Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Bryan Vaniman

[Call Starts Abruptly] Twilio’s 2022 Investor Day. I’m Bryan Vaniman, Twilio’s SVP of Investor Relations and Corporate Development. Thanks for joining us virtually today.

We’re hosting our Investor Day in conjunction with SIGNAL, our annual customer and developer conference.

Hopefully, you’ve had a chance to tune into some of the broader SIGNAL programming, including yesterday’s keynote where the team talked about some of the great examples of how companies are using Twilio products to better engage with their customers, drive higher lifetime value and reduce acquisition costs. Investor changed our since last a SIGNAL our has lot then. held Day XXXX during and We

So we’re the excited to get to have you update our join on business and opportunity an ahead. us today

a of unless to as results a end and and at investor which financial presented for Before we guidance Reconciliations found non-GAAP GAAP between the reminder, except measure begin, basis a non-GAAP related can specified. presentation. measures be further all this are information on otherwise is GAAP revenue, our

and information forward-looking The outlook also statements, including discussed provided today and will statements future include about our goals.

of unreasonable this corresponding efforts reconciliation various GAAP without the forward-looking to provided quantifying challenging be However, information due items. non-GAAP measures to cannot

of risks, in Form These that available reports SEC, filed any other amendments forward-looking statements including and at and detail XX-K our only any subsequent foregoing, more with and are Form recent involving assumptions sec.gov. are most the uncertainties, report and factors projections XX-Q, periodic our described on expectations website our performance the in most and on and recent to reports on future are regarding

we Actual Forward-looking may the date made. our as vary only of any statements statements obligation are significantly, beliefs represent such to no and assumptions expressly and update statements. assume results forward-looking

going and innovation metrics. the a provide terms will Chief of business out strategy our Khozema Product our We’ll COO and of Manor, overview have get close of a Elena Now, discussion go-to-market will introduction agenda, us Donio, with presentation Shipchandler, our deeper more followed strategy. is key in details our Revenue on in Eyal on by President and the then to our financial Officer Jeff of started vision, with the product go who

the as after executive we’ll presentation, the break which as then afternoon for take market Investor we to released Throughout today’s QX back Q&A you’ll using covering the come submit an be session the feature. webcast, able with this presenters a Day close. questions well and Q&A our session After we’ll earnings, short built-in

time, be questions them have Q&A. you I’ll submit please at there. if the So any moderating

will for So will session will posting questions And Investor question the announce I’ll the the and our the today’s Q&A we presentation event. during we of question group. conclusion website aggregate and who read be Relations finally, following on I the then submitted today’s submitted the

with all to it me Jeff let off. of to things out way, kick the over Now, that Lawson hand

Jeff Lawson

around down discussion Investor Twilio’s Thanks, Bryan. And Hello, look, XXXX everybody, know Twilio. community one in part of I’m because and the business hard investor But a into box what’s lot there’s a being to Twilio of another. cleanly Lawson unique we straight I Co-Founder welcome this classify and Day. Jeff I’m is CEO. or accustomed market. Twilio’s don’t Twilio to because fit opportunity also to given get to I’m the going among to

some company. I dynamics. those API mean developer we’re Here a an are of led first

We software a have pricing a traditional usage our based based model with more model and products. pricing SaaS both

solution versus We have approach. a approach a platform

have products led gross We other go-to-market many our markedly a motion margin of messaging both and a product than enterprise our profile have and different products.

can map So easily comparable. to unique don’t any you business our as that we number elements have a to see, single of

forward. to So on shed our presentation path and hope opportunity business, today’s our help I will more light our

get to it. let’s So

to focus on There are things four really today. that want I

do even product. it can we show It’s to strong efficient discuss I want become and to more grows that. and you intend want our First, messaging to how as I

our opportunity bigger to path engagement even an even for early though, see here. visibility with we customer you give us, want but it’s into Second, I

focus last communications the better I platform and on to engagement talk our these and why going two operating about together and as leverage why And as and things myself outline a we’re to for key priority customer data Third, a company. win. are I want profitability to want

Okay.

margins gross get by that about achieve that messaging. for lot discussion set telecommunications of and in look, mixing and Twilio mix. to a more I But XX%-plus business into we margin a level there’s it. we’d I aggregate historically has the more that I know software goal. and our since our First, gross and we’ve acknowledge guided ecosystem revenue that changed

driving I driving what’s dollars. as light gross So business more why decline focused on want and some margins in to on our recent gross we’re shed a profit

the internationally. the decline. to fastest margin Carriers and has fee growing portfolio been both and access this off space that portion and biggest taken as up a along higher. their has pass gone time generally of customers it’s fees our over fee charge our contributor And in and and is years. gross we over the the Messaging Those matured key internationally, recent communications have to U.S.

customers recently to for gross introduced seen these The messaging our more passed XXDLC put because growth, dropped. percentage. which additional on years we has fees international way the no international market pressure through those percentage several and this has margin call we has operated at margin, traffic gross strong recently margin U.S. our were our has fees Furthermore, in further

We’ve these dynamics but outlined here’s our important in the calls, earnings recent part.

will few years Khozema section. profit detail more really believe we through what increased gross message in the per has and Our over actually walk this his that’s in matters. last

believe than per for that signal a is percentage. gross message margin meaningful we gross So more more net-net, even Twilio, profit so

visibility So you that today. we’re to going give

when but we that to hey, the that grab principle want right in that efficient we in profit with profit. was can decision, can mind, in a we volume gross I you world as generating that much go do say, message. gross for to the more be far us messaging stable with all as Now per And

profit. to operating more increasing means of whole time off positive the So aggregate line of gross the dollars, bottom and which leverage, drop over and we dollars then intend with those profit that more those will continue to business drive and driving

for. we goals that top tell the are around beyond. drive orienting bottom line market profits XXXX and gross margin capture you, the percentage not and managing we’re customers for we’re in will The And Khozema we operating in large the growing and launching two expect starting line business use our non-GAAP what really These in as Twilio’s can XXX,XXX act incremental the profitability. than is engagement. the customer middle more customer in point to communications base As leverage year-over-year then

about what that’s talk want So to I next.

Okay.

their Second, a if product who shipped on they the nobody engagement, who are, But enabled customers they their know even to They the direct more even it opportunity bought Internet so brands want, knew it. sat loyal in the and and to were. with about recently, liked creating Think until store whoever it. or fans. relationship bought customer to the that what products subscriptions, the shelves never cross-sell who knew to and companies build customers products

e-mail on So website via or now connect every cell text, from customers company chat or their can phones, the with directly. their

have There advantage the companies aren’t digital delete we interactions of to relationship unsubscribe, want what to have out, do never we now. do? who been we us, relevant. them remain again, Therefore, and more when tune than this those We customers their the interactions take visit between app. right there to direct site companies relevant But are don’t we

or who to like Amazon, the us companies able Netflix tailor every are and compare know to Now, this Google us. digital to interaction

it. turn it a a builds about turn and better point in data experience, relationship. which every into product Think better digital take They

homepage Your completely and different. my Amazon is look

my and same for Your generate results. results Google different exact the completely phrase Search

own stakes look, for has company can’t these to to fact, the Companies the one their purchase. In afford and products, every get digital big pay buy use they reacquire become you And stop in the of shops revenues a through what’s be possible other us. economy. every Amazon disintermediated to better Google than If for are them. more the percentage and This is our continually high. customers

in opening promised shoes technology trend. customers fueling kinds or want google.com consumer whole But to these shoes, biggest selling of what’s typing competition customer up and to pair site my their that’s want my No, app. in direct my they the opening I right? is there’s relationships, my I’m of app, new enable If to that’s Amazon typing then name them or when

cetera. It’s head departmental a of systems marketing service called a cloud, cloud, sales is you’ve bought reality a bunch SaaS are if And other CRM, very The are marketing buys BXC. same them different CRM et these solutions buys sales but that They service cloud, with a but the leaders. from even of each siloed. buys they the vendor, built don’t well bought for integrate weren’t by also

opportunity world notes often go When source BXB salesperson Think creating the about salespeople to a buy where from that no from BXC comes might there Spatula but account, I are no a today. it. an about in salesperson. the customer I of there’s is amazon.com, CRM truth

the in collected data about of volumes tell about all actionable as time it’s an me story BXC, in Now real that customer.

on apps activation the on It’s sold the has use yet only $XX is interesting solution customer for great their a billion of customer They’re companies not in data. was The that SaaS to best of internal rate at customer technology, buyers me of with that’s using customer spent optimized XXXX excellent. working. all. CRM, aren’t start industry not the the at U.S. consumers the as for outcomes. software platforms the in this and these experiences XX% built that worldwide

relationships that third To to the need to of how than And the do I how point, your transaction use digital together. question a question into transactions communications why we one-time is into brings to customers long-term do relationship? relationships, my acquired why and is build to Segment. data, companies to me understand better which strong are customer engage This you and is turn So turn competition. big better answer data understanding a the the

the to all to when be. when this flywheel I the personalized customers customers they through is the read mean, better more the site, often the can they better engage, create. app, the that talk their data, The interaction true, customers, they’re which creates likely data. e-mail, to each their click observe understand more browse more And of trying ad, are open that’s I

lifecycle digital giant’s lack of is of cycle service having that bad and from and They provides, and the different calls, the the personalization. context secret breaks, When these impediments seeking. customer vendors, so the virtuous why get about technology success. buying That’s companies integrated, exactly are This things customer This manually a general to the what the result. cycle so customer of availability the are and the are and platform many integrate, we’re engagement to companies stack Twilio disconnected parts a these is as customer feels are Engage. fighting reason what excited a it’s frustrating marketing, the

market. the first platform. integrated differentiates presentation. We into single and platform natively believe will world communications through class from in leading the a native anyone detail else software Twilio our segments in is Engage in together is Twilio’s more brings application of this customer their Eyal what and data that Engage integration Elena you walk APIs parts

or key and of together beyond engage, understand it’s didn’t solves approach this historically we’ll two a engagement Companies of why that together. win. But been Twilio. platform between just I points to better building communications, why data parts day a customer are customer The think of pain to workarounds. have and engagement important We’ve best had to of that build to solve ton since choose SaaS is one platform breed work the

was communications cloud e-mail messaging, and first platform across more. Our voice,

the center contact second Flex. with was for Our Twilio platform

communications app platform sales Twilio via reps, frontline the Frontline. third is Our for

Engage. automation data for platform fourth most Segment and for marketers our now platform growth with Twilio recent Our is Twilio for with customer

started We communications. communications, layer, and the the which we with added data informs

on. the the interactions interactions have, they more customers more consumers more have, they get more bring personalized have and data customers the So the the our so data our in, and more the

not build. the more. journey, and across we is as customer digital a used and service, We’re This what a what inside the sales, for enabling to just not database. to just one every across marketing, silo, the built is leveraging company data customer are giants inform have in other platform this single It’s interaction and but product every

the we’re for. is this opportunity building Now that

we’ve there, the quickly my as as common execution like some but due internal about recent integration to growing to changes will from of yet these our challenges. acquisition improve made are Elena go-to-market not it’s missteps. talk perspective, we’d unfortunate some but However,

that, Despite positioned we’re uniquely to win.

platform first, first. We’re data developer cloud first, first,

We’re leader a CDP a a leader in customer engagement in and leader platforms. CPaaS, in

just execute. win, We foundation now to to we need the have

OpEx. the cetera. committed Finally, with thing that In in investors non-GAAP our operating oriented year company we we’ve great and eye we said focus operating towards our this why years. earlier our we’d is and not the past, on delivering the et this you, especially delivered my at growth times revenue the point, full profitability as from But and which primarily IPO leverage. fourth also And reached on matters, year, growth we’ve driving heard what last over scale that profit several we’ve earnings an That’s only XXXX. to calls, growth is agree, we’ve multiple starting

look I and one but at lot When portfolio, good grow. particular, how be products in I messaging a really more efficient our communications in that a see we can

So that’s what we’re focused on.

on gaining are customer investing in software while we in aggressively software. communications and focused our portfolio, We’re engagement leverage our data more

We effects macroeconomic short-term aren’t the the continues. to we’re immune uncertainty choppiness and seeing as as economy

going company to XXXX as our to discuss team the internally will to our focused momentum operating of profitability. changes we to made and you I targets can we years find Eyal operating will are our we’ve despite continue sales. I CEO, that continues. operating and her with more to But headwinds, annual leverage efficiency. leverage on in show increasing our increases. go-to-market that are motions software goals leverage And is some the Elena lot innovation much build to operating for my and you show fully in across profit Khozema very committed see do also drive come. that team non-GAAP our And profit to a around

we because and we operating profitability the So headwinds we and despite resulting in opportunities to internal but and world closing, facing are see are macro starting businesses drive that, leverage many other XXXX choppiness, in non-GAAP to efficiency. ample committed around short-term

ahead. excited going all despite never opportunity about more on, And the that’s macro I’ve been the

help our of world our challenges. the those more world’s the imagination years, continue as customer changes have and build world it journey solve have for challenges leading customers more to the as And our is when to unlock to builders. mission platform, we therefore, the we the and past than has opportunities engagement few As ever them rapidly

relationships their customers they to customers. to amazing excited themselves continue our I’m to with engagement efficient partner and as to build more with strategies build customer become their

right the execute place roadmap have and right market team in and plan. capture our the We this to on

gain the for all for build all as we’re this opportunity. business attending to together. even you of excited constructive on messaging also investing nature of critics the at business and customer I’m alignment also Twilio today, vocal lastly, being our engagement and incredible we how And with Thank investors, you, supporters the of in times but

product go along I Eyal? will With pass to want who to that, it Eyal deeper our on strategy.

Eyal Manor

Manor, Eyal joined I’ve Chief exactly Product Twilio the year Twilio. I’m ago. Officer at one Hi,

reach at first that, I $XX Before innovative in spent driving the XX years build Cloud business to I helped portfolio Google products I to inception to scale from revenue. products large billion led a growth. Google platform Then of ads phenomenal the scale. of

businesses the best Twilio, fundamentally directly senior communicate and of the joining and experienced I on extremely because companies leaders joined I’ve hired has in innovation. Meta in customers. Since way business Twilio all its with the Twilio data and at Microsoft, product engineering like changed focus background scale Salesforce, from API. with

attracted part going builder and to track Twilio’s about and engagement delivering team. be which record leadership is way of strong both to honored Twilio’s data, its and communications that I’m is exceptional the products and Today, of a talk of me foundation future. platform the we’re mentality its It in customer

only not CPaaS allow is market Our ability the customer IDC data it. engagement space, what will leading solution win customer for transform us to together in to leading share but and platform bring the the

future, in that’s value, hear for know our Twilio the investment us to where you’ll deliver can market. focusing areas Importantly, it how add to impact investors, differentiated for product the positioning win and on highest we customers going we’re by our and the

capitalized scale communications and of and has text virtualized finally repeatedly complexity at its been at founding, telcos developer. Twilio With the Twilio secular businesses every make consumers trends. or the democratized forefront for of Since on innovation has Twilio, easily. could calls

the companies With respond customer services, of expectations. had to online changing explosions rapidly to

texting Some customers prefer other voice. or while preferred or chat e-mail

world omni-channel of build and center this a communication. for experiences introduced contact programmable Flex, new So tailored

personalized journey to customer at into the create unique where we’ve be customer More This recently, personalizations must profile across for experiences. data data customers comes of is scale. expecting play unified seen each a

So and just Twilio the to brings unified data Segment, Twilio beginning. most the acquired build together our launch customer recent profiles And data experiences. communication layer the driven customer the platform. Engage to us this marketers for This Engage, industry-leading brings is

these greater create of sum than While right all future make data on of solutions immense Twilio’s their parts. value own its of for platform. together Twilio’s customer and makeup engagement the combinations the communications The

engagement all single how customer we’re industry-leading customers. is with to able maximize the together for of unified Our products unlocked our platform value our platform, come one

