In This Article:
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Revenue: $1.172 billion, up 12% year-over-year.
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Communications Revenue: $1.097 billion, up 13% year-over-year.
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Segment Revenue: $76 million, up 1% year-over-year.
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Non-GAAP Gross Profit: $602 million, up 6% year-over-year.
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Non-GAAP Gross Margin: 51.3%, down 270 basis points year-over-year.
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Non-GAAP Income from Operations: $213 million, up 34% year-over-year.
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Non-GAAP Operating Margin: 18.2%, up 300 basis points year-over-year.
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Free Cash Flow: $178 million.
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Dollar-Based Net Expansion Rate: 107% overall; 180% for Communications; 94% for Segment.
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Stock-Based Compensation: 11.9% of revenue, down 330 basis points year-over-year.
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Share Repurchase: $130 million repurchased in Q1; $90 million additional repurchases in April.
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Q2 Revenue Guidance: $1.18 billion to $1.19 billion, representing 9% to 10% year-over-year growth.
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Full Year 2025 Organic Revenue Growth Guidance: 7.5% to 8.5%.
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Q2 Non-GAAP Income from Operations Guidance: $195 million to $205 million.
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Full Year Non-GAAP Income from Operations Guidance: $850 million to $875 million.
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Full Year Free Cash Flow Guidance: $850 million to $875 million.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Twilio Inc (NYSE:TWLO) reported a strong Q1 2025 with $1.172 billion in revenue, marking a 12% increase year-over-year.
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The company achieved its third consecutive quarter of double-digit revenue growth and year-over-year growth acceleration.
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Twilio Inc (NYSE:TWLO) delivered a record non-GAAP income from operations of $213 million, up 34% year-over-year.
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The company generated $178 million in free cash flow despite a significant payout related to its annual cash bonus program.
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Twilio Inc (NYSE:TWLO) saw strong growth in messaging both in the US and internationally, contributing to the overall revenue increase.
Negative Points
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The non-GAAP gross margin declined to 51.3%, down 270 basis points year-over-year, primarily due to nonrecurring hosting credits and a higher mix of international messaging revenue.
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The dollar-based net expansion rate for the Segment was 94%, indicating slower growth compared to other areas.
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Stock-based compensation as a percentage of revenue was 11.9%, which, although reduced, still represents a significant portion of expenses.
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The company is taking a cautious approach to its outlook due to rising macroeconomic uncertainties, which could impact future performance.
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Twilio Inc (NYSE:TWLO) experienced a sequential decline in gross margin driven by the acceleration in international messaging, affecting overall profitability.