Twilio (TWLO) 28 Oct 212021 Q3 Earnings call transcript

Company Profile

Participants

Jeffrey Lawson	Co-Founder and CEO
Andrew Zilli	Vice President of Investor Relations and Treasuries
George Hu	COO
Marc Boroditsky	CRO
Khozema Shipchandler	COO
Meta Marshall	Morgan Stanley
Brad Behaved Mayer	Macquarie
Rishi Jaluria	RBC Capital Markets
Samad Samana	Jefferies
Derrick Wood	Cowen
Michael Turrin	Wells Fargo Securities
Ittai Kidron	Oppenheimer & Co
Parker Lane	Analyst
Mark Murphy	JPMorgan
Matt Stotlar	William Blair
Catharine Trebnick	Colliers Securities
Pat Walravens	JMP
Taylor Mc Ginnis	UBS

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the Twilio Q3 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there will be question and answer session. [Operator Instructions] Please be advised that today's conference is also being recorded. further speakers would for a one to Without your of today, Instructions] ado, like I welcome [Operator Mr. Andrew Relations Zilli, and Investor Treasuries. Vice President of Sir, floor is the yours.

Andrew Zilli

Twilio's thank Thanks, for everyone, Good XXXX and Carol. joining Conference afternoon, us Third Call. Quarter Earnings you

earnings investors. remarks, presentation, investor twilio.com. of release, a on our SEC be call can press found and IR replay prepared Our filings, today's website at

Shipchandler, Q&A George Boroditsky, today for are Khozema Hu, CRO, outgoing me Co-Founder CEO, Jeff Joining and Mark our COO, and COO. Lawson,

reminder, GAAP and a can between related maybe earnings our a non-GAAP today As our guidance some commentary and press of term. to release. be in Reconciliations further our found results non-GAAP information

responses financial certain manage impacts and materially in to December the margin, and considered XX, service our projections should and Additionally, particularly remarks risks, price or our our communication, materialize In associated any changes statements, on contain actual Zipwhip, or particular, reference. these forward-looking subject and from segments XX-Q. impact are business assumptions uncertainties, and these third-party XX-K information SEC to investments, factors over X assumptions, report and Should future implied our reports our and our impact some ending results today's transactions, and by description targets change. our filings, recent our ability growth achieve those included to are to which of over that an the our fees for by discussion of pay and to on network delivery be annual years, could benefits during should our outlook our our for forward-looking incorrect, the we those next platform, results assumptions. time, of of of this expected our acquisitions, financial platforms may on the ability in the And other from including to discussion rate our partnerships Form customers, are risks, gross including XXXX, with uncertainties, changes quarter statements. margin prove our in subject our the fees of differ affect on connection on non-GAAP provider and us our subsequent that recent Form gross could our be financial most A and incorporate these and risks and

reflect events today, our statements any undertake Forward-looking and to for law. except We update assumptions the as such to to this no statements beliefs hand or only made of forward-looking of date occurrence Jeff statements after are over open or Q&A. we'll obligation information, circumstances to I'll reflect a the events, during call represent call, made. the then or statement, new unanticipated as With brief by for and it required that,

Jeffrey Lawson

Thanks, Billy.

a the have has a incredibly take want begin he's we to leadership, driving team. an and over and teams, build can't Mark [Indiscernible] contributions and Q&A amazing teams am what given for taking for Before off George evolve [Indiscernible] wait with Mark to tremendous our George. recommendation, Starting from ours. the Mark. I thank his and the unique to has excited way digital to built new fee to a is our today, sold all and nearly for dollar companies market Twilio a other the you as [Indiscernible] incredibly charge a up building next, with George also made continued in key Twilio George's out enterprises, as X efficient reports first see how years. moment our past to the to for for down admiration as which on the respect market, trajectory partners, developers, grow progress. challenging is form it to direct the and chapter, powerhouses the sales challenge I vision as really next go-to-market go-to-market be no leaders. continually or figured we I the With a I'm it set excited the COO today, Hu to

Now, on questions. to the

Operator

you, [Operator Thank sir. Instructions].

question the Meta comes from first Matt from line Morgan Please question. ask Our of Stanley. Marshall your

Meta Marshall

biggest Understanding X growth grow the in continued that on can appreciate confidence and in slowdown a growth, but that be I couple the kind congratulations you contributed what we the of QX, political in to traffic understood do headwind is to contributor question Thanks. number of an think to revenue next XXX years, XX% a Great. the gives the from we quarter. the you saw you organic point that basis organic and deceleration kind you what had organic number?

