign audit settlement. The provision for income taxes recorded in the three months ended March 31, 2023 consists primarily of federal, state and foreign income taxes and withholding taxes in foreign jurisdictions in which the Company conducts business, partially offset by an income tax benefit from the release of tax liabilities related to uncertain tax positions for which the statute of limitation had lapsed. The Company is subject to taxation in the U.S. and various other state and foreign jurisdictions. Because the Company has net operating loss carryforwards for U.S. federal and state jurisdictions, the statute of limitations is open for all tax years. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In May 2022, the Company and Syniverse Corporation (“Syniverse”), an equity method investee, entered into a wholesale agreement pursuant to which Syniverse would process, route and deliver application-to-person messages originating and/or terminating between the Company’s customers and mobile network operators. For the three months ended March 31, 2024 and 2023, the value of the transactions that occurred between the Company and Syniverse were $34.0 million and $33.5 million, respectively. These transactions were recorded as cost of revenue in the accompanying condensed consolidated statements of operations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (55,349) | $ (342,139) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Khozema Shipchandler [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 6, 2024, Khozema Shipchandler, our Chief Executive Officer and a member of our board of directors, adopted a Rule 10b5-1 trading plan providing for the sale of up to an aggregate of 123,388 |
Name | Khozema Shipchandler |
Title | Chief Executive Officer and a member of our board of directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 6, 2024 |
Arrangement Duration | 394 days |
Aggregate Available | 123,388 |
Aidan Viggiano [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 7, 2024, Aidan Viggiano, our Chief Financial Officer, entered into a Rule 10b5-1 trading plan providing for the sale of up to an aggregate of 121,675 shares of common stock held by Ms. Viggiano, plus any shares acquired pursuant to equity awards granted after the adoption of the plan or purchased under our employee stock purchase plan prior to the termination of the plan. The number of shares listed above for Ms. Viggiano includes performance-based awards presented at their target amounts and shares subject to limit orders that may or may not execute. The number of shares eligible for sale will also be reduced by shares sold in mandatory transactions to cover withholding taxes. The duration of the plan is until July 31, 2025 or earlier if all transactions under the plan have been completed. |
Name | Aidan Viggiano |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 7, 2024 |
Arrangement Duration | 511 days |
Aggregate Available | 121,675 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2024 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2023, included herein, was derived from the audited financial statements as of that date, but may not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders’ equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2024 or any future period. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; allocation of goodwill to reporting units; impairment assessments of goodwill and indefinite-lived intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair value of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under then current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. |
Deferred Revenue and Customer Deposits and Deferred Sales Commissions | Deferred Revenue and Customer Deposits As of March 31, 2024, and December 31, 2023, the Company recorded $142.4 million and $144.5 million as its deferred revenue and customer deposits, respectively. During the three months ended March 31, 2024 and 2023, the Company recognized $65.4 million and $71.3 million of revenue, respectively, that was included in the deferred revenue and customer deposits balances as of the end of the previous year. |
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, marketable securities and accounts receivable. The Company maintains cash, cash equivalents and marketable securities with financial institutions. Certain balances held by such financial institutions exceed insured limits. |
Restructuring Costs | Restructuring Costs |