CPaaS the and combines create scale to foundation through of first software to meaningfully differentiated businesses and and users relationship any provides one-on-one that orchestration, deliverability customers CDP real low-code products Twilio’s like platform power channel. a with use our connect with time offering. with data APIs Engage reach This to at business Flex intelligence, easy to offering context of and build Our extensible a on power the give the

to our powerful I experiences so that throughput, the Twilio’s of to our I industry elements CPaaS integrated the deliverability views redefining It customer hear with needs how their and at create reason it We an platform enormous Twilio talk to portfolio. week because customers globally. reach are customer critical the One communicate engagement customers. This every APIs. communication data innovation harnesses scale with a engagement. business ideal and is these enable is businesses driven consumer into is already

ensure through to to over the minutes To provide we in compliance are billion easy, area an growth, their reaching strategy host needing mentality, countries. in because billion we that APIs product it XXX to to achieve with regulations annually, a product send advanced we of wins tenant can also and voice builder complexity connect e-mails led messages of to customers of easy their Twilio’s monthly differentiated invest provide love use in. on companies the sort continue consumers management XX without make XXX own. billion those We over power and evolving XXX experience with able making developers Who we our core will

integrated CDP, platform, businesses tightly our CPaaS leading have With of engagement understanding deep empowers We our platform. gain of the our customer world’s customer Segment, pillar data to of we which the second the with customers. their strength

the our in first teams tool business CDP through customer collects across their stack customer to Our choice. and silos any to eliminating profiles time make party all accessible engagement activates contextualizes data, of real ability

party Segment activated points, websites, with collects data from and that in can This customer we’ve data into time. privacy built data security applications, unified first data touch feature The privacy be GDPR. laws generated across warehouse. and customers help synthesized our is then like real even profile one comply

integrations, other over to to companies experience use. are use customer architecture XXX use a and any With system connects open easy to data that APIs, to they build able that

Mexico personalized messages customer Facebook customer For example, collect used group’s triggered Domino’s, and on at based campaigns They created was the and distinct create Segment and Google time. each journey with customer in eight cohorts. targeted data behavior to that ad unique and a right

to our It in in help and This ROI it’s data accessibility The CDP solves and on increase XX% data The right real customers is increase approach of seems for deeply. Segment data get not. their a Domino’s understand driven all spend. Ad of conversions and unified that. drove this crucial time XXX% simple, quality but more Facebook Google

taken builds on prioritization each engagement flywheel each as the requires Delivering engagement we’re part fully with to vision Customer toward it’s stronger at personalized We’ve our that and look also we creating derive of a doing together. and engagement better vision of data whether in we’re aligned for the operating consumers, innovation, focus customer inform working R&D our ruthless the work our understanding message XXXX. solution platform. and with in a makes non-GAAP hard continue a profitability

to position. capabilities we’re modernizing our We and adding CPaaS costs, are self-service maintain infrastructure. our investing reduce leadership and strategically products additional into our market To core improve margins

channels. Engage Flex in and We differentiated foundation deliver we are communication combining on speeding focusing Segment, by and up our solutions development where data can

this integrated includes into will customers. Twilio CDP This engagement increased The all engagement for data market for software. and customer because our of our generate for value fully opportunity And software even to ROI challenging our take, to businesses help real Businesses of more this need the solve the current problems. macroeconomic able every and become has be measure interaction critical environment. they we in exists

face accomplishing main challenges they three in this. Today,

has First, of data. XX% third-party landscape shifted rely businesses the even privacy over still on as

In number deprecate points businesses fact, first messaging cookies. data to part targeting, year-over-year. party personalized to party X the of companies third-party to order In personalization data or will first on shift exclusively to increased need craft and relying has

buyer Today, consumers we with personalization that more Second. will a repeat saying personalized over shopping ever there is experience. of tied revenue be likely understand than XX% to that a growth after

unified drive data including often of companies profile comes out to available their That creates barrier that Legacy However, real business of to intent. customers. that CRM, This this customer is means software personalization a stacks, date, to siloed. to it time. keep in need data customer delivery, when tailored experiences teams especially

solves that and customer these of how to want They engagement increase directly platform be communicate to them. invest Twilio’s companies I they We revenue. challenges with customers, consumers decision XX% engagement able businesses I channels a on hear use When speak that Finally, them. over over for in see an see that day. of to every make business engages tools to want in with

and and tailored customers They Twilio Flex drive delivered by is customer start the Twilio’s centers To customers revenue is improve saw a alternative engagement using of to create our wanted our and example experiences, operational customer and platform not loyal service great just efficiency. APIs. we Twilio’s center satisfaction deliver contact build value contact scores platform. to

experience for workflows differentiated specific their could customers build that customized So a to we their created own Flex, having without be companies create scratch. to software to allows that unique from

and individual including adapt Call partners AI. integrate Center stack, to Google with like Flex Cloud, needs their with can CX business

drive data customer allows much their better also approach agents Our to customer to faster. context companies they provide personalize the and outcomes need responses all and with

one them wanted and With from an customers world’s apart serve of hours their powering score communication, chose NPS customers the Flex have customer to million reliably scale million Nubank, to to their of service platforms they traditional set banks, Flex banking saving Bosch Twilio digital wait achieving of serve XX HubSpot millions customers like and when globally. XXX the ability time to largest over XX. of So

the why This software. the strengths future Twilio for This is excited opportunity we’re ahead. of is our and lies that

As Engage Jeff CDP, and more we’re differentiated of which when is is combination that marketing generally available so mentioned, the it’s now excited CPaaS powerful even why offering experience, in market.

While it’s Flex era. was off. data because like originally designed built time of to segment center, left abandoned at customer data, top right right they no messages marketing pick data into shopping an on first to re-imagine on of real the Engage content. the the silos marketers personalized Engage life customer marketers cart the With reminders or CDP. triggering create up enables personal Engage built message need the or target journeys moments where removes brings rely team contact that longer to group critical Engage the on customers entire digital helps to onboarding

You’ll hear creating real for about future President customers. margin solving are product with new high our for Flex, Twilio in this of for moment. But just our Elena, Engage for we how growth business are Revenue, problems using customers more avenues with and by a

led reach, platform in a on continue customer infrastructure to foundation is continuing and build built forward, that accelerated look with we committed global product by Twilio’s one are growth experiences. and means to businesses deliver This and exceptional reliable unified As help self-service. modern platform we

profile as history Our the business unifies for to the improve that drive strategy, we more data, solutions provide and relevant The journey. them across sustainable Twilio’s unified advantage. relationship, a customer Twilio customer customer end-to-end the can their ability is and on platform engagement, customers, businesses, act partner to allows and competitive communication because engagement engagement customer ROI platform include advising communication entire deeper our have that customer to strategic unique

their predicting a act bring Using or will those Last customer the business for not on on that customer take, and least, to the whether right audience. Twilio how but recommendations make next journeys software lookalike should AI, customer generating a engagement our data customers step means will intelligence should the stack.

Twilio’s So to as the and a you’ve of to for product will teams against the continue team heard, we of more incredible forward these pillars. on future excited products personally, for opportunity I’m and what execute leaders. ahead are honored build our charge And extremely with

will with customers. these you all Elena share our our for hands plans products of getting of great the into Next up,

Elena Donio

I role, Eyal. six months member to years. I’m taking role, Revenue brand not over six Board new this a the Thanks, Twilio. joined into of Twilio for just was to ago the of I but President Prior

the our So products, I’ve journey had some cycles with on our with customers, and our team.

that of while seeds more a scale into of efficient appetite their our change stage and and this opportunity for software are delivering solutions. because early for and evolution I days communication love ahead in the the associated have solutions particular business I still because I huge type work, leaning the transformative

really what’s opportunity our What me for mind right top is excites that’s the market. And we have massive now. of in most me

with customers e-mail or value And deliver unlocking combined at insights their for message are Our they our software products, them new right time engage informed solutions customers. truly communications by allow right to our they to need the providing our and data those and know with the the insights. customers,

know We customers. leveraging more and those our developing oriented deep much and our skills, broader customer that those solving problems deliberate while we’ve require now building, for about and software we’re relationship selling trust solution customer the new reputation and built being solutions relationships,

of to model more grow confident and better I I about continue more efficiently, messaging through be extremely to mentioned, to made And our short-term to and changes of automation talent work done. there. Despite details feel go-to-market I’m that the the talk our recent we’ll think long-term excited finally, get relying on much products our the Jeff to some to headwinds capabilities, we’ve opportunity our how calibration digital self-service

most leverage powerful the into is Twilio at our at developer reached we’ve our enterprises. excelled points of customer vast also but we growing One have audiences, and Historically, reaching we’ve base.

our of more customer have active than coming the two-thirds world now around approximately categories. large enterprise revenue we mid-market and accounts As XXX,XXX from the with

As I’ve that I forward their we’ll months, by consistently do can spoken few things past trying they build excited seeing away what customers they’re to next walk excitement, consistently over and looking loyal, the to on. new

We have to cross-sell high value We introduce customers an margin to able also software opportunity to solutions. customers. effectively while be need our via new hunting for to new those

and the do have to We breadth that. scale just

we our motion team skilled capabilities can new in highly they customers sales existing many our strategic that build areas and help from self-service with discover catered on and we deploy so need with it. We’ve acquire expand only our We’re and to capabilities tailored investing us and where solutions within greater logos accounts solutions own decision selling can when identified enterprise makers. also their a let

Finally, customer one of the well as enterprise the the and platforms the parts customer platform Eyal voice in messaging data which we upon talked as to as e-mail about. engagement for world, build leading largest of have multiple solutions

as So greater the we base we’re exciting automation. opportunities to more the a efficiencies capabilities I’m scaled to to drive have levers team our building, really here, through well much and key value selling as about large strategic customer bring

we’re synergies customers’ pursuing. a Flex engaging between use about when to cross-sell and customers leverage our messaging that deep And to conversations about products and or creating we users. provides have opportunity this products for better This to are our and to often are engagement. incredible wins drives and Segment super the hard product so with exciting the replicate. portfolio Communications place Adding preferences insights journey to connect,

use and just fall you the base, a three promote categories, and to existing look marketing case, conversational our special to target the use roughly sales products on into customers, messaging customer cases map message the right at Twilio’s use In the support. messaging our might customer marketing, offers verification, data their right build right at customer customer consistently can’t the profiles deliver their their right channel the customer without to times. journeys, to but If

not only Segment, they That’s And but customer. on interactions can real top if engage where a not in with right adds the in. Segment the Engage when comes also trigger customer time, to they of know

moment one to opportunity sales rep being with our the sales cross-sell. For and that use immediately their Flex, consideration support, in that’s with By at purchased connecting customers currently for product promoted, us which gives Twilio other them customer if the prospects example, another expert adding products a interact click. or just of by messaging conversational can engage customers right

chat A customer own devices them increase but able in to of people which their the in great on used was WhatsApp to one to rep option enable on to which this a to a through relationships company is sales. to X% use the to talk HubSpot. manage click, integration directly drove WhatsApp, in added sales example few Then a talk connected weeks. customer reps to Twilio personal just a pages, WhatsApp clicking their Their our complete

gives to Over data Flex, time, golden the need they crucial profile, which the call as customers target and for insights experience we profile, optimize customer. what add Segment them the can the their right they to see about that customer

onboarding in seamless even users the gives messaging Finally, the with them there’s basic verification, our opportunity as a experience simple authentication, validating additional network products carriers. which in an case cross-sell to doing most silent use by Twilio such background we’re where

historically a These can sold how paths products being too, also have with customer We customer builders We’ve and messaging we’re our developers software our across create demonstrate and to enterprise. product the land connection giving a based now they target through typical use solutions. incremental global additional value audience, our And across expand companies. us large all expanding the within to solutions cases land. multiple all

software recently, More also new we’re personas. and targeting deals landing expanded with actively

great is CDP. TravelPerk enterprise Segment lifecycle the and data to keep marketing engaged. landing where users teams to customer build We’re wanted teams example with campaigns team marketing a

gave to center contact Segment model Flex, inbound in to attribution build with sell where cloud key Frontline. and provide support to out to customers Segment, scenarios with specifically solution attracted digital sales website. a addition like their contact to data an analytics With what beginning we’re a amplify value team Flex find opportunity centers, to clean data future customer their can capabilities CDP

These used marketers Marketing with organizations billion countless this an has and tasks are important market. developing teams to running in and the XXXX. in projected opaque are better do can to MarTech overall over to We large for Twilio play spend results. and role living $XX U.S. in in

that consulting focus new We’ll but and within deploy think existing quickly on is and to will motions we we’re another to greater capture business continue for go-to-market. to our implementations. so reseller support long-term Our partner few customer customer use ecosystem can lever and continue key grow a that expansive support efficiently solutions partner relationships, partners prioritizing we leverage we’ll

We’ll growth also also continue product our go-to-market believe as distribution. to so and to we strengthen will platform continue a BPOs to as partnerships on indirect efficiency partners we and invest in solutions. our have build been critical path they increase contribute broader can and that our technology those our industry to to drive well, ISVs offering

achieve with customers are the compounding they Our value can us more consuming validating over by time. products

data very already the at deals addressing give in reinvent to time And XXX the Segment they U.S. sold solutions and cross We’ve as quarters, partner CPaaS we’ve large XXX who we’ll a efficiently companies the over last step interactions. real right and problems successfully Flex, customers engaging some with loyalty technology they the chose delivering drive strategic need to customers. into Twilio the Fortune their just We’re one them engage or with customer closed in through how building both momentums real time. their few

mobile via us they’re opportunities. A They our drive to began whose voice added center Fortune messaging implementing more XXX journey now ago. app a their and with Segment personalization leveraging they contact great for year to built and customer recently years mobile the and added connect Twilio And retention then directly example API this Flex e-mail. then company a services app. some financial last of messaging is cross-sell They with

expect signals a customer view their are customer of revenue products. about approximately of million experience greater comprehensive this solutions the These trusted with Today, annual all was unique products, and by engagement this of revenue. $XXX,XXX. in more and enabling adoption financial develop generated we to the $X customer collect personalize XXXX, to their to drive this customers In annual our generate their

centers a with a customer They XXXX. voice the began to replace as pilot then Fortune Another in started XXX U.S. of retailer the completion all contact of Flex. with in starting decided Flex large the example a of is pilot, and their customer some messaging After XXXX in

of projected relationship this a to is replicate XXXX, done $XXX,XXX Before year. to annual approximately Flex the Flex, we $X these end revenue again. and is After expanded of with year, was over our learning a be million expected at and revenue our successes over annual full customer implementation the how over we’re now

the talking a was their Engage, Engage started platform. Twilio point to interactions from customers about we again. a conversation the we is around individualized compounds all any first on key ability to provide deliver yet When customers single where potential value with channel

that data As became real capability clear we in moved CDP the most from into customers, powerful our early ability to on customer beta time. with it engages act phase our was

working existing of Engage advantage CDP teams of we’re what upgrade well can for world. do across So Engage the hard to take power as as marketing customers to pitching the

of the into Canadian large beta production is One example our delivering. retailer a is value great a just customers, went and of Engage

By struggling additional time the data more campaign the the the their tables. weeks, develop The over already course the analytics marketing likely data, up the by historically and team at launched. campaign data team, of databases time making going but right outreach marketing to spent for would the data marketing then even find synthesized batching the multiple they the trying insights and outdated, were outdated days weeks team and finally into the

implemented outdated time for them, powered the based by they on to Deploying data working Engage action CDP. drive campaigns segment real wasn’t outdated so

they instantly like Now, data campaigns source. to update to reengage and at cart get right in in real the time trigger their utilize one can customer’s them marketing They team match activity all can abandoned the their events the need moment. analytics

been now. see with personally now scale possible especially their companies available, wanted Engage them tighten we and until one-on-one, to continue must this, demand engage generally to budgets always more strong have do With and Businesses to to cultivate at expect customers for know but it as hasn’t less.

growth software more drive our profile more servicing messaging sales software messaging customers, the grows. unlock of of our value placement messaging operating Those and also will more Twilio. margin in will efficient changing economic Investing of as solutions growth and we customer fuel while

announced at our These principles that we we long-term We part up believe set team for changes that restructuring success. go-to-market drove selling this September. of implemented will the as our

One and things were of I to integration the Twilio, and off-base, into don’t I deep process integration think that the learned dig I the was goal overly sales was the joined lessons from approach our Segment while of end force into initial did key of aggressive. Twilio for sales when the

We didn’t properly enable sales. Twilio field

fully to integrating to to needed the right of is develop plays entire buying segment decisions a would the that take from Segment sales team. elevated to We led some significantly be methodology time Twilio team APIs the strong different software Twilio attrition We our customers communications, relevant sales persona platform knowledgeable before to the the that existing across behaviors. and customer selling our to and Selling were into drive sellers most also that enable and success sales of product. from made data team

hired while business. now number enable new originate lessons we We’ve engaged engage enterprise and focused missteps. to learned we sellers and our we’re these the from a talent, We’ve onboarding also segment of capacity and segment need

to team. As the lands We such, coming the quarters. anticipate in we’ve stabilized reaccelerate new segment

the at so the to into base a strengths model of the goal sales these also efficiency, we a capacity the At head see organization the self-service customer market and is the our to I’m operationalize sales end changes very with excited XXXX. of to in by as end and We’re I go-to shifting day, lower capability different maximize model.