Khozema Shipchandler

our sentiment steer go-forward add put all together, continue the organic are over XX% year, foreseeable pieces rest Yeah. years. confident about this great ability really we're performance feel overall lot you to the the first across in next the the is different inorganic geographies, I for would say, the used definitely Hey at at we I cases, beliefs XX% also confidence about our all, across I to and on performance and future customers, Meta, XX% about we growing an we that and of growth business. mean Khozema. of industries, have levels organic, in last we so capabilities if in And the we Obviously, of when quarter. really of we strong at across look a basis. across cases, those X the that just across feel used would deliver talked from elevated plus at growth growth quarter and we

Meta Marshall

Thank Great. you.

Operator

Macquarie. comes the of line question from Brad Our Mayer Behaved from next

question. ask your may You

Brad Behaved Mayer

to buy Thank customer you very looking Twilio? appetite M&A you And the landscape, partner across generally, do in you market engagement landscape, talk much. philosophy? market debate Could the market? approach progressing when M&A about your sea versus overall then, past in do versus and you that build how the think the How at you're

Jeffrey Lawson

business, my take the question. it's think Jeff. I'll I

your go customers we've about what And our the it's this the accomplish yet to Company, really we to achieve bringing and that And platform. accelerating our as build, being got if on remained on our I vision history M&A see market, looked greater what really that to ability or insights amazing if we've there whether then we that's a that or philosophy customer [Indiscernible] to leading might our And first the see doesn't out becoming a when teams unlock technology we're that's of say, which the we have by there enterprise of engagement [Indiscernible]. need And the see which our vision is things result, you go a going a us. unlock So which is think ourselves, I of as team going, we and we [Indiscernible] onboard out want exactly at always leading ability look higher might to things to the hey, it's which we how what customers question? can go for product which the this from our our is we achieve vision on to in engagement a it, software or is is really question unchanged customer team opportunity platform, faster accelerate second that to bill, there and the at the time.

Brad Behaved Mayer

other generally, is bit you this question quite Certainly, vendors and second of across M&A M&A the a there it's out CPaaS CPaaS an there's market? see Yeah, for appetite do just market Twilio overall generally from there. how the entire been in

Khozema Shipchandler

a Hey, strong is that a really I on -- lot Balance say not Sheet and Brad, of on this cash obviously Khozema. are it. would we

I described, opportunity means be think presents exactly itself. if an is it opportunistic way way at that the look that Chuck we'll we which the

today inquisitive we've front think we've last did been strong we years. But a really last the time segment, obviously some really messaging think done of well. where we have selective the since especially got, more as more second ready want you're a coming to and we about that already in I of several off around feel we But over us confident, conference. course, in that something than I we necessarily We be assets do. We staff obviously opportunities see space then valuations it's not to have then. just year, this certainly like see of of the start if technology about anything,

Brad Behaved Mayer

Thank Okay. you.

Operator

question comes RBC line Jaluria next from Rishi Your the from of Capital Markets.

Your line is open.

Rishi Jaluria

Rishi you and on from guys. It to RBC. the This all responsibilities. Jaluria my Thanks And, next Hey, and new to the has congrats promotion with chapter. taking work is or the been best much -- always question. Khozema, then for great so

travel, given that return seem last how the really put-on looks of that year maybe and most especially about puts strong fading one which Just is, Just maybe that back. a from question of we you. business thinking stuff of like think be takes are should industries to like hold? having saw about wanted potentially But ask and the still coming seems lockdowns that environment. how a demand you macro to and benefits Thank we the some travel perspective, from specifically

Jeffrey Lawson

Jeff. [Indiscernible] I'll This is answer.

those are First for digital And of pandemic. companies transformations transformation. is have accelerated This you. environment who been all, I the undergoing by a agree strong with

put here a the is that really in the digital understand restaurant I like it's this think or something that over got not that to And state. important is interactions and

the of two of was Think the deviation a It that role an or We're happening. were was year past telemedicine. the innovation acceleration. [Indiscernible]. a course, bringing the future not just from lot of forward Of about

see today, that sorts to When to like these natural get creates to to ordering, trend maps and to an faster. doctor's back on at It's when is the my can drive visit? [Indiscernible]. around just experiences, want road exists, to You things. pickup all experience. instance a decade might minutes Same believe, you thought for you take with been like, digital has I that call for even I a more This see these video of that demand XX may telemedicine That's And the environment the going work. efficiencies those of across continue environment of thing businesses world. doctor digital. drive county every that because customers and go for the [Indiscernible] are it's you these transformation be a look acceleration Like better in and going continue, going to do to competitive accustomed a No. and curbside