Recently Adopted Accounting Guidance and Recently Issued Accounting Guidance, Not yet Adopted | Recently Adopted Accounting Guidance 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. The guidance will be effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company adopted ASU 2022-03 in the first quarter of 2024 with no material impact to the Company’s condensed consolidated financial statements. (i) Recently Issued Accounting Guidance, Not yet Adopted 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 expects to adopt ASU 2023-07 upon its effective date. The adoption will require certain additional disclosure in the notes to the Company’s 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 expects to adopt ASU 2023-09 upon its effective date. The adoption will require certain additional disclosure in the notes to the Company’s consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 447,629 $ — $ — $ — $ 447,629 $ — $ — $ 447,629 Commercial paper 13,036 — — — — 13,036 — 13,036 Total included in cash 460,665 — — — 447,629 13,036 — 460,665 Marketable securities: Debt securities: U.S. Treasury securities 437,581 331 (665) (549) 436,698 — — 436,698 Non-U.S. government securities 68,549 23 (20) (463) 68,089 — — 68,089 Corporate debt securities and commercial paper 2,651,283 6,442 (9,711) (2,731) 14,690 2,630,593 — 2,645,283 Total debt securities 3,157,413 6,796 (10,396) (3,743) 519,477 2,630,593 — 3,150,070 Equity securities 3,935 — — — 3,935 — — 3,935 Total marketable 3,161,348 6,796 (10,396) (3,743) 523,412 2,630,593 — 3,154,005 Total financial assets $ 3,622,013 $ 6,796 $ (10,396) $ (3,743) $ 971,041 $ 2,643,629 $ — $ 3,614,670 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 |
Schedule of contractual maturities of marketable securities | The following table summarizes the contractual maturities of debt securities: As of March 31, As of December 31, 2024 2023 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,092,477 $ 1,085,126 $ 1,448,256 $ 1,434,149 One to three years 2,064,936 2,064,944 1,905,056 1,917,014 Total $ 3,157,413 $ 3,150,070 $ 3,353,312 $ 3,351,163 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of March 31, As of December 31, 2024 2023 (In thousands) Capitalized internal-use software developments costs $ 310,947 $ 297,655 Data center equipment (1) 104,803 104,543 Leasehold improvements 92,427 92,315 Office equipment 56,833 60,905 Furniture and fixtures 14,558 14,558 Software 14,639 14,639 Total property and equipment 594,207 584,615 Less: accumulated depreciation and amortization (1) (392,934) (374,976) Total property and equipment, net $ 201,273 $ 209,639 ____________________________________ ( 1 ) Data center equipment contains $72.4 million in assets held under finance leases as of March 31, 2024 and December 31, 2023. Accumulated depreciation and amortization includes $59.3 million and $55.9 million of accumulated depreciation for assets held under finance leases as of March 31, 2024, and December 31, 2023, respectively. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of financial information | Presented below is the discrete financial information by reportable segment for the three months ended March 31, 2024 and 2023, that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) 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, human resources, finance and accounting expenses. Three Months Ended 2024 2023 (In thousands) Revenue: Communications $ 972,005 $ 932,948 Segment 75,045 73,616 Total $ 1,047,050 $ 1,006,564 Non-GAAP income (loss) from operations: Communications $ 249,010 $ 180,464 Segment (20,994) (17,217) Corporate costs (68,406) (59,460) Total $ 159,610 $ 103,787 Reconciliation of non-GAAP income (loss) from operations to loss from operations: Total non-GAAP income (loss) from operations $ 159,610 $ 103,787 Stock-based compensation (156,158) (160,466) Amortization of acquired intangibles (28,939) (50,774) Acquisition and divestiture related expenses — (2,235) Loss on net assets held for sale — (3,824) Payroll taxes related to stock-based compensation (6,776) (5,247) Charitable contributions (1,295) (1,599) Restructuring costs (9,946) (121,942) Impairment of long-lived assets — (21,784) Loss from operations (43,504) (264,084) Other expenses, net (1,657) (67,588) Loss before provision for income taxes $ (45,161) $ (331,672) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following: As of March 31, 2024 Cost Accumulated Amortization Net Amortizable intangible assets: (In thousands) Developed technology $ 397,473 $ (274,167) $ 123,306 Customer relationships 349,074 (182,045) 167,029 Supplier relationships 49,756 (28,586) 21,170 Trade names 25,968 (24,204) 1,764 Order backlog 10,000 (10,000) — Patent 3,968 (951) 3,017 Total amortizable intangible assets 836,239 (519,953) 316,286 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 841,454 $ (519,953) $ 321,501 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 |