across are value of where product AEs drive high only from focused own go-to-market on small their growth driving our engagement targeted where accounts team global and motions our our and our strategic One can segments revenue self-service the and top growth on profitable model. AEs through

where a and comes in we’ve multiple and down to support begun efficiency, where potential profitable growing for off client growth initiatives it. large overweight see enormous value the has market. kicked journey driving it transformation summary, The been create In we investing and we’ve to go-to-market to

more amplifying our support automated customers and capability smaller self-service ensuring we’re First, developers. and of and acquisition our

more Our consumption. that product-led and with drive and to growing them profitably and growth features more create will value base capabilities critical be volume innovations the retaining customer

go-to-market can we the top can share and motion for wallet base, customer messaging grow This that’s into solutions end software is overall products both the of customer do at our base. us. our our cross-selling work of a By

teams heavily out addition, building ensure and cross-selling Segment Flex In coverage growth. for to logo sales and capacity new in we’ve invested our and

And leverage factor and efficiently go-to-market will to coming term move key model drive to begin a next quarters the of scale These our us implementation. a to years. for finally, and will partners three longer actions across needle the in shift be two sales fundamental the

to we is play is continue there. some slightly and it. environment macro strong and going through longer and the The delays demand market have to cycles, While current leading to we’re sales purchase decisions

ahead. We I’m fantastic about opportunity have excited portfolio product the and a

walk and turn now metrics. through to over the And I’ll Khozema, us key who will it financial overview

Khozema Shipchandler

Thanks, name Elena, today. all Khozema and Shipchandler Operating for thanks to is of Chief here I’m Officer. us My joining and Twilio’s you

you’ll meat discussion, a of of for wanted to reiterated reflect mind few as key throughout the which the hear my getting top quickly on are presentation. Before to things COO, I me that

focused disciplined laser growth. are we company, organic a as driving First, on

of past us, we’ve execute capture us significant the opportunity which market expense few to to Over towards the against at effort years, share. oriented allowed the the an in company of profitability, more growth ahead

we driving While attractive growth going to forward. of focused continue levels on be

We so do fashion. a in will balanced

the scale. we dials As more profitability and recognize towards begin tune to economies of

a provides capital strategic the and continue organic strategy addition, and M&A returns investors. capital potential significant to we broader as investment, which sheet, In maintain evaluate to balance trade-offs allocation strong a our between flexibility we

the term our software accelerate in organic focus predominant to our However, immediate is portfolio. continuing growth in

are in to starting delivering thereafter. our non-GAAP growing we each margins Second, year to operating profitability and operating meaningfully committed XXXX

operating margin in a the irrespective gross is presentation. this highlighted, been Jeff trajectory, in us of the as volatility. short-term the there recent delivering has I margin questions XXXX While why profit case our have of plan regarding know explain later non-GAAP gross our I’ll lot

We this tightening our of by by year and we’ll we to that metric Finally, effort And the a continue as this a for areas business, results in. matter. policy more investors consistent to on and sense come delivering disclosures began metrics. where earlier our guidance in better we’re focused consistency performance expect giving repeatability give

the I Now, remind revenue are let’s references investors unless to financial dive that for like except specify otherwise. in. to measures or I’d non-GAAP

for results XX% of afternoon, $XXX representing on organic delivering solid basis. and XX% total revenue, year-over-year This another million we quarter announced growth an growth QX of

came exclude for operating sabbatical customers non-cash million accrual from see million Our for $XX you with to DBNE And the program tenured at in on basis strong million $XX reported or new we of our expansion if $X implementation the loss XXX%. employees. our a continue at

QX. sabbatical we For target program to our revenue and for operating this and of $X an operating XX% XXXX the XX% an of be is total revenue annual Day. QX, guidance, $X.X Based established excluding growth in the the to million below Investor growth accrual loss year-over-year on of million expected total at or is million we’ve $XX billion guided to This on revenue non-cash loss of our $XX million organic $X,XXX $XXX million. that to XXXX to which XX% approximately an implies million, basis, $XX

how about now, the that’s delivered think on think XX% target. growth question we the revenue forward. until minds consistently have on most I That moving we over organic is this said, commitment investor’s Up

a we mentioned remarks coming navigate that I were quarter, are macro strong had there for prepared in headwinds some while earnings, to our third As months. QX going to the short-term over our have

QX in decisions verticals. sales retail in to are some our instances software the have These peers, we in to extended we crypto, and In pockets certain trends demand from the softness starting on delays verticals longer and mentioned Like consumer including impacts also see of persisted purchasing our and environment, social. many including e-commerce of slowing macro earnings, QX cycles. in of

we As XX% guidance pull to today, the think evolving it’s because environment. such, prudent external the rapidly of

guiding a quarter-to-quarter on while of we deliver and continue still we’ll forward. attractive moving growth levels basis We’ll believe

profitability business. big moving on driving not Our And business, focus a great non-GAAP meaningful is forward. the building just of a operating levels company orienting we’re

to going of better an of better out and XXXX company a emerge even materially XXXX. company out We’re

right the Eyal team, about against a continue execute we Jeff, As and massive to Twilio. from very the and market products, Elena, right for the have and we opportunity confident heard future you’ve to feel

contribute to thoughts profit out detailed overview what margins. I’ll metrics on to pressuring continues products on I’m click consolidated messaging at how financial unpack gross a through overall all the means forward. scale, we continuing Today, to a some software more attractive to I’ll dollars moving we’re these with of product, before scale, that messaging then a and our are you ultimately business. walk closing I’ll of also our key our track as double despite our provide this drive performing. gross we things and provide communications visibility going how few leverage you how of on discuss

overall we’ve exciting Day this Investor our today. we’ve a the Let’s start in progress Today made see a business it’s look Day XXXX, on is short at our stands that third with where to Investor period of expecting revenue Xx and by deliver we’re based first QX our to late revenue time. our quarter. Since quarterly and in grown guidance, over approximately of $X our billion such

generated For $X.X done but context, have Not maintaining net revenue billion we’ve year. growth, in incredibly XXXX, driven this only the we entire based of expansion. while strong for we impressive dollar

percent to for non-GAAP revenue Xx, Xx, QX XX% introduced. from we’re creating the was per active revenue continued program grown XXX% XX% increase was of $XX for QX our more has more by is efficiencies that have QX XXXX in customer XXXX, our in deliver in in approximately DBNE that the our it OpEx as business, massive we’ve sabbatical employee drive our despite accounts recently revenue. account. that to a testament over meaningfully value customers. fact, XXXX, the started excluding revenue across by same non-cash continue customer in And million This to level active nearly approximately over QX we our And was to while evidence In reducing grown accrual the a

with last of resilient terms said brands. modest by they wanted we expectations to we there as the engage be. the some acceleration a had acknowledged created that Investor how experienced from customers sustainable, of time, our new Day that in At sparked in was we COVID we terms believed ultimately how XXXX, of lot that of At COVID it from questions would some were and in October tailwinds growth

of and the CCaaS which communications solutions. marketing two, combination of and One, and categories. analysis, Based is engagement in growing. $XXX Twilio XXXX, customer markets the growing TAM CAGR being the following three three software the includes combined $XX internal engagement believe a analyst is is market seen it’s validation and The TAM here growth, IPO. attractive since a to to that combination continued then engagement of positioned And we’ve And focus And define stay. we’ve significantly inorganic we in, on to that be on market. expand this incredibly well to in XX% representing continue core customer billion messaging, customer TAM since of other more billion portion with fastest market in a addressable we the growth our to estimates win transformation overall able industry digital personalized products, Twilio these to XXXX, the an organic as through our CDP, three, software, campaigns, been and our is

is massive. opportunity Our market overall

As this execute our will we across customer platform levels against growth believe we continue continue we forward. moving engagement of to attractive TAM to drive strategy,

revenue including have through larger As at estimated acquisitions based revenue we expanded on We’ve we’ve TAM, CAGR and new SendGrid driven strong some than and revenue increased ninefold adjacencies annual XX% more we’ve scale our XXXX, into strategic scale. executed revenues. a Since against growth Segment. added this delivered our and consistently of XXXX

above organic growth remained has our comfortably XX% While target.

forward. a approaching from of key $X that help revenue billion a will benefit continue number We’re tailwinds to drive that currently rate and moving we run growth

and of to more know environment. now do that We macro but achievement, are facing difficult more are proud this we still we have a

will growth profitability. with taking a We believe we’re position the combined business continue more to towards forward, growth approach disciplined and more orienting to be attractive deliver going but a in

a upon grown providing as other In of profit a well addition into revenue can us operating we’ve levels This rates, profit our the that CAGR. of metric meaningful profit future as drive growth, growth, for to key namely as gross consistently gross we’re base then substantial QX at business, leverage. focused software attractive we driving XX% ending drive to strong on which a back delivering dollars five-year to is dollars parts at reinvest

our believe lot all trajectory, commentary the and of particular, that our quarters margin has the generates And our business on is per gross about new today to on there we been attractive unpack given messaging share profit several dollars. product know of I’ll products and data think we’re as elevated for a the how Twilio unit Jeff impact you of of gross international I ensuring over most While growth message our past messaging business. on some meaningful profit focused levels gross mentioned, its and help in we more economics with

We add more value given customers growing paying almost two of in Xx. more is can years, more who larger usage more who than year strategic of by are $XXX,XXX increased our continue accounts. revenue we’ve when number to this than customer we’ve see our the million In than per and chart, as the succeed. a We paid just majority to customers customers us us doubled from $X significant you based. succeed progress our And made our ultimately customers,

more few accounts, years. per and of customers past by both enterprise area we’ve more than larger Day. us Investor $X our this Xx we’ve In discussed been speaking our us since And million important $XX the the enterprise, year, of pay has pay for over almost who an million of grown than investment number previously us how last who

X,XXX over or revenue exited the customers make solid of revenue we total to million with for XX% when here continue those quarter and We for of QX. from traction GDK customers, $XXX our QX

have believe of ability adoption just in many over we seven with still to we’re of XX% many over figure of early these we time. product we the customers move to And eight the are GDK, and penetration While them.

to also products. adopt We sticky, more of software will begin our be these as accounts to particularly believe continue they

mentioned all cohorts As expansion is seen of earlier, customers. across an DBNE of and have this our we impressive attractive

see continue be new use benefits a they product. as their This time. by the reason adopt usage, get one products customers cases, we expand and is new then product to add add excited New messaging over we and to our

an and our products. its customers. Given and the to initial relationship an other in This offers to ROI new a foot of us high software use sell it door, cases, enables communications ultimately an build higher opportunity be easy and cross margin land to range for provides broad then tends

are our We business. well across diversified

to benefit being products we from our diverse cases, companies. range revenue and In mid-market of balanced addition a growth mix use across largely and enterprise,

to we sectors. specific overly any a range industries of We broad also exposed are not service and

simple built over set security apps we’ve communications. platform, in into is video, XX comprehensive account capabilities enabling a and omnichannel integrate voice, the to communications XX-month foundation a QX of based lower margin Twilio’s products overall has billion elevated profile Twilio’s developers like of and business. generate yet features using are businesses usage These revenue rest but their XXXX. And of it years, last a easily email, as APIs. deliver predominantly gross growth, last Messaging relative to powerful and $X.X continues to in messaging, the

to of all Our different other communications gross margins growth a profiles, higher range products offer maintain messaging. but

data communications in and Segment, software, stack tend move These and define and all and Frontline, maintaining we’re up high traditional based and products, to leveraging generating like momentum Marketing highlighted, growth be have to subscription Engage more Elena gross and we Campaigns. Eyal Flex, as our strength our party revenue first Jeff, As accelerate SaaS margins. which

no of will retired we using have Note, the going use be application longer terminology and the definition services that forward.

and of today, XX% a XX makes gross last vast From perspective, its total XX% profit revenue. of mix is profit products the majority, higher vast the up XX% but up of the margin revenue with our software the gross messaging again over particular messaging in majority versus gross communications Our make total profile months.

Segment, for the early Engage. relatively ahead we’re still Flex days incredibly we’re excited software, and by opportunity Although, in

they’ll of our we levels as believe We attractive generate in growth will and the investments these years. next returns over continue future to several products prioritize highly

As portion they we the and profit. and contribution continue of gross larger to our a expect software to evolve become grow, will product mix that revenue

we’re spend seeing the few discussing some the of communications particular, products, I’ll current trends in next unpacking our minutes messaging. in and

currently revenue majority in an a solid growth driven CAGR at our in communications years. run seen messaging we’ve strong of represent several over products XXXX, As rate, delivered rate. annual and Since communications largely the the previously of our grow by we’re At currently at we’ve five-year XX% highlighted, aggregate, billion the revenues. QX past a a $X.X

being communications established. the number of These overall with email our largest months, and with voice a XX% in alone contributed XX have the We API-centric messaging, portfolio, last messaging the communications of products and products the total. delivering most revenue three of approximately over XX%

profile, related continues communications revenue growth corporate messaging elevated particularly structurally mentioned margin. rates average, a majority As our international lower Account previously, non-messaging high is revenues. The at relative to of messaging to carries for gross but our gross grow security, higher margin includes that balance and high product moderate growth other benefits a high about The attractive products verify gross from very our margins. which these is communications overall we’re area deliver is excited more rates, carry previously but of gross growth margins. stated our

our scale product significant. The of is messaging

continue of messages XXX the an for strong a with months, effective over on channel XXX variety around see XX we’ve last the our And It’s world. behalf ROI over we for countries demand cases. serving a wide Over our use customers. high incredibly customers, to of billion delivered

our with new are provides This the a higher a us as products, opportunity over door, relationship to sell new to cross of which in foot us time serves margin. initial customers. and For establish the Twilio, all other allows highly gives a effective messaging often land

around our in margins recognize zero last and customers introduced at lower the other aXp pressured messaging been revenue the to our we as over pass-through relative products, we’ve quarters said, past, margin our new to has gross gross world. fees discussed structurally domestic carries as international increase several an being margin. various its growth the we’ve fees, Furthermore, but given That telco networks the have carriers as in which messaging by seen are set

the a stable we of or do profit. we gross gross this to percent dollars the set have health into believe the carriers and margin able business. dollars Given Rather, gross efficiently are that subscribers profit fees customers, ensuring that turned is through not their looking the operating lot of to profit be reach and that dollars way profit growing are right at pass those the to to evaluate and latitude created these gross to

Through this benefits coming in It slides. solid from can unit messaging drive levels believe profit. is and of which more delivers operating explain to be growth used a to lens, I’ll we product. economics, continue elevated attractive the

both see years. XXXX from the revenues has International that of growth domestic our left, to well can been the on With portfolio QX new last messaging from has as an $X.X our experienced contributor sent driven internationally. you billion. customers accelerated over chart last As a months XX volume total customers the to two messaging messages growing as increased this terminate growth, key by international

shifted revenues the terminating XX% XX% our This has U.S. XX dynamic months. the outside in of messaging last from XXXX to mix the over

of margin Given gross messaging gross to XX% XX international contributed a margin rate, XX% the XXXX over QX XXXX. from messaging, lower in reduction blended which this our profile months to has last declined in

unpacking shifted for gross the to it’s as blended U.S. margin has While international overall mix has messaging declined the worth and markets more separately. rate the international revenue,

a U.S., to you XXXX seen can M&A. as chart excluding organic on since margin see at from slight attributable increase our on the an with the further has Looking gross basis actually increase a the fees left,

T-Mobile’s Verizon’s XXXX, that material XXDLC in AT&T the gross the in chart introduction similar in of U.S. a this fees on introduction you’ll However, has XXXX, impact with fees see had margins. and from of middle following

profit but revenue, margin created gross charts looking XX but our overall have excluding X% pressure what dollars, recognized in with delta at can They margin impact XXXX point significantly are percentage margin. fees you turned domestic fees an on almost on customer conjunction increased Ultimately, in they these delta our without that margins. fee year-to-date M&A. When zero and pass-through was into at gross as two point these to one no another, an are in has see XXXX almost the drag has

variability since improvement some slight seen last a right, XXXX overall to you in margins the year. in chart the as XXXX with from gross on see the Internationally, we’ve gross margins relative can