And companies. so those and long or themselves our this. enables conference. big are platform so, pandemic flywheel customer like customers engagement our it, week About how about think just I you a accelerated, like talked Signal now how last many now When customer digitally differentiating at I over think it's markets, in had

digital big we digital robust. Facebook, of something topic these I probably the to giants acceleration that well, Google, Netflix, their think digital in Amazon, digital accelerated the etc. like talked it's I guess, XXX,XXX customers presence, also

amazing the it the so, The customers, the to understand out designed there I make therefore, I an their is Company companies, other of for increasingly companies first-class think That's Twilio accelerated, building. acquire with those [Indiscernible]. to a and so companies you for and features out while savings. everybody do? When giants’ to one. to customer I did And ability enables what to engagement to customers, journey data raised their a their customer. charts use want customers a a data, Personalize customer's companies, can experience, of waited digital, repeat has level to and out and talk want the loyal with execute to want about in customer and to the to And has been to great know relevant, that that we're life. says, product them their those it. them that every customer digital what the and [Indiscernible] do, platform that I loyal you build give and delight understanding make listen platform, all versus stakes

think because acceleration part the is of of pandemic, this which that all accelerated we're experiencing. digital I

I is There's So, environment there, strong continue. I an this out yes. think that that to and think a aberration. don't is going

acceleration. an it's think I

Rishi Jaluria

Thank it. Got you.

Operator

of Jefferies. is Your question. question ask of from the Samana Please line next Samad your

Samad Samana

before Jeff, questions. conference, more the on platform, you're the X SIGNAL of bundling from more difference solutions if going Company customers, out as the that's just tick of my that. you, and you taking if rolled I'm you driving the upfront mentioned, off rolled want front the in for how you're to and day or the you've out top solutions to as Thanks wondering as see all that actually maybe you're any evening. Good long Hi. you've core and for seeing adoption well? line starting engage, were on if the volume of inside of seeing business these

Jeffrey Lawson

that's great to Officer a question [Indiscernible] And for take.

Khozema Shipchandler

question. have that Thank the affects in the adoption you recent we you, Thank quarter. seen the captain. for Definitely Samad

partners Flex partner. solution Flex examples, with at Twilio, the building confidence that has us docking which inspired their represents gives has this for number at, from that as the one way Flex GXK. Waterfield. a of Flex a conversations your SNB the our first the Company our again, seen for an full past us next-generation As solutions offering needed into X Probably solution. small possible last plot from all the on of looking day center the their most that week potential as at great about consider the of to market. changing to Likewise, He overall. saw announcement to plug-in are a question, to it and Samad, that engaged, with is on SIGNAL built sell made IFD aligns quarter, And offering for contact of their we successfully the the with more

Samad Samana

if helpful, for in I political I you revenue One, want I a sir. XXs still to low how forward? if guide that's to Okay, have the that correct. revenue, well put as maybe just appreciate XX% see If then the I follow-up, the I take a Khozema, political growth. look XXs go-forward question, implies, organic spot out on with it. you as but we don't math man. low that just contextualize with And that's want growth plus should again, you

Khozema Shipchandler

fly. not, them on or to build actually up it came the believe [Indiscernible] think I I

gave the you right. setup is think that about I

I think the we earlier. XX% to talked The we reality businesses we about is organic. XX% gave [Indiscernible] see across growth as that continue inorganic,

the things we certainly see we good setup just described. we as I -- And look guidance that math on about for a think nice if based really ballpark you that QX; you feel do implied, for at amount well referenced the of The the we you and put really just relative plus that you're out a as that about QX. out a about moment a tremendous Jeff mean, to XX% as opportunity front see things in next of ago just we we over three have us Mark conviction talked can that strong deliver some SIGNAL, years. of the I that really, a of lot

So, I feel broad-based just strength the good we really, across about really think business.

Samad Samana

Thank Great, taking you. I appreciate questions. all you my

Khozema Shipchandler

Sure. Samad. Thanks,

Operator

Cowen. the Derrick line Wood next is question from The coming of of

You may now ask your question.