Schedule of total estimated future amortization expense | Total estimated future amortization expense is as follows: As of March 31, 2024 Year Ended December 31, (In thousands) 2024 (remaining nine months) $ 83,053 2025 107,862 2026 42,149 2027 25,330 2028 19,055 Thereafter 38,837 Total $ 316,286 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: As of March 31, As of December 31, 2024 2023 (In thousands) Accrued payroll and related $ 51,671 $ 77,593 Accrued bonus and commission 37,587 17,345 Accrued cost of revenue 165,335 155,721 Sales and other taxes payable 66,295 70,913 ESPP contributions 16,880 6,130 Finance lease liability 6,169 8,489 Restructuring liability 12,841 29,086 Share repurchase costs payable 30,989 3,526 Accrued other expense 54,366 55,508 Total accrued expenses and other current liabilities $ 442,133 $ 424,311 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Long-term debt, net, consisted of the following: As of March 31, As of December 31, 2024 2023 (In thousands) 2029 Senior Notes Principal $ 500,000 $ 500,000 Unamortized discount (4,088) (4,274) Unamortized issuance costs (920) (962) Net carrying amount 494,992 494,764 2031 Senior Notes Principal 500,000 500,000 Unamortized discount (4,601) (4,744) Unamortized issuance costs (1,035) (1,067) Net carrying amount 494,364 494,189 Total long-term debt, net $ 989,356 $ 988,953 |
Revenue by Geographic Area (Tab
Revenue by Geographic Area (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by geographic area | Revenue by geographic area is based on the IP address or the mailing address of the customer at the time of registration. The following table sets forth revenue by geographic area: Three Months Ended 2024 2023 Revenue by geographic area: (In thousands) United States $ 686,527 $ 662,092 International 360,523 344,472 Total $ 1,047,050 $ 1,006,564 Percentage of revenue by geographic area: United States 66 % 66 % International 34 % 34 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of reserved shares of common stock for issuance | The Company had reserved shares of common stock for issuance as follows: As of March 31, As of December 31, 2024 2023 Stock options issued and outstanding 1,584,426 1,722,861 Unvested restricted stock units issued and outstanding 16,173,773 18,755,538 Shares of Class A common stock reserved for Twilio.org 419,939 442,041 Stock-based awards available for grant under 2016 Plan 30,471,471 19,869,260 Shares of Class A common stock reserved for issuance pursuant to ESPP 10,341,701 8,541,701 Total 58,991,310 49,331,401 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock based compensation expense | The Company recorded total stock-based compensation expense as follows: Three Months Ended 2024 2023 (In thousands) Cost of revenue $ 5,891 $ 5,290 Research and development 81,349 78,093 Sales and marketing 34,655 48,129 General and administrative 34,263 28,954 Restructuring costs 2,448 10,333 Total $ 158,606 $ 170,799 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of the calculation of basic and diluted net loss per share attributable to common stockholders | The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Three Months Ended 2024 2023 Net loss attributable to common stockholders (in thousands) $ (55,349) $ (342,139) Weighted-average shares used to compute net loss per share attributable to 181,017,726 186,403,349 Net loss per share attributable to common stockholders, basic and diluted $ (0.31) $ (1.84) |
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 March 31, 2024 2023 Stock options issued and outstanding 1,584,426 2,007,636 Unvested restricted stock units issued and outstanding 16,173,773 13,487,645 Shares of Class A common stock reserved for Twilio.org 419,939 508,347 Shares of Class A common stock committed under ESPP 396,611 742,303 Shares of Class A common stock in escrow — 31,503 Shares of Class A common stock in escrow and restricted stock awards subject to future vesting 3,771 15,936 Total 18,578,520 16,793,370 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation, amount | $ 150.6 | ||
Deferred revenue | 142.4 | $ 144.5 | |
Revenue recognized out of adjusted deferred revenue balance | 65.4 | $ 71.3 | |
Allowance for doubtful accounts | $ 37.7 | $ 42 | |
Next 12 Months | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation, percentage | 63% | ||
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]: 2024-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, remaining performance obligation, percentage | 91% | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Assets: | ||
Cash and cash equivalents: | $ 460,665 | $ 408,696 |
Amortized Cost or Carrying Value | 3,157,413 | 3,353,312 |
Amortized Cost or Carrying Value | 3,935 | 4,901 |
Amortized Cost or Carrying Value | 3,161,348 | 3,358,213 |
Total financial assets | 3,622,013 | 3,766,909 |
Gross Unrealized Gains | 6,796 | 17,583 |
Gross Unrealized Losses Less Than 12 Months | (10,396) | (10,936) |
Gross Unrealized Losses More Than 12 Months | (3,743) | (8,796) |
Marketable securities, aggregate fair value | 3,150,070 | 3,351,163 |
Equity securities, aggregate fair value | 3,935 | 4,901 |
Investments, aggregate fair value | 3,154,005 | 3,356,064 |
Total financial assets | 3,614,670 | 3,764,760 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 447,629 | 408,696 |