U.S. markedly previously, mentioned than the for varies and country. gross we’ve the country profile by margin As messaging international has lower

we’ll each the result, on variability country depending tend specific margin quarter. a messaging mix blended As our revenue more see in to international

attractive product economics gross international. messaging the profit and Our both U.S. unit across has

U.S. in over message seen couple stability internationally. at increase our we message the the we’ve gross Looking past receive of in profit per per profit years, at an the gross

though even reinvest in With annually, into increasing use we of message levels sent the than gross able per lower, strategically fact, gross to actually generate are U.S. more can billion profit we’re that our gross messages the to margins back profit international over generate internationally we XXX In business. being

the drivers the behind messaging been gross highlighted, As reduction twofold. have reset in margins

which our of QX margins shifted reduced First, bps growth revenues, has has by gross XXX the internationally since our strong mix XXXX.

fees has the further carriers these as fees of onto U.S. XXX by our bps the no by introduction customers XXDLC gross Second, passed margins our reduced are margin. messaging at

has and our messaging our the XX.X% XX.X% recent on reducing scale also in quarter. reduction impact to consolidated messaging margin our Given product, gross most XXXX the had gross a size of in in QX from our meaningful margins margins,

in XXDLC the adjust fees you QX quarter, recent margins the if gross would’ve However, XX.X%. been most our

the summarize, a drivers profit on messaging. been have gross make To dynamic, pricing not fees margins competitive gross simply, put reduction we behind nor messaging and the mix, recent in

message In even internationally fact, been past the a has over per increased little profit that gross more make and steady two even each we years. gross profit

this we generates that decreased economics. to over margin product, attractive gross unit percent slow it the has While see down period time, no reason as of

So is to growing our intention continue it.

operating messaging profit and mean into to over gross Doing strategic approach efficiently. started a is We going time mentioned, to to opportunities our base think as we’ve variability, take may more generating portfolio, our operate back margin reinvest action our our while can that of software makes can gross as well believe our plan. sense. growing forward. dollars that that, within to While products leverage upsell we our drive there has significant continued Elena we And driving these percent ton as are efficiencies whom go-to-market customer sell we

the which Now, next high to software we margins several with expect turn high our products, over let’s to growth years. drive

expanded inorganically a Flex, organically feedback Segment, both products. While to we customers driven to define consistently Twilio was software of platform, and as software Frontline The Marketing platform. shift by our Engage. Campaigns, contact It started customizable they that software products needed started demand. include as a heard customer from strong communications portfolio a newest center and we’ve product as Flex We with

data segment. topic age. looking to Then, leverage us we’ve orchestration product leading in customer main for And even of companies of experiences Twilio become the top the led better now, customer journey to of to as That platform. natively to on started Engage, data conversation, general the digital were omnichannel data the existing their built our provide ways availability announced Segment, acquire

This over channel customer combination engagement real provides of how whichever data it a activated and prefers. time is

in working that many As core from sales offerings. does And a with you this Elena, our we require are different cases, different CPaaS buyers heard motion.

buyers, Software our requires who capacity sales team sell to investing and sales been an sophisticated how that experienced in know to we’ve set. skill around

than as trillion from they We’re some on companies Segment first results the and events have better to great overall. continues investments engagement. month, well. leverage already deliver party to enabling the Flex for data is Twilio more customers great their processing results X portfolio each from sales those seeing

in getting just product. just In four started. is fact, run years revenue great million quarter, the This launching Flex, the mark $XXX Flex for after rate crossed the third a we’re milestone but

Engage also product see software and included software Flex by our software you largest products, Marketing can Campaigns. that at our today, closer Frontline We’ve Segment portfolio. bit a our and Looking is followed in

However, but with today, important them not both the of customer new, revenue represent they platform. of being they’re relatively pieces driving material engagement

us customers Importantly, addition profiles. these side the financial telling our in this look also important products to how you’ll that for have them, products great see when you page, of these right are at

This that plus do to as margins. gross high our XX% work portion bigger a uplift meaning products have to our revenue, Again, becomes grow total margin, we’ll growth of we delivers portfolio Twilio an to power and products this generally consolidated continues of platform grow customer our with gross reorienting portfolio as scale our software see these full of to vision. put our Elena portfolio, over sales as organization we’re engagement we’re the but here, embrace confident and and continue to customers behind mentioned, we’ll time

wanted look a I at little to looks provide Flex, like a of closer Speaking revenue ramp of customers. the bit for what Flex

based, last Flex a a ramp are contact takes While it’s majority a entire that have software to change usage our are This meaning of center footprint customers QX products chart see don’t of progress you top they subscription different financials. based, as a true revenue is the despite reasons their primarily extremely revenue of immediate year the for are start average Flex, our why of longer. at company of This These one impact since Flex little rare time. as our our CPaaS the our two an shows on from a with for products bit end quarterly XX XXXX.

is customer they agents, allows XX organizations. more You’ll customize or platform see their than Flex sign their have in teams when of done flexible and our several for multiple with over Flex year, experience. come truly since and top customer and unique even to a doubled find support quarters Flex rolling that our usage typically customers out is to support customers what’s the Flex This of and the this thousands as as their spend customers across years. our are to great to expand platform start last Again, continue on to value

from Segment ARR We contract chart growth traction shows top there Again, Segment. is excitement next This disconnect years. they seeing a first it this be sometimes to signed why a three similar through average early flow when we’re doesn’t five expansion the you’re a Twilio on. see financials through the the trajectory, software overnight. may customers seeing in happen but trend see the for a This you great between with for shows growth and can that our the what

products, Our Engage, been software software to the happy our portfolio factor has to earlier much with we’re Twilio in another its life very portfolio. with compared far customers communications And growth made is the positive. cycle from GA, but and adding officially progress yet we’ve thus feedback we’re our

salespeople. to of enable unique from and on with and hire But work We to to more have software combination and will the is right leading functionality market. we’re solutions this features portfolio that differentiator adding innovate us our track experienced believe that new help additional we a do to continuing communications combined software the win products continuing our and

the discussed between of growth how operating forward. aspects of will to profitability the how we leverage we’ve plan discuss that drive strike and we several to turn business, going and balance let’s the Now growth

payoff last been the growth. seen clear has been we’ve those from several our And focus we’ve For that results. line in in top years, our the investing investments

in absorbing period. we growth, the on while efforts that acquisitions focus the G&A. over of focused improvements and our see same with time and Area several outside shift to started and even our However, also benefits to locations hiring automation made like total driven our OpEx have We’ve scale Bay we’ve of XXXX, to since areas

flat producing some needed income thereafter. sales over significant we’ve As across and marketing in make that results. put combined expenses international relatively and which overall for macro consistent our teams, this strong But prioritization to path dynamic further you driving building and delivering our in see, time became actions with starting operating annual progress the has it need stayed we that drive out to enterprise OpEx, non-GAAP and can made ourselves as our XXXX environment, in sales size organization the the reducing right the in clear more improvements we’ve to while invested period given software, are

more in a but an First, removed in $XXX the as costs talk in that announced approximately in from moment, you’re we reduction likely restructuring aware, million XX% about business. annual workforce. our resulting a of September, the I’ll details action

business. of have we the new quarter majority hires the Second, earnings pace on slowed discussed as a we call, our in second of

in $XXX priority efforts This hiring backfills While are on Flex, save limiting we focus Engage to number other approximately of we expected continue like costs. business. and our Segment, hires million high is new annual the the areas of to of and strategic areas the

million to to needed, our approximately make estate scale $XX improve which a significant profitability efficiency our driven our savings. returns evaluate monitor finally, and and and decision And has our first the made on company a of we as real footprint, adjustments to reduction as closely become in increase business. we investments, opportunities also announced continue remote We’ll annual

the me Let provide a bit more a in to take moment restructuring actions. detail

imagine, can was the was right our the you this The but decision for restructuring felt like the easy we this was health largely long-term not sales As decision, an business. focused of on ultimately areas and to made marketing such promoting more to shift We organization. necessary focus where sales portfolio, support our changes self-service a while isn’t messaging. model our high software touch more of in as

the shift our I discussed continuing locations we hiring teams cost who consolidated are the we away as also are We organization. support to teams duplicating size of and high as from And earlier, reduce efforts. scale

model us onboarding led we to allow In functional a model, breakdown product, and to move and our from work, R&D, quickly. allowing general avoid duplicative align a fully manager us other to engineering, silos move teams more to

supporting of also result We of lower a and us guidelines also transactional unnecessary the size regions our consistent the to to G&A G&A, reduce layers span more cost reduce In we control changes within help of of in as team management. move go-to-market organization. roles go-to-market, implemented we

you hiring give limited our freeze years extremely of of an five as out, our marketing basis XXX down I to we term, and to to and sales was profitability, too wanted focus backfills, our both to three been should think on how a Twilio the about to look needed move we come which gain Again, you And investments grew our our G&A couple to headcount we at to finally, we being priorities. with R&D modest corporate and the some growth has points difficult and in recruiting quick we also scale forward. and refocus this efficiencies. down always think OpEx decision. In given medium but our by align XXX expect and the organization. a quickly current last company, years more With squarely

advantage but scale, to of our as a most more regions. and We we’ll look G&A the that slower cost hiring improve while able the a and decline combination and expect term, drive we be our continue will further a business in leverage these at out we’ll of results through lower be item rate, automation more expect sales we that R&D still of taking and longer additional able leveraging to bit scales. deliver to line marketing When

incremental throughout driving leverage. that margin, and we Ultimately, focused increasingly see through profitability leverage are will business the gross pressure even that to it’s we and as if scale, understand on important additional we operating deliver this continued we

of revenue important company of the throughout leverage focus which as QX stock-based build area we approximately year-to-date. Another in XX% averaged compensation, is

years. we couple As do we seen look the of as impact to at XXXX, continue the headcount we SBC we’ve last show levels high some the expect of increase to growth absorb

do to of achieve including revenue, this target hire the slowing to XX% we have medium diversifying growth, been XX% leverage to the immediately, to in reduce will over taking years. actions a tying employees the and headcount SBC the locations equity where this and we However, down term is we’ve decrease We’ve and that feedback awards recent and a of cost time, restructuring we’re your proactively heard annual not number and taking this confident we drive performance. several to geographies next we’re the targeting can while over lower number steps

means let’s Now, what take forward. this moving few a minutes discuss to all

to messaging deliver discussed grow operating business three efficiently, and beginning priorities As main XXXX. non-GAAP profit our business drive business, our presentation, more this three, leverage are throughout two, we’ve in accelerate across to, software momentum operating the one, our in

execute to actions to can proactive all against taking we and committed as been we’re delivering ensure effectively a company have moving these forward. We of

to long-term a the also our We to to last Day. of areas remain highlight that We’ve from to margin are in which financial target, non-GAAP medium-term key focus our committed plus operating developed unchanged short metrics performance. Investor of framework our remains XX% targets goal more is assess clarity have and our These to targets, be provide The short which then M&A. aligned priorities. that any overall of impact exclude list future can used to a these the potential

to accelerating Starting with efforts on driving going levels continue really organic of we’re and our the attractive focus growth top line, software.

and plus the five revenue year our we’re as range to shift XXXX years we’re three towards we recent the we’ll the go-to-market and continue our our for products. targeting guide XX% be medium-term, macro software out, software, to being headwinds current in XX% per targeting and Given to going quarter-to-quarter be to growth organic define which to XX% over for

revenue the Given majority revenues today growth we’re organic that provided with the harder the from that volatility current reflects forecast to range fact for based be to seeing usage we’ve are together environment, wider macro the usage term. over revenues our continue the of based longer a

range we be software to usage as to tends than based tighten given the and be revenue. more relative at rates the rest headwinds software revenue the expect grow our business time, more predictable However, products over able as macro this subside, elevated that of we’ll to

throughout economics stabilization discussed, the previously to margins As continued margin gross continues XXXX. portion as our variability And bigger we’ll will our a see and we anticipate become grow continue messaging therefore, medium-term, unit of do to ultimately that assuming gross we remain attractive. see business the revenues. In appreciation software

profits expect non-GAAP delivering operating and we grow thereafter. next each We’re year starting committed to to year this

non-GAAP improvements through medium-term. XXX targeting basis margin XXX We’re the annual and XXXX in points to operating of

stock-based reduce the to we’ll in take to this and continue compensation Finally, medium-term. our actively steps track

As mentioned, SBC we we’ve increase the in high to modestly of couple in growth the last as seen XXXX of we absorb expect years. impact levels continue to previously of the headcount

to targeting of However, in SBC XX% bring we’re to the medium-term, to down revenue. XX%

anticipate are target. everything will annual adverse headwinds from impact forward. growth the organic the moved short moving financial the that how think out, an takeaways current framework growth here terms rate on Netting have We our the macro is in the of key away why in term. about XX% we’ve This to

the forward, able attractive growth deliver acknowledge short-term. While we there we be some that levels believe we’ll still in could be of moving to choppiness

revenue It time the the deliver confident in to of we’ve made to capacity. the a move we’re to As and of some these ramp begin to XX% to will take effective the reps revenue needle can discussed, we target but changes plus software, We continue selling ultimately will quarters optimize annual medium-term. from coming to bookings Elena believe as move against software. number our in growth in go-to-market organization more for

delivering non-GAAP and margin increases each operating thereafter. operating to drive next We’re meaningful profit year year committed to

Excluding future M&A. from any potential impacts

time moderate to continue the over SBC in We’ll to actively near to cash flow deliver strategy. our expect and to free We plan allocation assess our is medium-term. capital

allocation how capital us of We share in investments, provides we flexibility have to a returns terms owners. strategic potential significant optimize best M&A and which strong sheet, between balance organic

Jeff And let turn me remarks. it some that, to to with back provide over closing

Jeff Lawson

Thanks, Eyal, Khozema. today and lot a We with between provided of you information myself, all Elena Khozema.

I Before a I of where summary wanted with go to we our Q&A, plan. started back to take

First, messaging. of gross lot profit provided disclosures and of dollars messaging a generate but lot a We at is its in economics to mix, business. we good unit a unpack core,

using We’re in the product led much efficient how growth get to more we and distribute product. run

at long as profitable increasingly as continue fast doing grow to we So continue as business we rates, this we can. this will

Twilio, Engage need. and Second, more. Segment, We a by software next core goal because many Segment companies Flex to Twilio. of is act CDP campaign sell insights products every world business to our this have at BXC other infusing sales And company’s in value Segment. with add interaction, every know class have the at engagement of period we how unlocks learning the and data context and customer every ways leading data so we of for and intelligence long particular, machine execution rates are through growing that high for into rebuilt and team the over they time. to into a And

value in upselling uniquely This products is bring deliver time, through and is our still early to take believe plan. CDP leading will and integrating more products our our but We as this leading together integrations are CPaaS articulated. thoughtful Engage layer. Third, such and Elena these cross-selling applications products as via and in Twilio positioned exceptional our we value software unlock together to

communications already efficient Fourth, our But we product to selling are difficult laser path. putting and periods is continue on distribution some us leverage of through will focused software afterwards. go-to-market and while in to simple, led We’ve drive I’m time. more over near-term products leverage more from our and decisions profitability business more on successive this our those more resources operating generating scaled drive growth made put plan

place a to long We ensure we gain in leverage of right period team will this time. have over the

you and think our best a we Finally, run is business forward. we’ve which with going to provided framework, about financial way the think

and financials fifth begin will means this can our growth performance the our matter. see growth, assess already the out called gross where We our a profit to and report focused. five we use of software will That’s as are are financial reported Four in line metric as on metrics growth every in disclosing you bottom framework growth, top ultimately what quarterly, and line we quarter.

sales and lastly, G&A And categories each expect going we cost ongoing should on and marketing profitability, forward. focused not special you of are on only in to our emphasis see with leverage

As many Twilio. it’s one I’ve for said day times,

executing. and the team have customer just and an base, we we we the have amazing have to products we need have need, we the keep framework, We financial

your short this before Thank take you opening for on break with and for with that, for coming us Q&A. today we’ll time a And up journey. things

Bryan Vaniman

them the in aloud Q&A See read will feature built session. the you by webcast during we and the soon. in Questions

[Break]

Bryan Vaniman

is and thus Eyal of Bryan Q&A Welcome Khozema of Twilio’s and those today’s Shipchandler. event. to our presenters, I’ll Jeff Elena Investor far. right. I’m Donio session. Development, portion Vaniman, Investor back and moderating the This Day Q&A with to questions have the Lawson, joined be who SVP Corporate Thanks submitted Manor, All Relations

the get And questions through submit has feature them let’s started. if with the Q&A webcast. the So anyone in that, further throughout built-in please discussion,

areas no Wood we margins? better in wanting Derrick be business should longer that things how from is Cowen. dial announcement, question to you down investments sense. the around to the about your and of of and the make impact restructuring found What fewer you revenue first think doing you letter the to Jeff, talked about some The doing company are that and

Jeff Lawson

for Really Yes, Derrick. thank the you about it’s simplifying. question,

We’re focused on messaging profitability. growing

on growing and focused We’re segment engage.