Derrick Wood

George, time I COO but your be anything next my Khozema, early, know as to you taking want new it's Mark, Thanks assume, the we And a the anticipate question. you've too should your bigger we shouldn't know for in thinking call. direct the probably into good luck of share a you taking in then I tweaks endeavor. I terms had role? Should you're -- will standpoint? CRO or sale, be change We what early move priorities on about per make year, go-to-market the to from model? much to

Jeffrey Lawson

over to I'll then just turn it first, Marc. then Khozema, and I'll and Derrick, Maybe

in So, it as [Indiscernible]. already role continuation part, an we've of more is additional large I doing. I things think the that see from expansion my of a been standpoint,

the then to much that inside help inside in great think support obviously possible, I of general, teams the we've want Company -- I possible, and and can want in the we team market teams products as as efficiently possible, innovate all good and or as our and role great the as infrastructure engineering the wins really as that operating the all so integrate as services fast to distribute got.

to it and win. a more to of continue change humbled like think really So, I on. the I want obviously I so, key I'm team to context I'm be my the Even super to and [Indiscernible]. role. help is take manage there mean, Jeff don't privileged in Marc? excited a

Marc Boroditsky

at forward Thanks question. for join at sales Twilio it years of here we're continue of little in our We've the the in as five-years we great majority have reps execute that you referenced the build [Indiscernible]. of his acquisition enterprise, developers. And [Indiscernible] [Indiscernible]. against A We're the X the thank And handful ago as fantastic go-to-market to success on. footprint. that And for background. execution just time was you, Derrick, Jeff to have a the already a since successful continuing Twilio. [Indiscernible] a here, for executing identified to the place. been team out now And he's privilege strategy international to We're today. to expecting in preamble, with expanding that got we continue and we're with overall well-positioned progress our

As I them our example the of together. out build making progress that we're engaging mentioned I in as business gave, communities, great earlier to well, the

Derrick Wood

could If helpful. follow up back question financial Khozema. That's the you, on

have been the margin that you what's what ADP few fees, be long-term to with it's investors, and next interesting bridge thinking topical Thanks. gross to gross really to pressure, the unpack just going but should how causing XX% we to about can in take on get been Your the gave to that second certainly slide margins you target? quarters a take and the

Khozema Shipchandler

the Yes, at bridge ADP with thanks fee self-explanatory. least is I respect think I the Derrick. to question, the dynamic for mean,

If it for were to you can XXX fees. relative see have would that reported, we not dips otherwise it what those almost [Indiscernible]

some what different seen has and business fantastic accelerated really is our been our broadly, for growing margins Day products I we example, that during gross honestly basically which that relative the Investor at think is information And rates. messaging our last problem, gave a you illustrated year, services. more we of

focused invest are it in bit, more down that which to expansion messaging a we we're at take, willing is little dollar business accelerated fact gross given rate the profit grows this continue as so trade on the to honestly business. we so, that than that makes the rate, a And the margin

question, lot the that a recent And and we're have framework. I example category. of of that's plus, mean, conviction come growth I that to still obviously I And services In terms we of most longer-term your our seeing where the in the is that. is of going XX% plus XX% latter think part accelerated Segment from in think application

off of we sequentially think described segment conference a fantastic into well the QX. engaging what promise the had I QX that as it at coming as a quarter best single week, last of

rest confidence of well of to of the Just as a performed a want those lot Flex about the do obviously And businesses underpin lot that that the very and we're progress to X. business. with excited continue different things of we

I continue a of combination that a And think XX% it's things in for believe those so, target. need to that to long-term

Operator

Your line next the Turrin Fargo Securities. of question Michael Wells comes of from

Your line is open.

Michael Turrin

we're context the continuity time, years Hey, there. tremendous been go-to-market the you side, of things year-end? heading Thanks. that just a these given partner you initiatives Can the investors the business afternoon. the there. you've for confidence you questions. broadly for just has Good number additional has just in I from taking the that been into appreciate best. instrumenting George, at sustaining able and but wish pace team go-to-market more appreciate instrumental perform We in the about a Mark I I with that certainly of number can evolution the just to talk a just as maybe the adding on for and and know some you calls; maybe been now. like

George Hu

is, going I an also about don't just future, customer here. its tremendously to you, to and year. re-challenge that who's and I've difficult [Indiscernible] coming talk customers about I think to to think now for I really want forget years, machines words. sales Twilio. to the of this and partner an sales [Indiscernible] X off COO. this And people to amazing gives entire you ever going number also, I vision And continuity, to so Thank amazing platform excited the limited do certainly, Mark [Indiscernible] signal with, I you organization amazing here. really worked incredibly to seems Twilio is [Indiscernible] to chapter Thank could are an then level also. [Indiscernible] I quarter-after-quarter was I be a job to engaging Mark, higher, [Indiscernible] Khozema And me acknowledged a we great confidence evolve years. forward, But Michael, be has and it of excited things far also and next Mark less is that the an segments. the many year for a and think mark kind what up -- me felt know in want the incredible be was all numbers for phenomenal, even. there's should it's I to gradually and going that going having be going the phenomenal Twilio next been going especially

