Twilio Inc (TWLO)

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Twilio Announces Third Quarter 2023 Results
November 08 2023 - 04:05PM

https://ih.advfn.com/stock-market/NYSE/twilio-TWLO/stock-news/92504146/twilio-announces-third-quarter-2023-results

Third Quarter Revenue of $1.03 billion, up 5% year-over-year

Third Quarter GAAP Loss from Operations of $109 million, a 76% improvement year-over-year

Third Quarter Non-GAAP Income from Operations of $136 million; raised full year guidance to $475 to $485 million

Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, today reported financial results for its third quarter ended September 30, 2023.

“Twilio had a strong third quarter, delivering another record quarter of non-GAAP income from operations and free cash flow,” said Jeff Lawson, Twilio’s Co-Founder and CEO. “We are building a foundation for profitable growth that enables us to invest in our CustomerAI vision to deliver even more compelling outcomes for our customers and our shareholders in the long-term."

Third Quarter 2023 Financial Highlights

Total revenue of $1.03 billion for the third quarter of 2023, up 5% year-over-year. Communications revenue of $906.7 million for the third quarter of 2023, up 5% year-over-year. Data & Applications revenue of $127.0 million for the third quarter of 2023, up 9% year-over-year.
Total organic revenue growth of 8% year-over-year for the third quarter of 2023. Communications organic revenue growth of 8% year-over-year for the third quarter of 2023.

GAAP loss from operations of $108.9 million for the third quarter of 2023, compared with GAAP loss from operations of $457.0 million for the third quarter of 2022.

Non-GAAP income from operations of $136.4 million for the third quarter of 2023, compared with non-GAAP loss from operations of $35.1 million for the third quarter of 2022.

GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.78 based on 181.7 million weighted average shares outstanding in the third quarter of 2023, compared with GAAP net loss per share attributable to common stockholders, basic and diluted, of $2.63 based on 183.7 million weighted average shares outstanding in the third quarter of 2022.

Non-GAAP net income per share attributable to common stockholders, diluted, of $0.58 based on 184.0 million non-GAAP weighted average shares outstanding in the third quarter of 2023, compared with non-GAAP net loss per share attributable to common stockholders, basic and diluted, of $0.27 based on 183.7 million non-GAAP weighted average shares outstanding in the third quarter of 2022.

Key Metrics

More than 306,000 Active Customer Accounts as of September 30, 2023 compared to more than 280,000 Active Customer Accounts as of September 30, 2022.

Dollar-Based Net Expansion Rate of 101% for the third quarter of 2023 compared to Dollar-Based Net Expansion Rate of 122% for the third quarter of 2022.

5,905 employees as of September 30, 2023.

Share Repurchase Program

In February, Twilio announced the authorization of a share repurchase program pursuant to which it may repurchase up to $1.0 billion of its outstanding Class A common stock. As of today, Twilio has completed over $620 million of repurchases, representing over 62% of the total program amount. Twilio intends to continue making progress against the balance of its share repurchase authorization in future quarters. The program expires on December 31, 2024.

Divestitures

Twilio divested its ValueFirst business on July 3, 2023. The results of this business are excluded from Twilio’s results of operations in the third quarter of 2023 and will continue to be excluded in all future periods.
Executive Leadership Update

Twilio also announced that on November 3, 2023, Elena Donio informed the company of her intention to resign as President, Twilio Data & Applications, effective December 15, 2023. Ms. Donio will remain with Twilio as an employee in an advisory role during a transition period expected to conclude in the first quarter of 2024. Upon the effectiveness of Ms. Donio’s resignation, Jeff Lawson, Twilio’s Chief Executive Officer, will run the Twilio Data & Applications business unit until Ms. Donio’s replacement is appointed.
Outlook

Twilio is initiating guidance for the fourth quarter ending December 31, 2023 and raising its non-GAAP income from operations range for fiscal year 2023, originally provided on February 15, 2023 and subsequently revised upwards on May 9, 2023 and August 8, 2023.