And for three We’re Flex. focused each on these our we of focus are better. growing of that areas them areas, making have

investing like product For messaging, in growth. it’s

our focus For on go-to-market enablement our sales Segment, it’s growing and really a team.

to more our platform for able For we also it’s XX,XXX being to sign undertaking Flex, simplify. Internally, like we’re this about did quarter deals and than seats. scale

more and to also platforms our replatforming save consistency. We’re but our both get to data compute money,

many of our have if go-to-market think you it, about products, had historically which own their motions. So

the three success. of aligning their products can Our I think go-to-market a so this where motions helping primary many more behind is really aligning them those do that focus – we’re and There is products land well, only so efficiently contribute them to company to helps.

For example, voice works a buyer, context of is which center best it’s the contact in when sold Flex attracting.

That’s we’re profit of relevant of we’re really of kind segment alignment and generation customer looking I we’re relevancy take messaging’s and activities at the it then ASAP. to where that doing it. looking that if saying growth, or aren’t Flex’s other So kind success for

Bryan Vaniman

Excellent.

in of had Stanley effort Next and much changes direct down from that. question Derrick of Morgan restructuring have same versus a Cowen Marshall Wood also is slow macro answer QX the question. Meta we’ll is a environment? and the compensation in from structure slowdown How the result And the Khozema

Khozema Shipchandler

But you, restructuring. Thank impact Great. Derrick. a Thank to revenue Meta. there’s term not from the you, actually near

business not of that example, certainly during we we that’s be our think actually presentation. that industries about of to salespeople actually to have got of forward, nicely, chart way And macro as growth quarters growing can little a one guide. talked And a there we bit difference same it our today, for a a is, is the us rate, in different at slower it fact, see we some that’s course our it few In in instances we’re see than headwinds would which just going the but we causing a lot existing is, revenue of why growth lot you still do is about of in sensitive is industries, as what if that because to we driving what customers with rate growing expansion as the expected that growing, really macro lower exposure have number a are our still from, did. it’s would way but the the is just customers some the it’s cohort back well had that and

Bryan Vaniman

All in Jeff answer fourth the question right, RBC. strong spending we advertising we’ll given Jaluria have the about next from contribution environment? How midterm think that. political Rishi And from should quarter

Jeff Lawson

question. thanks for the Yes, and thanks, Bryan good Rishi

just that friction decided went to XXXX opt-ins, acceptable was short-term from election consumers with who’ve why election. with not from presume that platform but is the and the we the made after it’s cycle. use and I our refuse to business our get us they providers, years, who with intend benefit And is policy really in traffic largely I’m this the that, a to traffic to get election reason board revenue lot in customers because to of did all who worth by annoyed consumers sure not prior of this therefore the to QX think traffic revenue we and exclude cycle honor political or problems. other year unlike this off campaigns a spike about this And I their Now, feel we that decision opt-in, our QX and those the regards in not a lot consumer as repeated raised when refuse traffic really concerns carriers – traffic. creates to

Bryan Vaniman

right. All

Khozema? question from Kidron traffic wise offload to to from a Next no Oppenheimer. to traffic? messaging margin party international chasing avoid margin third bar way pressure? messaging no in the there low is Is Ittai there international Is

Khozema Shipchandler

question, the for Ittai. Great, thanks

as disclosure As we very so profits discussed the generate international we we our that long an messaging And that than the as effective of also showed you obviously going provides domestically. attractive new we as and unit economics unit so growing way gross land reinvest the we’re back more with you visibility strong we it’s that as wanted have think internationally even economics, can serves the that because running to business investing that gross actually about continue in profit provide And in previously customers. we into continued part generate to business. the that to case profit it business messaging gross presentation,

us upon the ultimately other to those we based grow I obviously with the we that that’s this up-sell sales and add so showed that but believe obviously want And communications be we then ultimately really laser and what good higher you, is customers profit is, gross charts relationships profit unit portfolio quite that we’re software accretive products. margin on. are economics would to focused of internationally, can up we as and our as enables What we establish new well

Bryan Vaniman

so from we’ll With from the on thus All CRM customer this Salesforce sold segment of to the can your and break front? systems with right, be is data CDPs VanVliet customer’s as and needs outsell connection question segment customers clearly to SI viewing down BTIG. And and next and What and Matt many give inseparable. mindset How that to Adobe Elena. perceptions? CDP change partners, else

Elena Donio

Thanks Matt. for question. Hi, your

are the we’re super is have First I’m efficiently. overall. more focused to don’t and and same just more Twilio Segment that We’ve grow well. leader formidable now a is and on market the not on way product both competitors we’ve and along got got have go continue right business our to team they scale some capabilities products. as software strategy and strong well across good and that they It as execute. lost our the our other small strategically big with starting we But synergies Segment confident have don’t they ones product us and that distributing point as

SIGNAL at talk here. prospects this really a with conference. It’s annual to large their had the walls. we’re large and systems of described as to been currently well our a their fun as morning sit ecosystem customer We’re inside and they I at while customer down segment to chance and existing moment, sales four complex customers marketing

It’s manner is to construct. are what ability multiple to uncoordinated for prospects and It and data correlations customers sometimes And to disconnected. going implications do an customers no to for profound. conflicting that siloed. with the products even propagate. in really cross product It’s draw really Their they their means within slow can is messages multiple

when place in a the already and Segment Engage, of coupled all especially it all So to what’s bring together, together can regardless they’re this scenes. bring head and behind

MarTech solutions, separate time So build stack, benefit, our straightforward we to relationships API but an our integrate overcome, CRM net first from as as actual right we capability the of or real incumbent the buyers. as hurdle with an it’s especially and set not see a to

Bryan Vaniman

that’ll Great. for and Canaccord With be We’ll targets are Walkley from growth margin move revenue pulling achieve XX% key in operating Khozema? the leverage to Genuity. target, to model the Mike where points the

Khozema Shipchandler

Mike. Great. Thank you,

OpEx is As think G&A. all further in there R&D we opportunity actually through line S&M, items, the expect presentation, walk in and on I we leverage actually and the

on the talked to would is of presentation we spent also like her and resources explicitly that marketing of self-service our even continue that we to in software GOs, G&A, Elena about articulating On business actually more incremental On we’ll in R&D for and example, the And if how throughout to growth this to as and things drive and we the leverage and then ultimately through shift shifting And important see profitability scale. of operating which product continue Jeff messaging cost continued do leverage. it’s that gross we sales to drives lot a we’re leverage. pressure moving deliver think automation, well. additional lower that understand of a that we to as lot one will actually side, leverage and we’ll margins,

Bryan Vaniman

Flex Khozema, A surprised walk another to that? Great. to Could the to and other ARR. RBC. Rishi want is similar your have vendors? And you to see turnaround to plan million we little take Jaluria at get a through question you $XXX from business CCaaS only it from scale do

Khozema Shipchandler

it’s Hi, wouldn’t for say Thanks the Rishi. question. that turnaround. I Sure. really a

two signed that quarters, dollar customers. in of yet of the pleased as momentum We’re and rate couple business, our we’ve GA. that million we’re we’ve just performance last those the excited not signed good mentioned four given actually we in revenue that obviously quite actually the the and run that’s a with product we the and years largest is just Flex And that became crossed $XXX to actually sign the seeing see after we’re deals

revenue recognize, every revenue XX $XX our The for through last over receive million pull through to that presentation, about of dollar additional our amounted in $X.XX also of over other revenue thing is, we mentioned of that additional products. the communications communications of And Flex months. as software we we

we we great really little learnings the Flex excited lot ready We’ve how bit in since the about making was days, we’ve ahead the think largely a expectations with and And around but said, we’ve made launch the a the approached the of a of previously us, our those And probably also of market the and of performed of learned for lot to terms we’ve I for Flex, Flex to opportunity in sure as applied has Engage Though, built line GA a the have the market. in product that we’re messaging product meet organization ahead. from got expectations really to early launch. go the progress. great

Bryan Vaniman

right. talk your SBC got in Rishi from at this to for question All time? RBC. We’ve follow you about up Khozema, is ran another also Can over plan

Khozema Shipchandler

Sorry, Rishi who?

Bryan Vaniman

Jaluria. Rishi

Khozema Shipchandler

some it Rishi And slow to right, mean, revenue down, that slow expense And our you, relative relative growth to the growth Fundamentally, line of line. leverage do will of the Jaluria. our growth. Thank to I we that Rishi. our relative will on to lead to headcount need revenue. the

we to to with actions some our As respect growth you given took recent the the restructuring. committed of that we know headcount slowing

like relative performance, stock-based with particular, from And make the to referenced in as that dynamic just changes, in planning cash. candidates, we’ve them markets, a stock as also showed heard especially compensation is And a from we geo aligned presentation, employee we’ve some in to and international we’re very different additional perspective. I also question prior

We well. over And metric to it time. SBC of do our for as investors so we’ll And GAAP forward. practices, make as recognize some changes going an our relates it’s profitability evaluating course, there we’ll continue important

are focused it. quite on we so And

Bryan Vaniman

to at Marshall, When give changes? the is Elena’s I acting did Segment? hiring Stanley. and we’ll And those the growth you identifying of think some Next to on issues Morgan from identify was question of start Meta that Jeff. beginning from

Jeff Lawson

it around Bryan. time we of go-to-market became this the solution. her and to, the very this on up not joined quick year we on new our beginning but way that Elena not it transition beginning clear success. and we this, motion some the new every of gave start the us leadership for to very dedicated to up took gradually to set our we and us saw model aspect cause better intended effort strategy. thrilled at to to Thanks, as it setting launched this combined have time action Yes, but the root selling more sales But a succeed, identify would for just Segment of we we’re work

Bryan Vaniman

Great.

Derrick magnitude you may Next that COGs this messaging one on is question is of from and self-service or capabilities OpEx you adding at lower the to in what Eyal. move costs, of click needle modernizing this are Wood This into Cowen. CPaaS Eyal mentioned reduce profitability? you how business can double infrastructure. Can order the messaging

Eyal Manor

Derrick. Yes, thank you,

to one the is products value As to are product-lead product. it of to DNA test of to to of of growth, part benefits the that earliest the and accessible Twilio’s the API a realize just easy companies not send With to in the products, a understand build easy simplify message make the our a call but improving about can think of self-service, builder telecom ecosystem. our we’re today, When just minutes. working implement, complexity or we

example, an As our XXDLC telecom compliance easy regulations our through makes with registration APIs. process

simplifying We’re the maximum block which friction to billing removing builder also they of that a be skews, realizing use buy, planning will is process understand it our a like as need to point across get streamlined case our on products. from products the salesperson. without Delivering all will they and our for of product should value into identified products easier to what their talk so customers things

Bryan Vaniman

Great.

and see XXXX. Siti think give Elena. that CDP third-party data, Twilio its I that first-party cookie deprecation to on however, half question for to focus XXXX? Panigrahi growth good in in Google demand Mizuho. has is How the platform pushed of from would in to second the impact Engage from It’s Next Engage we’ll

Elena Donio

the Customer demanding don’t to side will consumers nor on I demand mind right know those impact perspective. want a that from this of first-party top want that think Engage. Thanks, consumers segment sure for is Siti. They really and just companies. make what the today, well they to of for privacy they’re are

rules the wrestling than other continue of And all something context customers are are with, to are CDP their changing and first-party outcomes. that segment. ways to data capabilities optimize our as the be just kinds so value are already on why sort to it’s this in people. customers is Segment this dynamics seek putting there more given we excited against against It’s in So of about customers own how market. in they critical those dollars leverage the those

Each they first-party looking is and through solution only through build the critical customer the the I’d that really just a of with to of state counts the close So the economy the best environment relationships, way dollars more like in spend is being one those dollars. to in. current way it’s those Segment. do to data to that argue capabilities and deeper and in are it’s

Bryan Vaniman

right. All

walk Next gross is channels, Khozema. We’ll Math impact suggest question RBC. your XX% Rishi non-SMS you especially less mix increased do from from how us margin. WhatsApp margins? than would WhatsApp, Jaluria messaging through gross in Can

Khozema Shipchandler

Thanks Rishi. again for question, the

that in that what So that the reviewed actually not is or other the ACP, slide the is as in included just today, under to the we that which bucket communications be shared advanced revenue classify in earlier in data today. clear, WhatsApp slides do we separately is on our messaging we communications chart

That the small revenue it but contributor relatively a fast, grows said, WhatsApp channel to it’s revenue our today. overall

like really that WhatsApp, do channel. still commenting specifically SMS while And have So it using doesn’t given we note on WhatsApp our significant that have for though it does, we’re margins on the a to for is while fees impact its to size, not gross carrier have gross doesn’t fees margins. important pay

Bryan Vaniman

All right.

you model over strategy? for Jeff. Mason a from What that happened pushed known was last light Next sales maybe this away Twilio with with we years touch CPaaS business. will And question from Marion always from the few Jefferies. start

Jeff Lawson

Yes, I we say I’ll thanks, were ago that start. would sales. in probably several actually underinvested years

we course, to terms And that’s, right And land of sales formed. and strong sales and so our to sometimes saw expensive growth customers team. really relationships unnecessary new grow decision succeed our on it’s platform. customer of it But for results was and in the

relationships, while sales moved software that behind our our it more versus put say products. sense to those that realized products we’ve we that recently the and building energy CPaaS love I’d motion So we’ve makes and more

it already our to we’re would is our know make So where by our for while in I best-in-class, to we’re invest product-led want though the don’t to towards growth team Elena, and way, to sales further continuing And customers point if software-oriented adopt something you easier products. we to add. CPaaS, there

Elena Donio

client and where my focusing three software particularly in what And Yes, practice focus like place and solutions. focus and our on I ensuring us mentioned then much that’s key so and looked as automation go-to-market what It’s and messaging, broadly of in is time third, on more attention our things. reliance selling a deeply. rhythms we’re placing more pervasive most self-service, increasing on prepared in this in that’s And of our strategic our solutions needs software solutions, demands we these remarks.

in So, success that of And set organization are made that’s that. for really that believe haul. the that it’s up us to changes for support long those we across in going we’ve the

Bryan Vaniman

Great.

Morgan that Marshall, Meta Did And with turnover cause discussed on Elena from will some underperformance one. Stanley. question another continue maybe the have today? at of management Segment was We that you

Elena Donio

I Sure. management built the my Thanks strong that in was Meta. about that did executive No, talk turnover. of at left legacies place. he not and prepared is Peter’s remarks one level. But team was still when he largely in the

elevated I was market, across segment most and the segment particular the as those competitive customer. the landscape were product, did sellers. that attrition So And our important that were about ones sellers in about mentioned, the we experience knowledgeable because

too to tried my we quickly. As integrate opinion the teams, sales in

best CDB point, sales we have stop, category to newly a the this the the team. at So market win with force, intend and the we in re-ramped, full product rebuilt

a experience. that working to software requires that Our with it different to require buyer. solutions time and And field relationship build sometimes

be there So cases There is is built. to in sometimes still terrific synergy certain new use messaging. relationships with

creating go-to-market, we’re changes deep that around within think solutions made just required our And and so specific creating is that individually, software we where feel focus we’re to buyers. specialization we’ve the like explicit we very those

sales to and Over time see should more ramped. though, of our expect you force more

field we’ll more from those under solutions. think, the well over lift general. belts, get reps more We’re originating start see for our more in we and And I time business as lot them a starting with to as

Bryan Vaniman

growth? Excellent. much question the company’s more its to How with from company VanVliet integrator of firms through of is Elena And Matt or drive from mix comes how another these BTIG. the for growth the systems relationships revenues And channel? evolving

Elena Donio

a large SIs revenue SIs Capgemini, contributor We We That of during mentioned marketing of generated bigger lot I software there’s our role for partners, customers for potential our presentation engagement some regionals, necessarily and claim and see though to going through said, play. and today. relationships SIs include my as Slalom, well as and isn’t a strategies, those mature some PwC, have growing especially them others. see as both great global with I as to do it bigger products those be a and slice a

Bryan Vaniman

is question that to from than And the Elena Jefferies. rather And changed with sell sales Mason from CPaaS? team we’ll Engage Marion incentives for How stick next one.