Khozema Shipchandler

our -- that got initiative. are be familiar George you to brought I enterprise how am we place. he progressing around to us -- are not the going for the helped that to going to When previous us self-serve progressing the you, set -- be out in And partner the at a in allows with from now, the implied the [Indiscernible]. very has great overall the very that last is plan reach into enterprise the George expectations developed joined, that's us over in expertise build team question. your expensively and ultimately supported my thank and and place the a with trajectory. confident Thank plan that global will all continue Right and developed to things George. that Michael Either solid This very he how of in to we're footprints we team I is plan models success. for out X we're from And building experience. stages that plan me years

Michael Turrin

were gross of slightly you've a actually Khozema. They're to That's margins actually here, know I If could ask questions a couple gotten just all helpful. -- very follow-on I up.

out starting things might that Are the like a see gross call just overall. in on anything if you business added highlight So, given maybe continued we're a that just you'd segment slide to third to else are growth? as is investors of expecting the a many dynamics? international is provide think I terms and headwinds just where out point profit around just metric conversations of the counterbalance for first these we we or now also a

Khozema Shipchandler

I would a -- the obviously We've just slide in on color. the focused see anything other fighting, while Michael, reinvest a gross little thing of I'm new. saying goes the is is a the it back be now, of you helpful profit bit, the could terms position, inclusion We gross gross which of there's us slide a Same that expansion, in gives on lot really been that of not been thought for dollar necessarily story fuels [Indiscernible] business. than would say margin that profit indication closed for story we've to obviously ADP we behind and bridges provided. a in

do Segment, fuel just getting or long-term confidence of But time. said like plus grade -- about, in have a whether that gross acquisitions gross we up down. to it's over for fast a have the today margin the se, some not We're that can growth that We I messaging people newer Flex framework I speaking, this number time. we overall of Company your think or into have lot of point, as which per earlier, can generally less of provide do incredibly XX% margin has "Problem we our a but things have" over the business, that [Indiscernible]

Michael Turrin

Thank you.

Khozema Shipchandler

Michael. Thanks,

Operator

ask Please question question. of & your next from Kidron The comes the Oppenheimer Ittai Co. from line

Ittai Kidron

announcement. like came of ramp me clearly for the when gate. Thanks. to guess, here. engaged. on start did it but you about think with that Super help Jeff, good Flex I excited conservative, I I'd the out out very Twilio know

for is Do ramp you the than You Is -- an have Segment. established there already would product? opportunity to think? pushing a one And this to on adjustments need business in any here customer faster approach an base this make there with go-to-market

Jeffrey Lawson

I Jeff. think [Indiscernible]

let the give me about some just you -- forward-looking projections So kidding.

and about tell can talking a businesses might no that building few the There are things. lot is or where what you think [Indiscernible]. tremendous in a third-party opportunity getting change is on the And world X, of changes, all shenanigans. opportunity. what's the IDFA asked I by They that changes accelerated cookies are IDFA about I -- Digital right changes of two know businesses up. I But cookies, on actually rely those [Indiscernible] ramp been play. say is whether the this -- digital these Number the specifically demand on, because the or a and on their companies how market here is there's growth tags, You going of of are have can't tags ramp the just personalization tough Like privacy honestly I like that product. the side for and things history. obviously, in

really they data, what tailwind, and sense companies and in the customers Company system in do on so, their first-party That's the starts which starts or those party companies get Twilio's that to that providing it, what is changes, their customers. the all with personalization signal with antidote to hard web, And from changes is a marketing a and email, understanding, gets think making how private their etc. customers. channel. is macro whether growing minor, the an and [Indiscernible] of voice the their in win data continue to use that name [Indiscernible] customer sense their going order with contact the Via of with across whether [Indiscernible] first need to you sales, are their relationships then data you touch to hearts build nice to these growing app, signal, the use I and personalized party relationships in it the center, then points, to that and messaging go of of customer, great it's marketing, And approach a first all minds,