Marketable securities, aggregate fair value | 519,477 | 510,156 |
Equity securities, aggregate fair value | 3,935 | 4,901 |
Investments, aggregate fair value | 523,412 | 515,057 |
Total financial assets | 971,041 | 923,753 |
Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 13,036 | 0 |
Marketable securities, aggregate fair value | 2,630,593 | 2,841,007 |
Equity securities, aggregate fair value | 0 | 0 |
Investments, aggregate fair value | 2,630,593 | 2,841,007 |
Total financial assets | 2,643,629 | 2,841,007 |
Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | 0 |
Marketable securities, aggregate fair value | 0 | 0 |
Equity securities, aggregate fair value | 0 | 0 |
Investments, aggregate fair value | 0 | 0 |
Total financial assets | 0 | 0 |
U.S. Treasury securities | ||
Financial Assets: | ||
Amortized Cost or Carrying Value | 437,581 | 410,665 |
Gross Unrealized Gains | 331 | 2,162 |
Gross Unrealized Losses Less Than 12 Months | (665) | (7) |
Gross Unrealized Losses More Than 12 Months | (549) | (1,665) |
Marketable securities, aggregate fair value | 436,698 | 411,155 |
U.S. Treasury securities | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 436,698 | 411,155 |
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 | 68,549 | 83,576 |
Gross Unrealized Gains | 23 | 55 |
Gross Unrealized Losses Less Than 12 Months | (20) | (111) |
Gross Unrealized Losses More Than 12 Months | (463) | (1,209) |
Marketable securities, aggregate fair value | 68,089 | 82,311 |
Non-U.S. government securities | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 68,089 | 82,311 |
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 | 2,651,283 | 2,859,071 |
Gross Unrealized Gains | 6,442 | 15,366 |
Gross Unrealized Losses Less Than 12 Months | (9,711) | (10,818) |
Gross Unrealized Losses More Than 12 Months | (2,731) | (5,922) |
Marketable securities, aggregate fair value | 2,645,283 | 2,857,697 |
Corporate debt securities and commercial paper | Level 1 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 14,690 | 16,690 |
Corporate debt securities and commercial paper | Level 2 | ||
Financial Assets: | ||
Marketable securities, aggregate fair value | 2,630,593 | 2,841,007 |
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: | 447,629 | 408,696 |
Money market funds | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 447,629 | 408,696 |
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 |
Commercial paper | ||
Financial Assets: | ||
Cash and cash equivalents: | 13,036 | |
Commercial paper | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents: | 0 | |
Commercial paper | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents: | 13,036 | |
Commercial paper | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents: | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest earned on marketable securities | $ 27,200,000 | $ 17,200,000 | |
Investment in equity securities, carrying value | 31,100,000 | $ 30,700,000 | |
Impairment of strategic investments | 0 | $ 46,154,000 | |
2029 Senior Notes | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of the notes | 449,700,000 | 462,400,000 | |
2031 Senior Notes | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of the notes | $ 437,100,000 | $ 452,300,000 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Less than one year, amortized cost | $ 1,092,477 | $ 1,448,256 |
One to three years, amortized cost | 2,064,936 | 1,905,056 |
Amortized Cost or Carrying Value | 3,157,413 | 3,353,312 |
Less than one year, aggregate fair value | 1,085,126 | 1,434,149 |
One to three years, aggregate fair value | 2,064,944 | 1,917,014 |
Total aggregate fair value | $ 3,150,070 | $ 3,351,163 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property and Equipment | ||
Total property and equipment | $ 594,207 | $ 584,615 |
Less: accumulated depreciation and amortization | (392,934) | (374,976) |
Total property and equipment, net | 201,273 | 209,639 |
Capitalized internal-use software developments costs | ||
Property and Equipment | ||
Total property and equipment | 310,947 | 297,655 |
Data center equipment | ||
Property and Equipment | ||
Total property and equipment | 104,803 | 104,543 |
Finance lease asset | 72,400 | 72,400 |
Finance lease asset, accumulated amortization | 59,300 | 55,900 |
Leasehold improvements | ||
Property and Equipment | ||
Total property and equipment | 92,427 | 92,315 |
Office equipment | ||
Property and Equipment | ||
Total property and equipment | 56,833 | 60,905 |
Furniture and fixtures | ||
Property and Equipment | ||
Total property and equipment | 14,558 | 14,558 |
Software | ||
Property and Equipment | ||
Total property and equipment | $ 14,639 | $ 14,639 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 23.8 | $ 20.1 |
Capitalized internal use software development costs | $ 16.1 | $ 14.2 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,047,050 | $ 1,006,564 |