Elena Donio

Sure. Thanks Mason.

couple margin grow begin too. more all We communications All products. lot those We just we’ll to biased messaging structures accelerating with to selling those incentive will drive to grow be that want incentives efficiently of it our Put accretion through a said, continue them op Engage, segment to we a that and align so to sales really software. can effectively plus of simply have other margin higher channels. and Flex highly adjusted

Bryan Vaniman

is Mark in one that’s marketing growing seeing Great. for support? pieces think specifically QX and conversational Murphy the Elena. are shrinking? on verification the from sales the or Which or JP And moving most And piece deceleration messaging Morgan. to And I business verification the another of

Elena Donio

case We correlated less verticals. see that to correlated headwinds Mark. more to the and impact specific thanks, trends Yes, use macro external

use aligned vertically to more it’s So case. a specific than tied

of this crypto, mentioned like QX couple persisted consumer areas social through earnings, softness, QX. certainly demand, of we our and we saw As and in on a areas

also some in extension of e-commerce. We headwinds and those into saw retail QX

So less that’s of really case use kind customer and we where oriented more oriented. it. see It’s

Bryan Vaniman

Cowen. has integrating challenging. between and data selling software Could Elena, you Great. what changes explain to Derrick from you’ve more solutions platform two motions? effective these further drive sale sounds like Wood made been it sales

Elena Donio

you’re Thanks, Derrick. Yes, right.

performance We have that customer, knowledgeable. to attrition were were some closest recent seen the the too and again, to we with across sales most the to tried issues elevated segment closest that experienced those product, integrate quickly as or the sellers

the we’ve and best intend prepared with However, the revamped as we’ve sales force, remarks, my we category product. in highlighted to the I rehired win

we’ll you expect expert more segment time. see working to as a sales build overall, buying creating should experience. with of I time deep different teams build role is all my specifically also Our times those to in with field a we’re and and organization the and changes earlier, require made at software to But become our ramp solutions of of proficient and those that time, our the over to over more solutions some organization really force mentioned of aligned buyers. in personas. deeper and specialized we’ve It play that much But the hands kind cycles, requires

Bryan Vaniman

All from right. Got Marion Mason Jefferies. another question from

results, are last understand $XXX but understand dollars we is On this? versus why million they’re million declining, We added slowing, declining dollars margin so the driving and the to gross year-over-year profit continued profit gross the quarter. Khozema? gross $XX What’s XQ trying

Khozema Shipchandler

Mason. Hey,

and QX gross numbers for you think have and growth margin I the on the revenue both the side QX.

QX. in you can so it And slower was than growth see that QX in was revenue

QX margins and same gross were period, So QX XX% year-over-year. in XX% more versus down during they time in year-over-year that slightly were than

largely obviously would. dynamics of impact other some but the so profit, U.S. about higher the as XXDLC driven mix, the as the the gross The presentation, latter well was we international talked AXP, the And messaging during margin new doesn’t in decline by which fees

Bryan Vaniman

Twilio for see question of as another Khozema JP allows going growth attractive the words, organic Assuming backdrop other revenue profit? continues level do and to growth? What from level forward? deliver optimal macroeconomic a for Murphy type target at op Morgan. an non-GAAP of And In of while this is you Mark what

Khozema Shipchandler

Mark. I we Yes, control hey, macro. mean, can’t the obviously

over And business. all good that. you we we’re a control. that can feel several both next with feel well that revenue our provided with. on at And more quarters as guide we we what feel so We do the software of overall is XX% financial what And our we over to comfortable is guidance very can control really good focused plus the medium guide the about very that’s we our medium what terms ability into as the term, And we profitability driving think term. about framework in revenue,

thing And maybe gross line, how but margins feel ability good out, of I one and drive particular the the spite margin very that like very, cycle think top to whatever underscore in that to to we economic growing continue op the is our or anything about accretion. plays in is,

Bryan Vaniman

growth question QX up Khozema, expansion? fall DB&E will in of from the again, XX% Murphy for follow mechanically, how level below a And Mark revenue QX

Khozema Shipchandler

mean, now. obviously driven Yes, that a are I we variety And feeling a out macro by hey, Mark. the impacts moment called of right industries across ago. it’s Elena

based kind down majority impact of consumer our our for economy comes of the Given goes would, does than revenue example, the and a economy revenue way. activity, based the other faster is when when to slow and down, the improves, tied usage subscription that model

plays that way. rate out over however for And the quarter relative see so we would expansion in next this to play downs anticipate or out so some macro would the we that long or

Bryan Vaniman

Great.

Stanley. probably Elena. for Marshall, it sell Next question. the but opportunity software Morgan Meta often cross buyer same how and Understand is a business? And the within messaging one between good that’s that customers

Elena Donio

of cases have of during use common messaging marketing of a across Yes, Each our but I logical cases that these support. my most mentioned be prepared solutions, each the buyer in always the it relationships conversational remarks, our these necessarily could messaging verification across mean areas, sales and board. doesn’t software buyers it in we customer use logical

the because those have up can need ultimately may incremental up the all doesn’t sort it’s and So needs the to down message chain. mean software that’s the they ladder certainly originated, of it where same people but for

do we also do so push the we but recognize and got we have build that don’t have decision personas with a key opener jobs the that we’ve But makers door specific buyer to have not well, not customers sure leverage make relationships, through existing to and only those to existing already the where got that, we with only think and got very relationships to relationships we them. we that also to door. there, we’re we’ve there’s working And natural and our

always same people, sort but right go the the we of to room build them. necessarily already that think don’t and alignment, lot we good So of gives a not us have relationships if functional

Bryan Vaniman

Elena. Thanks Great.

question RBC. Rishi business about Apple’s with given from Maybe we Another think a do what that’s Jeff authentication biometrics? doing Jaluria question. from How the

Jeff Lawson

the messaging of to password one-time and thing. similar by our off a owned majority silent phone key cases are you Yes, thing are device that for see SMS you also prove Twilio’s that just number device does announced, we ownership. a or Sure Verify products By claim that to be. programmable user. establishing And so, proving and continue use network solution to is identity the you be our our phone the way, that the

has used the Furthermore, already Now established. ownership phone returning after only replaces that users simplify logging is typically Fido been device number, to of Fido factor XFA. in back password

So a predominantly for remain you you true XFA, need are. expect of, that we say you factor, OTPs would still which you to for are who second verification SMS

do step all with. integrate as needs adoption simple authentication. WebAuthn we and really a the a see matrix to also Fido Now to the in same important adds it time, technologies and At secure of developer industry of the

we is opportunity they set help know I new but So phone, WebAuthn who to And Fido, for exploring. it that overall, we’re or that experience new a look of a for developer any as not simplify gets a see similar, integration computer can with an actively person or Fido Twilio something is which including up. WebAuthn,

that mapping that’s the customer to you use a identifier So establish that and with you them. device to with need communicate a to different way

that’s then a Generally phone you I email distinction. that real be Once number or And set the useful. can WebAuthn Fido, an up, think address.

Bryan Vaniman

up follow what you that remind the why Can you end forward? Zipwhip the more asset as Great. bought Jeff, And being going from and business Rishi a messaging is on of of life expand Zipwhip? maybe well. your for and plan us why

Jeff Lawson

answer I got to Eyal I’m it. going sitting next Eyal me. to have

Eyal Manor

life of we year with at of that time the clear of end Thanks plans of these at for of want be the acquisition software I the target the XXXX. the question. announced Well, to the last end

this for was XXXX, the SMB business date to refers of text, to recently small and relatively life standpoint. all Zipwhip. extended of from the the which However, we business Zipwhip revenue only but software This app small end of to part isn’t of end

our other to we it at there functionality. When look and is compared products, Frontline some duplicative

really we’ve class first So Frontline’s we’re on going of as to that product what everything it jointly offer, and the deliver products technologies well to combine our teams efforts to provide experiences as that in that best so customers. we make together and done deliver those

Bryan Vaniman

growth? at got that We’ve right. a of question like start the profit instead gross Oscar guiding from question. Are Tejada to a Research. Khozema Wolf willing sounds And All you dollars revenue

Khozema Shipchandler

question Hey, we’re given good today on profit don’t consider. think focus want definitely to what definitive really especially we actually, today given highlighted have something say dollars. to anything it’s going that’s I our a to necessarily, Oscar, gross but that and I

Bryan Vaniman

Great.

Next question Stanley. Marshall, Morgan Meta

that XXXX. the And in were some good You’ve introduced need conversations, these in hiring of sales Were enterprise for of with you missteps fifth the a you hiring? caused Elena. investor reps continuous question inning in XXXX. been that’s at of for that was And the since these reps Flex the noted end

Elena Donio

confident I’m we that software roll sales we’ve embrace strong execute Meta. Thanks, out built continue and plan our team on that we’ll motion. and to a as it

dedicated now Flex and reps on focused have Segment. We

For software. XXXX, they’re time of here focus, to entirely. winning in oriented the we solutions alignment made change a first big part XXX% the these for in more That’s dilution to customers that less

getting that about both good Segment I the steps to about our fit also we’ve solutions, feel market address too. feel have but great good and the issues Flex traction up taken we’ve and and really we’ve how is rebuilt we’re I in new set contacts this for our well Flex way. Segment in as and those And gaining exciting new teams team is as success. said now product the

Bryan Vaniman

ago being talked days growth. question have Rishi RBC. optimistic you about Great. at on a And XX% cautiously we from XX

days? got growth. you the answer macro XX Now And do environment you’re that? to in that What much about in Khozema, talking want worse XX% last the

Khozema Shipchandler

question, obviously fair than got we term, mean, I Yes. you the a provided QX and a range in over higher with little XX% but bit we medium it’s a Rishi.

example, this many of think just and noticed We too. called of result broader crypto seen for much macro a variety we in a social. QX, course results the slowdown out, as During you’ve of And I impact I think industries. across previously companies, a we their and other like

I recently seeing impacts, think and we’re additional for in example, e-commerce. retail more

in given of And of with – just given our majority of the that of our peers, And software of the based, the in model we’re predominantly slowdowns impacts usage are economy a that kind broader would consumer faster excuse business majority we to the when a than activities this tied slowdown. just as such business lot macro me, that soft declines, our those we’re feeling kind we subscription-based feel you model.

faster see the that in folks it recovery the to more the overall bit expect guiding. up put I we’re us the good and near-term, would feel about think of to be what equally And subscription sense way than more QX feel. improves, to would just I based We economy we cautious when a certainly on some we a in what made think

Bryan Vaniman

right. All

Michael Fargo. from Appreciate Turrin here. Next Wells the from detail question is all

the Is margin how to the wouldn’t control of of side, On a margin in of flow cash can to impacts? gross think to there targets? there allow is do scale fee the the the about anything level you you context free dip And messaging business below?

Khozema Shipchandler

just me reverse let Yes, order, in take Michael. those

the continue terms course what we day first of to that margins, driving profitable to relative and of during years. operating leverage be in intend of flow additional said the we to So coming in is the free non-GAAP all, cash

as expect operating deliver. we I flowing, that indication to that that you so impacts there’s will come these with thereafter. margin free company always cash timing read profitability, the But of flow And associated sorts obviously be mean, shortly cash we’ll and really things. you some think through what behind a should of kind ultimately I follow flow that so would as, to generates cash that an expect should

to the In delivering would the business. it profitable line think if we were wouldn’t that be we for terms a them, such distribute gross of us that cost profits I what the hurdle would gross margins, weren’t

efficient all we that we drive ensure as we line, what fashion. is, about that in that profits that And so generate the gross we time as an top is think we on up And time long the of I as that think based comfortable of we’d to took we quite today. a explain it the as feel margin accretion, economics lot unit drives during do courses

that’s profits within it will I around they The about that’s What real least at either. create that our noise in, is say They the margins, I seen the control. impact mean, don’t of fee the not while is, haven’t impacts, that our gross business. economics the some impact demand any but impacts don’t something on impacts fee really come we really

Bryan Vaniman

right. All

growing commitment Will Moving What’s great cash positive see to the non-GAAP timeline flow? free profitability the Baird. and Power in Khozema? to It’s to of operating on for XXXX.

Khozema Shipchandler

to standpoint so shortly years, cash timeframe. starts profitability that kind it’s cash I that, near to flowing do our Obviously, will the course think the delivering during the medium the you non-GAAP of deliver free with gives define term. is three as the our flow we of Will, answer. five follow the getting Hey, kind about and in presentation operating to to plan medium talked really term thereafter. of flow We from cash same We the

Bryan Vaniman

to there Back go looking outpace Turrin right. the software Fargo. a for Michael Wells for business business? We’ll All for that. can Elena much to overall confidence that how you’re gives What the target mix Is medium-term? from software

Elena Donio

Michael. Thanks,

we term. near incentive and also prepared software As Segment as well a highly couple towards the as as resourcing in shifting sales a and our sales prior of focus structure will of I the biased well Flex deal questions, be as good are discussed to during our remarks selling

the our provide expect do target that of We’re time business software, to meaningful over we becomes going portion a but portion mix – that more more of over and our business not for obviously time.

Bryan Vaniman

down was sources from for at the geographic there cetera? another And softness Power et of Will you software, felt? voice Khozema messaging growth break any the Baird. QX of weaker breakdown that Can versus you And versus one

Khozema Shipchandler

the usage more impacts Hey, than we Will, our businesses macro it But I’m we’re that today. significantly. seeing, obviously decline based provide more not going disclosure to gave

you seeing to the is so that contributing pretty contributor, imagine that given messaging large it’s than growth lower periods. And we’re a prior also versus can

Bryan Vaniman

Morgan have evaluated Khozema where And per the economics for Stanley. question stepping another of Are a at message? And from international profit Meta don’t work? Marshall from dollar all away you higher gross regions regions

Khozema Shipchandler

Hi, Meta. hurdle profit that generate not of we distribute and actually. efficiently we have we participate I because Great question. there before. There around regions such won’t gross economics don’t profits, will those markets. that operating those are described that in can’t And the our operate we dollars, are that If ability the generate some Yes, in we to and world.

I in presentation as the efficiently, is bounce that as and as constantly messages drives the different to our time do they look, though, just profit needs that can we’re in unit up generate that time showed do business. we accretion, attractive it from we we’ll think of that around we based upon What long given economics do customers. terminating margin places But as taking continue long gross

what Flex And we engage. well. to distribute products internationally, really and as with distribute to of we – of think side the like excuse customers. about as I follower a me, a lot opportunity effective specifically you talk serves that of grow other know And messaging that want business those very long-term I Segment the heard to land engagement think thing obviously it is and being us a new a business the our Elena you provides do with some as unique also

Bryan Vaniman

right. All

could messaging priest, by some responding reasonable Next some effect a it which of view inflationary Khozema? Murphy, as in are ask went less the far question customers making these Do the How pricing volume it back SMB of times? affect JPMorgan. they May? Or this Mark during to adversely into it economic?

Khozema Shipchandler

locked really contract. don’t price customers affect into a Mark. who Hey They are fixed

And so a haven’t just result impact seen material we a as really yet.

think would up dynamics time, that price I and price of they will contracts those as new over renewal, flow inflation Obviously, come it contracts. did obviously the we we that was environment. the fixed in we reasons because one anticipate for into those do, saw those

were so And was felt fair a we it given we what response seeing.