[Indiscernible] I our messaging that want report And segment, natural not powerful. depend and there's even so a forward to [Indiscernible] synergy rolls actually first message’s already with go-to-market. billing do we Because And looking a out second products. thing is from customers cycle. from bring That's if Very GA a our have [Indiscernible] with the So makes which think and thing. really natural product. which but that's natural the had strike, finance, up-sell to more I'm in two it product I'm one up-sell today, it's allows XXXX. you something here I

Ittai Kidron

can which a metric the the a which, retention that you have below quarter. Segment going Maybe above still way you, celebrate you expansion the us rates. going would or of Very activity, call Maybe But that going guess, also the follow-up of be think to X, Segment, the standpoint. political about is think to average and sorry, the it, will the you Maybe little -- change perhaps Khozema, us of was help on anniversary you're would good. remember net through to bit, X what for next, over forward. And next I about number you right weigh on puts takes quarters? if know rate Can on I don't can how net are walk expansion. think that I include. I

Khozema Shipchandler

There a question. of reflects. are couple the Thanks for that things

at we'll about all, First rate. we at X.X And is levels are feel it great we and expansion run given really signs the Segment being rate. quarter the work. the that of and intend a beyond. of you little feel our and close as acquisition about we an at elevated remarks say just those that, bit include guide QX great probably include first anticipate growing good I wait and be And XXX% will where part and see full with the we've it our and on The time. for have end business of that up being really over of in across to will think and earlier Segment about anniversary to seeing expansion where quarters, But to I premature that that as in know do be we so, the disclosed last so that range I for But in rate results will all is several the don't business. to is talk been me QX

Ittai Kidron

Good good. luck. Very

Khozema Shipchandler

you, Thank Ittai.

Operator

sorry. Our next question --

of question. Our [Indiscernible]. Parker from next question Lane the of Please comes ask your line

Parker Lane

BXC talk CRM their little the of Thanks. Jeff, I newer wondering disruption component for my in you was think do appetite the platforms the of at markets some incumbent those own Thanks is the competitors the there particularly bit in out And CDP legacy question. much for stickiness taking launching markets. are you how when as of platforms, there, there could you if offerings? a look about your

Jeffrey Lawson

Yeah. Parker. is This Jeff. Thanks,

in their we're beat the really gauge of really one market for can So, at And about on [Indiscernible]. And which not I companies the look is journey really built helping in see market. this. [Indiscernible]. what than market, personalizing interesting, every the market I salespeople notice to by to platform that ready point, about the see We're is top really on understanding when to employees excited is number it. excited huge GDP with customers and Obviously, and execute the hole say understand companies. a BXB. a a see of one, that It's that's BXB start starting about their [Indiscernible] just us part completely great you configured really the to but empowering just CRN different do

And a that's they engagement touch pulling for is that for looking that customer really volumes the all And they platform what the and because allocate and it different opportunity all with us And are customers going understanding customers fundamentally are that our that's opportunity applications have different the so, we're the tax BXC has across that's how on have. customers do data, data market and already nobody towards points of Twilio's the after, that [Indiscernible]. opportunity the cracked. that

And going so we the market that's is see what on. as

Operator

line JPMorgan. The next Murphy question the of comes Mark from from

ask You your question. may now

Mark Murphy

some do gauge. Twilio question and partners demarcation cross-channel some as Thank maybe provide messaging to of on experiences their the help believe we the it just could Yes. to in-app I traffic event. your see compare you you If SMS of who line where, if much. and them using or of you very send push they're you a us and there? then e-mail compare differentiation Jeff, and and little What contrast.

Jeffrey Lawson

understanding that's An action the then [Indiscernible], And has starts played asking always and have with where really that then Segment of for is out is data things. their are with [Indiscernible]. into data where really approach data baseline building and seeing of out strengthened. companies what things. Remarks customer, approach we're Segment from to that we that many move growth there a as all and from interesting customers sorts And that's building data. And

on X and or heard marketers X allow -- sorry, we see it data run from from Segment customer only not to us thing measure and to went is big I go the campaigns, a to SIGNAL they come think increase is allows to hey, these for XXX, in the segmentations our engagement And can like Segment campaign? s ultimately to net it base of that of when the they is this saying, another So ultimately, use XX%. story which used then when We you marketers [Indiscernible] they we're also create And to customers how build it's in need customer interesting has last base the the point these Segments effective serving to be unmet into SIGNAL about which an Segment a the really XX% about went that's can that of [Indiscernible] whole come know at points Segment, amazing. week, all engage. to XX now to

which, bunch So when course, actually people optimize the when they what measuring on, buying they revenue a things, result they instead emails deliver, that in for [Indiscernible] goal. is of marketers when Segment of ultimate open, drives to of click

ways our data to which growth of approach, customers market sorts So, the that one first unlocks what great we're hearing that against do helpful. marketers the customers, having with your is that hopefully from new job, for and has smart all starts data their by