Loss from operations | (43,504) | (264,084) |
Amortization of acquired intangibles | (29,000) | (50,800) |
Restructuring costs | (9,946) | (121,942) |
Other expenses, net | (1,657) | (67,588) |
Loss before provision for income taxes | (45,161) | (331,672) |
Corporate costs | ||
Segment Reporting Information [Line Items] | ||
Loss from operations | (68,406) | (59,460) |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Loss from operations | 159,610 | 103,787 |
Stock-based compensation | (156,158) | (160,466) |
Amortization of acquired intangibles | (28,939) | (50,774) |
Acquisition and divestiture related expenses | 0 | (2,235) |
Loss on net assets divested | 0 | (3,824) |
Payroll taxes related to stock-based compensation | (6,776) | (5,247) |
Charitable contributions | (1,295) | (1,599) |
Restructuring costs | (9,946) | (121,942) |
Impairment of long-lived assets | 0 | (21,784) |
Communications | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 972,005 | 932,948 |
Loss from operations | 249,010 | 180,464 |
Segment | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 75,045 | 73,616 |
Loss from operations | $ (20,994) | $ (17,217) |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) - Net change in market value of effective foreign currency forward exchange contracts - Designated as Cash Flow Hedges - Cash Flow Hedge $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Maximum | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Derivative, term of contract | 17 months |
Buy | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Derivative, notional amount | $ 206.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill [Line Items] | |||
Goodwill | $ 5,243,266 | $ 5,243,266 | |
Amortization expense | 29,000 | $ 50,800 | |
Communications | |||
Goodwill [Line Items] | |||
Goodwill | 4,900,000 | 4,900,000 | |
Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 306,100 | $ 306,100 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 836,239 | $ 836,239 |
Accumulated Amortization | (519,953) | (490,964) |
Total | 316,286 | 345,275 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Cost | 841,454 | 841,454 |
Accumulated Amortization | (519,953) | (490,964) |
Total | 321,501 | 350,490 |
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 | 397,473 |
Accumulated Amortization | (274,167) | (259,635) |
Total | 123,306 | 137,838 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (274,167) | (259,635) |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 349,074 | 349,074 |
Accumulated Amortization | (182,045) | (170,511) |
Total | 167,029 | 178,563 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (182,045) | (170,511) |
Supplier relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 49,756 | 49,756 |
Accumulated Amortization | (28,586) | (26,316) |
Total | 21,170 | 23,440 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (28,586) | (26,316) |
Trade names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 25,968 | 25,968 |
Accumulated Amortization | (24,204) | (23,600) |
Total | 1,764 | 2,368 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (24,204) | (23,600) |
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 | 3,968 |
Accumulated Amortization | (951) | (902) |
Total | 3,017 | 3,066 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (951) | $ (902) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Intangible Assets | ||
2024 (remaining nine months) | $ 83,053 | |
2025 | 107,862 | |
2026 | 42,149 | |
2027 | 25,330 | |
2028 | 19,055 | |
Thereafter | 38,837 | |
Total | $ 316,286 | $ 345,275 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued payroll and related | $ 51,671 | $ 77,593 |
Accrued bonus and commission | 37,587 | 17,345 |
Accrued cost of revenue | 165,335 | 155,721 |
Sales and other taxes payable | 66,295 | 70,913 |
ESPP contributions | 16,880 | 6,130 |
Finance lease liability | 6,169 | 8,489 |
Restructuring liability | 12,841 | 29,086 |
Share repurchase costs payable | 30,989 | 3,526 |
Accrued other expense | 54,366 | 55,508 |
Total accrued expenses and other current liabilities | $ 442,133 | $ 424,311 |
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 (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total long-term debt, net | $ 989,356 | $ 988,953 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized discount | (4,088) | (4,274) |
Unamortized issuance costs | (920) | (962) |
Total long-term debt, net | 494,992 | 494,764 |
2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized discount | (4,601) | (4,744) |
Unamortized issuance costs | (1,035) | (1,067) |
Total long-term debt, net | $ 494,364 | $ 494,189 |
Revenue by Geographic Area (Det
Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue by geographic area: | ||
Revenue | $ 1,047,050 | $ 1,006,564 |
United States | ||
Revenue by geographic area: | ||