Bryan Vaniman

All right.

will profits, we reporting Ryan Khozema? should focus Moving on every quarter? you metric messaging Koontz that be to from Needham. If on

Khozema Shipchandler

Hey on not probably going provide to metric quarterly we a a basis. be Ryan, that’s no that

there’s in software. will about that’s about. asked an we’ll I in that And that quarterly. the I will smart give remarks, think you and closing question Q&A his talked earlier give disclosure towards gross profits, think something a that Jeff about that We additional that’s think guiding

Bryan Vaniman

to Ryan is McWilliams from How think we with and of about for it Okay, that? the AR it the should a start top option? the up-sell year-over-year a software Segment? should think How for standalone Barclays. is on Khozema want of segment? Maybe you we Or growth potential Engage

Khozema Shipchandler

I of say with predominantly product that Yes, Engage it’ll as that feel and pretty segment the And just given for I’d growth subscription be as launched. the software, confident we given the based. is that well profile mean

where the over their pay data our a think manage just up year. next be similar the Engage, to pricing really pretty Segment of building focused companies to for specific number on customers. bookings we’ll I monthly The is for

me, there number. the could small some overages still be exceed we’re so, And some something evaluating. they overall contracted But think excuse that if I that’s

profile. has think software like I Engage our also, other a some high gross margin products, of

is becomes early expect both as it’s as And such pretty customer margin stream. feedback that’ll strong. would part well it expansion revenue of growth that time larger as that a over our contribute to we So,

about we’re future So, the of product. pretty optimistic the

Bryan Vaniman

you Segment? Jeff, or top an whether up-sell standalone do talk of to maybe about not And or on want

Jeff Lawson

go data they buy it. without Engage a mean short can’t answer I the sure. the having I Yes, powers CDP, together. that mean you is,

And natively about, can and results data. real companies foundations, it’s CDP, time, channels. this top a And because data multi-channel as time space. and, Twilio’s is advantage so us, for we of by activating of on By really built top this real great integrated real produce enter all being the Engage dollar and is for that key natively that having built data about we Segment on

action, or means an try to make So our money Facebook they to a audience real customer they’re site, on browsing they’re get like, consumer consumer makes wouldn’t activate spend time. as or that able purchase, ad. we’re the to in they’re purchase a more have a clicking, suppress scrolling, forms and actions That for to Google example,

are, increase And they’re a Domino’s that’s how in on I of therefore was you just the customers resolution, smarter understand And it. a and get the conference talked have identity lot about sort how get like think customers the customer you comes getting Like I able of money. today, and a ads is act actually in about value how real data because very our my we’ve ad and assembled where CDP better don’t that in sitting who XXX% of ways, first ton do certain return in spend target you then save into to do but sophisticated of know a time there, those real data on the play. all base

You with do something it.

ads more You buy intelligently.

between what all that can including at sorts You there’s a in personalized conversations journey. be about their customer the things on point sales journeys campaigns, you trigger mean, I know based rep. that triggered of

all the our Engage, where plus so is of there’s version, is there’s those version, capabilities, But activates which which and segment then Twilio value yes, There for CDP together. answer see a that’s And version we is short like Engage. the the marketing data marketing. full basic a

Bryan Vaniman

Jeff. Thanks Great.

Or instance, What you year? place, Moving recharged recently next better employees? work up coming Maybe of wave expect Murphy retention put you the from on expect realize to answer Jeff you their do with point from batteries to to sabbatical want back question at Mark to of some in that? for effect employees tenured follow see employee do a from program JPMorgan.

Jeff Lawson

short, energized for in is retention we unique term we’ve provide to too. yes, allows that our for be benefit a sabbatical it’ll be program want We right. productive that, longer decided and attractive the mean, employees think I to in employee

Bryan Vaniman

Great.

next fair question Twilio How years? Moving at Heller X% say Is achieves margin six Marcelo the Khozema? operating XX% from take it’ll target? Lima you to do House. on it think

Khozema Shipchandler

margins profitability. framework be year to expect by by to Marcello, profitable we’re specific to do XXX to in per about provided beyond that just and give starting today targets you XXXX all clear our then increase that, bps after a we think operating non-GAAP here. for Hey not going We to one

Bryan Vaniman

Great.

Bilal Next Blackstone. from Chaudhry questions from

what If M&A, pursue would be you you areas follow were Khozema the to to want most up? attractive look? to

Khozema Shipchandler

say very on growth the I presentation that in the Yes, would we’re talked focused I now. about right fact organic we mean, that with emphasis

Elena that got about into products do in about I we products. he’s Segment. what innovation talked talked with can portfolio. our lot some with Eyal think we’ve fantastic Engage a driving those the a lot

in we now as well focused right see we’re I as what And do really, Flex. big really the think on there in so we opportunity that can

quite is M&A a option. so lower frankly priority And

want maintain we optionality. to least. at we some that That’s think the in we do why cash I have part

And advance think the in so do were it probably something, areas would capabilities of we of that some to I particular oriented and, at if those AI those would probably stuff do products. that look we around was

Bryan Vaniman

Great.

of at how similar in have impacted go-to-market How the and QX a stepped we macro Barclays should the think actually the question, guide? down we about McWilliams Khozema? changes growth from Next Ryan in could McGinnis at question Taylor had UBS. recent balance implied

Khozema Shipchandler

Yes. go-to-market changes talked workforce Hey, exact think even would’ve about it that QX. organization we Ryan. that up ended fact don’t would size the had I impacted really same go-to-market and no fact, guiding in the the way in I the if the impact. now We say we had that

we’re based, impacting think that on usage there’s can other anticipate categories on it going probably I up. seeing that, impact macro bit we’ll recovers, and to called guide large companies I impacts economy way recover little We in we’re the I that’s in you marketplace. a the here the as software way what’s our fact of we’re like think we’re And think out is, us I there to a that seeing tends be and the down. kind feeling part faster faster a probably really the what the of of in out environment some of is lot that the which that think

Bryan Vaniman

Great.

Next from the quarterly? analysts, made metrics to think Are I of will annually? business a software today few be And of out more question have provided available going you we the break a clarification question. only

Khozema Shipchandler

provided that we we’re with to framework those the provide quarterly. going metrics today, Yes, you

financials. committed the remarks four a we’re of in get in see quarterly published can also as those you quarterly. five going You software of then on to his our you And Jeff them anyway, basis out closing give

Bryan Vaniman

Great.

from Nick at Altman questions Scotiabank. Next

XXXX confused more as ever, to I in stake those thinking you speak Can around ground heels think and margins. color to be you’re should the You we Khozema how to didn’t be you seem op us you’re whether are tto bit XXXX of than going a especially to reinvest margins, but reinvest guys profitability a give focused going around op the to wan why put some more restructuring and about that? the you dollars? on whether around those

Khozema Shipchandler

for XXXX. Nick, think saying back year XXXX. mean, we’re ago as what actually really we’re not that’s as a range be intend been in far to Hey we that we’ve a committed I I going profitable to. to And Yes. provide

think term to importantly leverage to medium going driving XXX annually. I bps over a we bps and called also out the we’re drive XXX

reinvesting next what otherwise not And through can that accretion not going restructuring. there’s just And so op to year, did you be really profitability thereafter. anticipate we’re we margin the but

I innovation can there customers. a However, to in our that of do for interesting really all continued because articulated, think investments there’s we we have lot software we make as drive

Bryan Vaniman

environment in Oppenheimer, And from what similar your around revenue it question Michael Ittai of term Kidron America medium for looks like assuming and Bank Funk from forecasts? a had are both we pricing/competitive

Khozema Shipchandler

in probably a in off. a there be I messaging. particular the relative question I impact through and Yes, think an there’s I we’ve And contracts material pass roll somewhat have products to some either going about on we was don’t number that in U.S. this financials I price at especially really earlier that’ll point, our that fixed what seen as of to price of think increase historically. think differences mean, our

kind different that software those in digital They’re I from question a agile so of think to of as some products, answer range different competitively, to we of product hard have number giants. it’s the well. to larger competitors competitors But natives products.

competitive be the the think do is I evidence next distribute lot that best in given products in and Elena’s marketplace And ensuring you the you efficiently. effectively years. step when And able the that I really leading and our good to leading about CDP have environment, think the in spite CPaaS. you It’s of really, whatever a It’s happens helpful have a to in we positioning. have to that feel helpful of coming a we’ll them

Bryan Vaniman

guide right. All profitability roughly restructuring of of that $XXX annual be you OpEx slower Taylor hires imply basis year, basis to to points from hit from mentioned tailwind. Would growth in to million. and it XQ next the the guide implied of incremental seems to next McGinnis we estate year. real points UBS to XXX margin savings asks, pace the reduced XXX extrapolate If

the can benefit you help here? us potential through So think

Khozema Shipchandler

Taylor, is I terms op to in profitability. XXX Khozema. bps year bps Yes, drive margin op I wouldn’t going to this anticipate next XXX we’re think of that

that. year, I op what and non-GAAP to is we’ve committed profitable going to we’re being next think do

I good kind count what our in impacts some we and ranges as and profitable we financial cost forward. of lines. our out actions as And the ability that of where And to then different of talked of the drive can OpEx felt you you terms think as, margin that restructuring those on is we as took XXX what through, were be accretion the bps at in going feel terms some to well some about up well XXX to bps thereafter. framework gave of if look you

Bryan Vaniman

McWilliams about to asks you trajectory how from talk Barclays gross Ryan Great. international think we messaging that? margins? Kho, should for the medium-term want to

Khozema Shipchandler

as gave that mean the Yes. over Hey, mean, generally the charts been are today. it’s have you time. we unit in sense it I we period shared pretty mean, a Ryan. you a actually, of we of I they stable. I showed economics improving

So feel pretty that. we good about

additional drive business, the think incremental gross than aren’t margin profits long I se accretion, to like and we the want tried take messaging as we the will and dollars business. into gross about of can that on those focus number we as can business, of margins we per today, a gross way as into explain op that profit gross distribute business. profit to less a And consideration dollars overall the op we be margin as the long we profits I the drive think general efficiently relative that the bring to as in think the rate times

Bryan Vaniman

Great.

versus for Eyal, your Maybe they through well. about Phillip base? do to cross-sell talk so special Twilio’s from makes [indiscernible] the product? Next CPaaS competitors you something Is proposition into customer about Engage’s it is the question value What more can like activation Santos. customers want as do

Eyal Manor

for we a to and now seen manually feedback send again of Twilio lot or and excitement offering. reach the integrated Yes. the Engage, and and to of so send time differentiator the offer CSVs, with And for on momentum Engage, hand reduce then around XX messages time on customer they hours focus of dealing that data into them. channels real have upload detailed instead or been We’ve time our wrangle receive marketers can a teams to wait engaging integrations, that’s appropriate real able real the a time smarter more With messages. customers’ of building the big reliable time and challenges targeted truly data around messages more the time campaigns, time We marketers fully to segments have marketers journey. Twilio to and puts power infrastructure

Elena Donio

Yes.

there’s to points new huge customers Eyal’s believe and product, covered. players legacy to in market, and so a and effectively. this be market small its with addition early But share dimensions market in our a lot of [Indiscernible] in we with the going be leading unique need needs about across I is of behalf compete think days change we of land dynamics. really all we’re So to much still after to these on

So we for massive there, really think point competitors market for whether an opportunity a us. creates open us all here still and there win, to there’s environment of that are

Bryan Vaniman

Funk discounting comp to thinking customers? All asks, want on that? from to are share Bank solutions retain you messaging market right. or Michael follow-up complete of you customer set within other of and Elena, how engagement, about America your gain Maybe

Elena Donio

is doing we And of products, bet. profitability. of game name thinking be you think think we line don’t framework really the laid organizations elsewhere. be for little discounting Khozema need a efficiency our and our a there the We out lot to example, is creating sales Yes, And there. doing in to of I for messaging bit what and the below about need

really about solutions pricing we much. into and so we’ve got us, do in warrant it. a Holding won’t And we’re line believe to how on really, that because can going that, I important little we that we talked is the get do already that bit to too

want room On there side, grabbing software massive on the are do and we where got to where we’ve of sort it. land places to work

believe but we that there. best have We the – out will, we products have said, we

And right so the creating we think kind we’ve economics got of that recognized that area values the make to we we unit selling that this we’re and and really solutions power that in value, all our sure the maintain across our in market intend that products. we’re right of

dynamics the are different. of these economically But really, products

products so it thread as to in not to to room difficult we some you think other bring and that in be might in great – areas more less have to when I needle. sound have but as might room it’s others, creative bear, And

Bryan Vaniman

that Khozema? for XXXX? XX% Twilio target there the might realize certain Genuity, headwinds, Next for XXXX, providing have in your given guidance to harder Mike to macro are it of that quarterly XX% I medium-term While so question markets Canaccord Walkley, environment, than end you’re from with the macro meet the environment short-term lower be uncertain hit comments is challenging others? end the

Khozema Shipchandler

have business. that I gave impacted Yes. we’ve some we Hey impacts markets mean end you of where been Mike, our in seen the that,

called retail, out social, e-commerce we I we’ve we out called example, For out crypto, example. called think for

industries in are some all out So pretty as of call those and you’ve other those companies sensitive well. headwinds consumer areas seen

those in provided guidance surprisingly, not we think impacts but I we framework our of that’s quarter and the think pretty the guidance for felt business, for given uncertainty, good certainly in environment next say medium-term as we really based I creating fourth well. our so, and I is the we feel nature a with macro And ours mean, some comfortable usage I’d think certainly years. feel the confident several we that

Bryan Vaniman

gross from should maybe profit And revenue follow-up a at How Scotia that question growth and Bank. think about we XXXX? to in Nick Altman

Khozema Shipchandler

Nick. Hey,

profitable. we’ve what mentioned We I we guiding going And said focus that should in we to XXXX not you out medium-term think put in a given I volatility to being financial for there. about would going just We’re framework. our in being framework. to with feel results quarter. beyond the think good provided think range framework be that on we’re our guide And guide quarter-to-quarter financial fourth We a about particular them the that a macro. We provided

Bryan Vaniman

impacts changing deteriorate? the modeling go-to-market through in XXXX? of Zukin how the macro a should into following And And strategy the has your fourth question. How through execution Wolfe as year conditions thinking you we at be thinking Alex those incremental fiscal risk are quarter

Khozema Shipchandler

set and today a we with What Khozema. we she Elena nothing you the add is, I QX and number fact we in provided in of Maybe any Yes. that that on about that can. guided that can actions in mentioned, all way financial the medium-term would feel the changes we is particular, took wants say we then did also to This framework was is is made of And that organization. in I if with as that start anything based Hey, QX Alex. open. so wide by the looks. we quite good that to impacted up eyes we the And

different is one. we a create great feel uncertainty, in we definitely about but the framework our products portfolio. the have some does think think that Macro, I I good

and time. ability categories as our drive ability cost as that across both our think innovate to obviously I then leverage of distribute well to between all over our

I setup. think we term medium feel really good the about

Elena Donio

personas or something the focus did add is we actions cost whether give here with that The bit going Kho continue don’t get execute focus self-service toward before mentioned, more to our this and and take to where on of would put economic not creative, toward products was a drive more the answer, buying headwinds. that that are though, automation – and us we actions And dynamic feel a they environment. movement started And to we I moment the incremental September in just these believe cost recently. and it things do. right us cost like those our right coupled of created just there’s we’re demand across We to they just think risk. in think we’re to and we of onus the we as going actions

Bryan Vaniman

from question. a Marion And has Mason Great. Jefferies

when then compare? back you gross were your margin did I to the reality IPO. And actually at the made the was issued messaging think margin was – how gross you the what XXXX XX% part software? If XXXX around And think assumptions XX% versus expectations, growth

that? to but to clarify, want about maybe you Just Khozema, talk

Khozema Shipchandler

Mason. Yes, sure. the Thanks for question,

there. things couple a So

one, folks fees think definitely we anticipate And of back number about have in I that timeframe. the broke of even taken there’s XXXX to we over as sometimes relative our that is fees. place of today rate today, what a I been a result that as where are gross not series on just lot did that a you just drag think within XX% margin don’t a is we – corporate what XXX think the bps remember out

you’ll any the in math on impact gross that of driving the difference underlying well of probably impacts margin the whatsoever of had prior long drags again, And gross but driven is, what long-term economics fees followers is Zero it margins changes the the economic – in of profits, remember instances the don’t as business. we’ve without similar story, impact time business, no business. that for have

that’s that growth love strong. it part, is accelerated been sure. we What problem for higher I I I have. want long. dynamic international messaging would say a been to quite as during day I We well that in mean, COVID have just making really, frankly, And has all was really growth Definitely, that because as that internationally. investments had

the forecast. And so focused long feel across they is, Yes, originally I it’s business. is we’re board we those the whether dynamics the all think dynamics where good for on gross didn’t generating some going we’re we upside had gross are as internationally, domestically or impacts But profits margin. setup really really forward that about of that as

that some I We rate got revenues able we the great Flex, a it progress of developed organically run $XXX kind run about business. the segment. mean, to million our feel its far just respect feels mentioned think if million of sort as include and $XXX years And that business, wave. four quite goes, be a with I now would feel really that have good of good. engage in include. software through of next as the mean, you pull we’re I to we obviously about competitors rate, As we’ve to We’ve it’s