Mark Murphy

the or Jeff. the so CDP for follow-up, yeah, maybe basis understand, I is there. Khozema a think I I had quick

a growth acquired happened guess of less some of in you that. after Could QX, we've couple prior the organic I I SendGrid quarters, was I interestingly, the the than a same in sequential revenue seen bit so thing although quarters think on that or into just into or think early touch sequential that in build some reaffirming we XX% video can for visibility plus next have And the QX or -- given just that, growth years, X you you're better presume this is voice else? something year? you

Khozema Shipchandler

is too your Mark, dynamics. wouldn't into mix read I'll much question. Yeah, take Khozema. I product

feel announced I we think growth and we our good, I and as set. in I growth think at just to overall feel about about, provide look at that's call, of and things. We honestly the product us the forward. We sequential SIGNAL this scale and business. And fantastic you talked of going think based off Company the of earlier of really going prospects the about our the growth some tools the the overall

we on good we XX% three the QX, certainly really we XX% see that. see the on provided of basis organic we future. about that over terms years. in an feel growth year, obviously And guidance plus we next the So, I mean, that last strong for the and that plus, into setup continued And provided

Operator

from of of Matt the The Stotlar comes next Blair. question line William

now ask your may questions. You

Matt Stotlar

guys. taking me -- questions the just the I for One, looking revenue the at you Hey, Thank quarter. growth performance here. guess. in

incremental gives between the if in you that essentially you of reported, relationship So, expansion, new you're in some those and that point, from incredibly customers guys growth consistent you quarter. at different revenue and relationship given two sense it's range any stack. you the between multiyear the organic generating look that the the look been When which, your on at to dollar-based this between a

organic basis of you're seem new in This lower some us you sense to from anything seeing in source market quarter you're the quarter, customers to step-down this that? that they revenue talk what XX in just contribution might from to primary that Can XX. that growth. the organic seeing be of can Sequentially, make of from the about driving go that or be anything contribution help on terms

Khozema Shipchandler

talk nothing and terms it I customer a haven't that then terms about unpacked customer growth. perspective. necessarily maybe financial can Yeah. talk This adoption there's from of new is specifically Khozema, perspective, Mark I in of Matt. it about can in I'd say

As we quarter, We great revenue and a the new customers. you overall in in both basis. terms We had expansion growth the organic in very inorganic rate had quarter. strong adds saw, strong of had on

set math a great accurate, revenue we up which business. about to but there in to feel general, want you kind the trying would adoption a potentially is feel lot growth the next customer the for that years. of overall and certain to perspective? think XX% unpack great QX is think is there, I over a of amount plus the about I maybe do add We offline. I Marc, organic you're But X say from directionally in conviction of prospects our the

Marc Boroditsky

question. [Indiscernible] And Certainly for you thank Matt, your

value results. business. aspects the flat the the allowed relevant, on as economic is that. is encouraging, that to more Absolutely is we especially all that business you around that's strong heels the that that And Some as diversified and of very getting conditions we're the we of we to of around signal, With know shared of have adoption standpoint And [Indiscernible] we platform, candidly added QX across variety even in a the us today. excitement delivered here a reaction on experiencing and customer Jeff elaborated messages engagement progress fully are the engaged this

Marc Boroditsky

confidence the they're is. that segment everybody's new and facing looking with us to solid market party challenges that We've heard gives results. deal business around ways as the models, really data it First for the first around

Matt Stotlar

on maybe And That's the one just on then one gross more -- margin helpful. front. quick just a

and kind right? [Indiscernible] very you out I that what understanding gave is of So, very the was helpful. helpful, taken

a a agreement in this to this also something or was margin. which forward? new can results year, about Is it with how tailwind the commercial bit Syniverse We embedded you. going to little would learn they maybe gross are of like signed you that in definitely, terms early Thank quarter seemed talk of provide that

Khozema Shipchandler

fact Matt. the there's to take but it's results that year, to conclusion yet, about talk place [Indiscernible] expect investment Syniverse, in [Indiscernible] We yet. nothing do Yeah, before of the really