Revenue | $ 686,527 | $ 662,092 |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Percentage of revenue by geographic area: | ||
Percentage of revenue | 66% | 66% |
International | ||
Revenue by geographic area: | ||
Revenue | $ 360,523 | $ 344,472 |
International | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||
Percentage of revenue by geographic area: | ||
Percentage of revenue | 34% | 34% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Domestic Tax Authority | ||
Loss Contingencies [Line Items] | ||
Taxes payable | $ 18,200,000 | $ 18,000,000 |
Foreign net operating loss carryforwards | ||
Loss Contingencies [Line Items] | ||
Taxes payable | 20,000,000 | 22,200,000 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 0 | $ 0 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Preferred Stock | ||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 177,471,887 | 181,945,771 |
Common stock, outstanding (in shares) | 177,471,887 | 181,945,771 |
Common Stock Class B | ||
Common Stock | ||
Common stock, authorized (in shares) | 3,170,181 | 3,170,181 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Stock Shares Reserved (Details) - shares | Mar. 31, 2024 | Dec. 31, 2023 |
Stockholders' Equity | ||
Total (in shares) | 58,991,310 | 49,331,401 |
Stock-based awards available for grant under 2016 Plan | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan / Shares of Class A common stock reserved for issuance pursuant to ESPP (in shares) | 30,471,471 | 19,869,260 |
Common Stock Class A | ||
Stockholders' Equity | ||
Class A common stock reserved (in shares) | 419,939 | 442,041 |
Stock options issued and outstanding | ||
Stockholders' Equity | ||
Stock options issued and outstanding (in shares) | 1,584,426 | 1,722,861 |
Unvested restricted stock units issued and outstanding | ||
Stockholders' Equity | ||
Unvested restricted stock units issued and outstanding (in shares) | 16,173,773 | 18,755,538 |
Shares of Class A common stock reserved for issuance pursuant to ESPP | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan / Shares of Class A common stock reserved for issuance pursuant to ESPP (in shares) | 10,341,701 | 8,541,701 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Feb. 28, 2023 | |
Stockholders' Equity Note [Abstract] | |||
Share repurchase program, authorized amount | $ 1,000,000,000 | ||
Share repurchase program, additional authorized amount | $ 2,000,000,000 | ||
Stock repurchased (in shares) | 6.1 | 1.9 | |
Stock repurchased | $ 384,300,000 | $ 125,000,000 | |
Stock repurchase remaining amount | $ 1,900,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from market price, offering date | 15% |
Stock plan offering period | 6 months |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost, other than options | $ 1.2 |
Weighted-average remaining period | 2 years 7 months 6 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 158,606 | $ 170,799 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 5,891 | 5,290 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 81,349 | 78,093 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 34,655 | 48,129 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 34,263 | 28,954 |
Restructuring costs | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 2,448 | $ 10,333 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Loss Per Share Attributable to Common Stockholders | ||
Net loss attributable to common stockholders (in thousands) | $ (55,349) | $ (342,139) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic (in shares) | 181,017,726 | 186,403,349 |
Weighted-average shares used to compute net loss per share attributable to common stockholders, diluted (in shares) | 181,017,726 | 186,403,349 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.31) | $ (1.84) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.31) | $ (1.84) |
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 | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 18,578,520 | 16,793,370 |
Stock options issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,584,426 | 2,007,636 |
Unvested restricted stock units issued and outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 16,173,773 | 13,487,645 |
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) | 419,939 | 508,347 |
Shares of Class A common stock committed under ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 396,611 | 742,303 |
Shares of Class A common stock in escrow | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 0 | 31,503 |
Shares of Class A common stock in escrow and restricted stock awards subject to future vesting | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 3,771 | 15,936 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 10,188 | $ 10,467 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Cost of revenue | $ 503,009 | $ 515,874 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Cost of revenue | $ 34,000 | $ 33,500 |