Bryan Vaniman

in Elena. guys with continue plans the side? changing ensure you Altman attrition has And on one given for probably comp tweaking doesn’t All do Bank your messaging Nick Scotia that’s the How good question. right. And go-to-market sales a a

Elena Donio

And we’ve organization sales their develop where been leader. plan It’s as Nick. Thanks earnings; AE see as achieve, each leader able target my a that sales – can the job ensure ultimately person path winning go-to-market can team. or to a a a as on I the to as sales a can they, a earn of

things that Twilio. we attach that and overall to want grab forward value with provide coupled think And that achievable come together All here purpose. can think I people I great a those going our like at onto employee very can is achieve mission feel and things we I proposition and high. number are people the just of and

And so land delivery that always I our that. path the that I – and while to and stay sharp we’ve attrition feel is and going to certainly to mind execution we’re always build on got comfortable

Bryan Vaniman

on think be the earlier, there a Great. to Nick. side to I messages confused are you people going those And the political a giving a follow was in up did some with the bit question When make second customers? working half. guys you benefit stop some how from choice of

do recent a decision? of to one? take want you that more that was So Jeff,

Jeff Lawson

text an have a take I’ll acceptable can Sure, along use rules carriers you and customer we with requires set policies the out opt-in. when have and it. about Look, that

folks many as political need creates they found, consumers enable And a have to You complaints legal, maintained I a opt-in carve-out pretty just a because it have roll annoying. is a of is legislation text think to to have to not customer. was campaigns there carriers. text in don’t long believe from have a technically I an in number lot that’s with that a And like message. enough The opt-in that what to receive is them taking want phone and it U.S. it while voter

worked rules And should governed. how texting so election, we after the about to with be political a refine XXXX carriers the

by to with said whom whole organizations abide said which the we rules texting rolled provide would think they immaterial a we’ve that said And political we thought while out bump want and carriers did And they a customers and part bunch this it for to our is to good sure lot we to to which those and of not customers. Twilio. although still because continues abide who the not we weren’t. I we have those traffic. would And rules they ways Those business exit them good were always they we weren’t But these could going said story opt-in say follow and the would customers be for of we not for are of of traffic. But I political by that for getting do exactly did consumers. entirely think were that traffic general that true, a

Bryan Vaniman

setup tend forward? All or for availability for right. we the And Engage; Elena? Stotler Matt be of see announcement from going for William Blair this it’s to are focus engage your times product is general and good budgets impact adoption of does expectation a uncertain to this How economic asks, the by marketing weak impacted pace Twilio however, currently experiencing. like marketing

Elena Donio

Engage important making that’s actually for and during wasted economic even targeted customers is reason Matt. click efficient of Thanks kinds I their particularly wasted customer are less on think Segment these with ad our or times where one a and more Yes. spend, well concern.

try ever very time each precious there’s and Segment largely in efficacy experience but like difficult than and our space Engage where we’re marketing make dollar to a customers understand those and dollars time to buy a sales marketing think all people that possible. have We actually we bit those prepared an and that by, products. little about like are scrutiny. need more cycles of more We before is of a across things the this is that so they sure talked And and for, and course when economic come wanting this, things highest our to

this we both playing think So week our are X. walk SIGNAL in certainly out for looking in conversations this the at what and that’s That’s market. customers in halls in one-on-ones

Bryan Vaniman

Meta made out Okay. take change the to commitment incremental much there to you take in being Marshall, drive the profitability in to made XXXX, make commit to Morgan appear changed need you Stanley. when just Since don’t to to the restructuring – Khozema, of Or what for want year the operating XXXX? late to in a to goal be the had committing the it needed to what non-GAAP environment did while that that? been identify changes XXXX? be you in

Khozema Shipchandler

way difficult Hey, needed undertake like advance with and in of that we wanted some did decision externally. planful as what with could appreciate, to that and evaluating and was sharing first, Yes. it it good that, investors it a I that’s to Meta a that of just only question. that was share we a then it mean, We for really be set determining thing the you probably share that us incredibly employees like, for were think it it be about internally, in really was to did can we I concert not after all we appropriate information confidential done time. to with very was it an

wasn’t And of so just of something previously. that kind of could it getting part it as I for we had part our and XXXX framework been to profitability think share

Bryan Vaniman

question Next McGinnis from UBS. Taylor is at

gives term. the see to on seeing continued evolve term? what you the able messaging start you the and you comfort near could the in currently mix the to that given the growth want potential mentioned of you hurdles that medium Are Kho, gross and businesses color the go-to-market margins you market opportunities path on software follow these growth are stabilize/appreciate messaging of occur in business? view in from When versus this on to focus over some look provide you’re shift software they how to growth level You up the the seeing that and trajectories the ahead, in to of could

Khozema Shipchandler0

Taylor, the Yes. I a question Hey to important few clarifications. to because maybe parse little just provide it’s a think bit

grow out lands profit number think really as particular whom of time. And that’s efficiently and to around of also terms to with those grow think off we of I to long a there and business. the and over profit think think know, some we off, of we margin again, it’s it, business gross go a We I with want can in good are as it a think in get, you the that margins we there can dollars that op in, we way lot underscoring profit customers gross do us anticipate distribute drive dollars. orient we accretion; gross gross variability first dollars worth messaging

in, So that’s different ways. important to us in two

to that, the well, beyond take obviously think time, that think growing I on you provided look based software it’s is but business we framework I growing some the today. going it’s

take at rate of up. it’s it the faster some just We parts time catch the other for grow going a to and than intend business to to

working we’re respect to that alluded Elena changes that both through Jeff segment. with obviously I some think to and

we on great I think we’ve the about of mater product the talked I think a growing think we’re Flex And today. I time that happens, mix and on gross seeing rates than change goes at higher momentum what time. margin it’ll as as chance that over have materially –

Bryan Vaniman

And on margin substantial you a take basis from him instead pass that as give create that net well? revenue a basis fees asks, one Blair Matt do Why William gross that the a Kho, Stotler a gross Great. is on the to possibility? you headwind recognize basis line. through of net want

Khozema Shipchandler

not Yes. in I mean, possibility a Hey that. it’s really Matt,

are a We’re so are the on gross regulations an or be have dollars That and has categories those we obviously that I report for do do basis. we are the the but the not much trying obviously, run whatever to SEC that to contend the it it. from flipping gross the we to are anything, that we allow that sit us the revenue that’s I’m generate that ones business. that way we be with the that way profit pay have and mean that within to various Filer OpEx why very we we said the to that that standpoint business

just I that the hits that through cost more a as business. percentage And the pass so revenue that both a of the kind think we is line well run how would think gross as responsible the fees about the to such fees think of but as as way that’s that about just say altogether line percentage of revenue the extent are that way we we running not the And view are carrier incremental increasingly to fees, business. them a versus the OpEx the categories we a even because our profit is

Bryan Vaniman

what we and and it Philip is question please Segments [ph]. are competitors? Eyal. differentiate And probably does proposition for explain product Santos Can the value from good you from a differences additional one, how the have What another Engage? exactly between That’s

Eyal Manor

question. marketing the profiles Thanks creates solution from no it it’s audiences and sources massive Yes. then powerful a use Data data usable into takes there. just sitting deliver that turns automation and customer value. for multiple customer Segments and engage, highly activates if is

be data value using platform. acquisition So personalized end together, higher via are real meaningful engage data. lasting help marketing better much, activates much create time in be can helps with which our communication their building customers to customers. ultimately the their they can lowering markets sent deliver There campaigns, This consumers customer and for relationship are but leveraged while lifetime capabilities segment CDP both, costs to

Bryan Vaniman

another Nick Scotia at And Bank. from Altman question Perfect.

up basis? SBC annualized on are you Following targeting the guys delusion on what an Khozema? question,

Khozema Shipchandler

given not think driving we’re and the as actually revenue Nick, very Hey specific of providing over we you framework percentage a targets, focused we’ve down medium term. that on are to about dilution the however, SBC costs

Bryan Vaniman

a Is to RBC. Great. or Kho? fair that software And there that roughly a XX% margin. gross another question is is margin Rishi steady details implied from drive state margin software The gross plan at today expansion? a

Khozema Shipchandler

about experience we Hey, as we that I would in scale to success math is think the and intend certainly and Rishi your say, as I marketplace. right.

an focused starting the margins. margin we see on over we right time, just of rate we distributing very we’re do And about I think But the and feel efficiently. and over benefits effectively product as time. we’ll those I grow now do good that to the have opportunity that, think

Bryan Vaniman

at on Oppenheimer. Are seeing fully Great. rates, interested platform can customers the about consolidating talk pressure? competitive you you into Question anything Can and Elena? you from Ittai more win Kidron pricing Are environment? share in one

Elena Donio

Sure.

competition Given see competition within as markets. of various and well areas certainly our there’s different we levels broad different product different portfolio, as product

CDP like areas little with a bit crowded fragmented, some more software space pretty companies While messaging large are involved. is

with Engage, bit marketing expect little we be the Similarly about cloud earlier. vendors that talked in launch of the of we’ll I the some a think market. competing that against established we

I well. think we win in we And to hit I that believe why continue earlier environment as

a about, of remain across have don’t the board, sales from in growth been we’re We scene instances of we the even which couple we’ve win the longer down our losing changes but cycles, and haven’t is broadly rates material XXXX, though share. solid speaking, highest talked seen believe

We continue comms the prices our we And over year to competitively. well. some past of across price have raised channels as

for price to segments. per So across continues for messaging, and the by influenced factors while mix average rise unit core geographic all example, other sales

continue win So we ability feel it. our environment and to to within good competitive about the

Bryan Vaniman

Great.

benefits to Next of question, we timing from Fargo. year? the hiring think this restructuring from mentioned How Michael and pace that annual the Turrin to Wells expect about should the realize were those of slowing when earlier from Khozema?

Khozema Shipchandler

start Hey see QX. Michael, to you’ll in them

next event drive tends got about year guide little obviously then of is, we’ve the thing of committed profitability idiosyncratic and QX that so one is as signal, the of and Just non-GAAP XXXX. a kind that you’ve bit especially cost to in to

Bryan Vaniman

question another EBITDA for profitable messaging Morris the business is at Matrix Khozema have today? Spencer And we from

Khozema Shipchandler

that intend is, intend segment investing those to businesses we’re to to disclosures investment. but provide specific per can profits. from the in Hey not profits to what imagine ongoing communications se, We Spencer, software we’re going you fuel and we use that use is

Bryan Vaniman

and breaking be you will asks revenue Wolfe, out from software Zukin to Alex as its well? Khozema? guiding and right, quarterly quarterly All

Khozema Shipchandler

Yes Hey Alex. no. and

Bryan Vaniman

products. that asks Meta Morgan from Marshall of gave as how right. stat was Analyst from DBNE you XXXX into Day, other expansion All to much the Stanley a

DBNE either previous examples, some but there many multi-product gave customers or are stat? You how refresh of multi-product a a stat is of the

Khozema Shipchandler

Khozema. We idea. is actually That’s didn’t disclose providing future we’ll good it updates. Hey, but that something consider is really in This a Meta. that today,

Bryan Vaniman

Why Khozema? if possibility All operating from billion improve the buyback on be cash free right, next there XN shared particularly balance forward? in question sheet, $X.X Is flow amount holding of as holding, cash is Gupta program? improve right you net is profit you any going can Nikhil a to Capital. from the

Khozema Shipchandler

Nikhil. Hey,

mean, we a course little that I allocation of articulated reasonable I capital think today’s have the we presentation. strategy question. a that’s bit a during

we I important for us, why amount have do. sheet. the think of a that fortress balance it’s that been to have That’s cash we

it’s but M&A, we that’s share off otherwise. rich that, more free buyback than something not wouldn’t among I to signal you It a profitable I economic I right we do planning, of think table you said, that flow, That to different directions I and you’re think down that think as take certainly during generate good start take that be either. can more we’re times; have that options. I cash as we’ve cash but it’s would certainly to something is from necessarily historically be take the list done got a become think

Bryan Vaniman

looks where it Khozema marketing, year? How fiscal we like sales think in at you going the bridge year where’s Alex medium for for And op and From And margin year-to-date that G&A. the and another please next do question implied from term? chart help us you XXXX? Can Wolfe. about Zukin Kho? XXXX highlight big to R&D

Khozema Shipchandler

something we’re going we’ve Hey, committed just is that cost detailing Alex, not can I do. mean, profitability is, as XXXX. categories to you in appreciate, non-GAAP to Like by

financial you framework beyond going to guide that We’re that, today. showed not we what to the

Bryan Vaniman

profit understand just should up and you And Khozema, gross over from quick the Alex follow short we about a for us think how dollar growth can term? medium help

Khozema Shipchandler

that Yes. Alex of haven’t we kind Hey, provided a framework.

I dollars gross continue think going to is long profit gross so dollars growing say did what we we efficiently. that as we’re those distribute can profit

Q&A a of the a it’d gross on be there that was idea beginning think basis. very good I in a the profit question potentially to guide intimating

We’ll we’ll something that that get to back consideration. think I into guys. is take you

Bryan Vaniman

at of Stotler XXXX the Matt QX related the impact William in What from Zipwhip platform? to down Blair. Kho? Question texting the winding right. is All

Khozema Shipchandler

going on business the material Hey It’s a not Yes. de-minimus. to have whatsoever. impact Matt. It’s

Bryan Vaniman

SBC we’re revenue? what last on I of you Kapoor from Management, going Coming question. revenue. question. for All think on to the the this Kinetic a as in a a a that’s Kho of assumption at percent percent provided as I SBC medium think term as Partners reasonable target and is out long-term close Arjun a But target right,

Khozema Shipchandler

not Arjun. target. gave to going target medium provide Hey, I I’m you a we today. mean, a long-term further term

talking committee. a as on. comp team, I provided today about the it that quite and of of, think topic is dynamics it. We It is been you a in how we’ve about with that that focused board certainly our something some lot management a terms we’re thinking our we’re with

I slowing think growing really and it thought revenue was important flex. is that obviously hiring action to obviously we move a our restructuring our We’ve be of a in to an slower rate taken the the long-term segment employee in than the at We really, but that’s count equation. was going hard, piece right the of step direction. company, for other and right about talked the a relative

So affected. to is in we’re gets I and think And employee the that stock you give way how about obviously internationally valued piece relative geographies that the beyond that’s hiring of domestic also and some count big a market. we around thinking dynamics how that, then different

another good that the also to today feel There we do think we’ll then given ability may think relative prepared hit and medium we’re dynamic you be that And term our and I that’s will we through. leverage target to to we’ve about performance that. way equity compensation I over time, what others but be think

Bryan Vaniman

a that, for turn with going And to Lawson I’m over Excellent. Jeff to few words. it closing back

Jeff Lawson

Thanks, Kho.

profit profit operating But growing focused first and base really was It’s you thank glass You to for a large all on did a guy of talking and provided messaging generation for good the the get of someone a today. information. this business of joining off key lot messaging. points of everybody I profit to a are, water gross We’ve lot gross want today. like, going of we’re with

products the customer we for They’re period data. that of our next how with and customers an of particular team focus rates at our Engage, get area high our Segment in is that for the act engagement segment. Flex. rebuilt of due ROI can sales Twilio. the Segment, the to We over time. sell software Second, to of long We’ve growing know a importance goal business of quick

leading value for in applications layer. unlock CPaaS we’re bringing leading products CDP together our to software Third, our and more

on And focused fourth, we’re term near laser generating profitability.

You’ve seen us take hard actions already.

from through more is drive and communication product-led distribution. our more Our efficient growth plan businesses scaled simple, leverage

putting and While more our go-to-market resources selling on our more of products. software

ensure the in team period right got time. gain We over leverage of the place long to that we’re to going

us or thoughtful for analysts So you following you investors everybody. look you and ahead. huge forward thank our opportunity I Thanks I thank y’all on with for really the joining appreciate questions Twilio. today, to had, all that and working the

Twilio (TWLO) 3 Nov 222022 Q3 Earnings call transcript