Matt Stotlar

Got again. it. Thanks

Operator

line The next from of Catharine of question comes Securities. Trebnick the Colliers

open. is line Your

Catharine Trebnick

Twilio this Hi, at competitors for taking you my who Thanks. question. announced the you Engage? thank point think are your break biggest you newly Can down with

Jeffrey Lawson

this Jeff. the question. I'll Catharine, is Hey, take

lot So competitor one really No, in there's situations lot items typically our a see developer our first because of competitive diverse. sense not unique of has and approach. that of very we different always a been whole

Company into sounds companies material that in seasons developers [Indiscernible]. a to us like to such a wide, wide that of the a building. such leads And traditional way bring like in Our variety solve a of broadening

So many are our that. of deals like

are looking And platform, needing to at Twilio, is building. and category. customer market a I'm which going the and be that There historical why engagement so new in lastly, products products or of new that's the really are forward, we're

is approach product that what to normal And top data it's which have customers at there been when engaged first segment or actually a asking to whether CDP, whether the like for, of that, market. we're the will the On market. I look building is be in so, CDP and

of think products. so, as And each I it in new, both something building just a we're I individual of don't head-to-head, the see terms direct

customers a a our way why are different customer a to unsolved than we're a with problem think thing them? the that certainly do we The have problems. that's of for is as in what's out market, How there don't pillars really the there engagement at and solving same And BXC frontlines. these really level. say in which [Indiscernible] solve they engage companies. solving whole same I my is and let we engage, problem platform, is customers And understand platform that thing

Catharine Trebnick

next ask call. it. the I'll more Appreciate on thanks, Alright,

Operator

question Walravens JMP. is Pat of the The next person to ask

questions. ask now may your You

Pat Walravens

Jeff, Great. than Hey, are? into hopefully XXXX pretty I different you and you. curious Thank was. XXXX think your what three it's imperatives or top we're am looking as two strategic

Jeffrey Lawson

Pat. [Indiscernible],

can we've engagement Twilio customer the our platform. I say know So, really engagement platform, been I progressing

was under those really spending to new the team. It's challenges. then customers tremendously there. every obviously week direction These those a the first prioritizing many year productivity, the brought grown of course, and and gave has And the Company, for of because to sending one Like those this really in the evolving and going of this markets sure pandemic. our And SIGNAL. times our the last of really that our some really help customer push pandemic. we [Indiscernible], and is we're which customers, also we engaged, difficult so, team solve priorities time, growth our great making at out teams, And I'm introduction customers are challenges. our team to to [Indiscernible] second is at year today our he prioritizing

relationships customers IDFA world a companies keep and dealing to us rapidly [Indiscernible] that a as pandemic, and with changes, And the things there's focused to pushing the companies and have that lot the many evolving. us. And is very towards build builders have on certain the with become and be customers, that Giving on just Those landscape. are and are about to those So, I've to those are having well. that deal Company things are insights of with brand. we evolving been changes,

focus is for which our areas, big products, X the why the I are teams, CEO right on. things those is to So our customers, think our which

Pat Walravens

you. thank Great,

Operator

Our last of UBS. question. from your ask question Please comes line the of Taylor McGinnis

Taylor Mc Ginnis

all my With driving and investigating for the versus ADP driven guys just question. that thanks might factors from all much shift be that? last else taking there was efficiencies s durable something gross related margins you more Was quarter or to shift Hi, relative potentially seeing? this this maybe how and in that guys flat by mix of that is given you have mix quarter, a slowdown

Khozema Shipchandler

the any business. factor. there's is we're wouldn't Taylor, in Khozema. the I one mean, necessarily messaging I take seeing this I'll strength is continued Hey, think what say I question.

like underlying set. that product story And really so, relative there's not an to

feel last to continue certainly been We the growth great they've of and about over the in the as QX year first prospects half there as well.

see we product the margin and particular gross in higher to what or quarter any Segment about is dynamics the very in Any of think feel of the given mix or quarter. going are I to we influence equally one rate the excited some international, performance category. continue growth means degree, even customers services application our to

So, we standby services expansion. work intend on dollar for to shift XX% concentrated of off gross target And gross we're do our profit certainly and outpatient over in really [Indiscernible] come gross from, margin now, plus that time, those obviously, mix longer-term number and margins.

Taylor Mc Ginnis

thanks. Great,

Andrew Zilli

rest for you to us. the of will That call everybody quarter. I joining with chatting Thanks end well. the the forward look throughout Very for today.

Operator

participating. This call. conference for today's Thank concludes you again

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